The state will end its budget year this weekend with a revenue surplus of at least $78 million, and the final number could be significantly higher.
Finance Commissioner Alec Porteous says Maine’s economy continues to show strength with May revenues more than $7 million above projections.
“I think I would attribute it to strong economic growth,” he says. “At this point, these lines have been so consistent now for months on end.”
He says both the sales and income taxes demonstrated strong growth every month. And June revenues are at least meeting projections through this week.
“You’ve got, you know, the effects of the federal tax cut, tight labor market, you put those two together you’ve got a lot more disposable income for a lot folks,” says Porteous. “It simply means more spending.”
The total size of the surplus won’t be known for several weeks as the state tallies up unspent funds.
This article appears through a media partnership with Maine Public.