August revenues could beat estimates
State revenues for the month of August will likely come in above estimates, offsetting a $1.2 million shortfall recorded in July.
Michael Allen of Maine Revenue Services told a legislative panel yesterday that sales tax revenues for August are slightly higher than projections, and income withholding tax could come in as much as $10 million higher than estimated, according to reports from the Maine Public Broadcasting Network and Capitol News Service. A stronger tourism season and increased car sales have helped push the state's sales and use tax revenues compared with the year before. A total figure for August state revenues is not yet available, but Finance Commissioner Ellen Schneiter told Capitol News Service revenues would likely be "a few percentage points" above projections.
State Treasurer David Lemoine also told lawmakers yesterday that bond anticipation notes -- short-term loans issued by the state before 10-year bonds are taken out -- issued recently had historically low interest rates, according to the Kennebec Journal. A nontaxable short-term bond anticipation note of $45 million has an interest rate of 0.27%, while a taxable bond anticipation note for $24.5 million has a rate of 0.49%. Lemoine said uncertainty in the market had increased interest in the municipal market, which is generally considered a low-risk investment, according to the paper.
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