AUGUSTA, Maine — Maine lawmakers were told Monday that the state’s fiscal picture is looking brighter thanks to a bump in revenues as the Appropriations Committee prepares to close an $80 million-plus gap in the state budget.
Revised figures show nearly $49 million in unanticipated revenue through this two-year budget cycle, which ends in mid-2013. It’s money that can be applied to an $82 million hole in MaineCare, the state’s Medicaid program, when the Legislature returns from a monthlong recess May 15 to balance the state’s books.
With the new revenues coming in, cuts in state social programs that might have had to occur to balance the state’s $6 billion two-year budget may not have to be as severe as anticipated.
“It certainly helps, but there are going to be some significant challenges,” said Rep. Peggy Rotundo, D-Lewiston, a member of Appropriations. “It’s not going to take care of the whole thing, so there will still be some very difficult decisions we’ll have to make.”
Addressing the Appropriations Committee, associate state finance commissioner Michael Allen said new projections also translate into $26 million in unanticipated tax revenues in the two-year budget cycle that starts in mid-2013.
Allen said the newest figures reflect an uptick in consumer spending beyond what analysts had anticipated a few months ago.
“There’s just a lot of strength across the board, automobile sales, building materials, in some cases by double digits,” Allen said before his presentation to Appropriations.
Revenue figures through the end of March, closing three quarters of fiscal 2012, were $35 million over budget and showed a marked improvement over the same nine-month period in the previous fiscal year, according to the state Department of Administrative and Financial Affairs.
Much of the increase is attributed to better-than-expected sales and corporate tax collections. A portion also came from January receipts that had not been included in previous estimates.
Keep looking, Maine – are we absolutely sure it’s a shortfall? Amazing all this money is being found….
Here’s how it works, you make an educated assessment of what you believe the revenue stream will be based on economic reports put out by market analysts. If the analysts are right, the revenue stream will come in relatively close to the estimate. If the analysts are wrong, revenues will deviate on either side of the wrong estimate. In this case, consumer spending was stronger than anticipated causing a larger cash inflow than previously budgeted. It has nothing to do with “finding” money, as your post suggests.
Now these ‘educated assessments’ as you call them are made by middle managers in the State’s employ, and I’m pretty sure I heard the gov say the other night that ALL these people are incompetent and as corrupt as can be. Now you want me to believe that these estimated could be honest and above board…; I don’t think so…
LePage never said that state middle management employees were incompetent.
He did say, during his Newport brain fart, that they were “as corrupt as can be”.
I thought the DHHS shortfall was because of the “corrupt middle management state employees”! Don’t tell me we have “corrupt middle management state employees” in the Bureau of Budget too?
What is the Maine Heritage Policy Center doing about this???? I’m going to call Lance Dunston and get to the bottom of this!!!
Be careful what you ask for. You might see considerably less middle managers.
And what’s your point? Do you have one?
You made the comment that you would be contacting MHPC and Lance Dunston. The last time MHPC set their sights on someone in Maine government Dale McCormick was gone. Was that clear enough for you. I tried to type real slow.
Thanks for clearing that up for me. I actually had no idea that MHPC was behind the lies about Dale McCormick. I thought Bruce Poliquin was doing it all by himself.
Lies, you have to be kidding me. She spent the money at MSHA as if it was coming out of her personal checkbook, all her pet causes, the college where she obtained her degree and her left wing political causes. Too bad she would not have paid as much attention to all the people that are on waiting lists for affordable housing.
You may need to explain a little more in depth for the left side of the class.
see above…
“AUGUSTA, Maine — State finance officials have found an extra $14.3 million in state revenue, not under the couch cushions but as a result of a recent accounting delay by Maine Revenue Services.”
You were saying? Didn’t come up with the word on my own, there, chum.
The money was not “found” it was revenue above expectations due to an uptick in consumer spending which increased sales and corporate taxes. I know that it was a total of 4 short paragraphs, but maybe read the article before commenting.
That may be, but it seems the present administration has poor math skills and they are the ones who want to reform the education system?
How can you blame an uptick in consumer spending resulting in higher tax revenue on “poor math skills” It seems to me that the Baldacci administration had a failed attempt reforming education in the consolidation efforts that has basically afforded no savings and everyone is trying to undo the partnerships that were formed.
