AUGUSTA, Maine (AP) — A stronger-than-expected economic recovery from the pandemic is expected to give a boost to state revenues.
Revenues are projected to increase by $462 million this year and $460 million next year, according to the state revenue forecasting committee. Taxes on income, sales and corporations are up by significant amounts over earlier projections, said Mike Allen, associate commissioner for tax policy.
The federal government helped with a variety of programs to help businesses and workers, he said.
The shift eases budget restrictions as Democratic Gov. Janet Mills prepares to send a supplemental budget proposal to lawmakers that will likely include more money for schools and health care.
All told, the state is projected to have $83 million more this budget year than before the pandemic and $58 million more in the following budget year.