State revenue surplus likely for budget year
With the budget year ending June 30, state revenues are sitting at $24.9 million above estimates. Finance Commissioner Sawin Millett said the state will likely end the budget year with a surplus.
But Millett cautioned that the trend may not continue into the next budget year, since a majority of the surplus is from one-time revenues, including money from a lawsuit settlement, according to Capitol News Service. Estate taxes in May were $5.3 million above projections, while corporate income taxes brought in $6.9 million last month, well over the $1.3 million estimate. However, sales and individual income taxes have not grown as much as anticipated. Individual income taxes are currently $4.6 million below estimates. Revenue projections were revised in April.
Any surplus for the budget year will go to restore the governor's contingency account, and $1 million will go to the reserve fund at the Finance Authority of Maine, per budget law. Other surplus funds are slated for a cost-of-living adjustment for state retirees and Medicaid reimbursement payments for hospitals, according to the news service.
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