The Maine Revenue Forecasting Committee today revised the State’s General Fund revenue forecast upward by $139 million, including a projected additional $40 million for the current Fiscal Year which ends June 30, 2020. Governor Janet Mills issued the following statement in response:
“The State of Maine continues to be on solid financial footing. Last month, my Administration presented a supplemental budget that invests in pressing, bipartisan priorities, including protecting the health and safety of Maine people, enhancing economic and workforce development, and building up the State’s Budget Stabilization Fund. This new revenue projection strengthens the case for pursuing these important investments,” said Governor Mills. “Additionally, with this new projection, I have directed my Administration to consider two goals: 1) targeted, data-driven MaineCare improvements and rate increases that will serve as a bridge to the comprehensive reforms the Department of Health and Human Services is developing, and 2) setting aside money in the Budget Stabilization Fund to protect Medicaid and the people it serves from the cuts the Trump Administration is pursuing. I expect to submit a budget change package in the coming weeks to accomplish these goals.”
“The new forecast provides an opportunity to strengthen our ability to provide Maine people critical services in the face of emerging challenges and threats like a new proposal by the Trump administration that would tie states’ hands in financing their Medicaid programs,” said Health and Human Services Commissioner Jeanne Lambrew.
“This revenue forecast, which includes tens of millions of dollars in additional revenue for this and the coming biennium and projects a total of $8.5 billion in revenues for Fiscal Year 2022-2023, demonstrates the continued strength of Maine’s economy,” said Department of Administrative and Financial Services Commissioner Kirsten Figueroa. “It supports and strengthens the important work done by the Administration for the biennial budget and for the supplemental budget proposal and positions us well to continue working with the Legislature to address critical needs and savings.”
The projection from the Maine Revenue Forecasting Committee (RFC) is one of two statutorily-required forecasts that are completed each year and delivered to Governor Mills and the Legislature. The RFC’s forecast today updates revenue projections to the Fiscal Year 2020-2021 biennium and the Fiscal Year 2022-2023 biennium. Changes to the current fiscal year, which concludes on June 30, 2020, include a positive revision of $40 million. The forecast for the 2020-2021 biennium, which is the revenue period covering Governor Mills’ first biennial budget, has been revised upward by a total of $74 million, inclusive of the $40 mentioned above. 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 $65 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.