Computer error causes $11M shortfall
A computer error at the Maine Revenue Service meant $22 million in tax revenues was counted twice, leaving the state scrambling to find a way to replace nearly $11 million in next year's budget.
The error began in June 2006, leading to overstated tax revenues of $2.9 million in fiscal year 2007, $8.2 million in 2008 and $11 million in the current year, according to Statehouse News Service. Ryan Low, commissioner of the Department of Administrative and Financial Services, yesterday told the appropriations committee that 2009 revenues will cover the 2009 shortfall, but that additional funding is needed to cover the other $11 million from previous years. Low recommended using funds from a federal economic stimulus package that is expected to bring $150 million in new Medicaid funding, according to the news service.
The error is being blamed on the implementation of the I-File program, which allows taxpayers to file income, sales and use and service provider taxes online.
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