Revenue problems persist /Maine

AUGUSTA — Maine ended its budget year on June 30 a little more in the red than forecast, but better off than some officials had feared. There are still concerns, however, that the state revenue shortfall could get worse in the new budget year.

Figures released Thursday by state Finance Commissioner Janet Waldron put the deficit at just under $93 million.

“That is a preliminary number, but I think it will be very close to that,” said Waldron. She had forecast a $90 million shortfall, but some state officials had feared the deficit could reach as high as $115 million.

She said unexpected growth in some state revenues offset the lower-than-projected returns from the “big three” moneymakers for the state — the personal income tax, the corporate income tax and the sales tax.

“I continue to be concerned about the [individual] income tax line,” she said. “The withholding continues to be below estimates. It was down $5 million in June.”

Waldron said she “has no doubt” revenues will continue to worsen, but she is not ready to estimate how much worse it will get. She expects the revenue forecasting commission, which next meets in August, will increase the size of the expected shortfall for the next 12-month budget period that began July 1. The shortfall for the fiscal 2003 budget also was initially forecast at about $90 million.

“There are real mixed economic indicators,” Waldron said, pointing out the difficulties of predicting future revenues.

State Economist Laurie LaChance agreed that the indicators can be confusing. She said while there have been job layoffs in parts of the state, there also has been job growth, with Maine’s unemployment rate two points lower than the national rate. Such mixed economic indicators make projecting revenues as much art as science, she said.

“We try to apply as much science as possible, but in the end, it is human judgment,” LaChance said.

She and a group of other economists who review economic trends will meet later this month to analyze the complex factors that seem to be driving the economy in different directions at the same time.

“It is very complex, but we are going to give it our best shot,” she said. The group that predicts revenues will use that economic analysis when its members meet in August.

Senate President Richard Bennett, R-Norway, said he is not surprised at the increase in the size of the state’s budget problem. He said the Legislature needs to start working on ways to cut spending very soon, and stop “avoiding the tough decisions” that need to be made.

“To be frank, I think there are members that do not want to come in to session before the election because they do not want to vote on making cuts,” he said.

Bennett is critical of democratic leadership in the Legislature for not scheduling meetings of the Appropriations Committee and other panels that should meet before a special session. He said the process of making the needed cuts in state spending should be done with public involvement and not “by leaders meeting behind closed doors.”

House Speaker Michael Saxl, D-Portland, and Senate President Pro Tem Michael Michaud, D-East Millinocket, sent a letter July 3 to Bennett and House GOP leader Rep. Joseph Bruno, R-Raymond, seeking a meeting to start budget negotiations.

House Majority Leader Patrick Colwell, D-Gardiner, said Thursday that Democrats are not trying to negotiate the budget in private. He said Bennett is posturing for political gain, and that will not help reach a solution that will garner support of the full Legislature.

“Of course the public will be involved through the committee process,” he said. “We have got to have the posturing stop, and sit down and work this thing out. We are ready. It’s the Republicans that have yet to agree on a date.”

Sen. Mary Cathcart, D-Orono, a member of the Appropriations Committee, said it “makes no sense” to start work on making painful cuts in state spending until after the revenue forecasting commission has completed its work in late August.

“I have not heard anyone say they are not willing to sacrifice their summer to do what needs to be done,” she said. “But we still don’t know the whole scope of the problem.”

But Sen. Peter Mills, R-Cornville, also a member of the budget writing committee, agrees with Bennett that work should begin sooner rather than later.

“But that’s assuming everyone will act like adults,” he said. “I don’t think that is going to happen and I am afraid we will have a lame duck session in November to deal with a problem we should deal with this summer.”

The title of the article is misleading. Maine, like most states, faces a spending problem, not a revenue problem. The state already takes in more than enough revenue to provide needed and appropriate government services.

The state faces a "revenue problem" only because it has involved itself in far too many things that should be none of its damn business.

The state faces a "revenue problem" only because it has involved itself in far too many things that should be none of its damn business.

Exactly!

And when Bubba renewed our plates for our SUV the other day, and paid OVER $380 dollars excise tax..........

Maine also has their hands in Bubba's Military Retirement pay. Most states do not tax the Vet's Retirement Pay, but good old Republic of Maine does.

I wrote to Olympia Snowe about this, and she wrote back "it wasn't her problem. To write to my "local" representative. Now I ask you: whenever we have a big question, we are told to "write to our Senators, am I not right?!"

Guess the students aren't going to get free laptops to download music and porn.

Don't hold your breath. King is bound and determined to push this laptop program of his! Why oh why he has his teeth sunk into this, is beyond me.

I hope Apple doesn't let him out of the contract. That will REALLY be a good one. heh!

Revenue problems persist /Maine

Absolute BS! Should read:

Spending problems persist /Maine

From my own attempts to get her interested in some Air Force issues (she's on the Armed Services Committee), I get the feeling that Snowe doesn't really think being a Senator involves doing anything.

From my own attempts to get her interested in some Air Force issues (she's on the Armed Services Committee), I get the feeling that Snowe doesn't really think being a Senator involves doing anything.

TELL ME about it! I have gone round and round with her over many issues over the years. I can't get help from her to save my life.

But when I complain to some other Republican lawmakers, they tell me that I HAVE to keep voting for Olympia, cause if I don't, some DemocRAT will get her seat.

What the heck is going on here! I'm caught between a rock and a hard spot!

This is the same garbage that you are seeing in many other states. These idiots went on a spending spree during the 90's due to the increased tax revenue brought on by the fake boom. Now that tax revenues have decreased due to the bust, we suddenly are seeing these deficits popping up all over the country.

If these clowns had exhibited any financial responsibility at all, they could have built up reserves big enough to deal with the shortfall in revenue. Instead, they will continue spending money like drunken sailors, and demanding that taxpayers pony up more dough.

Maybe it is time to fire ALL the politicians, and to start all over again. Our political class is increasingly made up of 2nd-rate individuals who shouldn't be considered for dog catcher, let alone the higher offices that they end up occupying.

6% Sales Tax, 10% income tax here we come.
Rino Bennett hasn't got a clue to what fiscal responsibility is. Joe Bruno is out numbered. Liberals have ruined everything. (With help from our RINO's).

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