State of Maine
2018-2019
Governor?s Budget

Overview

Submitted by
Paul R. IePage
Governor

January 6, 2016

 

if- :11in'u'32'nirj and 

Economic Outlook and Forecast

 

Background

The Consensus Economic Forecasting Commission was originally established by Executive
Order on May 25, 1992, in order to provide the Governor, the Legislature and the Revenue
Forecasting Committee with analyses, ?ndings and recommendations for state economic
assumptions to be used in developing state revenue forecasts. Creation of the commission was
in response to a recommendation of the Special Commission on Government Restructuring in
1991 to establish an independent, consensus process for state economic and revenue forecasting.
Public Law 1995, chapter 368 enacted in statute the Consensus Economic Forecasting
Commission, maintaining both the structure and intent of the original Executive Order.

The commission consists of ?ve members having professional credentials and
demonstrated expertise in economic forecasting. Members of the commission are appointed as
follows: two members appointed by the Governor; one member recommended for appointment
to the Governor by the President of the Senate; one member recommended for appointment to
the Governor by the Speaker of the House of Representatives; and one member appointed by the
other members of the commission. One member of the commission must be selected by a
majority vote of the other commission members to serve as the chair of the commission.

The commission is required to develop two year and four year economic forecasts for the State
of Maine. In performing this duty, the commission is required by statute to meet twice each
?scal year. No later than April 1st and November 1st of each odd?numbered year and no later
than February and November Ist of each even-numbered year the commission shall submit to
the Governor, the Legislative Council, the Revenue Forecasting Committee and the joint
standing committee of the Legislature having jurisdiction over appropriations and financial
affairs a report that presents the commission's findings and recommendations for adjustments to
the economic assumptions for the current ?scal biennium. in each report the commission
shall fully describe the methodology employed in reaching its recommendations. The
Revenue Forecasting Committee is required to use the economic assumptions and forecast of the
commission in developing its four-year revenue projections.

Summary

The Maine Consensus Economic Forecasting Commission (CEFC) convened on October 28, 2016, to
review and revise the forecast through 2019 and to additionally forecast 2020-2021. This report provides
a summary of the Commission?s findings.

The Maine and US. economies have generally improved since the Consensus Economic Forecasting
Commission (CEFC) last met in January 2016, although growth in Maine?s economy continues to lag
national growth in some areas.

Maine?s real GDP increased 0.6% in the ?rst quarter of 2016. This was the fourth consecutive quarter of
real GDP growth. Personal income in Maine grew 3.9% from the first half of 2015 to the ?rst half of
2016, while wage and salary income, which is the largest component of total personal income, grew
4.9% over the same period. This is stronger growth than the CEFC had forecast in February 2016. The
debt?to-income level for Maine businesses and households continued to rise to new levels in the second
quarter of 2016. The Consumer Price Index was up 1.5% in September 2016 from a year ago, held down
by the declines in energy prices.

Nationwide, consumer sentiment has remained relatively stable in recent months, down somewhat from
a peak in January 2015. The September 2016 level was up 1.6% from a year ago. Small business
optimism peaked in December 2014 and is down 6.2% from that month.

The price of crude oil seems to have leveled out around $47 per barrel as prices in the third quarter of
2016 were unchanged from the second quarter. As a result of the declines in crude oil prices, heating oil
prices and gasoline prices have seen substantial declines as well. Heating Oil was below $2 per gallon for
much of the 2015-2016 heating season and has started the 2016-2017 season around $2 per gallon.
Gasoline is currently averaging $2.35 per gallon. -

Existing single-family home sales in Maine were up 6.1% in September 2016 compared to the same
month last year and housing permits for the September 2015 August 2016 year were 33.0% higher
than the previous 12-month period. The median home price in the Portland-South Portland Metropolitan
Statistical Area (which encompasses all of York, Cumberland, and Sagadahoc counties) increased 3.8%
year-over-year in the second quarter of 2016. Mortgage delinquency rates in Maine have been declining
but at a slower pace than nationally. The foreclosure rate in Maine was 0.49% in the second quarter of
2016 and has been above the national rate for ?fteen of the past sixteen quarters.

The Commission made modest changes to the existing forecasts for personal income and corporate
profits, but left employment and in?ation unchanged. The employment forecast relies on an alternative
scenario (?LowPop?) created by the Office of Policy and Management, which provides staff support to
the CEFC. This alternative scenario is based on the Moody?s Analytics baseline with adjustments that
lowered the employment forecast. These adjustments are a result of the consensus that the national level
forecasts are based on overly optimistic labor force participation rates for the state of Maine, causing
employment forecasts, among other things, to grow at an unattainable rate. However, this forecast does
assume an increase in migration into Maine in the next few years. The Commission remains concerned
about the demographic situation in Maine and the resulting impacts on workforce availability. These
concerns were again reinforced in comments provided by representatives from a variety of business
sectors in the Commission?s data gathering session that preceded the forecast deliberations.

This forecast, coming shortly before the November 8 elections, assumes that none of the pending
referendum questions (speci?cally questions 1, 2, and 4) pass. If any of these referendum questions do

 

pass, the CEFC will meet jointly with the Revenue Forecasting Committee on November 14 to discuss
the potential impacts and make any necessary adjustments to the forecast.

The forecast for wage and salary employment was left unchanged, with the forecasts for 2020 and 2021
continuing the 0.0 percent employment growth forecast for 2019. The 2019-2021 employment level is
just shy of the 2007 pre?recession peak. CPI was also left unchanged, with 2020 and 2021 forecast at 2.5
percent and 2.4 percent growth, respectively. Total personal income was revised upward by 0.3
percentage points in 2015 with the release of new actual data from the US. Bureau of Economic
Analysis. The forecasts for 2016-2018 were revised downward by 0.1, 0.4, and 0.1 percentage points,
respectively, while 2019 was revised upward by 0.1 percentage points. 2020 was forecast at 3.4 percent
and 2021 was forecast at 3.5 percent. Wage and salary income for 2015 was revised upward by 0.7
percentage points with the release of actual data. The forecasts for 2016, 2018, and 2019 were left
unchanged, while the forecast for 2017 was revised downward 0.2 percentage points to re?ect the risk of
some possible high-wage job losses in the manufacturing and ?nance industries. 2020 and 2021 were

both forecast at 3.5 percent growth.

The table below provides the forecast?s major indicators.

 

 

Calendar Years I2015 52016  2017 2018 g2019 20202021
..

        

CEFC Forecast 02/2016 0.8 0.7 0.4 0.2 0.0
Personal Income (Annual PercentagJeWChange)w I
2/201

     
 
   
  

    

11

 

     



 

 

.. ..

.. CEFC Forearm/.2916 .34 5 4-1 - 4:1. 3:9 

  
 

 

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Prior to the start of the forecasting meeting, the CEFC held the annual fall data gathering session, in
which the Commission heard from representatives of the Maine Tourism Association, Retail Association
of Maine, Maine Restaurant Association and Maine Innkeepers Association, and Maine Bankers
Association. In addition to a general overview of the industries? economic outlook, participants were
asked to share their views of the potential impacts of the upcoming referendum questions relating to
marijuana legalization (Question 1), the 3% surtax on incomes over $200,000 for education funding
(Question 2), and the minimum wage increase (Question 4). A summary of the data gathering session is
available separately. In deliberations leading to consensus, the CEFC considered information presented
by several state agencies, including the Maine Department of Labor, Maine Revenue Services, and the
Office of Policy and Management. The following sections summarize these reports.

Office of Policy and Management

In the ?rst quarter of 2016, Maine?s real Gross Domestic Product was $51.3 billion, with $44.4 billion
coming from private industries and $6.9 billion from government (federal, state, and local). Maine?s
total real GDP increased 0.6% in the ?rst quarter of 2016. This was higher than the rate of national GDP
growth, which was This was the fourth consecutive quarter of real GDP growth.

According to preliminary estimates from the US. Bureau of Economic Analysis, total personal income
grew 3.9% from the ?rst half of 2015 to the ?rst half of 2016 and wage and salary income grew 4.9%
during the same period. Wage and salary disbursements, which. are the largest component of personal
income, averaged around $27.6 billion in the ?rst half of 2016 (seasonally adjusted at annual rates).
Total personal income averaged around $58.4 billion. Maine?s debt to income ratio was 25.8% in the
second quarter of 2016. This is a new high point for the ratio.

The Consumer Price Index (CPI) was up 1.5% from September 2015 to September 2016, held down by
continued energy price de?ation. Core in?ation, which excludes food and energy prices, rose 2.2% over
that same period. The Chained Consumer Price Index (Chained CPI) increased 1.2% from September
2015 to September 2016, again slowed by the drop in energy prices. Core in?ation rose 2.0% over the
same period. Chained CPI allows for substitutions in the basket of goods and services being measured.

In September 2016, the survey-based University of Michigan Consumer Sentiment Index increased
1.6% month-over-month and was up 4.6% from a year ago. The survey-based National Federation of
Independent Business (NFIB) Small Business Optimism Index was down 0.3% from the previous month
and down 6.2% from the December 2014 peak.

The price of Brent crude oil plunged starting in the second half of 2014 and was just over $47 per barrel
in the third quarter of 2016, unchanged from the second quarter of 2016 and a 4.7% decrease from the
second quarter of 2015. Prices appear to have bottomed out in mid-2016. The price of heating oil in
Maine remained well below prices of the past few years in the 2015-2016 heating season and the 2016-
2017 heating season has started at the same level, averaging $2.03/gallon most recently. The price of
heating oil in Maine had averaged around $3.75/gallon before the 2014 decline in etude oil prices. The
price of gasoline in New England on October 17, 2016 averaged $2.35, unchanged from the previous
week and $0.05 higher than one year ago. The price of gasoline has risen somewhat recently but is still
$1.50 per gallon lower than the July 2014 peak.

Single family existing-home sales in Maine were up 6.1% in September 2016 compared to September
2015. Over the past five years, home sales in Maine have only declined year-over?year in four months.
Maine has seen a rebound in housing permits in 2016. Average single unit housing permits in
Maine in the 12-month period from September 2015 through August 2016 were 33.0% higher than in
the previous 12-month period. The median home price in the Portland-South Portland metropolitan area
increased 3.8% year-over-year in the second quarter of 2016. The median home price in the second
quarter of 2016 was $248,800. The share of mortgages in Maine that are delinquent 30 days or more was
5.3% in the second quarter of 2016. The rate of delinquencies in Maine has been above the US. rate for
seventeen straight quarters now. Maine?s foreclosure rate was 0.49% in the second quarter of 2016,
down from the previous qualter. Maine?s foreclosure rate has been above the US. rate for
?fteen of the past sixteen quarters.

Full background materials are available at:


4

Maine Department of Labor

Unemployment rates have trended up from a low of 3.4% in March and April to 4.1% in September.
This is not an indication that workforce conditions are deteriorating. Preliminary unemployment
estimates tend to move in a direction for several months and then reverse course. Annual revisions that
occur each year in the spring eliminate those undulations. For preliminary estimates, the 90% con?dence
interval is percentage points, so small changes in unemployment rates should not be interpreted as
signi?cant change.

Around the state, unemployment is below the statewide average in York, Cumberland, and Sagadahoc,
the three southern?most counties; close to the average in Androscoggin and Kennebec counties and the
Bangor metro, the central corridor along 1-95 and 1-295; above the average and more seasonal in Oxford,
Franklin, Somerset, and Piscataquis counties along the western rim of the state; close to the average, but
extremely seasonal in the mid-coast region of Lincoln, Knox, Waldo, and Hancock counties; and well
above the average in the northern region of Aroostook, Washington, and northern Penobscot counties.

Nonfarm payroll jobs estimates, based on a much larger, more reliable sample than labor force and
unemployment estimates, indicate nonfarm jobs continue to rise. The strongest growth is in healthcare
and social assistance, the largest sector which comprises one-sixth of jobs. Also adding jobs over the last
two years were the leisure and hospitality, ?nancial activities, and transportation, warehousing, and
utilities sectors. Other private sectors have been relatively unchanged. Local and state government
continue to gradually shed jobs, while the number of jobs in federal government has increased modestly
due to rising employment at the Portsmouth Naval Shipyard.

Reductions in unemployment have been driving job growth the last six years, a period when the labor
force has not grown. With unemployment around just 4% today, little job growth can be expected going
forward from lower unemployment. The CEFC February forecast of limited job growth through in 2017
and 2018, followed by stabilization in 2019 seems reasonable.

Job and total wage growth have accelerated modestly the last two years. In current dollars, average wage
growth is up from one or two percent in 2012 and 2013 to over three percent the last two years. Adjusted
for in?ation, which has been unusually low the last two years, average wage growth the last two years
has been the highest in more than a decade.

The polarization of growth concentrated in jobs at the upper and lower ends of the earnings spectrum is
expected to continue through 2024. This is driven by growth in human-capital-intensive occupations that
require post?secondary education and labor-intensive occupations with limited education and skill
requirements. Little growth is expected in occupations generally in the middle of the earnings spectrum
as they will continue to be impacted by automation and the continuing pervasion of technology to
perform routine functions.

The presentation is at October 2016.131th

Maine Revenue Services - Of?ce of Tax Policy

FY16 General Fund revenues were $9.8 million over budget Compared to last ?scal year,
FY16 General Fund revenues were up by 1.1% 6.8 million). The ?nal General Fund ?gures for the
year included the elimination of 5, out of a total of 8, revenue accruals currently accrued at year-end.
The process of phasing?out revenue accruals is consistent with the Administration?s goal of ?scal
stability and sustainability.

For the ?scal year, sales and service provider taxes were a combined $3.9 million over budget.
Auto/transportation sales increased by 7.2% over the ?rst ?ve months of calendar year 2016; most of the
robust growth in the ?rst ?ve months came early in the calendar year. Building supply store sales
increased by 12.1% during the ?rst ?ve months of CY16 compared to a year ago.

Individual income tax receipts ended the ?scal year under budget by $3.6 million Withholding
receipts were over budget in June by $5.3 million and were under budget for the ?scal year by $2.0
million The second estimated payment of 2016 was due June 15th and exceeded budget by $8.6
million ending the ?scal year over budget by $13.2 million. The ?rst two estimated payments of 2016
were ?at compared to 2015, but the March forecast" assumed a 5% decrease because of the tax cut
effective January 1, 2016. Fiscal year refunds were over budget by $9.4 million 

For the ?rst quarter of ?scal year 2017, General Fund revenues are $32.5 million over budget 
Adjusting for timing issues with BETR payments and one-time Service Provider and Insurance Premium
Tax audit payments, General Fund revenues would still be over budget through September by
approximately $22.5 million Compared to the same three-month period of last ?scal year,
FY17 General Fund revenues are up by 5.1 percent million).

August taxable sales (September revenue) increased by 7.7 percent over a year ago. Business sectors
representing taxable sales made primarily to households increased by 7.8 percent over last August. For
the month, sales and use and service provider taxes combined were $4.5 million over budget.
Auto/transportation sales increased by 8.5 percent over last August and are up 2 percent year-over-year
for the three-month period. Tourism-related sales, speci?cally those tied to restaurants and lodging,
increased over last August, growing 3.3 percent and 6.2 percent, respectively. For the three-month
summer tourism season (June-August), restaurant sales increased by 5.9 percent over last year and
lodging sales increased by 8.2 percent.

Corporate income tax receipts were over budget in September by $4.9 million. Most of the 
surplus million) came ?'om estimated and ?nal payments. September is a key month for estimated
payments, and estimated payments in September exceeded budget by $1.3 million.

Individual income tax revenues were ($638,792) under budget in September. Year-to-date
individual income tax receipts are $2.9 million over budget Final and estimated payments
accounted for most of the variance, with withholding receipts ending the month under budget
by $4.4 million. The third estimated payment of the year was $3.8 million over budget. The ?rst three
estimated payments of the ?scal year are down 2.5 percent over 2015, but that is better growth than
forecasted. Withholding revenue is under budget by $12.2 million through the ?rst three months of the
?scal year. Withholding receipts are being carefully monitored as the next Revenue Forecasting
Committee meeting approaches.

