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Business and Economy

Maine projects 10% revenue increase over the next two years

APTOPIX Maine Daily Life
Robert F. Bukaty
/
AP
The Maine State House towers over a fog bank rising from the Kennebec River on a chilly morning, Thursday, Oct. 7, 2021, in Augusta, Maine.

Low interest rates, federal stimulus payments and high consumer activity have improved Maine's economic outlook, according to the state's nonpartisan revenue forecasting committee.

The committee is expected to increase Maine's revenue outlook by nearly 10%, or $822 million dollars over the next two years.

The projections were touted by Democratic Gov. Janet Mills, who credited her administration's management of state finances as well as federal pandemic relief approved by the current and previous Congress.

In a press statement, the governor said the economic situation has resulted in a doubling of the state's rainy day fund to a historic high.

She acknowledged that GDP growth has not fully recovered from the pandemic, and also, that increasing prices for gas, home heating oil and groceries were posing a challenge for Maine residents.

Mills says her administration is exploring ways to provide additional direct relief to residents hardest hit by inflation, a move supported by Republican state lawmakers, who have been calling for new tax exemptions.