Once again you have told a blatant falsehood. The reorganization has saved many communities millions of dollars. Our AOS has saved it’s members $600,000 over the last 3 years. There are 60 less Superintendents in Maine than there were 3 years ago. Your comments are not reality based.
It may be good for the Southern Maine folks, but I think you
will find that the smaller communities are not saving much money, if any at
all.
“AUGUSTA, Maine — State finance officials have found an extra $14.3 million in state revenue, not under the couch cushions but as a result of a recent accounting delay by Maine Revenue Services.”You were saying? And if you read all of my 17 words, you would see “all of the money” would mean more than this one article. Sheeesh, Literal Gods, take it easy on us all.
I don’t know where you took your quote from, but it surely was not from this article that pertains to the additional 49 million dollars due to increased tax revenue.
They found some money? Surprising isn’t it? I just bet LaPlague is just itching to blow it with another tax cut.
As I commented below it was not “found money”. Better to “blow” it on tax cuts than expand spending on more welfare, at least with a tax cuts, the people who pay taxes get some of THEIR money back.I know, I know those poor folks who buy and dump water for the nickel deposit paid some sales tax too. That’s right that was probably my money too.
Those damn poor people. Old people in nursing homes and children with severe medical problems get the majority of Mainecare. What would you like to do, gas them?
I spoke specifically about the water dumping crowd. The elderly and children with “severe medical problems” are the ones that the system is designed to help. I would not advocate “gassing” anyone except murderers and pedophiles.
Wow…that’s great…now lepage can hire a few more relatives…
Or fill more dems pockets.
WHY would Lepage fill ‘dems pockets’?
He would not.It is the 30 year old good old buddy’s club in Augusta that would. I still say his biggest mistake was to not clean out the state house.On his first day he should have done the same thing with state house employees he did with the mural.Clean house and rehire.Make all state employees fill out an app and rehire.
An uptick in consumer spending – the economy must be doing better.
Or people could be putting puchases on Credit that they just paid down over the past three years. And the cycle repeats itself.
Just like the weather, it will change before the end of the day.
Hmm. 49 mil in unexpected revenues since the Gov took office. Sounds like somethings working right.
The liberals will probably try and claim it must be from policies that were put in place during the Baldacci administration.
… during the Obama administration.
they say this every year!!!!
Thanks to Senator Katz’s deligence on this current mess. Senator Katz would make an excellent candidate for Governor. He stands up for truth and the people that voted him in office, that actions is very rare now adays.
Pay off the current Bond’s ! If Paulie and Company were serious about getting the State’s spending under control then he would be hard pressed to find a better opportunity to demonstrate what he has been calling for, in public ! With the current Bond debt, Maine is one of the few State’s that’s managing to keep it’s head above water. But that can change and Paulie, and more importantly State Treasurer Millet, know that all too well. Get the current Bond debt reduced by paying it off and put the inevitable Bond interest payment’s back into the State Treasury where it can build and be used to actually accomplish something more important than some kind of political ‘smoke and mirror’s’, like developing the biogas opportunity’s that Casella has made public in their UM Project and the potential use of the Dolby Landfill for use in the Millinocket mill’s and surrounding town’s. If Maine is so dead set to spend this newly found ‘surplus’, fine. At least spend it where it’s going to come back to us all as a benefit, not as another surprise on the yearly property tax bill !
Millet is not the State’s Treasurer.
Fine, then who is and what is there position on this sudden cash ? Given how LePage is so prone to calling his own people ‘corrupt’, it might be interesting to see who’s gonna step up. Whoever it is, they had dammed well better have a plan more complete than ‘I’ll refer that to the Governor’ on hand.
Bruce Poliquin. You haven’t been paying attention to the news. You haven’t heard about his bogus tax credits on his property on Georgetown?
If the Penguin is Treasurer then why isin’t he in Augusta providing the Legislature this information ? Anytime an Elected Official keeps their distance from a money issue, even one that they are both responsible for and should be proud of, we should all take note ! Keeping distance from someothing that benefit’s you ? Am I the only one that see’s something wrong with this picture ?
You obviously use the internet where you can find those answers.
