AUGUSTA, Maine — Even with state revenues now forecast to come in nearly $400 million lower than previously expected, members of the Legislature’s Appropriations Committee fear the shortfall could get worse yet.
On Friday the revenue forecasting committee projected state revenues will be about $384 million less over the two-year state budget than they estimated last spring. But legislators are bracing for further accumulation of red ink as they work to adjust the budget.
“I am not confident now about anything to do with the economy,” said Sen. Bill Diamond, D-Windham, co-chairman of the Appropriations Committee. “This is the best guesses of the best minds,” he said of the forecasting committee.
He said the same group had reprojected revenues down last April, only to have May revenues fall $21.2 million below that new projection. He said revenues have not met estimates since then.
“I am not saying they are not trying,” Diamond said, “or doing anything wrong. Nobody has gotten this recession right, at least not yet.”
Rep. Emily Cain, D-Orono, agreed. She said the committee will use the new revenue forecast as “a starting point” as it works on a plan to bring the state budget into balance.
“The governor will propose his plan in December and we will hold hearings on that as soon as we can,” she said. “But we will be multitasking as we review what he is proposing because we know we may have to go further than he proposes if revenues do not hold up.”
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