November 19, 2007
ME revenue shortfall could reach $90M
Maine may have to accommodate revenue shortfalls of as much as $90 million as it tries to balance the state's $6.3 billion budget, according to a report given to the Legislature's Appropriations Committee on Friday.
Michael Allen, a tax expert with Maine Revenue Services, told the committee that slipping revenue from taxes and other sources of state income will mean a shortfall of at least $40 million over the next two years, according to the Associated Press. Allen's preliminary recommendations to accommodate the slump include lowering anticipated General Fund revenue by $20 million for each of the next two years and reducing Highway Fund revenue. The Baldacci administration, citing revenue sources not included in Allen's analysis, says the shortfall could be twice as much as Allen's predictions, the AP reported.
The state Revenue Forecasting Committee is scheduled to meet today to discuss an update of revenue projections, which are due by Dec. 1, according to the AP. If the committee lowers its projections, lawmakers will have to make sure the budget conforms.
Michael Allen, a tax expert with Maine Revenue Services, told the committee that slipping revenue from taxes and other sources of state income will mean a shortfall of at least $40 million over the next two years, according to the Associated Press. Allen's preliminary recommendations to accommodate the slump include lowering anticipated General Fund revenue by $20 million for each of the next two years and reducing Highway Fund revenue. The Baldacci administration, citing revenue sources not included in Allen's analysis, says the shortfall could be twice as much as Allen's predictions, the AP reported.
The state Revenue Forecasting Committee is scheduled to meet today to discuss an update of revenue projections, which are due by Dec. 1, according to the AP. If the committee lowers its projections, lawmakers will have to make sure the budget conforms.
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