Macroeconomic Assumptions

Two different baseline economic forecasts were examined at the meeting: the Moody?s Analytics
baseline scenario and the IHS Economics baseline scenario for October 2016. Additionally, 0PM
provided an alternative scenario based on demographic assumptions that limit employment growth to
speci?c levels (LowPop). Each forecast was based on a different set of national macroeconomic
assumptions. The LowPop scenario was based on the Moody?s Analytics baseline scenario with industry
sector employment growth adjustments by OPM staff. These three forecasts were then compared to the
February 2016 forecast. The key assumptions made by the CEFC are below.

a Maine population growth is likely to limit employment growth over the next few years. The
employment forecast adopted by the CEFC assumes some in?migration to Maine.

0 The employment and income forecasts assume the referendum questions on the November 8
ballot do not pass. If any of the questions (1, 2, or 4) do pass, the CEFC will hold a meeting
jointly with the Revenue Forecasting Committee on November 14 to discuss the repercussions
and make any necessary changes to the forecast.

Consensus Forecast

The CEFC members continued to believe that the Moody?s forecast is overly optimistic in its
employment projections for the state. Moody?s has moderated its population forecast to a more
reasonable level and IHS has brought its employment growth down to a more realistic scenario.
However, the LowPop scenario, designed to address the employment concerns, is based on the Moody?s
Analytics model that seems to do a poor job of re?ecting the changing income situation in Maine. The
Commission tried to ?t their 2016 forecasts to actual trends in employment and wage growth as much as
possible while making modest changes elsewhere.

Employment growth rates, based on the LowPop scenario and left unchanged from the previous forecast,
targeted an employment level for 2021 that was just below the pre-recession peak. Employment reaches
a 0.0 percent growth level in 2019 and stays at that point through 2020 and 2021.

Wage and salary income growth for 2016, 2018, and 2019 was left unchanged from the previous
forecast, while 2017 was moderated by 0.2 percentage points to reflect the risk of some high-wage job
losses. Dividends, interest, and rent was adjusted downward by 2.3 percentage points in 2016, 3.1
percentage points in 2017, and 1.6 percentage points in 2018. The forecast for 2019 was revised upward
by 0.2 percentage points. The forecast for 2016 and 2017 corresponds to the IHS forecast while the
forecast for the remaining period corresponds to the Moody?s baseline forecast.

The forecasts for supplements to wages and salaries, non?farm proprietors? income, and transfer receipts
were accepted from the IHS forecast. Supplements to wages and salaries were adjusted downward in all
years. Nonfarm proprietors? income was adjusted down in 2016 and 2019 and up in 2017 and 2018. The
forecast for personal current transfer receipts was adjusted upward in all years of the forecast.

The overall result for total personal income was a 0.1 percentage point revision downward for 2016, a
0.4 percentage point revision downward for 2017, a 0.1 percentage point revision downward for 2018,
and a 0.1 percentage point revision upward for 2019, with 2020 forecast at 3.4 percent and 2021 forecast
at 3.5 percent.

7

The CEFC left its forecast for in?ation using the Consumer Price Index unchanged from the previous
forecast. The forecast for corporate pro?ts was accepted from the Moody?s Analytics baseline, resulting
in a downward revision of 5.0 percentage points in 2016 and an upward revision of 1.6 percentage

points in 2017-2019.

Overall, the primary source of concern for the CEFC continues to be Maine?s demographic situation,
with an aging population and little to no population growth. Any passage of referendum questions will
be considered on November 14 and adjustments to the forecast may be made at that time.

The following page provides the full forecast.

Maine Consensus Economic Forecasting Commission

 

  
 
   

      

November 2016 Forecast History Forecast
2015 2015 2017 2013 2019 2020 . 2021
081411101000! 01.13008} I:  - - 0.1%    551.7% 2.6%  '5   2.3% 1 -  2.4%
CPI for Energy Prices" (Annual Change} -16.7% 6.1% 3.9% 7.0% 5.3% 4.6%
Avg. Price of New Vehicles" [Annual Change} 2.1% 2.2% 3.1% 4.1% 3.4% 2.2% 2.1%
New Vehicle Registrations? {400001 Change) 3.3% 0.8% 
Personal Savings Rate? 5.8% 5.8% 5.7% 6.2% 6.4% 6.7% 6.9%
Maine Unemployment Rate" 4.4% 3.8% 4.0% 3.9% 3.9% 3.9% 4.1%
3-Month Treasury Bill Rate? 0.05% 0.30% 0.71% 1.37% . 2.24% 2.58% 2.58%
10-Year neasurynota Rate? 2.14% 1.74% 2.10%; 2.69% 3.30% 3.50%
    -.      ii  
61w   31'4"?  -.    5163     35173  
Haturai Resources 2.4 2.3 2.4 2.4: 2.4 2.4
Construction 26.4 25.6 24.7 24.6 24.7 24.6 
Manufacturing 50.6 51.2 51.2 51.3 51.2 51.2-
TradeiTransJPubllc Utlls. 119.8 120.5 121.1 120.5 120.0 119.0
Information 7.5 7.4 7.4 7.4 7.3 7.3 7.3
Financial Activities 30.6 31.3 31.2 30.9 30.6 30.3 30.2
Prof. 3 Business Services 64.4 64.8 66.4 68.0 88.5 68.8 89.5
Education 8 Health Services 123.9 125.7 127.0. 127.6 128.4 129.2 130.2
Leisure 8 Hospitality Services 63.9 65.0 64.8. 65.0 65.0 65.1 65.4
Other Services 21.2 21.3 21.1 - 20.? 20.5 20.3: 20.1
Government 99.6 99.0 99.4 99.3 99.3 100.1 99.0
0.51.011 50101001 Change    ?10.70, 2- 0.4%    -i  i- 0.2%   0.0%  3- ii 50.0%  
Naturai Resources 0.8% 1.0% 0.5% 0.4% 1.0%
Construction 1.7% -3.6%3 0.1% 0.0% 0.3%
Manufacturing 0.6% 1.2% 0.1% 0.1%3 43.1% 0.0% 0.0%
Trad eiTransJ Pu Utils. 0.4% 0.8% 0.5% 43.9% 5 
tnformati on 1.6% -1 3% 0.0% 00% 3 0.5%
Financial Activities 0.5% 2.4% -0. 2% -1 
Prof. Business Services 1.6% 0.7% 2.5% 2.3% 0.8% 0.3% 1.0%
Education 8. Health Services 1.4% 1.5% 1.0% 0.6% 0.5% 0.6% 0.8%
Leisure 8 Hospitality Services 1.3% 1.7% 0.3% 0.1% 0.1% 0.4%
Other Services 1.0% 0.7% 4.6% 4.3% 4.0% 06%
Government 03% 0.4% 0.6% 

 

 

  3.040.410 .Tra'nriter. Receipts?-
Less: Contributions for Social Ins.?
Adjustment for Residence"

 

  ..
..F  1.399.?? 13* ..
Divid?nds}10101030541' ant 

 

i-P . 

 

 

 

 

 

tags: Contributions tor Social ins.? 4.0% 3.1% 4.2% 4.3% 4.0% 4.1% 4.1%
Adiustment for Residence? 6.5% 4.3% 4.4% 3.6% 3.6% 3.3% 3.3%
Forecast 

?From Economics. 0PM Low Pop Scenario and Moody?s Analytics Baseline. October 2016
Rerreining lines derived from CEFC forecast by OEFC staff and reviewed by CEFC

*?Farm Proprietors' income was negative in 2015

 Ullii?tlii  

Revenue Outlook and Forecast

 

Background

The Revenue Forecasting Committee was established by Executive Order on May 25, 1992, in order
to provide the Governor, the Legislature and the State Budget Of?cer with analyses and
recommendations related to the projection of General Fund and Highway Fund revenues. Creation of
the committee was in response to the recommendation of Special Commission on Government
Restructuring to develop independent and consensus based revenue projections. Public Law 1995,
chapter 368 enacted in statute the Revenue Forecasting Committee. This law provided that
membership on the committee would include the State Budget Officer, the State Tax Assessor, the
State Economist, the Director of the Legislative Of?ce of Fiscal and Program Review and an
economist on the faculty of the University of Maine System selected by the Chancellor.

Public Law 1997, chapter 655 expanded the membership of the committee to include an analyst from
the Legislative Of?ce of Fiscal and Program Review designated by the Director of that of?ce.
Public Law 201 1, chapter 655 replaced the State Tax Assessor with the Associate Commissioner for
Tax Policy as a member of the Committee. The revenue projections of the committee also would no
longer be advisory but would become the actual revenue projections used by the Executive Branch in
setting budget estimates and recommendations and out-biennium budget forecasts for both the
General Fund and the Highway Fund. The State Budget Of?cer also was empowered to convene a
meeting of the committee to review any new data that might become available, affecting the
revenue projections for the General Fund and the Highway Fund.

The committee is required to meet at least four times a year or when called by a majority vote of the
committee members, or at the request of the State Budget Of?cer. The committee is required to
develop four year revenue forecasts for the General Fund and the Highway Fund, or other funds of
the state. No later than December 1St and March 1st (May 1St during odd~numbered years) annually
the committee must submit to the Governor, the Legislative Council, the joint standing committee of
the Legislature having jurisdiction over appropriations and financial affairs and the State Budget
Of?cer its ?ndings, analyses and recommendations for General Fund and Highway Fund revenues.
The revenue forecasts are developed using econometric models for Sales and Use Tax, Individual
Income Tax, Corporate Income Tax, Fuel Tax and Cigarette Tax. Forecasts for the remaining
revenue lines are developed using trend data, national economic assumptions, department subject
matter experts and operational analysis net pro?t from liquor sales).

10

Table B-1

 

11165
4.70% 2,608,156,679 1,374,848,328
44,916,959 59,149,448 31.69% 104,066,407

 

Sales and Use Tax
Service Provider Tax
Individual Income Tax

1,274,144,957 1,334,011,722 3.06% 1,423,588,099 3.55% 2,798,436,427

59,424,469 0.46% 59,675,124 0.42% 119,099,593

1,542,687,615 1,530,248,976 -0.81% 3,072,936,591 1,702,942,294 11.29% 1,785,072,561 4.82% 3,488,014,855

11

Corporate Income Tax
Cigarette Tobacco Tax
Insurance Company Tax
Inheritance 8. Estate Tax

Fines, Forfeits and Penalties
Income from Investments
Transfer from Lottery
Trans for Tax Relief Progs
Trans. to Muni. Rev. Share
Other Taxes and Fees
Other Revenues

137,492,442
141,464,095
61,250,764
27,196,153
20,610,571
1,463,723
56,972,651

(64,744,050)

(67,355,566)
143,422,744
26.645.674

161,093,471
139,179,000
76,700,000
16,376,323
22,237,275
1,707,976
54,900,000
(64,446,340)
(65,464,234)
142,973,133
21,603,304

17.17%
-1.62%
-5.60%
-39.78%
7.89%
15.11%
-3.64%
10.46%
-2.78%
0.31%
'1 8.92%

296,565,913
260,643,095
157,950,764

43,576,476
42,647,646
3,191,699

1 11,672,651

(129,192,390)

(132,639,620)
266,395,677

46,249,176

 

165,724,242
136,662,000
73,765,000
12,416,710
22,242,017
2,067,513
54,900,000

(64,766,101)

(69,611,097)
131,900,960

 

(59.766912)

2.87%
-1.79%
?3.83%

-24.19%

0.02%

22.22%

0.00%

0.50%

6.30%
-7.74%

 

?376.67%

170,059,196
134,200.000
73,765,000
12,640,409
22,243,017
2,421,026
54,900,000
(66,366,623)
(69,424,526)
131,274,044
(145,520,951)

2.62%
-1 82%
0.00%
1.80%
0.00%
15.98%
0.00%
2.50%
-0.27%
?0.48%
143.47%

335,763,436
270,662,000
147,530,000
25,057,119
44,465,034
4,506,541
109,600,000
(131,156,724)
(139,035,625)
263,175,004
(205.269.663)

 

TOTAL REVENUE

 

 

3,366,191,133

 

3,430,250,054

 

1.90%

 

6,796,441,166 [3,542,765,423 

3.23%] 3,536,504,376

 

1 .29%

 

7,131,289,799

 

 

 

 

 

 

 

Table B-2

 

 

 

 

 

 

Fuel Tax

Motor Vehicle Registrations Fees

Inspection Fees

Other Highway Fund Taxes and Fees:

Fines Forfeits 8. Penalties
In come from Investments
Other Revenues

221,173,367
90,497,672
3,515,288
1,660,665
791,496
255,421
9,553,791

224,110,357
85,984,415
2,982,500
1,280,229
739,039
585,484
9,959,100

1.33%
?4.99%
?15.16%
?22.91 
-6.63%
129.22%
4.24%

445,283,724
176,482,087
6,497,788
2,940,894
1.530.535
840,905
19,512,891

 

   

 

226,821,293
85,504,341
2,982,500
1,293,729
739,039
551,510
9,959,100

1.21%
-0.56%
0.00%
1.05%
0.00%
-5.80%
0.00%

 

229,929,720
85,385,245
2,982,500
1,280,229
739,039
724,495
9,959,100

7.37%
0.14%

0.00%
-1 04%

0.00%
31.37%
0.00%

 

456,751,013
170,889,586
5,965,000
2,573,958
1.478.078
1,276,005
19,918,200

 

TOTAL REVENUE

327,447,700

325,641 ,1 24

 

0.55%? 653,066,624

327,851,512 I

0.68%

331,000,328

 

0,96%

 

658,851 .840

 

 

 

 

 

 

 

 

12

Table 8-3

 

 

Base Payments
Strategic ContributiOn Payments
Racino Revenue

Income from Investments
Attorney General Reimbursements

and Other Income

42,935,641
8,853,954
4,042,819

27,055
0

40,091,251
8,278,665
3.970.593

17,329
0

6.62%
-6.50%
~1 79%
-35.95%
0.00%

83,026,892
17,132,619
8,013,412
44,384

0

43,942,687
0
4,083,588
18,128

0

9.61%
~1 00.00%
2.85%
4.61%
0.00%

43,012,837

4,124.424
21,682

 

 

 

?2.12%
0.00%
1.00%

19.61%

0.00%

 

 

 

86,955,524
0
8,208,012
39,810

0

 

Total Tobacco Settlement Revenue

 

55,859,469

 

52,357,838 I

-s.27%ll 103,217,307

 

48,044,403

 



47,153,943

 

-1.34%l 

95,203,348

 

 

 

 

Section 1: TAX EXPENDITURES

I. Introduction
State law requires the Maine Revenue Services? Of?ce of Tax Policy to provide two tax
expenditure reports in January of every odd-numbered year. The ?rst report must be included in
the state budget document. 5 M.R.S.A. ?1664 provides that the document speci?cally include

. . . the estimated loss in revenue during the last completed ?scal year and the ?scal year
in progress, and the anticipated loss in revenue for each ?scal year of the ensuing
biennium, caused by the tax expenditures provided in Maine statutes; the term "tax
expenditures" means those State tax revenue losses attributable to provisions of Maine
tax laws which allow a special exclusion, exemption or deduction or which provide a
speci?c credit, a preferential rate of tax or a deferral of tax liability.

The second report, required by 36 M.R.S.A. 199-B, must be submitted to the Joint Standing
Committee on Taxation. This report must contain

a summary of each tax expenditure, a description of the purpose and background of the
tax expenditure and the groups likely to bene?t from the tax expenditure, an estimate of
the cost of the tax expenditure for the current biennium, any issues regarding tax
expenditures that need to be considered by the Legislature, and any recommendation
regarding the amendment, repeal or replacement of the tax expenditure.?

This report meets the ?rst statutory requirement.

The tax expenditure budget is a concept that was developed to assure a budget review process for
tax preferences similar to the review required for direct expenditure programs. The federal
government and most state governments engage in a periodic review of tax expenditures.
Generally, tax expenditures provide tax incentives designed to encourage certain activities by
taxpayers or provide relief to taxpayers in special circumstances. Many tax expenditures are the
equivalent of a governmental subsidy in which the foregone tax revenue is essentially a direct
budget outlay to speci?c groups of taxpayers. The object of this report is to identify and estimate
the ?scal impact of those provisions of the state tax structure which grant bene?ts analogous to
those provided by direct state spending programs.

II. Identifying Tax Expenditures

Tax expenditures are de?ned relative to a benchmark ?normal tax law.? Thus, identifying tax
expenditures requires de?ning normal tax law. Tax expenditures are then aspects of the law that
reduce revenue relative to normal tax law.

