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May 22, 2008
Don't Spend the Surplus Yet, Legislators
A good warning from the Baldacci administration.
AUGUSTA - State finance officials say gains by better-off taxpayers and by energy companies enjoying the effects of high oil prices have buoyed Maine tax collections, at least temporarily.In other words: that surplus is the very short calm before the massive storm, so don't get any big spending ideas. However, if a few of you want to maybe...oh, I don't know...consider cutting a large sinkhole of a medical insurance project out of the budget, I'd have no objections.But legislative budget writers were told Thursday the longer-term view is generally pessimistic, especially if energy prices stay so high they drain away dollars available for more discretionary spending.
Already, according to Maine tax department expert Michael Allen, there has been a noticeable increase in taxpayers seeking payment plans to help them manage their liabilities.
Appropriations Committee members also were told a looming surplus for fiscal 2008, which ends June 30, would represent only a small variation from the standing budget forecast.
The administration's warning is a nice move, but I can't say that I'm all that pleased with the governor at the moment, since the escrow shortage notice I received today is yet another reminder that he has yet to fulfill his promises to lower property taxes.
Posted by slublog at May 22, 2008 09:35 PM
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