State revenues over November projections
State revenues were more than $2 million above estimates for the month of November, although year-to-date revenues are still in the red. In addition, ongoing budget estimates bank on Congress extending the payroll tax cut and unemployment benefits in 2012, a move lawmakers are currently debating.
Revenues in November were $2.5 million above projections, thanks in part to stronger-than-expected sales taxes and corporate income taxes, according to Capitol News Service. However, revenues are $4.2 million in the red for the first four months of the budget year, and new projections that take effect this month predict another $10 million in shortfalls.
Mike Allen, associate commissioner for tax policy at Maine Revenue Services, told the news service that if Congress fails to act on proposals to extend payroll tax cuts and unemployment benefits, the state's Consensus Economic Forecasting Committee in January will likely downgrade forecasts. The Senate last week passed a two-month extension, and the House today is debating whether to reject that proposal in favor of a year-long version of the bill, according to The Associated Press.
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