The state Economic Forecasting Commission says Maine’s economy continues to grow, but that growth will slow a few years from now.
Associate Commissioner for Tax Policy, Mike Allen, says the federal tax changes that took effect in the last year have made it difficult to project some revenue sources, such as the corporate income tax. He says all eyes on April tax returns.
“At this point we are as confident that we will have a good April, l and that will make up for some that revenue we lost back in December and January,” Allen says.
Allen says he expects revenues will meet targets for this budget year, but bring no major surplus.
The economic forecast is the first step in the process used to estimate state revenues. The revenue forecasting committee will meet at the end of April to make projections for the next two budget years.
“When the March Controllers Report comes out, we will likely be at least on budget and probably slightly over budget year to date,” he says. “It really all comes down to April.”
