Revenue Forecasting Committee Projects 9.7 Percent Increase in Revenues for FY 22-23 Biennium

Prudent fiscal administration, Federal pandemic aid, and rising costs are anticipated to extend receipts to the State’s Common Fund even within the face of flat tax charges

Following its assembly right now, Maine’s nonpartisan Income Forecasting Committee (RFC) is predicted to improve the State’s Common Fund income forecast by roughly $822 million for Fiscal Years 2022 and 2023, representing roughly a 9.7 p.c improve over earlier projections for the present fiscal yr and subsequent.

“All through my time in workplace, my Administration has responsibly managed Maine’s funds and funds, and this projected improve in revenues is a testomony to that success in addition to the assist of Federal pandemic aid. In reality, below my tenure, the Wet Day Fund has doubled to a document excessive and Maine’s GDP development has not solely absolutely recovered from the pandemic, however has surpassed pre-pandemic ranges,” stated Governor Janet Mills. “However that doesn’t imply we’re with out challenges. The elevated prices of electrical energy, residence heating fuels, gasoline on the pump, and different requirements are placing an actual pressure on the budgets of Maine individuals, which is much more tough through the harsh winter months. I wish to look at methods we will use this extra income to supply direct monetary aid to of us onerous hit by these will increase to assist them by these tough instances.”

“Maine’s financial restoration continues buoyed largely by this Administration’s prudent funds administration and greater than $15 billion in unprecedented Federal pandemic aid to Maine individuals, communities, and companies,” stated Kirsten Figueroa, Commissioner for the Division of Administrative and Monetary Providers. “We stay dedicated to using sources in a fiscally accountable method and to make sure the steadiness of State funds over the long-term.”

The RFC’s projected improve for this fiscal yr and subsequent is predicated on the financial forecast of the unbiased Consensus Financial Forecasting Fee (CEFC), which boosted its financial outlook for Maine on account of extended low rates of interest, continued Federal stimulus, and various different financial indicators, together with an anticipated improve within the Client Value Index, excessive shopper exercise, and improved company earnings.

With these new projections, the Mills Administration will craft a supplemental funds proposal within the coming weeks for the Legislature’s consideration.

By the biennial and supplemental budgets for Fiscal Years 2022 and 2023 already in place, the Legislature authorised and Governor Mills enacted various measures particularly designed to supply aid for lower- and middle-income households with a watch towards tamping down native property tax burdens, together with:

• Directing aid for 83,000 low-income and middle-income householders and renters onerous hit by the pandemic by the Property Tax Equity Credit score;
• Enhancing funding for public training,protecting a promise from the Governor to satisfy the State’s obligation to pay 55 p.c of the price of Okay-12 training for the primary time in Maine’s historical past;
• Practically doubling income sharing to Maine’s cities and cities;
• Making $285 funds to Maine individuals who labored through the early days of the pandemic;
• Preserving the Earned Revenue Tax Credit score, which gives tax aid to center and low-income Maine households with kids;
• Extending the tax credit score for Maine small companies to assist them recoup prices related to offering paid household medical go away, thereby serving to them hold individuals employed amid the pandemic; and
• Increasing the Educators Expense Deduction for Maine academics, permitting them to deduct unreimbursed bills for classroom supplies.

Additional, the Mills Administration has greater than doubled the State’s Funds Stabilization, or so-called “Wet Day” Fund, bringing it to an historic excessive of $491.9 million.

Moreover, Moody’s and Standard & Poor’s credit standing businesses have cited Maine’s governance practices and its reserves within the Funds Stabilization Fund as grounds for reaffirming Maine’s Aa2 and AA bond rankings, respectively, and for ranking Maine’s debt as secure through the pandemic, even whereas downgrading rankings of different states.