Maine

Asset Outcomes

Maine is among the highest scoring state in Asset Outcomes, ranking 4th in the nation and receiving an A in the index. The state ranks in the top 10 in 11 measures. Most notably, Maine leads the nation in homeownership measures, enjoying a 76.5% homeownership rate (2nd). The state has the smallest gap in the nation in homeownership between high-income earners and low-income earners. It has the 8thlowest gap in homeownership between men and women. It is important to note, though, that Maine has the lowest median home value in the nation ($55,276), which may explain its high levels of access to homeownership among low-income residents and women.

Financial asset measures are mixed in the state. Maine?s residents have a relatively high mean net worth (12th) and a somewhat average level of asset poverty (22nd), but the state is burdened by a high number of overall households with zero net worth (32nd). This means that residents who have financial assets enjoy relatively high average asset levels, but a number of residents in Maine have no financial assets at all. With regard to business capital, Maine has high levels of small business ownership (5th) and minority entrepreneurship (6th) but, surprisingly, ranks last in the nation in private loans to small businesses.

Asset Policy

Asset Policy. Maine also receives an A in the Asset Policy Index, ranking 8th in the country. The state leads the nation in policies that support business assets, including state funding dedicated to microenterprise development and a state-supported community development financial institution initiative. State policymakers have also enacted legislation that encourages employee ownership and allows residents to pursue self-employment and remain eligible for unemployment benefits. Financial assets are promoted with Individual Development Accounts (IDAs). Although more could be done, the state has allocated $200,000 in state funds to Maine?s IDA program and includes IDAs in its Temporary Assistance for Needy Families (TANF) plan.

Despite its strong performance in policies that build and facilitate asset accumulation, Maine needs improvement with regard to asset protection. The state has no specific policies to protect a family?s finances during hard times. Workers could benefit from better protection from job injury with more comprehensive workers? compensation coverage (39th). Moreover, health care policies also need to be enacted. State policymakers should consider providing family leave benefits to help families when they must take essential time off, expand Medicaid to low-income adults without children to help provide all adults with health care, and provide incentives to small businesses to offer health care coverage for employees.

Tax Policy and Accountability

Maine also does a fairly good job on tax policy accountability. The state prepares a tax expenditure report that itemizes the value of revenues foregone via tax breaks, although it does not make this report available on the web. It also has full capacity to determine the impact of state taxes or changes in the tax code on taxpayers of all income levels.