For the income tax we adopt the same de?nition of normal income tax law as the Congressional
Joint Committee on Taxation uses to identify federal income tax expenditures. The normal law
tax structure includes personal exemptions, the standard deduction, the current tax rate schedule,
and business expenses deductions. The base for normal law is much broader than taxable
income. Tax expenditures are exclusions, exemptions, or deductions that reduce taxable income

13

below the ?normal law? tax base and also tax credits, preferential tax rates, or income tax
deferral that reduce income tax liability.

De?ning normal sales tax law is complicated because there are competing theoretical constructs
for what this benchmark should be. One possibility is that the normal sales tax base is de?ned
by 36 MS.R.A. 1811 and includes ?all tangible personal property and taxable services sold at
retail in this state.? Under this de?nition, sales tax exclusions for services are not tax
expenditures but sales tax exemptions for business purchases of tangible personal property are
tax expenditures. Another possibility is that the normal sales tax base is all retail purchases for
consumption. in this case, sales tax exclusions for services are tax expenditures but sales tax
exemptions for business purchases of tangible personal property are not tax expenditures because
these purchases are not consumption. This report de?nes the normal sales tax base as the
combination of these two bases. Thus the benchmark base includes all sales of tangible personal
property and selvices sold at retail, and both exemptions for business purchases and exclusions
for the purchase of services are counted as tax expenditures.

There are a few other important considerations for the de?nition of normal tax law in this report.
We have de?ned normal law to exclude as expenditure those parts of the law that are (1)
established by federal mandate the sale tax exclusion for food stamp purchases), (2) created
at the state level to maintain conformity with traditional tax law when the federal government
deviates from that law because it creates credits that the state does not adopt the subtraction
modi?cation associated with federal work opportunity credit), or (3) the result of the state taxing
certain activities under a different tax system the income of a ?nancial institution that is an

corporation).
Estimating the Size of Tax Expenditures

In estimating the revenue loss attributed to particular tax expenditure, it is assumed that the
provision of law granting special tax treatment is repealed and that no other changes in tax law,
taxpayer behavior or general economic activity occur as a result of its repeal. Conseguently, it
should not be concluded that the repeal of any of these tax expenditures will necessarily generate
the amount of revenue which they are estimated to forego.

Some tax expenditures are estimated rather accurately from available administrative information
or the state?s micro-simulation tax models. For a much larger number of expenditures, special
data must be developed which is less complete and accurate. Estimates for FY 18 and FY 19
generally assume modest increases in business activity and in?ation, based on. the economic
forecast provided by the Consensus Economic Forecasting Committee in February 2016.

Finally, there are some expenditures where no information exists, and our limited resources
prevent any special survey or other data generation procedures. Estimates for this group are
reported as a range in an attempt to place some bounds on the size of these expenditures.

Maine's individual and corporate income tax systems are based upon the federal de?nitions of

adjusted gross income and taxable income. Therefore, certain tax expenditures are authorized by
continued acceptance of the provisions of the internal Revenue Code. Unlike sales and excise

14

tax expenditures or state income tax expenditures related to state tax credits or modifications
from Federal AGI, these are not subject to a systematic, periodic review by the Legislature. In
many cases, the basis for identifying, estimating and forecasting income tax expenditures which
are derived from federal conformity is the Joint Committee on Taxation?s Estimates of Federal
Tax Expenditm'esfor isca! Years 200] 35?201 9, compiled by the U.S. Joint Standing Committee
on Taxation (December 7, 2015).

Tax expenditures resulting from conformity to Federal Adjusted Gross Income that do not
involve an above-the-line deduction on the Federal Form 1040 are particularly challenging to
estimate due to a lack of data. For this reason we isolate these expenditures at the end of the
income tax section and provide speci?c estimates only for the largest expenditures. These
estimates, based on the JCT study, are only intended to convey the order of magnitude of the

expenditure.
A11 tax expenditure estimates in this report re?ect revenue loss to the General Fund.
IV. Changes to Tax Expenditure Report

Many features of Maine tax law have changed since the last budget as a result of
recommendations from the Governor in his FY2016-17 biennial budget submission. In addition
to changes to existing expenditures, several expenditures have been added and removed from the

report.
A) Expenditures Removed from the Report

A large number of tax expenditures have been repealed and thus removed from the report.
Income tax credits for contributions to family development account reserve funds, employer-
assisted daycare, employer-provided long~term care bene?ts, forest management planning,
retirement and disability, high-technology investment, dependent health bene?ts paid, quality
childcare investment, jobs and investment, biofuel commercial production and commercial use,
and pollution-reducing boilers have all been repealed for tax years beginning in 2016. For
individual income tax, the deductions for contributions to 529 plans and long-term care
premiums have also been repealed for tax years beginning in 2016. Finally, the exemption from
service provider tax for the minimum cable and satellite television service that can be purchased
from a cable or satellite television supplier was repealed beginning January 1, 2016.

We have removed several other expenditures from this report for reasons other than repeal. The
military pension deduction for certain dentists is now included with pension deduction because
the full amount of all military pensions is deductible for tax years beginning in 2016. The credits
for income tax paid to another jurisdiction by an estate or trust and by an individual have been
removed because of considerations of U.S. Constitution provisions bearing on state taxation.

The deduction for dividends received from nonunitary af?liates was removed, beginning with
the 2015 report, because of similar constitutional considerations. In lieu of apportionment relief
the taxpayer has the option of deducting 50% of these dividends. Thus the deduction is better
viewed as part ofa technical solution to the constitutional requirement that relief is required
when nonunitary af?liate dividends are included in taxable income rather than a tax expenditure.

15

Finally, we are no longer reporting tax expenditures for the exclusion of Medicare bene?ts and
investment income of life insurance because the Joint Committee on Taxation has dropped these
items from their tax expenditure report.

B) Expenditures Appearing in This Report for the First Time

Four tax credits were enacted since the last report: the adult dependent care credit, the credit for
disability income protection plans in the workplace, the credit for certain homestead
modi?cations, and the sales tax fairness credit. A new sales tax exemption for sales to certain
organizations that provide services to veterans and their families is also included in the report.

Conformity to parts of the federal Protecting Americans from Tax Hikes Act of 2015 (PL. 114~
113) led to the inclusion of several new income tax expenditures in this report. Section 179
expensing (beyond the modest 2002 limitations) and the educator expense deduction were
permanently extended at the federal level and Maine conformed to those changes. The Maine
Capital Investment Credit was extended in conjunction with the federal extension of bonus
deprecation through 2019. All three tax provisions appear in this report for the ?rst time, despite
having been features of Maine tax law since 2011 or earlier. They were not included in prior
reports because they were extended on a year-to-year basis, often retroactively, and thus were not
effective for tax years after the tax expenditure report was published.

16

Appendix A: General Fund Tax Expenditures - lneome Tax (Personal and Corporate) and Property Tax

Reimbursement

General Fund income Tax Expenditures

Reimbursement For Business Equipment Tax Exemption to Chapter 205, Subchapter 4?c

Municipalities

Reimbursement for Taxes Paid on Certain Business Property
(BETR)

Deduction for Affordable Housing

Deduction for Social Security Bene?ts Taxable at Federal Level

Deduction for Contributions to Capital Construction Funds

Deduction for Pension income

Deduction for Interest and Dividends on Maine State and Local
Securities - Individual income Tax

Deduction for Holocaust Victim Settlement Payments

Deduction for active duty military pay eamed outside of Maine

itemized Deductions

Additional standard deduction for the elderly and disabled

Deduction for Exempt Associations, Trusts and Organizations

Deduction for Interest and Dividends on U.S., Maine State and
Local Securities

Credit to Bene?ciary for Accumulation Distribution

Seed Capital Investment Tax Credit

Credit for Educational Opportunity

Income Tax Credit for Child Care Expense

Research Expense Tax Credit

Credit for Rehabilitation of Historic Properties

Earned income Credit

Pine Tree Development Zone Tax Credit

Tax Benefits for Media Production Companies

Dental Care Access Credit

New Markets Capital Investment Credit

Credit for Wellness Programs

Maine ?shery infrastructure investment tax credit

Innovation Finance Credit

Primary Care Access Credit

Property Tax Fairness Credit

Sales Tax Fairness Credit

Maine Capital investment Credit for tax year 2015 and after

Credit for certain home-stead modi?cations

Credit for disability income protection plans in the workplace

Adult Dependent Care Credit

Employment Tax Increment Financing, including certain Job Increment

Financing Programs
Shipbuilding Facility Credit

36 MRSA 

Chapter 915



5 



5 menu)
5122(2)r0)

5125
5124-A
5162(2)


5214-A

5216-3

5217-D

5218

5219-K

5219-R 5219-BB
5219-8

5219-W

5219-Y, c. 9t9?A

5219-HH
5219-131:

5219-1313
5219-Lt.
5219-KK
5213-A
5219-NN
5219-NN
5219-NN

Chapter 917

Chapter 919

16
$29,747,945
$35,078,530

A

$79,600,000
A
$26,900,000

$60,000

A

$990,000
$45,800,000
$6,400,000
A

$200,000

A

$3 ,750,000
$8,900,000
$3,920,000
$2 ,660,000
$12,250,000
$i 100,000
$3,000,000
$130,569
$147,000
$10,657,000
A

A

50

A
$i4,350,000
$0

Si 1,450,000
$0

$0

$0

$14,120,000
$2,940,000

FY17
$33,948,340

$30,500,000
A
$79,000,000

A
$3 100,000

$60,000

A

$900,000
$12,000,000
i00,000
A

$200,000
A

$2,350,000
$12,300,000
$3,920,000
$1,230,000
$12,730,000
10, 00,000
$3,230,000
$279,300
$154,000
$13,815,000
A

A

$0

A
$14,710,000
$27,000,000
$14,100,000
$0

$0

$147,000

$15,980,000
$3,062,500


$37,968,101

$26,800,000
A
$85,000,000
A
$32,200,000

$60,000
A

$900,000
$12,400,000
$7,700,000
A

$200,000

A
$2,880,000
$1 8,70 0,000
$3,920,000
$700,000

1 3, 120,000
10, 1 00,000
$3,320,000
$499,800

130,000

1 5, i 3 4,000
A

A

3?



$1 5,090,000
$34,500,000
$9,350,000
$73,500
$28,420

147,000

$15,810,000
$2,817,500

CONFORMITY INTERNAL REVENUE CODE DEFINITION OF FEDERAL ADJUSTED GROSS INCOME: ABOVE THE LINE

DEDUCTIONS

Health Savings Accounts

Deduction for interest of Student Loans

Moving Expenses Deduction

Pension Contributions individual Retirement Plans

51020-0)
51020-0)
51020-0)
5102(1?15)

Pension Contributions -- Partners Sole Proprietors "Self?employed

SEP, SIMPLE, and KEOGH Plans
Self-Employed Medical insurance Premiums
Teacher Expense Deduction

5102(1?0)
51020-13)
51020 .0)

$1,350,000
$4,750,000

$330,000
$6,155,340

$6,250,000
$9,250,000
$310,000

$1,250,000
$4,200,000

$310,000
$5,625,960

$5,900,000
$8,550,000
$280,000

$1 350,000
$4,500,000

$320,000
$5,937,360

$6,200,000
$9,150,000
$290,000

19
$42,968,623

$23 ,420,000
A
$91 ,800,000
A
$32,200,000

$65,000

A

$900,000
$12,900,000
$8,200,000
A

$200,000

A
$3,320,000
$24,900,000
$3,920,000
$540,000
$15,340,000
$10,200,000
$3,320,000
$499,800
$81,000
$15,232,000
A

A




$15,970,000
$33,600,000
$5,950,000
$122,500
$62,720
$147,000

$17,350,000
80

$1,350,000
$4,500,000

$320,000
$6,217,620

$6,600,000
$9,700,000
$290,000

 

A represents an estimated spread ot?$0 $49,999
represents an estimated spread of 1 00,000 $200,000
*represents a potential liability

17

Appendix A Continued 36 FY'l'i' 
CONFORMITY WITH INTERNAL REVENUE CODE DEFINITION OF FEDERAL ADJUSTED GROSS OTHER
Section 179 Expensing for tax year 2015 and later 5 102(1 -D) $3,400,000 $7,100,000 $3,750,000
Pension Contributions Earnings -- Employer-Provided Pension

Contributions and Eamings $151,100,000 $163,300,000 $189,000,000
Empioyer-Paid Medical Insurance and Expenses 5102(l-D) $155,100,000 $152,800,000 $161,100,000
Exclusion of Bene?ts Provided under Cafeteria Plans 5 102(1 -D) $38,900,000 $38,000,000 $39,800,000
Exclusion of Capital Gains at Death $24,600,000 $23,600,000 $24,600,000
Exclusion of Capital Gains on Sales of Principal Residences 51020-13) $21,600,000 $21,400,000 $22,500,000
Social Security and Railroad Retirement Bene?ts Unlaxcd at the Federal Levels 1020-1)) $54,100,000 $53,200,000 $60,400,000

Other conformity items 51020?13) $200 to 300 million per year

18

FY19

$2,850,000

$21 1,900,000
$1?1,000,000
$40,600,000
$25,700,000
$23,700,000
$63,900,000

Appendix B: General Fund tax expenditures Sales, Motor Fuel and Service Provider Taxes

General Fund Sales 3.: Use Tax Expenditures

Sales to the State Political Subdivisions

Grocery Staples

Ships Stores

Prescription Drugs

Prosthetic or Ortliotic Device

Meals Served by Public or Private Schools

Meals Served to Patients in l-lospitals Nursing Homes

Providing Meals for the Elderly

Providing Meals to Residents of Certain Nonprofit Congregate
Housing Facilities

Certain Meals Served by Colleges to Employees of the College

Meals Served by Youth Camps that are Licensed by DH HS

Meals Served by 0 Retirement Facility to its Residents

Products Used in Agricultural and Aquaculturai Production 8: Bait

Certain 1 ct Fuel

Coal, Oil Wood for Cooking Heating Homes

Fuel Oil for Burning Blueberry Land

First 750 KW Hours of Residential Electricity Per Month

Gas When Used for Cooking Heating in Residences

Fuel and Electricity Used in Manufacturing

Fuel Oil or Coal which become an Ingredient or Component Pan

Fuel Used in Certain Agricultural Production

Certain Returnablc Containers

Packaging Materials

Free Publications and Components of Publications

Sales to Hospitals, Research Centers, Churches and Schools

Rental Charges for Living Quarters in Nursing Homes and Hospitals

Sales to Certain Residential Child Care Facilities

Rental of Living Quarters at Schools

Rental Charges on Continuous Residence for More Than 28 Days

Automobiles Used in Driver Education Programs

Certain Loaner Vehicles

Automobiles Sold to Amputee Veterans

Certain Vehicles Purchased or Leased by Nonresidents

Certain Vehicles Purchased or Leased by Qualifying Resident Businesses

Funeral Services

Watercraft Purchased by Nonresideuts

Certain Sales of Snowmobiles and All-terrain Vehicles to Nonresidents

Sales to Ambulance Services Fire Departments

Sales to Comm. Mental Health, Substance Abuse Mental
Retardation Facilities

Water Pollution Coutrol Facilities

Air Pollution Control Facilities

Machinery 8: Equipment

New Machinery for Experimental Research

Diabetic Supplies

Sales Through Coin Operated Vending Machines

Goods Services for Seeing Dogs

Sales to Regional Planning Agencies

Water Used in Private Residences

Mobile Modular Homes

Property Used in interstate Commerce

Sales to Historical Societies Museums

Sales to Child Care Facilities

Sales to Church Af?liated Residential Homes

Certain Property Purchased Out of State

Sales to Organ. that Provide Residential Facilities for Med. Patients

Sales to Emergency Shelters Feeding Organizations

Sales to Comm. Action Agencies; Child Abuse Councils;Chilr1
Advocacy Orgs.

