November 28, 2012

Red ink flowing in Maine budget

Forecasts show revenues lagging by $35 million this fiscal year and by $128 million for the two-year budget cycle starting next July.

The Associated Press

AUGUSTA — The stubbornly weak economy is darkening Maine's revenue prospects for the next two years by more than $160 million, and the gloomy new figures will likely force Gov. Paul LePage to issue a spending curtailment order in mid-December.

The state's Revenue Forecasting Committee on Wednesday prepared numbers to be formally presented to lawmakers on Thursday. They show revenues lagging by $35 million this fiscal year and by $128 million for the two-year budget cycle starting next July.

Maine Finance Commissioner Sawin Millett says the biggest contributors to the red ink are under-performance of sales and corporate taxes.

The LePage administration is getting ready for immediate action on the $35 million shortfall. The governor's curtailment order would cut back spending in select areas without affecting necessary services.

 

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