- Associated Press - Wednesday, July 29, 2020

AUGUSTA, Maine (AP) - Revenues needed to run state government are projected to drop by $524 million in fiscal 2021 because of the pandemic, the Revenue Forecasting Committee said Wednesday.

Democratic Gov. Janet Mills said the scope of the projected shortfall, which totals $1.4 billion over three years, underscores the need for federal help to mitigate the damage.

“These numbers are more than statistical projections. They represent funding for vital services on which Maine people rely, from health care, to schools, to economic development,” she said.

Mills has directed all departments to apply an emergency-basis scrutiny to spending and hiring, and a $106 million surplus from fiscal 2020 will be rolled over to address the projected decrease in revenues. The Budget Stabilization Fund stands at $258 million.

The administration has not committed to submitting a supplemental budget at this point. The governor will review revenue reports, examine revenue forecasts, evaluate potential cuts, monitor federal aid and flexibility to state governments, and confer with legislative leaders.



The leaders of the National Governors Association, Maryland Gov. Larry Hogan, the chair, and New York Gov. Andrew Cuomo, the vice chair, called for $500 billion in aid over three years to help states.

“This will ensure a strong recovery for our nation. It is time for Congress to come together to help restore our nation’s health and economy,” they said in a statement Wednesday.

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