For Immediate Release: Wednesday, September 26, 2018
Contact: David Heidrich, Director of Communications
Department of Administrative and Financial Services, (207) 624-7800
State of Maine Revenues
Continue Trend of Strong FY19 Growth
August General Fund revenues come in over budget by $14.5 million.
Read More:
Office of the State Controller Revenue Reports
U.S. Bureau of Economic Analysis Personal Income by State
AUGUSTA – Finance Commissioner Alec Porteous announced today that the State of Maine’s revenues were over budget by $14.5 million for the month of August. Through the first two months of fiscal year 2019, state tax collections are over budget by $35.3 million. Compared to the first two months of last fiscal year, General Fund revenues have increased by $51.2 million, or 9.3 percent.
Strong growth in sales tax and corporate income tax receipts and consistently robust individual income tax withholdings contributed to the monthly surplus, which was 4.6 percent greater than the forecasted projections for the month and 7.5 percent greater than revenues from the previous August. Building supply sales, automobile sales and other retails sales fueled sales tax revenues, which grew 6.2 percent over last year.
“Revenue receipts continue to outpace projections and prior year collections,” said Commissioner Porteous. “These results are reflective of Maine’s strengthening economy and are consistent with the latest U.S. Bureau of Economic Analysis (BEA) data for our state. The latest BEA report shows strong performance among a number of key economic indicators, including net earnings, personal income and average earnings per job.”
Corporate income tax revenues were $4.3 million, or 327 percent, over budget for the month. For the fiscal year, corporate receipts are now $6.6 million over last year. On the individual income tax side, revenues were over budget by $2.6 million, or 1.9 percent, for the month. For the first two months of the fiscal year, individual income tax receipts are over budget by $16.7 million, or 7.4 percent.
“Maine’s economy continues to grow. It is welcome news that the latest BEA state personal income report, which shows net earnings among Mainers growing at more than 5 percent, is reflective of the revenue picture that MRS has been reporting throughout the year,” added Commissioner Porteous. “The strength of building supply, other retail and auto sales suggests consumer confidence continues to grow. With historically low unemployment, rising wages and increasing in-migration across our state, Maine’s economy is poised to continue to grow and enter the fourth quarter on a strong note.”
Yesterday, the BEA reported that personal income for Maine increased 4.2 percent in the second quarter of 2018, ranking Maine at 25th in the nation for growth and second in New England. Further, Maine’s annual growth rate for 2017 was revised upward from 2.7 percent to 4.2 percent. This adjustment moved Maine from 31st in the country to 20th for annual growth, a significant increase.
The Department of Administrative and Financial Services provides Governor Paul R. LePage and Members of the Legislative Council, Joint Standing Committee on Appropriations and Financial Affairs and Joint Standing Committee on Taxation with a memorandum detailing the State of Maine’s revenue collections each month. The report provides key policymakers with a transparent overview of the State’s tax collections and ongoing economic outlook. It reports revenue growth in two measures: year-over-year growth and growth compared to the State of Maine’s most recent revenue forecast.
Read More:
Office of the State Controller Revenue Reports
U.S. Bureau of Economic Analysis Personal Income by State
About the Revenue Forecast
The State of Maine has a two pronged approach to revenue forecasting that occurs through our independent Consensus Economic Forecasting Commission (CEFC) and the Revenue Forecasting Committee (RFC). The RFC typically meets twice a year and issues a revenue forecast that incorporates the recommendations from the CEFC. The forecast provides state government with an estimate of the tax revenues expected to be available for appropriation.
Membership of the RFC consists of the Associate Commissioner for Tax Policy, the State Budget Officer, the State Economist, an economist on the faculty of the University of Maine System selected by the chancellor, the Director of the Office of Fiscal and Program Review and another member of the Legislature's nonpartisan staff familiar with revenue estimating issues appointed by the Legislative Council.
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