An Act to Strengthen Maine's Financial Future in Perpetuity by Establishing the Irrevocable Budget Trust Fund
Maine Legislature, Session 131, LD 1023
Committee: Appropriations and Financial Affairs
Sponsors: PERRY
Amends: 5 MRSA §1524

Legislative Document
No. 1023
H.P. 659
House of Representatives, March 7, 2023
An Act to Strengthen Maine's Financial Future in Perpetuity by 
Establishing the Irrevocable Budget Trust Fund
Reference to the Committee on Appropriations and Financial Affairs suggested and ordered 
printed.
ROBERT B. HUNT
Clerk
Presented by Representative PERRY of Bangor.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  5 MRSA §1524 is enacted to read:
§1524.  Irrevocable Budget Trust Fund
1.  Irrevocable Budget Trust Fund established; purpose.  The Irrevocable Budget 
Trust Fund, referred to in this section as "the trust fund," is established to create a long-
term revenue stream from investments in order to supplement future General Fund 
revenues.  Funds appropriated to the trust fund must be held in trust and must be invested 
for the exclusive purpose of providing stable revenues for the General Fund and may not 
be encumbered for or diverted to other purposes.  Funds appropriated for the trust fund may 
not be diverted or deappropriated by any subsequent action.
2.  Trustees.  The Treasurer of State and the State Controller are the trustees of the 
trust fund.
3.  Duties of the trustees.  The trustees of the trust fund shall jointly make the final 
decision on all matters pertaining to administration of the trust fund.
4.  Investment of funds.  The trustees of the trust fund are responsible for the 
investment and reinvestment of the funds appropriated to the trust fund in accordance with 
the Maine Uniform Trust Code and the Maine Uniform Prudent Investor Act under Title 
18-B, subject to the guidelines set for the Retiree Health Insurance Post-employment 
Benefits Investment Trust Fund in section 17435.  A portion of the trust fund must be 
invested in the Treasurer of State's cash pool with other trust funds invested through the 
Maine Public Employees Retirement System.
5.  Annual transfers of funds.  Notwithstanding any provision of law to the contrary 
and before any transfers pursuant to chapter 142 or any other provision of law, annually 
beginning with the fiscal year starting July 1, 2024 the Legislature shall appropriate 5% of 
General Fund revenues to fund the trust fund. Annually beginning with the fiscal year 
starting July 1, 2025 the trustees of the trust fund shall transfer to the General Fund 5% of 
the fund earnings from the previous fiscal year.  Earnings transferred to the General Fund 
from the trust fund are not considered General Fund revenue for the purposes of this 
subsection.
6.  Report to Legislature.  The trustees of the trust fund shall make a written report to 
the joint standing committee of the Legislature having jurisdiction over appropriations and 
financial affairs on or before March 1st of each year including a discussion of any areas of 
policy or administration of the trust fund that, in the opinion of the trustees of the trust fund, 
should be brought to the attention of the joint standing committee and a review of the status 
of the trust fund.
SUMMARY
To provide a stable source of revenue for the State, this bill establishes the Irrevocable 
Budget Trust Fund and requires the Legislature to appropriate 5% of General Fund 
revenues to the Irrevocable Budget Trust Fund, beginning with the fiscal year starting July 
1, 2024.  The Treasurer of State and the State Controller, as trustees of the fund, are required 
to invest the money in the fund.  Beginning with the fiscal year starting July 1, 2025, 5% 
of the earnings in the fund are transferred back to the General Fund.