Revenue Forecasting Committee Projects Additional $248.4 Million in Revenue for Current Fiscal Years 26-27 Biennium

Revenue Forecasting Committee Projects Additional $248.4 Million in Revenue for Current Fiscal Years 26-27 Biennium 
      Forecasts reflect the overall trend of modest growth in state revenues over past two years

AUGUSTA, Maine – Following its meeting today, Maine’s nonpartisan Revenue Forecasting Committee (RFC) is expected to upgrade the State’s General Fund revenue forecast by approximately $165 million in FY 26 and $83.3 million in FY27, for a total $248.4 million for the current biennium. Additionally, the Committee revised revenues upward for Fiscal Years 2028-2029 by approximately $167.7 million. 

The updated forecast continues a trend of modest growth in state revenues after a period of rapid growth during the pandemic. The changes for the coming fiscal years are based on predicted increases in revenue from sales and income taxes, as well as an increase in FY25 in the capital gains forecast based on the stock market’s performance since the last revenue forecast in May of this year.

Even with these adjustments, General Fund revenues are only forecasted to increase Year-Over-Year (YOY) by 0.9% in FY26 and 1.4% in FY27. The growth is forecasted to remain relatively slow because the top three revenue sources (sales, individual, and corporate taxes) are only forecasted to increase by only 1.6% per year.

Maine’s Constitution requires a balanced budget, which means the revenue adjustments projected by the Revenue Forecasting Commission today will prompt the Governor to submit a supplemental budget for the Legislature’s consideration when it meets for the next session in January. 

“With these projected revenues, the State of Maine continues to remain on solid fiscal footing,” said Governor Janet Mills. “In January, my Administration will work with the Legislature to continue to budget prudently, focusing on the health, safety, welfare, and education of Maine people.”

“The Mills Administration has anticipated that revenues would stabilize and has budgeted accordingly to maintain key obligations to the people of Maine,” said Elaine Clark, Acting Commissioner of the Department of Administrative and Financial Services. “We will continue to prioritize prudent fiscal decisions that serve Maine people.” 

The RFC’s projections are based on the November 1, 2025 economic forecast  from the independent Consensus Economic Forecasting Commission (CEFC). The CEFC did recognize the extremely high level of uncertainty in the economy around tariffs, federal funding, and general federal policy, compounded by the effects of the federal shutdown. This contributed to the CEFC only making a few adjustments to their forecast for 2025, leaving the rest of their forecast unchanged. Because the next CEFC meeting will be held in January, the Commission felt it made sense to hold off on additional changes with the hope that there would be more clarity then.

Under Governor Mills’ leadership, Maine’s Budget Stabilization, or Rainy Day Fund, has returned to its statutory maximum of $1.03 billion, an increase of more than $820 million since taking office in 2019. In August 2025, Fitch Ratings, one of the top international credit rating agencies, upgraded its bond credit for the State of Maine to AA+, the second highest rating that Fitch issues. At approximately that same time, ratings agency Moody’s reaffirmed Maine's credit rating of Aa1, their second highest possible rating, and ratings agency Standard & Poor’s (S&P) reaffirmed its AA rating for Maine. 

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