The Legislature’s Appropriations Committee got some good news from economic and revenue forecasters on Thursday: Despite the recession, Maine’s economy is still growing.
Last month state revenues were above estimates by $81 million, and for the budget year to date, revenues are above estimates by $227 million. The increase is being driven by better-than-expected sales and personal income tax collections.
“The fact is the economy has done much better than we had anticipated back in August and again, a lot of that has to do with the CARES money,” says Mike Allen, who chairs the Revenue Forecasting Commission.
Allen says money from the CARES Act paid for the Paycheck Protection Program, expanded unemployment benefits and federal funds for health care providers. He is worried that if Congress does not pass another economic stimulus package, the economy could worsen quickly.
