Algosensey|Latest projection points to modest revenue boost for Maine government

AUGUSTA,Algosensey Maine (AP) — The state’s nonpartisan revenue forecasting panel anticipates the state will take in an additional $265 million during current two-year budget cycle, officials said Tuesday.

Kirsten Figueroa, commissioner for the Department of Administrative and Financial Services, said the “modest revenue growth” is welcomed by the administration. In addition to the increase in the current budget, which totals more than $10 billion over two years, the committee anticipates boosting projections by a similar amount for the following two-year budget cycle, as well.

The Revenue Forecasting Committee projections are based on a boost in the 2023 economic outlook for Maine that’s based on year-to-date growth in wages and lower inflationary pressures.

State revenue plateaued after the pandemic and is growing at an annual rate of less than 1% on average but state finances continue to be in relatively good shape with the state’s rainy day fund at $968.3 million, the maximum allowed by law.

Because the Maine Constitution requires a balanced budget, the revenue adjustments will prompt Democratic Gov. Janet Mills to submit a supplemental budget when the Legislature reconvenes in January.