Forecast Anticipates Increase in State Revenue
December 1, 2014
For Immediate Release: Monday, December 1, 2014
Contact: Adrienne Bennett, Press Secretary (207) 287-2531
AUGUSTA – The Maine Revenue Forecasting Committee (RFC) formally submitted its economic forecast today to Governor Paul R. LePage and the Maine Legislature. The forecast is one of two required annually and was due no later than December 1, 2014.
As part of the forecast, the RFC projects an increase in revenues of $45.5 million for the current fiscal year and $67.5 million over the course of the FY 2016-17 biennium. The adjusted forecast is realized with improved revenues from both individual and corporate income tax filings.
“Reducing the tax burden on Mainers was a good, meaningful policy decision in 2011, and the State is seeing an uptick in income tax revenue as a result,” Governor LePage said. “Policies that reduce state spending, remove red tape and allow businesses to invest and create jobs are what we need to move Maine’s economy forward. Maine is open for business, and I am committed to improving the economy with strong growth in both the number of jobs created and the wages they pay.”
As part of the adjusted forecast, individual and corporate income tax collections account for nearly $19 million in additional revenue for the current fiscal year and more than $40 million in the FY16/17 biennium.
“The forecast from the Revenue Forecasting Committee is positive news and a welcome development,” said Richard Rosen, acting commissioner of the Department of Administrative and Financial Services. “While other states have been plagued by unexpected shortfalls, our reliable and conservative approach to revenue forecasting has helped ensure that the State is in a sound financial position.”
The RFC consists of the State Budget Officer, the Associate Commissioner for Tax Policy, the State Economist and 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.
“Today’s revenue forecast reflects the improvement that Maine is experiencing as it recovers from the recession,” said Dr. Michael Allen, associate commissioner for Tax Policy. “The improving economy, combined with low energy prices, has provided Maine families with more confidence as we head into the holiday shopping season."