Sales to any Nonprofit Free Libraries

 

A represents an estimated spread of $0 $49,999

represents an estimated spread of $50,000 - $249,999

represents an estimated spread of $250,000 - $999,999

represents an estimated spread of $1 ,000,000 $2,999,999
represents an estimated spread of $3,000,000 - $5,999,999
represents an estimated spread or more

19

36 MRSA 
1760.2 $177,457,679 $182,781,409
1760.3 $164,914,400 $164,728,200
1760.4 
1760.5 $89,199,600 $92,629,600

1 760.5A $7,448,000 $7,830,200
1760.6A $13,428,940 $14,602,000
1760.613 $9,379,972 $9,869,874
1760.6C 
1760.61) A A
i760.6E A A
1760.61i 
1760.66 
1760.7A-C $6,879,600 $7,173,600
1760.813 $6,502,226 $6,632,270
1760.9 $40,523,000 $42,169,400
i760.9A A A
1760.9B $16,356,200 $17,689,000
1760.9C $10,015,600 $10,319,400
1760.9D $17,234,891 $19,153,134
1760.96 A A
1760.9H $175,175 $274,890
1760.12 $1,745,929 $1,798,307

760. 12A $29,204,000 $30,360,400
$1,917,425 $1,955,773
1760.16 
1760. 8 
1760. 28A 
1760.19 $6,899,200 $7,163,800
1760.20 $195,755,000 $203,281,400
l760.21 A A
1760.21 A $280,047 $285,647
1760.22 A A
1760.23C 
1760.23D $1,038,507 $1,059,277
1 760.24 $6,252,400 $6,497,400
1760.25 
1760.25C A A
1760.26 
E76028 
l760.29 
1760.30 
1760.31 $44,717,400 $46,422,600
1760.32 
1760.33 $1,257,346 $1,295,066
1760.34 $453,250 $462,315
1760.35 A A
1760.37 A A
1760.39 $24,327,600 $14,347,000
2760.40 $31,907,086 $32,226,157
1760.41 
1760.42 
1760.43 
1760.44 A A
1760.45 
1760.46 A A
1760.47A 
1760.49 
l760.50 13

18
$288,264.85 1
$l71,960,600


$95,922,400
$8,!92,800
$15,10i,800
$10,466,008

1



00>}

$7,536,200
$6,764,916
$43,103,200
A
$19,462,800
$10,966,200
$21,089,516
A

$233,132
$1,852,256
$31,722,600
$1,994,339






$7,408,800
$210,494,200
A

$291,361

A


$1,080,463
$6,722,800

0003? 

CD

$48,42l ,80

U:

$1,333,918
$471,56l
A

A
$15,405,600
$32,709,549



CEO


$193,912,797
$178,742,200



$99,156,400
$8,526,000
$15,621,200
3i 1,045,286


A

A




$7,908,600
36,9003 1 3
$5 3,880,400
A

321,2! 7,000
$1 1,632,600
$22,586,871
A

$291,631
$1,907,824
$32,996,600
$2,034,787





$7,663,600
$217,599,200
A

$297,188

A


102,072
$6,958,000

1

0:90

new

$50,283,800


$1,373,936
$480,993
A

A
$15,925,000
$33,200,193

DUO 

Appendix (continued) 36 MRSA 
Sales to Veterans Memorial Cemetery Associations 1760.51
Railroad Track Materials 1760.52
Sales to Nonprofit Rescue Operations 176053
Sales to Hospice Organizations 1760.55
Sales to Nonpro?t Youth Scouting Organizations 1760.56
Self-Help Literature on Alcoholism 1760.57
Portable Classrooms 1760.58
Sales to Certain incorporated. Nonpro?t Educational Orgs. 176059
Sales to incorporated Nonpro?t Animal Shelters 1760.60
Construction Contracts with Exempt Organizations 1 760.61
Sales to Certain Charitable Suppliers of Medical Equipment 1760.62
Sales to Orgs that Fulfill the Wishes 01" Children with

Life-Threatening Diseases 1760.63
Sales by Schools School-Sponsored Organizations 1760.64
Sales to Monasteries and Convents 1760.65
Sales to Providers of Certain Support Systems for Single-Parent Families 1760.66
Sales to Nonpro?t Home Construction Organizations 1760.67
Sales to Orgs that Create Maintain a Registry of Vietnam Veterans 1760.69
Sales to Orgs that Provide Certain Services for Hearing-iritpaired Persons 1760.70
Sales to State-Chartered Credit Unions 1760.71
Sales to Nonpro?t Housing Development Organizations 1760.72
Seedlings for Commercial Forestry Use 1760.73
Property Used in Manufacturing Production 1760.74
Meals Lodging Provided to Employees 1760.75
Certain Aircraft Parts 1760.76
Sales to Banks 176077
Sales of Certain Farm Animal Bedding 86 Hay ?760.78
Electricity Used for Net Billing ?760.80
Animal Waste Storage Facility 1760.81
Sales of Property Delivered Outside this State 1760.82
Sales of Certain Printed Materials 1760.83
Sales to Centers for Innovation 1760.84
Certain Sales by an Auxiliary Organization of the American Legion 1760.85
Pine Tree Development Zone Businesses; Reimbursement of Certain Taxes 2016
Sales of Tan gible Personal Property to Quali?ed Development

Zone Businesses 176087
Sales of Certain Aircraft 1760.88
Sale, Use or Lease of Aircraft and Sales of Repair and Replacement Parts 
Sales ol?Ccrtain Quali?ed Snowmobiie Trail Grooming Equipment 1760.90
Certain Sales of Electrical Energy 1760.91
Certain Vehicle Rentals 1760.92
Plastic Bags Sold to Redemption Centers 1760.93
Positive Airway Pressure Equipment and Supplies 1760.94
Sales of Certain Adaptive Equipment 1760.95
Sales to Certain Veterans' Support Organizations 1760.98
Sales to Nonpro?t Library Collaboratives 1760.99
Sales to Certain Veterans' Service Organizations 1760.100
Trade-1n Credits 1765
Returned Merchandise Donated to Charity i863
Merchandise Donated from a Retailer's inventory to Exempt Organizations i864
Refund of Sales Tax on Goods Removed from the State 2012
Refund of Sales Tax on Certain Depreciable Machinery and Equipment 2013
Fish Passage Facilities 2014
Refund of Sales Tax on Purchases of Parts and Supplies for Windjammers 2020
Consumer Purchases of Amusement and Recreational Services 1752.1 1
Business Purchases of Amusement and Recreational Services 1752.1 1
Consumer Purchases of Medical Services 1752.1 1
Business Purchases of Medical Services 1752.1 1

 

A represents an estimated spread of $0 $49,999

represents an estimated spread of$50,000 - $249,999

represents an estimated spread of$250,000 - $999,999

represents an estimated spread of $1,000,000 $2,999,999
represents an estimated spread of$3,000,000 - $5,999,999
represents an estimated spread of $6,000,000 or more

20

FY16

A
$1,043,188





$177,860,20




$457,460
$714,732
$94,943
0

A

$35,352



$70,223
$13,900

A

$0
$33,470,743



A
$6,480,838
A


$67,123,434
$2 1,343,003

$551,742,!56
$12,419,344

I7

A
$1,121,708



CD

$184,573,20





$471,134
$736,225
$97396


A

$36,413

(3

$72,334
$19,656

A

$87,868
$34,642,224




A
$10,134,055
A


$69,736,310
$11,633,286
$572,974,336
$12,759,394



A
$1,256,400




$191,815,400




1)
$435,320
$753,312
$100,730


A

$37,505



$74,505
$20,442

A

$91,322
$35,354,701
13



A
$16,392,674
A

13
$72,234,624
51 1,922,376
$593,290,530
$23,144,333

19

A
$1,313,200



CD

$199,704,910



1)
$499,379
$781,062
$103,753



A

$33,630



$76,739

,260

A

$95,954
$37,109,616




A
$17,982,961
A


$74,690,602
$12,186,790
$68,312,126
$13,521,550

Appendix 13 (continued) 36 MRSA 
Consumer Purchases ofEducation Services 1252.1 1
Business Purchases of Educational Services 1252.] 1
Consumer Purchases of Social Services 1252.] 1
Business Purchases of Social Services 1252.2 1
Consumer Purchases of Financial Services 12521 1
Business Purchases of Financial Services 1252.1 1
Consumer Purchases of Personal, Household and Business Services 1252.1 
Business Purchases of Repair, Maintenance and Personal Services 1252.1 1
Consumer Purchases of information Services Except 1252.1 1
Business Purchases ot?infonnation Services Except Telecommunications :2 52.1 1
Consumer Purchases of 'i?ransportation Services E2521 1
Business Purchases ot?Transportation Services 1252.1 1
Business Purchases of Legal, Business, Administrative and Support Services 1252.] 1
Business Purchases ot?Construetion Services 1252.] 1
Casual Sales 1252.! 1
Sales by Bxecutors 1252.1 1
General Fund Service Provider Tax Expenditures
Saies to the State Political Subdivisions 2552.2
Sales to Hospitals, Research Centers, Churches and Schools 2552.3
Sales to Certain Nonpro?t Residential Child Care institutions 2552.4
Sales to Ambulance Services Fire Departments 2552.5
Sales to Comm. Mental Health, Substance Abuse 8: Mental

Retardation Facilities 2552.6
Sales to Regional Planning Agencies 25522
Sales to Historical Societies Museums 2552.8
Sales to Day Care Centers Nursery Schools 25529
Sales to Church Af?liated Residential Homes 2552.10
Sales to Organ. that Provide Residential Facilities for Med. Patients 2552.1 I
Sales to Emergency Shelters Feeding Organizations 2552.12

Sales to Comm. Action Agencies; Child Abuse Counciis; Child Advocacy Orgs.2552. 13

Sales to any Nonpro?t Free Libraries 2552.14
Sales to Veterans Memorial Cemetery Associations 2552.15
Sales to Nonpro?t Rescue Operations 255216
Sales to Hospice Organizations 255212
Sales to Nonpro?t Youth Scouting Organizations 2552.18
Sales to Certain incorporated. Nonpro?t Educational Orgs. 2552.19
Sales to Certain Charitable Suppliers of Medical Equipment 2552.20
Sales to Orgs that Fulfill the Wishes of Children with

Life-Threatening Diseases 2552.21
Sales to Providers of Certain Support Systems for Single-Parent Families 2552.22
Sales to Nonpro?t Home Construction Organizations 2552.23
Sales to Orgs that Create Maintain a Registry of Vietnam Veterans 2552.24
Sales to Orgs that Provide Certain Services for l-learing-lmpaired Persons 2552.25
Sales to State?Chartered Credit Unions 2552.26
Sales to Nonpro?t Housing Development Organizations 2552.22
Sales to Banks 2552.28
Sales to Centers for Innovation 2552.29
Construction contracts with exempt organizations 2552.31
Certain Teleconununications Services 2552.33,34
Certain Veterans? Support Organizations 2552.32
Nonpro?t Library Collaboratich 2552.38

 

A represents an estimated spread of $0 - $49,999

represents an estimated Spread of $50,000 - $249,999

represents an estimated spread 01" $250,000 - $999,999

represents an estimated spread of $1 ,000,000 $2,999,999
represents an estimated spread of $3,000,000 - $5,999,999
represents an estimated spread of $6,000,000 or more

21



$22,332,428
$2,202,508
$49,645,428
$249,1 i6
$183,009,218
$211,161,628
$24,839,562
$28,544,254
$20,395,564
$34,885,452
$24,844,028
$28,915,480
$452,624,504
$41,423,600
13

A



$12,003,23



12


$2,329,890
$51,555,840

$190,051,390
$21a07L380
521226544
521692586

$35,690,326
$26,362,980
330390273
$469,053,528



A



$10,853,400
A
A

18

$22,229,562
$2,592,060
$53,383,932
$260,680
$i96,290,468
$221,019,008
$80,488,526
$30,859,416
$21,931,518
$36,543,416
$22,283,882
$83,265,308
$481,350,422
$45,236,800


A



>>no



$80,404,296
$2,800,212
$55,185,220
$262,442
$203.43 i ,536
$224,903,924
$83,209,056
$32,010,426
$22,621,6i4
$32,328,886
$29,065,820
$85,522,932
$492,4 1 8,640
$42,142,800


,925,600
A

Appendix (continued) 36 
Highway Fund Sales 8: Use Tax Expenditures

Motor Vehicle Fuel 1760.8A
Highway Fund Gasoline Special Fuel Tax Expenditures

State and Local Government Exemption from the Gasoline Tax 2903
Refund of the Gasoline Tax for Off-Highway Use and for Certain Bus Cos. 2908
State Local Government Exemption from the Special Fuel Tax 3204-A

Refund of the Special Fuel Tax for Off-Highway Use and for Certain Bus Cos. 3218
Multimodal Transportation Fund Aeronautical Fuel Tax Expenditures

Excise Tax Exemption on Jet or Turbo Jet Fuel - international Flights 2903
Refund of Excise Tax on Fuel Used in Piston Aircralt 2910

Fund Excise Tax Expenditure

Exemptions of the Real Estate Transfer Tax 4641C
General Fund Cigarette Tax Real Estate Transfer Tax Expenditures

Cigarette Stamp Tax Deduction for Licensed Distributors 4366142
Exemptions of the Real Estate Transfer Tax 4641C

 

A represents an estimated spread of $0 - $49,999

represents an estimated spread - $249,999

represents an estimated spread oi?5250,000 - $999,999

represents an estimated spread of $1 ,000,000 $2,999,999
represents an estimated spread of $3,000,000 - $5,999,999
represents an estimated spread of $6,000,000 or more

22

16
$89,387,543

$2,103,080

$676,475
$2,199,492
$4,749,538

$67,054
$17,124

$1,491,454




$90,594,164

$2,155,31 1

$960,000
$2,221,487
$4,500,000

$67,724
$17,500

$1,421 ,587




$91,690,031

$2,209,187

$960,000
$2,243,702
$4,500,000

$63,401
$18,000

$1,406,054


FY19
$92,946,579

$2,264,766

$960,000
$2,266,! 39
$4,500,000

$69,085
$18,200



$1,390,694


Appendix C: General Fund tax expenditures Detail for Tax Expenditures on Purchases of Services

General Fund Sales 48: Use Tax Expenditures

1) Consumer Purchases of Services Tax Expenditures
Medical Services

- Physician services

- Dental services

- Home health care

- Medical laboratories

- Specialty outpatient care facilities and health and allied services
- All other professional medicai services

Nonpro?t hospitals? services to households

Proprietary hospitals

Government hospitals

- Nonpro?t nursing homes' services to households

Proprietary and government nursing homes

Transportation services

- Motor vehicle maintenance and repair services
- Parking fees and tells

Railway transportation

- Intercity buses

Taxicabs

- Intracity mass transit

Other road transportation services

- Air transportation

- Water transportation

Amusement and recreation service-s

- Membership clubs and participant sports centers

- Amusement parks, camp grounds and related recreational services

- Motion picture theaters

- Live entertainment excluding sports

- Spectator sports

Museums and libraries

- Photo studios

- Repair of audio-visual, photographic and information processing equipment
- Casino gambling

Lotteries

- pari-mutuel net receipts

- Veterinary and other services for pets

Maintenance and repair of recreation vehicles and sports equipment

Financial Services

- Commercial banks

Other depository institutions and regulated investment companies
- Pension funds

- Financial service charges and fees

- Exchange listed equities

- Other direct commissions

- Over-the-counter equity securities

- Other imputed commissions

- Mutual had sales charges

Portfolio management and investment advice services
- Trust ?duciary and custody activities

- Life insurance

Net household insurance

- Medical care and hospitalization insurance

- income toss insurance

- Workers' compensation insurance

- Net motor vehicle and other transportation insurance

Information Services

4 Delivery services except US, Postal Service
lnternet access

23

16

$551,742,156
$81,426,044
$28,076,608
$20,474,944
$5,807,284
$39,282,222
$18,776,996
$198,693,236
$42,614,222
$56,485,044
?9,037,284
$41,068,272

$24,844,078
$13,813,590
$4,336,108
$174,636
$150,430
$913,262
$2,742,040
$1,967,840
$713,832
$32,340

$67,123,434
$9,521,974
$9,879,674
$2,630,006
$3,419,416
$1,305,160
$1,470,392
$309,033
$474,614
$19,260,136
$5,330,934
$917,373

$1 1,243,533
$256,074

$183,009,218
$13,494,364
$35,391,613
$9,109,334
$20,501,394
$302,320
$2,025,170
$134,260
$1,716,372
$1,957,942
$24,866,030
$2,143,552
$19,251,120
$2,112,634
$26,235,530
$608,286
$4,470,368
$13,132,274

$20,395,564
$493,920
$19,901,644



$572,974,336
$34,559,496
$29,157,053
$21,262,864
$6,030,322
$40,793,970
$19,499,550
$206,339,588
$44,254,154
$53,653,634
$19,769,932
$42,648,718

