AUGUSTA — The state is reporting a $148 million surplus at the end of the fiscal year.

Gov. Janet Mills said in a statement that the surplus is an indication of prudent budgeting.

“Throughout my time in office, my administration has worked hard with the Legislature to produce responsible state budgets that invest in Maine people and improve our economy while living within our means,” she said.

By state law, the unallocated funds must be distributed according to a formula. According to the Department of Administrative and Financial Services, the funds will be directed to:

• $115.7 million to the Highway Fund
• $26.2 million to the Budget Stabilization Fund
• $2 million to retiree health insurance
• $2.5 million for operating capital
• $1 million for the Finance Authority of Maine loan insurance reserve
• $1 million to the Governor’s Contingency Account

A supplemental budget passed by lawmakers earlier this year will go into effect next week, which is when 500,000 Mainers will begin to receive $300 affordability checks. Nearly $300 million from the Budget Stabilization Fund will pay for the checks, leaving it with a balance of about $764 million.