Maine’s Revenue Forecasting Committee met today to discuss preliminary numbers for their December 1 revenue forecast, which helps policymakers determine the anticipated resources available for Maine’s biennial budget. While a $187 million shortfall is predicted for the general fund, it is significantly smaller than the $637 million gap projected in September. The Committee revised its projections to show an additional $450 million in revenue going into the general fund over the next few years. Revenue projections for the highway fund were also slightly higher than the earlier forecast, and that fund will still face a shortfall of almost $280 million in the next budget biennium. Maine’s ‘rainy day fund’ (or Budget Stabilization Fund) remains flush at approximately $900 million.
“Mainers expect their government to prioritize the needs of working-class families,” says MECEP Economic Policy Analyst James Myall. “If we’re serious about reducing the cost of living, we have to protect programs like free community college and school meals, drug savings for older Mainers, and funding for our schools and nursing homes. These programs help Mainers keep money in their wallets and are the kinds of choices that have led to Maine’s economy outperforming the nation’s. We can easily make up the shortfall by asking millionaires, billionaires, and multinational corporations to finally step up and pay their fair share. These solutions are common sense and popular. This is the year to get it done.”
Maine Center for Economic Policy recently released a policy brief detailing revenue raising options that would promote tax fairness and help maintain vital programs. Today’s forecast, showing that much of the state’s new revenue is driven by record corporate profits and higher than expected capital gains revenue, affirms that the wealthy can afford to do more for Maine.
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