The state’s revenue forecasting panel expects a decreased amount of sales taxes in October, but the full effects of the federal government’s 16-day shutdown won’t be known until late November.
The Bangor Daily News reported that James Clair, chairman of the state’s Consensus Economic Forecasting Commission, and Maine Revenue Services’ Director of Research Mike Allen expect the state’s revenue projections will be reduced because of the shutdown’s impact on overall spending during early October. The state’s Revenue Forecasting Committee will meet next month to issue decisions that will impact the current state budget.
Beyond the now concluded shutdown, Clair said that further gridlock over the nation’s debt ceiling early next year could also continue to hamper spending and, in turn, lead to decreased state revenues into the next year.