State revenues $9M above estimates
State revenues stand nearly $9 million above projections for the current budget year, but lawmakers are urging caution as energy prices rise.
Finance Commissioner Sawin Millett told Capitol News Service that an increase in the prices of home heating oil and gasoline could pinch consumers, resulting in less sales tax revenue for the state. Sales tax is the second-largest revenue source for the state and is projected to bring in $962 million this budget year. Currently, however, it’s just 0.2% above estimates. Last week, gas prices jumped an average of nine cents, while heating oil prices rose 11 cents. Individual income tax, the largest source of sate revenues, is currently less than $300,000 above projections, while corporate income taxes are 5.4% above estimates.
The Legislature’s appropriations committee will wait for next month’s revenue reforecast before finishing a budget bill, the news service reported.
Mainebiz interviewed Millet about the state’s budget challenges in its current edition. Read the interview here.
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