$26,362,980
$14,907,956
$4,502,904
$181,398
$156,212
$948,444
$2,847,586
$2,043,496
$741,370
$33,614

$69,736,310
$9,888,396
$10,259,914
$2,783,102
$3,551,030
$1,874,544
$1,527,036
$840,252
$512,246
$20,001,310
$5,588,058
$952,658

$1 1,681,404
$276,360

$190,051,890
$19,206,040
$37,272,830
$9,460,528
$21,290,794
$314,482
$2,103,080
$139,454
$1,782,424
$2,033,304
$25,822,902
$2,231,264
$19,991,902
$2,194,024
$27,245,! 76
$631,708
$4,642,456
$13,689,522

$21,180,446
$512,932
$20,667,514



$593,290,530
$87,557,708
$30,190,860
$22,016,778
$6,244,658
$42,240,352
$20,190,940
$213,655,680
$45,823,232
$60,738,538
$20,470,926
$44,160,858

$27,733,332
$15,922,344
$4,662,546
$137,763
$161,700
$932,053
$2,948,526
$2,116,016
$767,634
$34,790

$72,234,624
$10,239,040
$10,623,690
$2,881,788
$3,676,862
$1,941,086
8 1,581 1 32
$870,044
$547,036
$20,710,438
$5,786,214
$986,468
$12,095,650
$295,176

$196,790,468
$19,887,042
$38,594,458
$9,795,982
$22,045,688
$325,556
$2,177,658
$144,354
$1,845,634
$2,105,334
$26,738,516
$2,310,350
$20,700,834
$2,271,836
328,21 1,162
$654,150
$4,806,998
$14,174,916

$21,931,518
$531,160
$21,400,358



$613,312,126
$90,512,506
$31,209,766
$22,759,716
$6,455,358
$43,665,860
$20,872,334
$220,865,834
$47,369,574
$62,788,306
$21 161,728
$45,651,144

$29,065,820
$16,804,452
$4,819,934
$194,138
$167,188
81,01 82
$3,048,094
$2,187,360
$793,506
$35,966

$74,690,602
$10,584,588
$10,982,174
$2,979,102
$3,801,028
$2,006,550
$1,634,542
$899,346
$577,318
$21,409,374
$5,981,430
$1,019,788
$12,503,820
$31 1,542

$203,431,536
$20,558,146
$39,896,878
$10,126,536
$22,789,704
$336,532
$2,252,158
$149,254
$1,907,962
$2,176,384
$27,640,802
$2,388,358
$21,399,378
$2,348,472
$29,163,232
$676,200
$4,969,286
$14,653,254

$22,671,614
$549,094
$22,122,520

Appendix (I (continued)

Education Services
- Proprietary and public higher education
- Nonpro?t private higher education services to households

- Elementary and secondary schools
- Day care and nursery schools
- Commercial and vocational schools

Personal, household and business services

- Legal services

- Tax preparation] and other related services

Employment agency services

- other personal business services

Labor organization dues

- Professional association dues

- Funeral and burial services

Hairdressing salons and personal grooming establishments
- Miscellaneous personal care services

- Laundry and dry-cleaning services

- Clothing repair, rental and alterations

- Repair and hire of footwear

- Domestic services

- Moving, storage and freight services

- Repair of furniture, furnishings and floor coverings
- Repair of household appliances

Other household services

- Garbage and trash collection

Social services

- Child care

- Homes for the elderly

- Residential mental health and substance abuse facilities

- individual and family services

- Vocational rehabilitation services

- Community food and relief services
- Other social assistance

- Social advocacy and civic and social organizations

- Religious organizations? services to households

- Foundations and grant making and giving services to households

Day care and nursery schools
- Commercial and vocational schools

Personal, household and business services

- Legal services

- Tint preparation and other related services

Employment agency services

- other personal business services

- Labor organization dues

Professional association dues

- Funeral and burial services

- Hairdressing salons and personal grooming establishments
- Miscellaneous personal care services

- Laundry and dry-cleaning services

Clothing repair, rental and alterations

- Repair and hire of footwear

- Domestic services

- Moving, storage and freight services

- Repair of fumiture, furnishings and floor coverings
- Repair of household appliances

- Other household services

Garbage and trash collection

Social services

- Child care

- Homes for the elderly

Residential mental health and substance abuse facilities
Individual and family services

24

16

$72,332,428
$30,091 ,194
$18,434,192

$7,306,488
$3,318,378
$13,182,176

$74,839,562
$12,970,104
$5,640,488
$54,586
$1,778,896
$2,644,138
$1,936,382
$6,256,320
$1 1,829,972
$1 1,685,030
$2,106,314
$382,102
$32,536
$6,024,256
$3,193,330
$23,814

$1 14,268
$4,543,770
$3,623,256

$49,645,428
$8,188,684
$6,088,446
$5,881,666
$18,461,142
$1,617,196
$1,244,208
$1,697,360
$5,161,464
$1,073,296
$231,966

$3,067,187
$1 1 ,599, 180

$68,590,472
$15,062,294
$4,915,997
$56,517
$1,091,823
$2,942,768
$1,066,817
$4,806,215
$9,866,962
$9,307,989
$1,630,873
$1,238,809
$48,690
$6,488,624
$3,685,829
$61,498
$204,926
$2,230,111 1
$3,883,030

$65,312,158
$9,176,759
$5,431,464
$14,909,209
$22,148,823

17

$75,116,118
$31,249,260
$19,143,614

$7,587,650
$3,446,072
$13,689,522

$77,726,544
$13,469,218
$5,857,558
$56,644
$1,847,300
$2,745,862
$2,010,960
$6,497,106
$12,285,182
$12,134,752
$2,187,360
$396,802
$35,084
$6,256,124
$3,316,222
$25,676
$123,284
$4,718,700
$3,762,710

$51,555,840
$8,503,754
$6,322,666
$6,108,046
$19,171,642
$1,679,426
8 1 ,292, 130
$1,762,628
$5,360,110
$1 1 14,554
$240,884

$3,266,043
$12,351,273

$73,039,439
$16,038,869
$5,234,719
$60,192
$1,162,667
$3,133,642
$1,135,915
$5,117,783
$10,506,639
$9,911,512
$1,736,581
$1,319,104
$52,146
$6,909,331
53,9248: 1
$65,835
$219,346
$2,375,494
$4,134,856

$69,546,840
$9,771,691
$5,783,657
$15,875,849
$23,584,919



$77,779,562
$32,357,248
$19,822,362

$7,856,758
$3,568,278
$14,174,916

$80,488,576
$13,946,772
$6,065,220
$58,702
$1,912,862
$2,843,274
$2,082,206
$6,727,406
$12,720,792
$12,564,972
$2,264,976
$410,816
$37,436
$6,477,996
$3,433,822
$27,440
$131,712
$4,885,986
$3,896,186

$53,383,932
$8,805,300
$6,546,890
$6,324,626
$19,851,370
$1,739,010
$1,337,896
$1,825,152
$5,550,132
$1 ,154, 146
$249,410

$3,073,440
$1 1,622,680

$68,732,310
$15,092,745
$4,925,940
$56,715
$1,094,] 1 5
$2,948,800
$1,068,940
$4,815,930
$9,886,935
$9,326,815
$1,634,095
$1,241,270
$49,210
$6,501,705
$3,693,315
$62,225
$207,290
$2,235,350
$3,890,915

$65,444,360
$9,195,335
$5,442,455
$14,939,320
$22,193,615



$80,404,296
$33,449,164
$20,491,310

$8,121,848
$3,688,720
$14,653,254

$83,209,056
$14,417,466
$6,269,942
$60,662
$1,977,346
$2,939,216
$2,152,472
$6,954,472
$13,150,130
$12,989,018
$2,341,416
$424,732
$39,494
$6,696,536
$3,549,756
$28,910
$139,062
$5,050,822
$4,027,604

$55,185,270
$9,102,436
$6,767,782
$6,538,070
$20,521,298
$1,797,614
$1,383,074
$1,886,696
$5,737,410
$1,193,052
$257,838

$3,189,340
$12,061,200

$71,327,235
$15,662,270
85,1 1 1,760
$58,805
$1,135,345
$3,060,045
$1,109,315
$4,997,665
810,259,905
$9,678,790
$1,695,845
$1,288,105
$51,395
$6,746,900
$3,832,680
$64,885
$216,125
$2,319,710
$4,037,690

$67,913,790
$9,542,275
$5,647,750
$15,503,050
$23,031,040

Appendix (continued)

- Vocational rehabilitation services

Community food and housingfemergencyfother reliet?services

- Other social assistance

Social advocacy and civic and social organizations

- Religious organizations? services to households

- Foundations and grant making and giving services to households

2) Business Purchases of Services Tax Expenditures

Transportation Services

- Air transportation

- Rail transportation

Water transportation

- Truck transportation

- Transit and ground passenger transportation

- Scenic and sightseeing transportation and support activities for transportation
- Couriers and messengers

- Warehousing and storage

information services

- Directory mailing list and other publishing services

- Software publishing

- Motion picture and video services

Sound recording

- Radio and television broadcasting

- Internet publishing and broadcasting and web search portals

- Data processing hosting and related services

News syndicates, 1ibraries, archives and all other information services

Financial Services

- \rionetary authorities and depository credit intermediation

- Nondepository credit intermediation and related activities

- Securities and commodity contracts, interniediation and brokerage
Other financial investment activities

insurance carriers

- insurance agencies, brokerages and related activities

- Funds, trusts and other ?nancial vehicles

- Consumer goods and general rental centers

- Commercial and industrial machinery and equipment rental and leasing
- Lessors of nontinancial intangible assets

Legal, Business, Administrative, and Support Services

- Legal services

- Accoanting, tax preparation, bookkeeping and payroll services
- Architectural, engineering and related services

Specialized design services

- Custom computer programming services

- Computer systems design services

- Other computer related services ineludin facilities management
- Management consulting services

- Environmental and other technical consulting services

- Scienti?c research and development services

- Advertising and related services

- other miscellaneous professional, scienti?c and technical services
Photographic services

Veterinary services

- Management of companies and enterprises

Other administrative services

- Facilities support services

- Employment services

- Business support services

- Travel arrangement and reservation services

- Investigation and security services

Services to buildings and dwellings

- Other support services

- Waste management and remediation services

25

16

$5,668,106
$329,651
$1,169,483
$5,537,689
$881,204
$59,770

$78,915,480
$12,405,624
1,1 15,338
$1,805,160
$7,071,386
$5,726,826
$16,207,044
$14,447,454
$20,136,648

$34,885,452
$1,322,216
$477,260
$8,151,052
$922,376
$1,474,606
$2,542,708
$19,091,870
$903,364

$211,161,678
$33,948,572
$21,563,920
$14,473,032
$17,520,538
$66,847,466
$55,409,494
$1,398,656
$2,992,724
$13,862,688
$20,376,356

$457,674,504
$30,171,064
$22,919,554
$39,333,452
$5,120,990
$1,272,334
$13,209,330
31 1,325,464
$26,390,024
$6,135,760
$1,930,306
$69,054,426
$1 1,675,034
$575,750
$1,224,902
$103,219,676
$9,539,026
$1,374,646
$40,690,374
$14,243,903
$4,922,932
$9,047,164
$2,770,656
$3,576,960
$16,350,222



$6,035,607
$35 1 ,016
$1,245,327
$5,896,726
$938,410
$63,641

$80,890,278
$12,71 1,090
$1,142,876
$1,847,496
$7,245,924
$5,866,378
$16,616,782
$14,828,380
$20,631,352

$35,690,326
$1,349,068
$487,158
$8,325,002
$946,778
$1,504,594
$2,617,286
$19,537,182
$923,258

$216,071,380
$34,746,634
$22,047,643
$14,303,192
$17,931,060
$63,576,136
$56,534,323
$1,426,732
$3,074,946
$14,217,340
$20,359,333

$469,053,578
$30,959,964
$23,513,728
$40,808,474
$5,240,648
$1,293,796
$18,640,384
$12,147,786
$27,656,090
$6,363,532
$1,996,750
$70,840,280
$1 1,955,706
$594,370
$1,255,478
$105,550,508
$9,805,488
$1,403,164
$41,746,726
$14,612,094
$5,048,274
$9,254,728
$2,828,084
$8,784,524
$16,753,002

18

$5,679,575
$330,315
$1,171 ,825
$5,548,950
$883,025
$59,945

$83,265,308
$13,040,762
$1,177,176
$1,897,378
$7,466,326
$6,017,592
$17,1 19,718
$15,292,] 16
$21,254,240

$36,543,416
$1,376,998
$499,702
$8,493,660
$972,258
$1,534,190
$2,692,354
$20,029,632
$944,622

$221,019,008
$35,569,198
$22,551,368
$15,151,976
$18,362,946
$70,387,030
$57,544,816
$1,451,674
$3,165,302
$14,608,664
$21,375,564

$431,350,422
$31,733,750
$24,147,934
$41,302,433
$5,371,473
$1,317,213
$19,135,573
$12,433,632
$23,463,020
$6,551,393
$2,053,533
$72,795,772
$12,258,624
$612,108
$1,291,243
$103,152,393
$10,034,396
$1,439,424
$42,320,316
$15,013,1 10
$5,176,262
$9,473,366
$2,901,094
$9,017,568
$17,139,102



$5,893,895
$342,760
$1,216,095
$5,758,330
$916,370
$62,225

$85,527,932
$13,337,702
$1,210,496
$1,946,770
$7,680,652
$6,156,066
$17,605,014
$15,736,840
$21,854,392

$37,328,886
$1 ,403,850
$512,638
$8,651,440
$996,268
$1,562,120
$2,760,072
$20,477,492
$965,006

$224,903,924
$36,248,632
$22,954,344
$15,433,432
$18,724,664
$71,943,956
$58,133,306
$1,465,590
$3,249,484
$14,982,044
$21,834,302

$492,418,640
$32,531,296
$24,720,206
$42,706,342
$5,489,078
$1,336,818
$19,591,670
$12,787,726
$29,216,642
$6,725,054
32,1 12,684
$74,585,056
$12,529,496
$627,592
$1,326,528
$1 10,485,298
$10,336,354
$1,476,468
$43,727,306
$15,376,592
$5,285,336
$9,655,352
$2,975,868
$9,229,640
$17,584,238

Appendix (continued)

Educational Services
Junior colleges, colleges, universities, and professional schools
- Other educational services

Medical Services

- O?ices of physicians

- Offices of dentists

- Offices of other health practitioners

- Outpatient care centers

Medical and diagnostic laboratories

Other ambulatory health care services

- Hospitals

- Nursing and community care facilities

- Residential mental retardation, mental health, substance abuse and other

Social Services

- Individual and family services

- Community food, housing and other reliet?services including rehabilitation services
- Child day care services

Amusement and recreational services

- Performing ans companies

- Spectator sports

- Promoters of performing arts and sperts and agents for public ?gures
- Independent artists, \witers and performers

Amusement parks and arcades

- Gambling industries (except casino hotels)

- Other amusement and recreational industries

Repair, Maintenance and Personal Services

- Automotive repair and maintenance

- Electronic and precision equipment repair and maintenance

- Commercial and Industrial machinery repair and maintenance
Personal and household goods repair and maintenance

- Personal care services

Dry-cleaning and laundry services

- other personal services

- Civic, social, professional and similar organizations

26

16

$7,207,508
$3,773,294
$3,434,214

$12,419,344
$921,788
$209,034
$1,198,246
$1,719,606
$2,998,506
$3,908,044
$546,350
$885,038
$32,732

$2491 16
$105,546

$18,032
$125,538

$1 1,348,008
$1,055,558
$2,472,344
$1,463,728
$3,888,150

$91 ,140
$38,024
$2,339,064

$28,544,754
$3,812,396
$5,131,770
1 80,068
$2,995,076
$75,754
$4,001,732
$1,560,944
$3,787,014



$7,379,890
$3,860,514
$3,5 {9,376

$12,759,894
$946,288
$213,444
$1,223,040
$1,755,180
$3,091,] 16
$4,030,446
$563,598
$903,364
$33,418

$254,} 14
$107,702

$l 8,326
$128,086

$1 1,633,286
$1,087,996
$2,526,734
$1,504,006
$3,983, 12

$94,178
$38,906
$2,398,354

$29,699,586
$4,002,614
$5,345,802
$7,543,648
$3,132,276
$77,126
$4.1 1 1,688
$1,603,476
$3,882,956



$7,592,060
$3,971,058
$3,621,002

$13,144,838
$970,788
$218,932
$1,254,694
$1,800,554
$3,192,448
164,1 18
$582,316
$926,688
$34,300

$260,680
$110,446

$18,816
$131,418

$1 1,922,876
$1 1 19,846
$2,579,458
$1,544,970
$4,079,348

$97,020
$39,886
$2,462,348

$30,859,416
$4,188,030
$5,564,146
$7,896,644
$3,267,418
$78,694
$4,234,384
$1,649,732
$3,980,368



$7,800,212
$4,080,818
$3,719,394

$13,521,550
$995,778
$224,518
$1,287,034
$1,846,908
$3,289,468
$4,291,910
$600,250
$950,502
$35,182

$267,442
$1 13,288

$19,306
$134,848

$12,186,790
$1,148,952
$2,627,576
$1,582,896
$4,166,078
$99,568
$40,866
$2,520,854

$32,010,426
$4,376,680
$5,786,998
$8,255,716
$3,404,030
$80,066
$4,350,808
$1,693,440
$4,062,688

 

Budget Forecast

 

5 M.R.S.A. ?l665, requires the State Budget Officer to prepare a four year revenue and
expenditure forecast for the General Fund and the Highway Fund. In accordance
with 5 M.R.S.A. ?l665, subsection 7, the forecast assumes the continuation of current laws
and includes reasonable and predictable estimates of growth in revenues and expenditures
based on national and local trends and program operations. On September 30, 2016, the
Bureau of the Budget issued its updated four year budget forecast for ?scal years 2016-

17 through 2018-19.

