Portland Press Herald / Maine Sunday Telegram
Income-expense gap wider for many in Maine household finances
Printer-friendly version Reader Comments
story tools
sponsored by
By TUX TURKEL, Staff Writer March 23, 2008
Click here to see the Maine Public Spending Research Group's analysis of household expenses.

The average Maine household has good reason to be worried about the economy: Its median income isn't keeping up with rising expenses for basic needs, according to a draft study recently completed by the Maine Public Spending Research Group, which compares tax and government spending policies.

In 2006, the average Maine household spent $45,419 on overall expenses. That was $1,980 more than the median income of $43,439, according to the most recent U.S. Census survey figures.

Standard inflation calculations suggest the situation didn't change much in 2007. Median income rose to $44,091 and expenses hit $45,874, a gap of $1,784.

But in recent months, the gap between income and expenses appears to be widening, driven largely by energy costs.

Maine already has among the nation's highest electricity costs and the highest percentage of homes dependent on heating oil, according to Pat Hart, an economist and the group's executive director.

In 2006, a median-income household spent $1,935 on heating oil and $966 on electricity, she found.

Figuring 2008 prices, the median household's heating oil expenses average $3,096; electricity is at $1,092.

Tack on a 22 percent rise in gasoline prices and a 12 percent increase in health insurance, Hart calculated.

Median income figures for the year aren't available yet, but the typical home now is spending at least $2,172 more on basic expenses, according to Hart.


Reader comments
Click here to view or add comments on this story

Were you interviewed for this story? If so, please fill out our accuracy form