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May 1, 2012

Revenue projections up by $49M

The state is looking at another $49 million in unexpected revenue over the next two budget years, thanks to reforecasted projections. Mike Allen, chairman of the revenue forecasting committee, said sales and corporate income taxes are expected to perform better than previously anticipated.

Allen said $43 million of that revenue will be seen this budget year, which ends June 30, according to Capitol News Service. The reforecasting also includes nearly $14 million in revenues from January that were not accounted for until March, due to human error. However, the state is still looking at an $82 million shortfall in the Department of Health and Human Services that must be addressed when the Legislature reconvenes later this month. Members of the appropriations committee yesterday debated how to use the extra revenue, with Republicans favoring putting it in the state's rain day fund, and Democrats advocating it be used to offset Gov. Paul LePage's proposed social assistance cuts, MaineToday Media reported.

Slower revenue growth is expected for next year due to tax cuts scheduled to take effect, according to the news service.

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