Severe recession, without aid, could shrink Maine government revenue for years

The potential for a deep, prolonged recession has sparked more calls from some analysts and Maine’s congressional delegation for federal stimulus that includes local government funding to avoid devastating cuts to public services.

“The latest stress test, which measures the state’s fiscal health against the ongoing pandemic recession, further confirmed what we have known for months: The state is experiencing an economic shock that cannot be resolved without an influx of new revenue or major budget cuts,” said Sarah Austin, a tax and budget analyst at the progressive Maine Center for Economic Policy and a member of the state’s Consensus Economic Forecasting Commission, in a statement.

Click here for the full story, first published September 28, 2020, in the Portland Press Herald.