State scrambles to cover revenue shortfall
Lawmakers will be asked to pass emergency legislation this week to ensure the state meets budget requirements in light of an unexpected May revenue shortfall of $21.2 million.
Gov. John Baldacci will propose transferring $25 million in state reserves allocated for budget year 2010 to the current budget year, and applying about $5 million in expected year-end balances from various spending accounts to the shortfall, the Bangor Daily News reported. Revenue forecasters set the new estimates of state income just weeks ago, and June revenues may also fall short of those estimates.
The budget signed into law a week ago included a $26 million balance, but the unforeseen May shortfall will erase most of that cushion, the paper reported. Finance Commissioner Ryan Low is scheduled to appear before the Committee on Appropriations and Financial Affairs today at 1 p.m.
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