The Maine Revenue Forecasting Committee predicts the state will finish the 2017 fiscal year $34.2 million in the black.
The committee projected on Friday that general fund revenues will finish 1% above what was budgeted for the fiscal year that ends on June 30. The forecast submitted to Gov. Paul LePage cited higher-than-expected revenue from sales taxes, individual tax collections and corporate income tax filings.
"Despite cutting taxes for more than half a million Maine families, our structural gap has been reduced significantly, businesses investment and job creation continues and our revenues remain strong," said LePage in a statement. "This proves that when you operate government in a business-like and effective manner, policymakers can focus on the issues that matter, such as welfare reform and economic development, rather than constantly scrambling to fill budget gaps."
Despite the positive 2017 numbers, the committee's forecast for the upcoming two years projects a 0.4% revenue drop due to an anticipated decline in automobile sales following five years of growth.
"Mainers have been aggressive in replacing the automobiles they chose to retain during the recession," Dr. Michael Allen, Maine's associate commissioner for tax policy, said in a statement. "The Revenue Forecasting Committee expects that growth to slow in the coming years."
Maine general obligation bonds are rated Aa2 by Moody's Investors Service and AA by S&P Global Ratings. The state's voters approved a $100 million transportation bond referendum on Nov. 8.
