Revenue Forecasting Committee Projects Additional $8.8 Million in Revenue for Current Fiscal Years 26-27 Biennium

Committee also projects reduced revenue increases for fiscal years 2028-29

AUGUSTA, Maine - During its meeting earlier last week, Maine's nonpartisan Revenue Forecasting Committee (RFC) added approximately $8.8 million in General Fund revenues to the current biennium (Fiscal Years 2026-2027) and reduced its projected increase to the General Fund for the next biennium (Fiscal Years 2028-2029) by $84.7 million.

In December, the RFC forecasted the FY28-29 revenue increase to the General Fund as $167.7 million. With the reduction of $84.7 million from its latest forecast, the RFC's revised General Fund revenue increase for FY 28-29 is $83 million. The updated forecast is consistent with expected flattening of State revenues after a period of rapid growth during the pandemic.

In the coming weeks, the Mills Administration will propose a change package to the supplemental budget now pending before the Legislature to account for the additional $8.8 million recognized by the RFC for the current biennium because the Maine Constitution requires a balanced budget.

The RFC's latest projections are based on the February 1, 2026, economic forecast from the independent Consensus Economic Forecasting Commission (CEFC). For 2027-2029, the CEFC revised its forecast for personal income growth downward while revising its forecast for inflation upward, citing continued economic uncertainty in Maine stemming from fiscal, geopolitical, and economic developments and accelerating cost-of-living concerns among lower- and middle-income households.

In February, Governor Mills introduced a supplemental budget proposal - which is balanced as required by the Maine Constitution - to fund initiatives that address affordability challenges while also maintaining core commitments to Maine people. The proposal includes the Governor's three-part Affordability Agenda, to deliver near-term financial relief for Maine people, increase new housing construction to reduce costs, and permanently establish free community college. The proposal also preserves funding for the State's 55 percent share of education costs, maintains access to health care, conforms with new Federal tax laws, and makes important investments in education, public safety, and economic development.

Under Governor Mills' leadership, Maine's Budget Stabilization Fund, or Rainy Day Fund, currently stands at its statutory maximum of $1.03 billion, an increase of more than $820 million since taking office in 2019. If Legislators approve the Governor's proposals to be funded through the BSF, it will leave a balance of $705 million.

In August 2025, Fitch Ratings, one of the top international credit rating agencies, upgraded its bond credit for the State of Maine to AA+, the second highest rating that Fitch issues. Around that same time, ratings agency Moody's reaffirmed Maine's credit rating of Aa1, their second highest possible rating, and ratings agency Standard & Poor's (S&P) reaffirmed its AA rating for Maine.

###