On October 15, the Cato Institute released their biennial fiscal policy report card on the nation’s governors. The results were not good for Maine Gov. Janet Mills.

Mills’ fiscal policies have been reviewed by two previous Cato report cards, and both the 2020 and 2022 analyses gave her a “D” grade for fiscal responsibility. This might have been excused under the umbrella of runaway COVID-related spending, but in this year’s report card, Gov. Mills performed even worse. 

The Cato Institute Fiscal Policy Report ranks governors in several categories, from spending to revenue, and ranks their policies by how much they avoid unnecessarily growing the size of state government. While Gov. Mills’ previous rankings were poor, she has now been downgraded to an “F” rating in 2024, making her the third worst governor in the nation in terms of fiscal responsibility. This should be a warning sign to Gov. Mills and the Legislature that their current spending patterns cannot continue. 

Gov. Mills’ “F” rating appears even worse when you add in the historical context. While Gov. Mills’ received “D” grades in past reports, Gov. LePage received an A ranking every single time Cato graded his administration. Additionally, this is not a partisan issue, as Gov. John Baldacci received largely “B” scores during his administration with only a single D on his record. 

This means that not only was Gov. Baldacci’s worst grade as high as Gov Mills’ best grade, but this is the first time ever since the Cato Institute began making its fiscal report card in 1992 that Maine’s governor has received an “F” grade for fiscal responsibility. Comparing these grades alone shows the poor condition of Maine’s fiscal governance, but looking at what impacted Gov. Mills’ most recent score clarifies what policies led to such a sharp decline.

First, Cato notes the jump in Maine’s General Fund budget from $4.1 billion in 2022 to $5.1 billion in 2024. While it adds that Mills supported limited one-time rebates and narrow tax credits, Cato points out that she has not reduced taxes like many other states. Additionally, in conflict with her claim to oppose new tax increases, she signed a 2023 bill that funded a paid family leave program with a wage tax increase. 

Her allegedly pro-business policies have also been ineffective, as Maine’s corporate tax remains quite high, as does its business property tax, with narrow subsidies further distorting and complicating the market for growing or new businesses. While Gov Mills did veto LD 1231, a 2024 bill that would have increased Maine’s top income tax rate, the bill did not impact her revenue health, as it was revenue-neutral legislation.

Fiscal responsibility should be an area of bipartisan concern, as Mills’ ranking is now worse than any other Maine governor scored in history, including Republican, Democratic, and Independent administrations.

While Gov. Mills has advocated before for “fiscal restraint” in state government, Cato’s recent report is further proof that she does not pursue it in practice. Maine legislators of both parties should be more critical of the biennial budget they will craft in 2025, because if Maine continues in the same direction, we may soon be the worst ranked state in the nation for fiscal responsibility.