Maine officials warn of long-term ‘volatile’ state revenues

AUGUSTA, Maine (AP) – Maine’s non-partisan revenue forecasting committee has warned the legislature that the pandemic makes it difficult to say how much money the state is going to take, despite projections of more than $ 800 million in revenue additional over the next two years.

Compared to initial estimates in the 2022-2023 budget, this is the largest increase in projected revenue since the late 1990s, said Michael Allen, chair of the forecast committee. But he said the country’s uncertain economic future means significant risks going forward, the Portland Press Herald reported on Wednesday.

“We are in a volatile environment. We are confident in the next eight to 10 months, ”Allen told the Legislative Assembly’s Appropriations and Financial Affairs Committee.

There are a lot of factors at play, Allen said, including COVID-19 and its variants, rising inflation, stock market volatility, stalled supply chains and labor constraints. of work.

Maine lawmakers will meet in January to decide how to allocate $ 822 million in additional revenue for the 2022-2023 budget cycle, which began July 1.

Governor Janet Mills said she is prioritizing helping citizens pay for basic necessities such as electricity, heat, gasoline and other bills through a ” direct financial assistance ”.

Other lawmakers have suggested Mills reduce income taxes and return money to taxpayers.