As for LePage’s callow, ignorant, and undeserved insults to state middle management employees followed by a very non- credible letter to all state service employees, he digs himself deeper as someone who should not be taken seriously and that is the shame of the matter. Instead of creating new definitions of ‘corrupt’, he should man-up admit his error and apologize.
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Put it towards MaineCare? Please, LePage will blow it on something else, cry MaineCare is still in debt and try to make more cuts.
Speaking of blowing it on something else, he is probably on the phone with his travel agent seeing what another ticket to Jamaica is going for.
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Hardly the result of the Obama administration. All that Obama seems to know how to do is try and create stimulus packages that….DO NOT WORK.
So GM now being the top auto maker in the world wasn’t the result of the stimulus????
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That was a bailout, with the money to be paid back. I know libs like you and “morgonen” think that all government money is free, but there is a distinct difference between bailout and stimulus.
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It did work. Getting GM out from under its labor agreements didn’t hurt, either.
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Give me an example of one that has worked. All the money for
“shovel ready jobs” that were not by Obama’s own admission
as shovel ready as everyone thought, maybe cash for clunkers, yeah that must be
the one. By all means use all CAPS when you feel strongly about a point.
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The all caps that I used were to stress my personal belief that his stimulus packages have not worked. A few construction jobs here and there are not in my opinion setting the economy in the right direction. The infrastructure in this country is crumbling as we speak and I do not think any amount of stimulus funds could catch us up at this point. As far as the auto companies being alive and kicking, Ford did not accept one nickel of Federal bailout funds and Chrysler is now owned by an Italian auto company, Fiat. You are right, we obviously would never agree except for maybe one point, this is America and it will take all Americans to solve the problems that we currently face. I am in the opinion that Obama has had four years and really has no victories to claim and now it is time to give Romney a crack at it.
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I think that Romney is no more out of touch than Mr. Obama.
He has never held a real job, ever. What type of life experience does Obama have? He has spent his whole adult life as nothing more than a community organizer or a politician (with no major accomplishments), the man is in way
over his head and has been since day one. He was chosen as being charismatic, young and a good speaker. I hate to say this but, we would have been better off with Hilary Clinton, at least she knows more about how the whole process works
and she would have been a true leader of her party. Romney has created wealth for himself and many others and understands economics and the needs of business.
You are right in the fact the reason this country is great is the fact we are all able to have our beliefs and opinions and have the right to express them.
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Thank Obama? ROFLMAO!!!!!!!
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You must be disturbed because Obama isn’t pulling us out of the republican manufactured economic mess our country is in fast enough.
Obama has created more debt in his 3 1/2 years as all previous Presidents combined. There will have to be an amendment before Congress soon to approve the name change to the United States of China.
This is a complete lie. While the national debt under Obama has increased less than half of the increase under G W Bush, Most of that is spending because of policies passed in previous administrations. If you tie spending to actual administration policies his increase is lower than any of the 3 previous “borrow and spend” Republicans.
I stand corrected. Increase in debt 2001-2009 – 28.8%
Increase 2009 – 2011 – 15.4%. So, Obama in three years has only increased debt by a little over half of what Bush did in 8 years, with estimates due to ObamaCare sending the numbers into the stratosphere. Check some estimates as to where we are expected to be if ObamaCare is not repealed.
Let’s see – how about we go back to the Reagan years and give me his
numbers, and also lets the Iran-Contra deal and all the laws he broke
even after the Boland law was passed. Come on – make me laugh, how much
now did he put our Country in debt and how many times did he get Atty.
Gen Meese to lie for him with his fake rulings. Heck, i could go on for
this full page of the mess he put our Country, Remember his own party
wanted to have him impeached – remember.:)
And a large part of the increase in the national debt under Obama is a direct result of “borrow and spend” Republican policies. Obama’s % of Debt in relation top GDP is better than any Republican since Nixon’s first term, and it’s getting smaller.
I think you may want to do some research. Obama’s Debt to GDP is 84.2% versus Bush at 63.5% and84.2% (second term) and Reagan’s was 43.8% for his first term and 53.1% in his second term. When all the terms of ObamaCare kick in (if not repealed by Romney when he is elected) will take us to levels of debt never before seen in this country. The numbers will be staggering with debt far in excess of 100% of GDP. I would also like to add that as far as I know the only time that Standard & Poor ever downgraded the debt rating for the United Staes was on Obama’s watch. The need to blame Bush by this administration is old and worn out. I am not saying the George Bush put this country in the best place financially, but remember we were fighting two wars and that costs money.
