Revenues for Fiscal Years 2026-2027 are also projected to increase but the rate of growth has plateaued compared to the rapid revenue increases experienced during the pandemic
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 $265 million for the current biennium, Fiscal Years 2024-2025. Additionally, the Committee revised revenues upward for Fiscal Years 2026-2027 by approximately $257 million.
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.
“We welcome this modest revenue growth,” said Kirsten Figueroa, Commissioner for the Department of Administrative and Financial Services. “Looking forward, the Administration will work with the Legislature to ensure the continued funding of programs previously approved by the Legislature and maintain the State of Maine’s fiscal stability over the long-term.”
The State of Maine experienced significant revenue growth during the pandemic – revenues that were appropriated in a bipartisan manner to various programs by the Legislature. General Fund revenues have since plateaued and continue to grow at a more limited and modest rate (PDF) of less than one percent per year on average, when compared to revenue growth during the pandemic.
The RFC’s projections are based on the November 1, 2023 economic forecast (PDF) from the independent Consensus Economic Forecasting Commission’s (CEFC) which boosted its 2023 economic outlook for Maine based on strong year-to-date growth in wages and salaries and lower inflationary pressures.
Under Governor Mills’ leadership, Maine’s Budget Stabilization, or Rainy Day Fund, has reached its record high, statutory maximum of $968.3 million. Moody’s and Standard & Poor’s credit rating agencies have affirmed Maine’s Aa2 bond rating and in May of 2023, increased Maine’s outlook from stable to positive, citing Maine’s continued GDP growth at or above the national rate, and Maine’s growing population and employment rates.