In order to provide the most accurate expenditure estimate, legislatively approved
appropriations and allocations through the end of the Second Regular Session of the 127th
Legislature were used as the starting point for the forecast. The authorized budget for
?scal year 2016?17, recalculated to re?ect authorized positions and projected rates for
personnel services, and adjusted by program for one-time expenditures and the phase-in of
new operations, was used to determine the baseline expenditure forecast for ?scal
years 2017-18 through 2018-19. This was further adjusted to re?ect
program?by-program expenditure growth or decline that varied from the baseline
growth assumptions, resulting from programmatic factors such as caseload, national
trends, etc.

27

BUDGET STATUS Fiscal Years 2016-2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE 25,567,200 25,567,200 55,564,829 55,564,829

ADJUSTMENTS 22,780,728 25,376,098 48,156,826

REVENUE 3,356,361,397 3,352,258,350 6,708,619,747 3,473,125,018 3,620,449,006 7,093,574,026
TOTAL RESOURCES 3,404,709,325 3,377,634,448 6,782,343,773 3,523,689,847 3,620,449,008 7,149,138,855

ADJUSTMENTS 2,550,000 19,750,000 22,300,000

APPROPRIATIONS 3,331,298,722 3,373,180,222 6,704,478,944 3,622,624,069 3,691,808,900 7,314,432,969
PROJECTED BALANCE (SHORTFALL) 70,860,603 (15,295,774! 55,564,829 [93,934,222] (71,359,892m {165,294,114}

 

 

 

 

The budgeted General Fund adjusted fund balance for ?scal year 2016 was $70,860,603 and is
projected to be $55,564,829 at the end of fiscal year 2017, including adjustments enacted
through the Second Regular Session of the 127 Legislature.

The Revenue Forecasting Committee (RFC) in its May 2015 report re-projected revenues
upward by $24.7 million for the 2018-2019 biennium. In December 2015 the RFC increased its
revenue projections by $60.0 million for the 2018-2019 biennium. Finally, in March 2016, the
RFC re-proj ected revenues upward by $4.4 million, resulting in a net overall revenue increase of
$89.1 million for the 2018-2019 biennium. This projected revenue increase was primarily in the
Individual Income Tax, Corporate Income Tax and Sales and Use Tax lines. The revenue
projections also include revisions made in miscellaneous laws enacted through the Second
Regular Session of the 127?? Legislature.

Current projections for the 2018-2019 biennium include a beginning balance of $55,564,829 and
General Fund revenues of $7,093,574,026. Projected General Fund appropriations for the
biennium are $7,314,432,969 which results in a structural budget gap for the General Fund of
$165,294,114.

28

BUDGET STATUS Fiscal Years 2016-2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE 11,762,818 11,762,818 5,837,346 5,837,346

ADJUSTMENTS

REVEN UE 322,738,388 325,527,481 648,265,861 328,340,881 331,316,712 659,657,593
TOTAL RESOURCES 334,501,198 325,527,481 660,028,679 334,178,227 331,318,712 665,494,939

ADJUSTMENTS 5,710,148 5,696,863 11,407,011 6,253,259 6,328,638 12,581,897

ALLOCATIONS 323,554,282 319,230,040 642,784,322 506,459,944 504,466,325 1,010,926,269
PROJECTED BALANCE (SHORTFALL) 5,236,768 600,578 5,837,348 (178,534,976) (179,478,251) (356,013,227)

 

 

 

 

The Highway Fund adjusted fund balance for ?scal year 2016 was $5,236,768 and is projected to
be $5,837,346 at the end of ?scal year 2017, including adjustments enacted through the Second
Regular Session of the 127th Legislature.

The Revenue Forecasting Committee (RFC) in its May 2015 report re-projected revenues
upward by $989 thousand for the 2018-2019 biennium. The RFC in December 2015 increased
its revenue projections by $288 thousand for the 2018-2019 biennium. The RFC in March 2016
rewprojeeted revenues upward by $4.0 million resulting in a net overall revenue increase of $5.2
million for the 2018-2019 biennium. This revenue increase was primarily in the motor vehicle
registration and fee lines. The revenue projections also include revisions made in miscellaneous
laws enacted through the Second Regular Session of the 127m Legislature.

Public Law 201 1, chapter 610, An Act to Improve Transportation in the State established
provisions relating to the Department of Transportation?s capital program goals. It is important
to stress that this forecast, by law, must assume the state share which is estimated at $300 million
over the 2016-2017 biennium. The reader is advised to bear this in mind when assessing the
estimated structural gap and the potential for closing it.

Current projections for the 2018-2019 biennium include a beginning balance of $5,837,346 and
Highway Fund revenues of $659,657,593. Projected Highway Fund allocations for the biennium
are $1 ,01 0,926,269 and adjustments which result in a projected structural budget
gap of $358,013,227.

29

 

Budget Process Timeline

 

The Constitution of Maine requires the Governor and the Legislature to submit, enact and
approve a balanced budget that achieves each ?scal year a balance between resources and
commitments. The State of Maine develops General Fund and Highway Fund revenue
forecasts for the biennial budget within the context of a consensus revenue forecasting model.
The Consensus Economic Forecasting Commission ?rst meets to prepare a four year
economic forecast for the State of Maine. The six- member Revenue Forecasting
Committee (RFC) uses the economic assumptions recommended by the Consensus Economic
Forecasting Commission (CEFC) to prepare its four year revenue forecast for the General
Fund and the Highway Fund. The committee?s recommendations for revenues affecting the
upcoming biennium are made in November, and are subsequently used by the
Governor in developing the General Fund and Highway Fund budget for
the upcoming biennium.

The State of Maine uses a biennial budget process in which the budget is presented by
the Governor and acted upon by the Legislature for two ?scal year periods beginning in
even numbered years. Each ?scal year of the biennium encompasses the period of July 1
through June 30. Appropriations and allocations are provided for each ?scal year of the
biennium. The biennial budget for each ensuing biennium is presented and acted upon by the
?rst regular session of the Legislature. During the ?rst regular session, the Legislature may
also make adjustments to the appropriations and allocations by program for the last ?scal
year of the current biennium. The second regular session of the Legislature may make
adjustments to both the ?st and second ?scal years of the current biennium.

Appropriations and allocations by program are further delineated by three line categories:
Personal Services, All Other, and, Capital Expenditures. The Personal Services line category
includes the salaries, wages and bene?ts for all positions authorized by the Legislature
reduced by an attrition factor of The All Other line category includes the operational
expenditures of a program such as vehicle operations, in state travel, supplies, etc. The
Capital Expenditures line category includes funds for the purchase and replacement of
equipment assets valued at $5,000 or more with a useful life greater than one year, and for real
property purchases and facility improvements and construction.

Each appropriation and allocation to a program also includes the number of positions
authorized by the Legislature. Referred to as ?headcount?, these positions are ?irther
classified by the Legislature as ?legislative count? or ?full-time equivalent?. Legislative count
represents positions authorized by the Legislature for 52 weeks in a ?scal year. These may
include full-time and part-time positions. Full-time equivalent represents positions authorized
by the Legislature for less than 52 weeks in a ?scal year. These typically include seasonal
and intermittent positions. Positions authorized by the Legislature may not vary from the
position titles and detailed funding that support the positions without legislative approval
unless permanent funding is identi?ed and approved by the State Budget Of?cer.

30

 ,f .- I  f. 
initigrm shin  Miniature)

Once the Legislature has enacted the biennial budget, and it has been signed into law,
the departments and agencies receiving expenditure authorization are required to develop
budgets by program for each ?scal year, requesting allotment by account, line category and
quarter. Allotment is established in four quarters and is approved by the Governor.
Fiscal year budgets may be adjusted, or funds transferred between line categories and
programs within the same fund and department or agency, to meet changing conditions upon
approval by the Governor. Limitations on the transferability of funds between line categories
and programs in a ?scal year are guided in law.

Basis of Budgeting

Governmental Funds

Expenditures for Governmental Funds are budgeted on an encumbrance and cash basis.
Tax revenues, including Sales and Use Tax, Service Provider Tax, Individual Income Tax,
Corporate Income Tax, Cigarette and Tobacco Tax, Estate Tax, Real Estate Transfer Tax and
Fuel Taxes, are budgeted on a modi?ed accrual basis. These tax revenues are recognized as
available for appropriation or allocation in the ?scal year earned, providing they are
measurable and available to liquidate liabilities in the current ?scal year period. These tax
revenues that are due in the current ?scal year, but which are payable by the taxpayer
subsequent to the close of the ?scal year, are accrued as accounts receivable and, therefore,
recognized as revenue in the ?scal year bene?ted. Other revenues are recognized on a cash
basis or are accrued as accounts receivable depending upon the circumstance and past practice.

Account Groups

Expenditures for internal Service Funds and Enterprise Funds are budgeted on an encumbrance
and cash basis. All revenues are recognized on an accrual basis. All revenues are recognized
as available for allocation in the ?scal year earned. All revenues due in the current ?scal year,
but which are payable subsequent to the close of the ?scal year, are accrued as accounts
receivable and, therefore, recognized as revenue in the fiscal year bene?ted.

Biennial Budget Tinieline

Biennial budget guidance is provided to departments and agencies in July of the last ?scal year
of the current biennium. This guidance includes a description of the required
documentation to support each budget request. Alternative funding scenarios from
departments and agencies may also be requested to show the program impact if funds by
program were limited to 90%, for example, of the base year appropriations or allocations. In
addition, the guidelines and instructions may request other detailed budget information from
each department and agency as necessary.

Pursuant to 5 M.R.S.A ?1665, biemiial budget requests are due in the Bureau of the Budget by
September 1 of each even numbered year. During the months of September and October, the
budget in the Bureau of the Budget prepare budget recommendations for the Governor
or Governor-elect based on independent analysis and forecasts as well as one-on?one

31

 'i'it'i'ltaiit'tt-r

discussions with department and agency staff. Following the election, one-on-one budget
meetings are held with key department and agency staff to discuss speci?c requests,
departmental priorities, and impact of reductions ?'om alternative budget scenarios. These
meetings may include the Governor or Governor-elect, the Commissioner of the Department
of Administrative and Financial Services, the State Budget Of?cer, the Governor or
Governor?elect?s Chief of Staff and the Governor or Governor-elect?s Senior Policy
Advisers, depending upon the department or agency and the issue under consideration.

In late December, all budget decisions are ?nalized, including the development of the capital
budget. 5 M.R.S.A, ?l666 requires that the budget bills are transmitted to the Legislature in
January or February, dependent on the status of the Governor or Governor-elect. Two budget
bills are provided to the Legislature. One is a supplemental budget bill (also referred to as an
emergency budget bill) that proposes adjustments to appropriations and allocations for the last
?scal year of the current biennium. The second is referred to as a uni?ed budget bill in that it
presents all appropriations and allocations for a program regardless of funding source. Part A
of the bill presents the Governor or Governor-elect?s appropriation and allocation
for the upcoming biennium. Part of the bill presents adjustments
associated with approved reelassi?cations and range changes that are self?funded by
departments and agencies. Other parts of the uni?ed budget bill include proposed statutory
and unallocated language required to give legal effect to the Governor or Governor-elect?s
budget proposals.

The budget document must be submitted to the Legislature in early January according to
statute, except when there is a Governor-elect. A Governor-elect has one additional month and

must submit the budget in early February.

The content of the budget document is prescribed by statute. The budget document presents
the budget, ?nancial and operational plan of the Governor or Governor-elect for the upcoming
biennium. Details are provided in the budget document to show how those plans will be
realized and the manner in which the budget has been balanced.

The Legislature conducts separate public hearings for each budget bill type before the Joint
Standing Committee of the Legislature having jurisdiction over appropriations and ?nancial
affairs. At each public hearing, department and agency heads present and defend each budget
request by program for his or her department or agency. Testimony from the public, either
for or against the request, is solicited by the committee during the public hearing. Members
of the joint standing committee of the Legislature having policy jurisdiction over the
department or agency are also included in the public hearing process.

Following each public hearing, the joint standing committee of the Legislature having
jurisdiction over appropriations and ?nancial affairs engages in work sessions for each
budget bill type. The initial stage of the work session involves the receipt of
recommendations from the legislative policy committees of jurisdiction. The committee next
engages each department or agency head, and their staff, in one-on-one discussions in order to
elicit additional program information pertinent to the budget decision making process. Such
information may include staf?ng and organization, performance measures, caseload forecasts,

32

 timelino

etc. The committee takes public votes on each item in the Governor?s budget, adjusting each
budget bill to reflect the priorities of the Legislature. At the conclusion of the work
session, the committee reports out each budget bill type for consideration by the full
Legislature followed by referral to the Governor for his or her approval.

Budget bills are submitted as emergency bills that require a 2/3 vote of the members of both
legislative bodies in order to take effect when approved by the Governor. Non-emergency
budget bills require a majority vote of those legislators present and voting in each legislative
body. These budget bills take effect 90 days after the adjournment of the Legislature if signed
into law by the Governor.

33

 

34

ORGANIZATIONAL CHART OF MAINE STATE GOVERNMENT

 

CITIZENS

 

 

 GOVERNOR

 

 

 

 

 

            

      

 
 

 

JUDICIAL DEPARTNTENT 

 

 

EXECUTIVE DEPARTMENT

 

 

Supreme Judicial Court
Superior Court
District Court

Officer of the Governor
Of?ce of the Public Advocate
Of?ce of Policy 

Management

 

 

 

 

 

 

 

 

  
  

- . - LEGISLATIVE DEPARTMENT

 

Senate House

Legislative Council

 

 

 

 

 

Secretary of
State

Treasurer of
the State

 

 

 

 

 

Attorney
General

State Auditor

 

 

 

 

 

 

 

 

Administrative and Agriculture. Conservation Forestry  Corrections  Defense, Veterans

Financial Services Formerly the Department of Agriculture. Emergency

Food and Rural Resources and the Management
Department of Conservation

Economic and
Community
Development

 

 

 

Education .. Environmental

Protection

 

 

 

 

Health and Human Services Inland Fisheries and Labor ".33 Marine Resources

Formerly the Department of Human Services Wildlife

and the Department of Behavioral and
Developmental Services

Professional and
Financial
Regulation

 

 

 

 

 

 

 

 

Pubiic Safe Transportation

 

 

 

 

 

 

 

 

 

QUASI-INDEPENDENT STATE ENTITIES (Partial Listing

 

INDEPENDENT (Partial Listing)   - - 2' - 

Baxter State Park Authority

Combat Sports Authority

Indigent Legal Services

Maine Educational Center for the Deaf
Hard of Hearing and Governor Baxter
School for the Deaf

Maine Historic Preservation Commission
Maine Public Broadcasting Corporation
Maine State Lottery Commission

Public Utilities Cemmission

Maine Arts Commission
Maine State Library
Maine State Museum

ConnectME Authority

Efficiency Maine Trust

Finance Authority of Maine

Maine Community College System
Maine Governmental Facilities Authority
Maine Human Rights Commission
Maine Maritime Academy

 

 

 

 

 

Maine Municipal Bond Bank

Maine Port Authority

Maine Public Employees Retirement System
Maine State HOusing Authority

Maine Turnpike Authority

University of Maine System

Workers? Compensation Board

 

 

 

(In'mn'ntn'  ttmign'wt 

Summary of Governor?s General Fund Budget Recommendations

 

The following tables and charts show in summary form the Governor?s General Fund budget
recommendations for the 2018-2019 biennium. Table - 1 shows total General Fund
appropriations by department or agency (including one-time appropriations) with percent change
for the 2018-2019 biennium compared to the 2016?2017 biennium.

