John Lettieri, President and CEO of Economic Innovation Group | Official Website
John Lettieri, President and CEO of Economic Innovation Group | Official Website
Among Maine’s counties, Somerset County saw the largest increase in transfer dependency over the past 10 years, surging 4.5% from 29.3% in 2012 to 33.8% in 2022, and up 22% from just 11.8% in 1970. In dollar terms, government transfers per capita in Somerset County jumped from $11,717 in 2012 to $16,005 in 2022, a stark contrast to the $2,175 recorded in 1970.
Franklin County followed with the second-largest increase in transfer dependency, increasing 3.8% from 26.2% in 2012 to 30% in 2022, and an overall increase of 20.8% from 1970’s 9.2% transfer dependency. This trend is reflected in per capita amounts, with residents of Franklin County receiving an average of $14,152 in transfer income in 2022, up from $10,746 in 2012 and more than double the $2,175 recorded in 1970.
Additionally, Washington County had the highest percentage of income derived from government transfers, at 38.8% in 2022, making it the county with the highest overall transfer dependency. Aroostook County and Somerset County followed closely behind, with transfer dependency rates of 35% and 33.8% in 2022, respectively.
Compared to 1970, Washington County increased by 22.8%, while Aroostook County and Somerset County have increased by 25.6% and 22%, respectively, showing sustained reliance on government transfers. Residents in Washington County received an average of $19,196 in transfers per capita, with Aroostook County and Somerset County close behind at $17,806 and $16,005, respectively.
For comparison, the statewide average was 22.7% in 2022, showing a higher dependency than the national average of 17.6%. On a per capita level, this translates to $13,779 per resident in 2022, compared to $11,542 nationwide.
Government transfer payments are non-repayable funds provided by federal, state, or local governments to support individuals in need. These payments aim to stabilize economic conditions and provide financial support during hardships. Key programs include Social Security transfers (retirement benefits), Medicare transfers (healthcare for seniors), Medicaid transfers (healthcare for low-income individuals), and income maintenance transfers (financial assistance for basic needs).
In Maine, reliance on government transfers was just 9.8% (or $2,050 per capita in inflation-adjusted 2022 dollars) in 1970. This has since increased to 22.7% (or $13,779 per capita) in 2022, reflecting a total increase of 12.9% since 1970. This shift is largely influenced by an aging population, increased healthcare costs, and economic transformations that have reshaped income sources across the U.S.
In 2022, the primary government transfer programs in Maine included:
- Social Security: $4,633 (33.6% of total transfers)
- Medicare: $3,272 (23.7% of total transfers)
- Medicaid: $2,821 (20.5% of total transfers)
- Income Maintenance Programs: $1,637 (11.9% of total transfers)
With 22.4% of the population aged 65 and older, Maine has a significant demand for programs like Social Security and Medicare. However, counties with higher poverty rates also show elevated Medicaid and income maintenance participation.
Government transfers have long been a modest financial safety net, historically comprising only a small fraction of Americans' income. However, since the 1970s—sometimes dubbed the “Great Transfer-mation”—dependency has surged from 8.2% (or $2,022 per capita in inflation-adjusted 2022 dollars) in 1970 to 17.6% (or $11,542 per capita) in 2022 nationwide. In Maine, reliance on government transfers has similarly increased from 9.8% (or $2,050 per capita) in 1970 to 22.7% (or $13,779 per capita) in 2022, reflecting broader national trends.
According to the Economic Innovation Group’s analysis, these trends are not merely short-term responses to economic pressures but rather reflect a profound, long-term transformation in how government support is integrated into American life. The study illustrates that structural shifts—from rising healthcare expenses and demographic changes to stagnant wages—have significantly increased dependency on government transfers.
| County | Dependency on Transfers (%) | Change Since 2012 | Change Since 1970 | Per Capita Amount (2022) | Per Capita Change Since 2012 | Per Capita Change Since 1970 |
|---|---|---|---|---|---|---|
| Androscoggin County | 27.7% | 2.1% | 17% | $13,577 | $2,462 | $11,249 |
| Aroostook County | 35% | 2.8% | 25.6% | $17,806 | $4,282 | $16,079 |
| Cumberland County | 15.3% | 0.3% | 6.7% | $11,909 | $2,804 | $9,820 |
| Franklin County | 30% | 3.8% | 20.8% | $14,152 | $3,406 | $12,491 |
| Hancock County | 23.2% | 2.6% | 12.7% | $14,726 | $4,249 | $12,549 |
| Kennebec County | 25.2% | 1.2% | 15.4% | $13,946 | $2,668 | $11,842 |
| Knox County | 23.6% | 2.7% | 11.4% | $14,611 | $3,952 | $12,159 |
| Lincoln County | 23.9% | 2.2% | 13.8% | $14,685 | $3,421 | $12,358 |
| Oxford County | 32.4% | 3.3% | 21.6% | $15,052 | $3,606 | $12,969 |
| Penobscot County | 26.7% | 1.5% | 17.1% | $13,855 | $3,068 | $12,010 |
| Piscataquis County | 33.6% | 1% | 20.9% | $16,727 | $3,592 | $14,441 |
| Sagadahoc County | 20.6% | 2.1% | 10.7% | $12,863 | $3,193 | $10,805 |
| Somerset County | 33.8% | 4.5% | 22% | $16,005 | $4,288 | $13,830 |
| Waldo County | 27.4% | 1.8% | 15.7% | $14,982 | $4,111 | $12,910 |
| Washington County | 38.8% | 3.1% | 22.8% | $19,196 | $4,356 | $16,539 |
| York County | 19.3% | 1.3% | 11.1% | $12,568 | $3,181 | $10,738 |
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