Maine will likely reduce its revenue projections for the current fiscal year by between $110 million and $150 million, prompting Gov. John Baldacci and the Legislature to fill that gap by June 30, 2009, the end of the 2009 fiscal year.
Michael Allen, director of econometric research for Maine Revenue Services, told the Consensus Economic Forecasting Commission and the Revenue Forecasting Commission in a joint meeting yesterday that the projected decline was largely in anticipation of taxpayer losses on Wall Street that would reduce income tax revenue, according to the Associated Press.
A CEFC report released yesterday said employment and income growth in the state will be slower than the commission forecasted in January, and a difficult fourth quarter will result in negative job growth this year.
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