November 08, 2024
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State revenue for May exceeds estimates

AUGUSTA – General Fund coffers continued to fill during the next-to-last month of Maine’s fiscal year, according to state finance officials.

The latest report from Commissioner Rebecca Wyke of the Department of Administrative and Financial Services put General Fund revenue in May $9.9 million ahead of projections. That created a year-to-date surplus of $43.4 million, officials said.

The May figures did not reflect new adjustments by the state revenue Forecasting Committee, which on June 2 agreed to formally recognize $27.7 million in additional General Fund revenue for fiscal 2005.

Officials said most revenue lines held close to budget in May, with most of the gain coming from lower-than-anticipated individual income tax refunds.

Officials said the monthly net also was buoyed by $3.2 million in insurance premium tax receipts that had been budgeted for April but that were taken in during the first few days of May.

“While May sales tax receipts [April sales] were on budget for the first time in a number of months, it was still a disappointment given the low monthly target and the good weather during the early part of April,” the monthly report said.

“A sample of auto dealers in the state indicates that car sales in April were down by an average of 11 percent over the same month last year. Sustained high gasoline prices are causing consumers to switch from large SUVs to smaller SUVs and economy size cars which are less expensive and thus generate lower sales tax revenue.”


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