Revenue surplus smaller than anticipated
A dip in state revenues in June has shrunk the expected year-end surplus to a little more than $20 million. The state at the end of May had a $25 million surplus.
Finance Commissioner Sawin Millett said a one-time payment related to the settlement of a multi-state lawsuit impacted revenues, as did the allocation of a state investment tax credit to individuals who pay their business taxes through their personal returns, Capitol News Service reported. He said some taxable sales categories, like auto and transportation, and lodging and restaurant, were up, but others were flat.
The final surplus will be determined next month. According to budget law, a surplus first goes to the governor's contingency account; then $1 million goes to the Finance Authority of Maine; then the next $15 million funds a cost-of-living adjustment for state retirees; and then the next $25 million goes to hospitals for reimbursement payments.
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