For Immediate Release: Wednesday, May 1, 2019
Contact: David Heidrich, (207) 624-7453
Director of Communications, Department of Administrative and Financial Services
State of Maine’s Revenue Forecast Increased by $120.5 Million
Revenue Forecasting Committee anticipates increase of $66.7 million in current fiscal year.
AUGUSTA – The Maine Revenue Forecasting Committee met earlier today to revise the State of Maine’s General Fund revenue forecast. The report is one of two statutorily-required forecasts that are completed each year and delivered to Governor Janet T. Mills and the Maine Legislature. The RFC revised Maine’s General Fund revenue forecast upward by $120.5 million.
The current forecast is divided into three parts: revisions to the current 2019 fiscal year, revisions to the fiscal year 2020-2021 biennium, and revisions to the fiscal year 2022-2023 biennium. Changes to the current fiscal year, which concludes on June 30, 2019, include a positive revision of $66.7 million. The forecast for the 2020-2021 biennium, which is the revenue period covering Governor Mills’ first biennial budget, has been revised upward by $20.7 million.
“My Administration has put forward a pragmatic, sustainable budget that lives within our means and delivers what Maine people want: better health care, stronger schools, and no new taxes. The revenue projections released today continue to demonstrate that the state can and should support these important priorities,” said Governor Mills. “In the wake of this expected additional revenue, and as the budget process begins in earnest, I strongly urge lawmakers to practice sound fiscal management by ensuring that we appropriately and responsibly balance the need for investment with the need to save for the future.”
“The Revenue Forecasting Committee’s report demonstrates that Maine continues its history of strong revenue collections,” said DAFS Commissioner Kirsten Figueroa. “Just five months ago, the Committee increased the state’s General Fund forecast by $362.4 million, including a $99.2 million positive revision for fiscal year 2019. These strong revenue collections are evidence of the underlying strength of Maine’s economy.”
In addition to increases to the current fiscal year and forthcoming biennium, the Committee also revised the General Fund forecast for the 2022-2023 biennium by $33.1 million.
The State of Maine has a two pronged approach to revenue forecasting that occurs through our independent Consensus Economic Forecasting Commission and the Revenue Forecasting Committee. 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.