Maine's Revenue Forecasting Commission says the state’s economy is growing, and is generating tens of millions more revenue than had been projected last year.
Commission Chairman Mike Allen, of Maine Revenue Services, says the higher estimates are being driven by an expectation of increased revenues from personal income taxes.
“The consensus Economic Forecasting Committee, their new forecast that they issued on February first, is much more optimistic for 2018 and 2019,” Allen says.
The commission is projecting that for the budget year ending June 30, state revenues will be about $39 million above projections, and for the next budget year another $90 million above original estimates.
Allen says much of that growth is based on the expected impact of the federal tax cut passed in December.
As of January, revenues are over estimates by nearly $82 million, as some residents prepaid taxes to avoid the federal tax cap of $10,000 on state and local tax deductions.