Let’s see – how about we go back to the Reagan years and give me his numbers, and also lets the Iran-Contra deal and all the laws he broke even after the Boland law was passed. Come on – make me laugh, how much now did he put our Country in debt and how many times did he get Atty. Gen Meese to lie for him with his fake rulings. Heck, i could go on for this full page of the mess he put our Country, Remember his own party wanted to have him impeached – remember.:)
See my numbers for the “Reagan years” in my post above. The Tower commission and the investigations by the Democrats found there
was no proof that Reagan had any firsthand knowledge about Iran-Contra. Do I completely believe that? No. He did bring home the hostages that Jimmy Carter could not. Every President since the founding of this great nation has done things and known things that the American public would not find palatable, but that is part of the job. Reagan left office with an approval rating in excess of 64%, never before achieved by any President and probably not by any that will precede him. Try a different argument, because this one just does not seem
to be working for you.
Wrong. Check the facts: Reagan and W. created the most debt by far. Really, it’s true.
What are you drinking?
please. UPTICK!!!!!!!!!!!!!
That’s cool! Watch the fight as to where to put that money! DHHS or Tax cuts for trust fund babies.
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I was thinking if the money was returned in the form of tax cuts, the middle class, working people would be a good place to start.
Wienermobile in Maine (MA-NE.net). Probably should visit Augusta. Might just fit right in.
Extra couple of bucks? We’ll never need a Bond Issue again!
Obama’s grandfather was in WW2.
Great news, how much better off would all 50 states be if internet sales were fairly taxed?
Don’t laugh. Texas and Amazon just caved in to each other the other day when Texas ‘forgave’ a $ 266 MILLION DOLLAR TAX BILL when Amazon ‘agreed to open’ a Distribution Center in Texas and create 266 jobs to service it. This is gonna’ be the first of no doubt many similar legally sanctioned ‘solution’s’ (call it what it is, extortion) to the Internet tax issue. And Texas is suppossed to be a model ‘smaller State Gov’t’ example that encourages the business community ? Someone, please show me where !
Likewise, the ridiculous Use Tax is, and has been for a very long time, seen as nothing more than either stupid beyond comprehension at best, and, at worst, a clear violation of the Interstate Commerce Clause in the 10th Amendment. By imposing this Use Tax on the Internet, the various State’s are doing nothing more than driving whatever sales there are underground, just like the booze and the 18th Amendment did, back in the 1920’s and 30’s. Anyone wanna do the math on the Craig’s List for just one day, at Maine’s 5%, and see what’s out there ? Imagine California at 9.75% and Tennessee at 7.5%, not including the County and City tax rate’s included. Start-up business’s depend very heavily on these type’s of sales and supply opportunity’s for their initial hard asset and raw material’s. Money in a start up is incredibly tight, moreso in the NorthEast since whatever manufacturing opportunity’s that were here are gone now, and with it the possibility of recievables being used to access capital for business growth. Add the Use Tax to the already strained cash flow of these same business’s and we all might as well close up shop since at that point the new business’s are operating for the sole purpose of supplying the State Gov’t with tax money on both sales and both finished inventory and raw material’s inventory. What’s left for the business’s owner to work for ? At that point the free market is gone. Folk’s, this one is not a hard sell. Nor is it complicated. What it does call for is a re-examination and simplifying of the Tax Code, both IRS and sales tax. Am I calling for what the Canadian’s use ? Not on your life ! We need a simplifying of the code, not a tax system on overload.
“There’s just a lot of strength across the board, automobile sales, building materials, in some cases by double digits,”
and the Guv gets no cred….whad-a-ya-know!
Thank you, President Obama.
I think it is because people who were partially laid off got paid better this past year and long needed things have been purchased, which doesn’t have anything to do with LePage.
I do think some of it is from things Obama said he wouldn’t change so production did not have to stop because of concerns of new policies with his administration, and maybe from the adaptation of his presence in office, but that may be askewed with a new election year as much money is spent on campaigning increasing consumer confidence and the market.
It doesn’t help the gap between the many unemployed, especially when there is no or little job creation in the process. Does the trend continue and jobs increase? We can only hope.