Table - 2 shows the General Fund revenues recommended by the Governor for ?scal year
2017-18 and ?scal year 2018-19. The columns labeled represent the General Fund
revenue forecast of the Revenue Forecasting Committee. The columns labeled ADJ re?ect the
Governor?s recommended adjustments to the base revenues. Table - 3 explains the individual
adjustments to the original General Fund revenue amounts.

Chart - 1 shows the Governor?s recommended General Fund appropriations by major
program for the 2018-2019 biennium.

Chart 2 shows the Governor?s recommended General Fund revenues by revenue source for
the 2018-2019 biennium. These revenues include the base revenue projections of the Revenue
Forecasting Committee, including Transfers for Tax Relief Programs, and adjustments to the
base revenues recommended by the Governor.

35

 

TABLE D-l

 

GENERAL FUND APPROPRIATIONS

 

 

 

 

 

 

 

BUDGET
2016-2017 2018-2019 PERCENT
DEPARTMENTIAGENCY Biennium Biennium CHANGE
DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES 287,007,158 253,582,966 -1 1.65%
DEPARTMENT OF AGRICULTURE, CONSERVATION AND FORESTRY 63,508,763 65,876,836 3.73%
MAINE ARTS COMMISSION 1,871,138 2,074,823 10.89%
DEPARTMENT OF THE ATTORNEY GENERAL 39,508,551 43,897,436 11.1 1%
OFFICE OF THE STATE AUDITOR 3,167,960 3,446,564 8.79%
DEPARTMENT OF CORRECTIONS 356,427,088 355,044,918 -0.39%
MAINE STATE CULTURAL AFFAIRS COUNCIL 78,890 78,890 0.00%
DEPARTMENT OF DEFENSE, VETERANS AND EMERGENCY MANAGEMENT 16,515,887 17,535,613 6.17%
MAINE DEVELOPMENT FOUNDATION 1 16,888 1 16,888 0.00%
DIRIGO HEALTH 2,642,631 2,683,854 1.56%
DISABILITY RIGHTS MAINE 252,090 252,090 0.00%
DOWNEAST INSTITUTE FOR APPLIED MARINE RESEARCH AND EDUCATION 25,108 25,108 0.00%
DEPARTMENT OF ECONOMIC AND COMMUNITY DEVELOPMENT 24,840,275 24,716,965 050%
STATE BOARD OF EDUCATION 326,696 330,966 1.31%
DEPARTNIENT OF EDUCATION 2,3 57,620,425 2,435,153,870 3.29%
DEPARTMENT OF ENVIRONMENTAL PROTECTION 15,217,442 17,268,827 13.48%
COMMISSION ON GOVERNMENTAL ETHICS AND ELECTION PRACTICES 305,574 305,947 0.12%
EXECUTIVE DEPARTMENT 8,722,632 8,754,393 0.36%
FINANCE AUTHORITY OF MAINE 33,384,788 32,384,788 -3.00%
MAINE FIRE PROTECTION SERVICES COMMISSION 4,000 4,000 0.00%
FOUNDATION FOR BLOOD 52,175 - 
MAINE HISTORIC PRESERVATION COMMISSION 813,654 661,759 - 18.67%
MAINE HISTORICAL SOCIETY 89,728 89,728 0.00%
MAINE HOSPICE COUNCIL 127,012 127,012 0.00%
MAINE STATE HOUSING AUTHORITY 5,050,000 5,100,000 0.99%
MAINE HUMAN RIGHTS COMMISSION 1,425,851 1,667,018 16.91%
DEPARTMENT OF HEALTH AND HUMAN SERVICES 2,341,371,419 2,238,671,530 439%
MAINE HUMANITIES COUNCIL 106,714 106,714 0.00%
MAINE COMIVIISSION ON IN DIGENT LEGAL SERVICES 35,422,935 16,600 -99.95%
DEPARTMENT OF TECHNOLOGY SERVICES - 20,470,897 100.00%
MAINE INDIAN COMMISSION 223,228 223,228 0.00%
DEPARTMENT OF INLAND FISHERIES AND WILDLIFE 56,395,479 55,264,600 201%
CENTERS FOR INNOVATION 236,018 236,018 0.00%
JUDICIAL DEPARTMENT 137,550,799 153,155,998 1 1.35%
DEPARTMENT OF LABOR 23,100,423 22,301,238 -3.46%
LAW AND LEGISLATIVE REFERENCE LIBRARY 2,949,209 3,145,206 6.65%
LEGISLATURE 50,849,531 53,669,108 5.54%
MAINE STATE LIBRARY 6,868,747 7,035,927 2.43%
DEPARTMENT OF MARINE RESOURCES 20,341,352 21,216,236 4.30%
MAINE MARITIME ACADEMY 17,773,608 20,308,629 14.26%
MAINE MUNICIPAL BOND BANK 138,662 138,662 0.00%
MAINE STATE MUSEUM 3,444,250 3,539,537 2.77%
PINE  LEGAL ASSISTANCE 1,000,000 1,000,000 0.00%
MAINE POTATO BOARD 321,804 321,804 0.00%
OFFICE OF PROGRAM EVALUATION AND GOVERNMENT ACCOUNTABILITY 2,354,144 2,607,707 10.77%
STATE BOARD OF PROPERTY TAX REVIEW 173,130 173,130 0.00%
MAINE PUBLIC BROADCASTING CORPORATION 3,000,000 3,000,000 0.00%
OFFICE OF THE PUBLIC DEFENDER - 32,774,464 100.00%
DEPARTMENT OF PUBLIC SAFETY 89,641,} 16 141,686,252 58.06%
MAINE PUBLIC EMPLOYEES RETIREMENT SYSTEM 14,809,784 497,588 96.64%
SACO RIVER CORRIDOR COMMISSION 93,920 93,920 0.00%
DEPARTMENT OF THE SECRETARY OF STATE 9,490,781 15,303,421 61.25%
ST. CROIX INTERNATIONAL COWISSION 48,000 50,000 4.17%
RESERVE FUND FOR STATE HOUSE PRESERVATION AND MAINTENANCE 1,600,000 1,600,000 0.00%
MAINE COMTVIUNITY COLLEGE SYSTEM 120,328,054 129,574,712 7.68%
(OFFICE OF) TREASURER OF STATE 163,498,623 221,382,974 35.40%
BOARD OF TRUSTEES OF THE UNIVERSITY OF MAINE SYSTEM 409,914,984 420,959,218 2.69%
NEW ENGLAND INTERSTATE WATER POLLUTION CONTROL COMMISSION 15,900 15,900 0.00%
Total General Fund Appropriations 6,732,165,018 6,841,722,477 1.63%

 

 

 

The Foundation for BIOOCI Research is no longer in operation

 

 

36

37

 

FY 2017

 

Sales and Use Tax
Service Provider Tax
Individual Income Tax
Corporate Income Tax
Cigarette 81 Tobacco Tax
Insurance Company Tax
Inheritance 5. Estate Tax
Fines, Forfeits and Penalties
Income from Investrnenw
Transfer from Lottery
Trans for Tax Relief Frogs
Trans. to Muni. Rev. Share
Other Taxes and Fees
Other Revenues

1,334,011,722
59,149,448

1 ,530,248.976
161 ,093,471
139,179,000
76,700,000
15,378,323
22,237,275
1,707,976
54,900,000
(64,448,340)
(65,484,234)
142,973,133
21,603,304

1,334,011,722
59,149,445
1,530,245,975
151,093,471
139,179,000
75,700,000
15,375,323
22,237,275
1,707,975
54,900,000
(54,445,340)
(55,454,234)
142,973,133
21,503,304

TabIe 0-2

1,374,545,325
59,424,459
1 702,942,294
155,724,242
135,552,000
73,755,000
12,415,710
22,242,017
2,057,513
54,900,000
(54,755,101)
(59,511,097)
131,900,950
(59,755,912)

19,970,354

(191,502,544)
(2,510,599)
(221,500)

2,500,000
3.500.000

(6,400,000)
380.022

1,394,818,682
59,424,469
1,511,339,750
163,213,543
136,460,500
73,765,000
12,416,710
22,242,017
2,087,513
57,400,000
(61,268,101)
(69,611,097)
125,500,960
(59,388,890)

FY 2019

 

1 423,555,099
59,575,124
1,755,072,551
170,059,195
134,200,000
73,755,000
12,540,409
22,243,017
2,421,025
54,900,000
(55,355,523)
(59,424,525)
131,274,044
(145,520,951)

75,173,455
(152,057,340)
(12,555,154)
(221,500)
(9,539,537)
3.000.000

(3,180,308)

(6,400,000)
378,522

1,501,751,554
59,575,124
1,503,005,221
157,374,012
133,975,500
73,755,000
3,100,572
22,243,017
2,421,025
57,900,000
(59,555,931)
(59,424,525)
124,574,044
(145,142,429)

 

TOTAL REVENUE 3,430,250,054 -

 

 

 

 

3,430,250,054

 

3,542,785,423

 

(174,384,357)

 

3,368,401 ,0 56

 

3,588,504,376

 

(132542.162)

 

3,455,962,214

 

 

38

TABLE D-3

 

  



 

 

Detail by Revenue for the FY 18-19 Biennium

 

 

 



 

 

  

 

 

Saies and Use Tax

Service Provider Tax

Individual Income Tax

Corporate Income Tax
Cigarette and Tobacco Tax

InSurance Companies Tax

Estate Taxes

Fines. Forfeits and Penalties

Income ??om Investments

Transfer from Lottery

Transfers for Tax Relief Programs
Transfer for Municpa] Revenue Sharing

Other Revenue

Other Taxes and Fees

 

Part - Tax Reform - Sales and Use Tax

Part - Tax Reform - Individual income Tax

Part - Tax Reform - Corporate Income Tax

Part A - Tobacco Products License

Part - Tax Reform Estate Tax

Part BB - Keno games

Part I - Transitions ?'om BETR to BETCE

Part A Agriculture. Conservation and Forestry
Part A - Public Safety

Part A - Department of Corrections

Part A - Of?ce of the State TreaSurer

Part Tax Reform - Telecommunications Excise Tax

Part A - Agriculture. Conservation and Forestry

 

19,970.354

(1911502544)

(2,510,699)

(221,500)

25001000

3500000

431000
437,201
(1551.179)

(6500.000)

100.000

78, 173,4 85

(132067.340)

(12,685,184)

(221,500)

(9.539.837)

3.000.000

(3.130.303)

431000
437,201
(155,179)

(1,500)

(6500.000)

100,000

 

 

Total Revenue Adjustments

 

 

(174334.367)

 

(132.542.1152)

 

 

CHART D-1

Fiscal Years 2018-2019
General Fund Projected Appropriations
$6,841.7

Dollars in Millions

 
  
 
 
 

Medicaid
$1,502.63 EPS
22% 51,9516

28.6%

  
  
 
   
  
 
  
   

DHHS Remaining

 Higher Eds
. 5595.6
8.7%
Debt Service

$290.4 

42% $553 K-12 Remaining

Teacher Retirement $2151

 
   

 
  

0.8V
0 d. I $262.4 3-1%
- [eta
Tax Expenditures Remaining State $1234 33%
$60 9 Agenmes 1 8% Legislature $61.0
$931.1 - 03%
09% 14.3%

39

CHART D-Z

Fiscal Years 2018?2019
General Fund Forecasted Revenues
$6,824.36

Dollars in Millions

Service Provider Tax
$119.10
1.7%

    
 
   

Other Revenues

$(204.53)

3.0%

Other Taxes and Fees/"
Corporate Income Tax

 

Trans. to 525038 $320.59
. 

Mum. Rev. 4.7%

Share Trans for Tax Relief Progs

130.84

$(139.04) ems . in itance Cigarette 8: Tobacco Tax

40% Fines, Forfetts Estat $27044

Transfer from Lottery 3W3 Panama $15.52 insurance Company Tax 4.0%
511530 $44.49 0.20% $147.53
1.7% {17% 2.2%

40

 {Stair-gist. Reinsrn'rimanilaHum

Summary of Governor?s Highway Fund Budget Recommendations

 

The following tables and charts Show in summary form the Governor?s Highway Fund budget
recommendations for the 2018-2019 biennium. Table - 1 shows total Highway Fund
allocations by department or agency (including one-time allocations) with percent change for the
2018-2019 biennium compared to the 2016-2017 biennium.

Table 2 shows the Highway Fund revenues recommended by the Governor for ?scal year
2017?18 and ?scal year 2018-19. The columns labeled ORIG. represent the Highway Fund
revenue forecast of the Revenue Forecasting Committee.

Chart 1 shows the Governor?s recommended Highway Fund allocations by major program.

Chart 2 shows the Governor?s recommended Highway Fund revenues by revenue source for
the 2018-2019 biennium. These revenues include the base revenue projections of the Revenue
Forecasting Committee.

41

 

TABLE E-l

 

HIGHWAY FUND ALLOCATIONS

 

 

 

 

 

BUDGET

2016-2017 2018-2019 PERCENT
Biennium Biennium CHANGE
DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES 4,768,840 846,936 -82.24%
DEPARTMENT OF ENVIRONMENTAL PROTECTION 66,108 66,108 0.00%
LEGISLATURE 21,125 21,125 0.00%
DEPARTMENT OF PUBLIC SAFETY 55,913,767 13,960,472 -66.09%
DEPARTMENT OF THE SECRETARY OF STATE 72,059,597 76,962,893 6.80%
DEPARTMENT OF TRANSPORTATION 521,769,197 554,413,068 6.26%
TOTAL HIGHWAY FUND ALLOCATIONS 554,598,634 651,270,602 -0.51%

 

 

 

 

42

 

Table E-2

 

 
  

Fuel Tax 224,110,357 224,110,357 228,821,293 228,821,293 229,929,720 229,929,720

Motor Vehicle Registrations 8 Fees 85,984,415 85,984,415 85,504,341 85,504,341 85,385,245 85,385,245
Inspection Fees 2,982,500 2,982,500 2,982,500 2,982,500 2,982,500 2,982,500

Other Highway Fund Taxes and Fees 1,280,229 1,280,229 1,293,729 1,293,729 1,280,229 1,280,229
Fines Forfeits Penalties 739,039 739,039 739,039 739,039 739,039 739,039
Income from Investments 585,484 585,484 551,510 551,510 724,495 724,495
Other Revenues 9,959,100 9,959,100 9,959,100 (348,350) 9,812,750 9,959,100 (346,350) 9,812,750

TOTAL REVENUE 325,841,124 325,841,124 327,851,512 (348,350) 327,505,182 331,000,328 (348,350) 330,853,978

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43

CHART E-1

Fiscal Years 2018-2019
Highway Fund Projected Allocations
$651.3

Dollars in Millions

 

Natural Resources DEbt SerVice
Development and $33-38
Protection 5%
$0.07
0%

44

CHART E-2

Fiscal Years 2018-2019
Highway Fund Forecasted Revenues
$658.1

 

Inspection Fees

Other Revenues  -. .1 . $5.97
$1933 Income from Other Highwag'9%
2'9?6 Fines Forfeits Fund Taxes and
Investments .
$1 28 Penalties Fees
0 $1.48 $2.57
0.2% 0.4%

45

 and anti 

Requested and Recommended Appropriations and Allocations

 

Judicial Department

Pursuant to 5 MRSA, chapter 149, ?1664, sub-?2, the Governor must provide notice when the
recommended appropriations and allocations for the Judicial Department differ from the
budget request submitted by the Judicial Department, providing an explanation for any
differences.

