State revenues continue to come in better than projected, with November tax receipts $4.1 million above projections. That brings revenues in excess of estimates to $31.7 million so far this budget year.
State Finance Commissioner Richard Rosen said, while the numbers are certainly good news, lawmakers should be cautious about spending in the new legislative session, given the budget year has not even reached the halfway mark.
“They should not move themselves into a moment of irrational exuberance when it comes to money to spend, ” he said. “We are pleased that the targets are holding.”
Rosen points out revenues are up by less than 3 percent of the more than $3.2 billion the state will collect this year. He said part of the increase has been driven by lower-than-expected energy prices that could change before the end of the budget year.
“The decline in the oil prices and the way that translates at the pump and for home heating will continue to help these numbers,” he said.
Rosen said he is particularly pleased that state sales taxes were above projections after months of falling slightly short.
“During the month of October, Maine saw a significant improvement, “he said. “Sales in all categories were strong for the first time.”
He said compared to last year, sales taxes are 6.9 percent above 2013 receipts. He said car sales continued to be strong and general merchandise sales, which had been lagging, also had growth, up 4.7 percent from 2013.
