Statement of Governor LePage on Fitch Rating

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For Immediate Release: Wednesday, Jan. 23

Contact: Adrienne Bennett, Communications Director (207) 287-2531

 NOTE: Fitch does not officially rate future bond sales of the State of Maine. Standard & Poor’s and Moody’s officially rate bond sales for the State of Maine.

  Statement of Governor LePage on Fitch Rating

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AUGUSTA – Governor Paul R. LePage released the following statement today regarding the release from Fitch Ratings:

“Fitch’s recent announcement notes the budget gap in our welfare system, and this comes to no surprise as the major reason why Maine is downgraded. Without flexibility from the federal government, and growing Medicaid expenses, Maine will continue to be plagued by massive shortfalls in its budgets as a direct result of expanded welfare programs.” 

Background: While Fitch notes Maine’s slow emergence from recession and oldest median age in the nation as contributing factors to uncertainty about future workforce growth, the rating agency recognizes the Governor’s jobs bill which will pump $700 million into Maine’s economy and pay its debt to hospitals.

Among other positive comments, Fitch credits recent pension reforms to improving Maine’s fiscal outlook. However, the Governor has emphasized more of this kind of structural reform is needed to bring long-term financial stability to the State of Maine.

 

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