The chart on the following page summarizes the baseline budgets by fund type, for the Judicial
Department for each year of the upcoming biennium, for Personal Services, All Other and
Capital. It also provides summary information for changes to appropriations and
allocations requested by the department and the recommended appropriations and
allocations appearing in the Governor?s budget.

In all, the department requested an increase in General Fund appropriations of $15.4 million
over the course of the biennium. The Governor?s budget for the 2018?2019 biennium
recommends total adjustments in appropriations of $4.1 million. Careful consideration was
given to the department?s requests, taking into consideration the Chief Justice?s rationale for the
proposed budget and the needs of the department and within the larger context of the range of
needs across state government.

The Judicial Department requested a decrease in allocations of federal funds totaling
approximately $3.1 million; the Governor?s also budget recommends a decreased allocation of
$3.1 million. Last, the department requested an increase in Other Special Revenue of
approximately $7.1 million; the Governor?s budget recommends an increase in allocation of
approximately $9.4 million.

46

 

FY18 FY19
Recommended Recommended Recommended Recommended

FY 18 Revised FY 19 Revised
Baseline Budget Baseline Budget

Requested
Changes FY 18

Requested

47

ENERAL FU 
Personal Services
All Other

Capital Expenditures
Unailocated

Total

FEDERAL EXPENDITURE FUNDS
Personal Services

All Other

Capital Expenditures
Unallocated

Total

OTHER SPECIAL REVENUE FUNDS
Personal Services

All Other

Capital Expenditures
Unaliocated

Total

44,181,637
29,715,324

73,896,961

1,989,055
1,088,789

3,077,844

528,721
3,241,601

3,770,322

45,408,792
29,715,324

75,124,116

2,050,880
1,088,789

3,139,669

548,631
3,241,601

3,790,232

2,012,359
3,682,372

5,694,731

(1,516,521)

(1,516,521)

2,961,880
237,116
300,000

3,498,996

Changes FY 19

2,108,561
7,586,817

9,695,378

(1,559,821)

(1,559,821)

3,075,363
220,227
300,000

3,595,590

Changes FY18

(1,203,422)
880,372

(323,050)

(1,523,369)

(1,523,369)

3,873,260
227,000
300,000

4,400,260

Changes FY19

(942,986)
5,400,957

4,457,971

(1,563,182)

(1,563,182)

4,033,197
648,360
300,000

4,981,557

Budget
42,978,215
30,595,696

73,573,911

465,686
1,088,789

1,554,475

4,401,981
3,468,601
300,000

8,170,582

Budget
44,455,806
35,116,281

79,582,087

487,698
1,088, 789

1,576,487

4,581,828
3,889,961
300,000

8,771,789

 

TOTAL

80,745,127

82,054,017

7,677,206

11,731,147

2,553,841

7,876,346

83,298,968

89,930,363

 and mm 

Of?ce of Program Evaluation and Government Accountability

Pursuant to 5 MRSA, chapter 149, ?l664, sub-?3, the Governor must provide notice when the
recommended appropriations and allocations for the legislative Of?ce of Program Evaluation
and Government Accountability (OPEGA) differ from those requested by the Legislative
Council, providing an explanation for any such difference.

The Legislative Council did not submit additional budget requests for OPEGA. The Baseline
Budget is re?ected in the Governor?s recommended biennial budget.

48

 

GENERAL FUND
Personal Services
All Other

Capital Expenditures
Unallocated

Total

FY 18 Revised

Baseline Budget Baseline Budget Changes FY 18

1,142,736
149,088

1,291,824

FY 19 Revised

1,166,795
149,088

1,315,883

Requested

Requested
Changes FY 19

Changes FY18

Changes FY19

FY 18
Recommended Recommended Recommended

Budget

1,142,736
149,088

1,291,824

FY19
Recommended
Budget

1,166,795
149,088

1,315,883

 

TOTAL

49

1,291,824

1,3 15,883

1,291,824

1,315,883

 .. . .1. .3 ?a  -,  - . 
:rtiltlii: {Hit} 

Research and Development

5 MRSA, chapter 149, ?1664, sub-?3-A, establishes a formula for determining a funding level
for research and development. In FY10, that formula set the level at not less than 1% of total
actual General Fund revenue in FY09. For each successive year for the following decade, that
funding level is to increase by at least two-tenths of 1% until funding for research and
development is the equivalent to not less than 3% of total actual General Fund revenue of the
previous ?scal year.

The funding level recommended for research and development as recommended in the
Governor?s budget includes an appropriation of $17.35 million in each year of the biennium to
the Maine Economic Improvement Fund, University of Maine System. The University of
Maine System requested an additional $4.2 million in each year; however, it was reduced as
needs were addressed across state government. It also includes a recommended appropriation
of just over $7 million in each year for the Of?ce of innovation, within the Department of
Economic and Community Development. Both of these appropriations are for the
support of research and development activities.

This funding level falls short of that which would be otherwise calculated using the formula

described above. Careful consideration was made in arriving at the recommended funding
levels, as investment in research and development is critical to Maine?s economy and future.

50

 

GENERAL FUND
Personal Services

All Other

Capital Expenditures
Unaliocated

Total

FY 18 Revised
Baseline Budget

267,166
24,144,260

24,411,426

FY 19 Revised

Baseline Budget

270,238
24,144,260

24,414,498

Requested
Changes FY 18

2, 100,000

2,100,000

Requested
Changes FY 19

2,100,000

2,100,000

Changes FY18

Changes FY19

FY 18
Recommended Recommended Recommended

Budget

267,166
24,144,260

24,411,426

FY19
Recommended
Budget

270,238
24,144,260

24,414,493

 

TOTAL

51

24,411,426

24,414,493

2,100,000

2,100,000

24,411,426

24,414,498

 and itt'hz?izu?ozitender} anti r?iliomtions

Maine Indian Tribal?State Commission

5 MRSA, chapter 149, ?1664, sub~?3?B states that if the Governor submits legislation setting
forth appropriations or allocations for the Maine Indian Tribal?State Commission that differ
from the full budget proposal developed under 30 MRSA, ?6212, sub-? 6, the Governor shall
simultaneously submit a report to the joint standing committee of the Legislature having
jurisdiction over appropriations and ?nancial affairs and the joint standing committee of the
Legislature having jurisdiction over judiciary matters explaining why the Governor's budget
legislation differs from that proposal.

The funding level recommended for the Maine Indian Tribal-State Commission does not differ
from the requested amount.

52

 

GENERAL FUND
Personal Services
At! Other

Capital Expenditures
Unallocated

Total

TOTAL

53

FY 18 Revised
Baseline Budget

111,614

111,614

111,614

FY 19 Revised
Baseline Budget

Requested

111,614 

111,614 -

111,514 -

Changes FY 18

Requested
Changes FY 19

Recommended Recommended

Changes FY18

Changes FY19

FY 18
Recommended
Budget

111,614

111,614

111,614

FY19
Recommended
Budget

111,614

111,614

111,614

Debt Analysis

 .. I. 1? ..  
Ut-ftit 

 

Table as of June 30, 2016:

 

General Obligation Bonds
(GOs)

Debt secured by state's full faith, credit, and
taxing power.

$381.0 million

 

Authorized but Unissued GO
Bonds

 

 

Bonds authorized by voters, but not yet
borrowed upon.

 

$50.0 million

 

 

Authorized but Unissued Debt: Debt that has been authorized but has not yet been issued

Debt Service: Principal and interest paid, or estimated to be paid, on outstanding debt

General Obligation Debt: General Fund and/or Highway Fund bonds approved by the voters
with the full faith and credit of the State.

Interest: That part of debt service, which does not reduced the outstanding debt balance, as it
represents the contract or coupon rate of the face amount of the bond payable on a periodic

basis.

Outstanding Debt: Debt that has been issued, or is estimated to be issued, but has not yet been

retired.

Principal: That part of the debt service which reduces the outstanding balance as it represents
payments of the face amount of the bond on speci?ed maturity dates that retire the debt.



54

 

 

GENERAL FUND BONDS
DEBT SERVICE REQUIRENIENTS T0 MATURITY

 

 

 

 

 

 

June 30, 2016
Fiscal Year Principal Interest Total

2017 59,415,000 15,620,081 75,035,081
2018 56,030,000 13,928,526 69,958,526
2019 51,410,000 11,843,373 63,253,373
2020 42,970,000 9,763,426 52,733,426
2021 42,680,000 8,148,050 50,828,050
2022 36,055,000 6,014,050 42,069,050
2023 31,320,000 4,211,300 35,531,300
2024 31,315,000 2,645,300 33,960,300
2025 20,025,000 1,284,650 21,309,650
2026 9,770,000 488,500 10,258,500

380,990,000 73,947,256 454,937,256

HIGHWAY FUND BONDS
DEBT SERVICE REQUIRENLENTS TO MATURITY
June 30, 2016
Fiscal Year Principal Interest Total

2017 21,015,000 2,600,579 23,615,579
2018 18,285,000 1,691,210 19,976,210
2019 12,500,000 905,540 13,405,540
2020 7,610,000 389,668 7,999,668
2021 2,210,000 1 10,500 2,320,500
2022 

61,620,000 5,697,497 67,317,497
GF HF I 442,610,000 I 79,644,753 522,254,753 I

 

 

55

56

 

Appropriation

s, Allocations, Revenuesand Other Financing
. [For Fiscal Years-2016?17through 2018-19

(pro forma) 

Sources and Uses

 

 

 

Fiscal Year 
2015-17

Fiscal Year
201 7~1 8

Fiscal Year
2013-19

Biennium 
2018-19

4

 

SOUFCBS

 

 

Unencumbered
Encumbered

A
General Fund
Highway Fund

 

Other Sources:

 

Non Revenue Recei ts:
Transfers - in



 

Additional Fund Resources

 

ro riation and Allocation of Undedicated Revenues:

Allocation of Dedicated Revenues:
Federal Expenditure Fund

Other Special Revenue Fund
Federal Block Grant Fund

Internal Service Funds. Enterprise Funds and Other Funds

Total Sources

 

Uses

 

Expenditure:
Personal Services

All Other
Capital Expenditure
Unallocated

Other Uses:
Transfers - Out

 

Total Uses'

2,615,209,622
214,560,426

Inn?um?

2,829,770,048

3,400,866,296
331,044,352
3,731,910,648

 

2,747,205,852
1,078,391,245
187,469,287
602,920,004



4,615,986,388

76,197,371
76,197,371

 

542,662,542
542,662,542
11,796,526,997

 

1,130,493,056
7,724,364,173
227,795,482

I?u?uq??

9,082,652,711

536,315,679



536,315,679
9,618,968,390

2,177,558,607

 

2,177,558,607

3,411,334,728
326,931,796

3,738,266,524

2,727,176,470 

1,044,500,974
184,302,333
621 ,890,231

4,577,870,008

 

(12,278,355)
(12,278,355)

 

542,888,781
542,888,781
11,024.305,565

 

1,140,710,792
7,536,067,386
181,448,368

 

8,858,226,546

526,625,562
526,625,562
9,384,852,108

 

1 639,453,457

I?nn?nn?w

1,639,453,457

3,430,387,749
324,338,806
3,754,726,555

 

2,667,824,546
1,104,524,759
184,464,079
624,494,650
4,581,308,034

 

19,611,282
19,611,282

 

547,236,053
547,236,053
10,542,335,381

 

1,163,318,896
7,481,778,408
234,503,550

 

8,879,600,854

530,897,199



530,897,199
9,410,498,053

2,177,558.607



2,177,558,607

6,841,722,477
651,270,602

7,492,993,079

5,395,001,016
2,149,025,?33

388,766,412
1,246,384,881
9,159,178,042

 

7,332,927
7,332,927

 

1,090,124,834
1,090,124,834
19,927,187,489

 

2,304,029,688
15,017,845,794
415,951,918

 

17,737,827,400

1,057,522,761
1,057,522,761
18,795,350,161

 

 

Ending Balances

 

Lapsed to Funds
Carried Fomard

 

 

2,177,558,607

 

1,639,453,457

 

1,131,837,328

 

1,131,837,328

 

 

 

 

 (ii iiut?ig?t?? 

Glossary of Budget Terms

 

Allotment: The designation ofa department or agency?s estimated expenditures in each ?scal
year budget (called the annual work program) by quarter and line category. Four equal quarters
are used each ?scal year. The approved amounts are recorded in the accounting general ledger
by quarter and line category to form the basis on which the State Controller authorizes
expenditures, in accordance with statute.

Allocations: The total amount of estimated expenditures authorized by the Legislature
from resources legally restricted or otherwise designated for speci?c operating purposes. These
resources typically constitute highway funds, federal funds, other special revenue funds,
internal service funds, enterprise funds or any other funds, which may be designated for
speci?c purposes by the Legislature. 

Alternative Budget: The biennial budget scenario technique in which departments and
agencies are required to present revised budget requests for each ?scal year of a biennium as an
alternative to the department or agency?s original budget proposal.

Appropriations: The total amount of estimated expenditures authorized by the Legislature
?'om unrestricted or undesignated resources in each ?scal year. These resources typically
constitute undedicated General Fund resources which are designated by appropriation
account and line category in the estimated authorizations to spend of the Legislature.

Biennial Budget: The two year ?nancial plan of the State of Maine which shows for each
?scal year all proposed expenditures, interest and debt, redemption charges, capital
expenditures and estimated revenues in support of expenditures and obligations consistent with
the Governor?s, or Governor-elect?s, program priorities, goals and objectives.

Biennium: The two ?scal years, beginning in even numbered fiscal years, which represent the
period covered by the biennial budget ?nancial plan of the State of Maine.

Bond Issue: A ?nancing instrument for major capital purchases, projects, repairs, renovations
or other limited projects by which the State incurs debt and retires the principal and interest
amounts over time.

Dedicated Revenue: Revenue which accrues to a department or agency for use toward
designated or legally restricted operational purposes.

Encumbrance: A commitment against allotment for legally binding purchase orders and

contracts representing goods and services which have not yet been received. Encumbrances
become expenditures and liabilities only when the goods and services are actually received.

57

 ..


Enterprise Fund: A proprietary fund in which goods and services are provided by a
state department or agency to the general public through charges based on consumption. Such
fund types may or may not be self-sustaining depending upon the cost structure of the agency
whereby cost of goods sold, debt interest and other non-operating expenditures are deducted
from gross revenue to determine the entity?s net income or loss for the ?scal year.

Fiscal Year: The accounting and budgetary cycle of the Maine State Government. The ?scal
year commences on the ?rst day of July and ends on the 30th day of June each year.

Full Time Equivalent: The number of positions of less than 52 weeks in a ?scal year
authorized by the Legislature for a speci?c department or agency and program.

Fund: A ?scal and accounting entity with a self-balancing set of accounts showing cash and

other ?nancial resources, together with all related liabilities and residual equities or balances,
and changes therein, which are segregated for the purpose of carrying on speci?c activities or
attaining certain objectives in accordance with special regulations, restrictions, or limitations.

Internal Service Fund: A self-sustaining, proprietary fund which derives its resources in
support of expenditures from service charges to other state departments and agencies and other
units of government.

Lapsed Funds: Uncommitted funds remaining in an appropriation account at the close of a
?scal year which are returned to lapsed to the ?md from which they were originally
appropriated or allocated by the Legislature.

Legislative Count: The number of permanent full time and part time positions authorized by
the Legislature for a speci?c department or agency and program.

Line Category: The expenditure groups represented by the following four classi?cations to
which the Legislature appropriates and allocates funds by department or agency and program:
personal services (salaries, wages and bene?ts); all other (operational support); capital
expenditures (capital equipment purchases, real property purchases and facility improvement
and construction); and, unallocated (undesignated items with respect to expenditure type).

Program: A grouping of activities and expected results that are directed toward the
accomplishment of a set of goals and objectives consistent with statutorily de?ned missions and
represents a department bureau, division or operational entity to which the Legislature
appropriates or allocates resources de?ned by the Legislature.

Undedicated Revenue: Revenue collected by a department or agency but which accrues to a
general ledger account for use toward undesignated or unrestricted operational purposes.

Unappropriated Surplus: An account maintained by the State Controller on the books of the
State. The balances of all revenue and appropriation accounts not otherwise provided for by
law, together with any other necessary adjustments of balances previously closed to the
Unappropriated Surplus Account, are closed to this account at the end of each ?scal year.

58