The State of Maine is projected to face a massive shortfall of nearly $1 billion for fiscal years 2026 and 2027, the first two years after Gov. Janet Mills (D) will leave office, according to Maine’s budget officer.
The $949.2 million shortfall includes a $636.7 million projected deficit in the General Fund and a Highway Fund gap of $312.5 million for the 2026-2027 biennium, according to a recent four-year budget forecast report released by the Department of Administrative and Financial Services (DAFS).
According to DAFS, these projections are based on current laws and economic trends. Based on those conditions, DAFS’ analysts are projecting a massive budget deficit looming on the horizon.
“This report compares the most recent revenue forecasting against current appropriation and allocation funding requirements in law,” DAFS Commissioner Kirsten Figueroa said in a letter appended to the report.
“The final result – often called the structural gap – is the amount of money by which revenues would have to increase, expenses would have to decrease, existing laws would have to be amended, or some combination thereof would have to be achieved in order for revenues to meet expenditures, as identified by law,” Figueroa said.
The report was delivered on Monday to Gov. Mills, Senate President Troy Jackson (D-Aroostook), House Speaker Rachel Talbot Ross (D-Portland), and members of the Joint Standing Committee on Appropriations and Financial Affairs.
The report was authored by Darryl Stewart, the Acting State Budget Officer.
Maine’s state constitution requires a balanced budget, but there has been no indication yet from the governor or any lawmakers as to how that might be achieved given the magnitude of the projected shortfall.
Projected General Fund Shortfall
The General Fund revenue for the 2026-2027 biennium is projected to total approximately $11.02 billion, while expenditures are expected to reach $11.67 billion. This results in a projected shortfall of $636.7 million. The fund’s revenue sources include a mix of taxes, transfers, and other revenue streams.
Expected Revenues by Source (2026-2027 Biennium):
- Sales and Use Tax: $4.68 billion (42.5% of total revenue)
- Individual Income Tax: $5.23 billion (47.5%)
- Corporate Income Tax: $848 million (7.7%)
- Cigarette and Tobacco Tax: $320.6 million (2.9%)
- Insurance Company Tax: $267.4 million (2.4%)
- Other Taxes and Fees: $281.8 million (2.6%)
- Service Provider Tax: $89 million (0.8%)
- Transfers (including Lottery and Tax Relief): Net of -$182.1 million
Additional sources contribute smaller amounts, such as the Inheritance and Estate Tax and fines, forfeits, and penalties. Adjustments for municipal revenue sharing and transfers to the Highway Fund are also factored in, according to the DAFS report.
Highway Fund Revenue Shortfall
The Highway Fund is projected to have revenues of $1.01 billion for the 2026-2027 biennium, with anticipated expenditures totaling $1.33 billion. This creates a budget gap of $312.5 million.
Expected Revenues by Source (2026-2027 Biennium):
- Fuel Tax: $421.3 million (primary revenue source)
- Motor Vehicle Registrations and Fees: $195.1 million
- Sales Tax Transfer (related to motor vehicles): $236.1 million
- Liquor Operations Fund Transfer: $118 million
- Other minor sources include inspection fees, fines, and miscellaneous taxes.
The DAFS report is based on the most recent revenue forecasts from the Revenue Forecasting Committee (RFC) and includes updates to reflect any legislative actions from the 131st Legislature’s Second Regular Session.
As Maine’s state constitution requires a balanced budget, the legislature and Gov. Mills will need to make nearly $1 billion in adjustments — either cutting costs or raising new revenues — in order secure a constitutionally sound budget for the two years following Mills’ exit from the Blaine House.
The projections and underlying assumptions in the report will play a key role in shaping the state’s budget discussions for the 2026-2027 biennium as lawmakers consider various policy and funding strategies to address the anticipated gaps.
Here is the full report submitted on Sept. 30, 2024 by DAFS Commissioner Kirsten Figueroa:
Ohhhhh, look, the “shortfall” is almost the same amount we have sitting in “The rainy day fund”!
All the unspent Covid-19 recovery fund abuses and she still burned through all that money???? President Trump is blamed for spending all that money on Covid-19 relief that Governors like Mills spent on projects completely unrelated to Covid-19. But to spend it all? Barbaric!
Well I guess we’re going to have to spend a hell of a lot less than we have been up until now
Sorry Janet but I’ve got nothing left for any more taxes .
Time to get the hell out of here .
The way life used to be is no more .
Democrats have ruined it .
Mainers need to pay there fair share….right Democrats?
Why don’t they raise the business taxes so inflation continues to rise? The Democrats are fiscally illiterate
Its almost like all this extra spending now is causing short falls later… who would have thought that….
Kiss those homestead deductions good-bye after school funding is cut. You see folks, she doesn’t give a flying rats ass about you the tax payer as long as the new mainers are still able to suckle at her swine like breast.
Help, I’m in liberal hell and I cant wake up. Last one out turn off the lights.
Archaic term…..
“Yankee thrift.”
Bring it back.
HOPE & YOUR CHANGE – SPENDING LIKE DRUNKEN SAILORS
Just following the lead of Trump and Republicans in D.C.
So why are you complaining?
Besides, the budget must be balanced by state law and therefore it will be. When you give the key to the bank to Republicans they spend like no one else ever has. Clinton left office with 4 straight budget surpluses and along comes Bush and that’s when it all started to head downhill.
It’s called a recession folks, of course revenue is down
As she brings in 75,000 more illegals to be put on the dole at the cost of the taxpayers of Maine.
Democrats would rule over ashes in order to keep power.
And people will still vote for the same Democrats who do this like abused spouses going back because of promises of better treatment.
Wake up Maine
Its NOW Time to vote Republican control before the democrats totally destroy our state
VOTE THESE DEMOCRATS OUT ….ALL OF THEM
“Elections have [SEVERE] consequences.”
Robert, I AM WITH YOU !!!!!!!!!!!!
Well all these homeless unemployed illegals need help…..
#fuckjanetmills #fuckglobalism
I too believe that when trump is elected the spending will increase because it’s going to cost a lot to fix the damage done by this clown show. Hopefully there will be some offset with savings from deportation, removal of corrupt bureaucrats and funding of foreign wars.
Well, you can thank all your neighbors with the Harris/Walz. King. Pingree and Golden signs on their lawns.
But we have plenty of money to change every stinking state logo to that dumb ass pine tree flag …..
Priceless .
Wake TF up Mainers .
Democrats are running you over the cliff .
You are helping them do it .
And people chose Janet Mills over Paul Lepage .
Unbelievable .
Such stupid people .
Tough shit .
YOU voted her in .
Deal with It .
What other outcome would you expect from “Crack Head ” Mills and her Dykes of the Round Table …A Fiscal Conservative in Augusta is extinct . Let it all burn down and the survivors rebuild…
This crazy spending will stop if people in Maine have the courage to vote out the Democrats in November. King and Pingree have been there long enough. So has Jared, what they do in Washington does affect Mainers. Good luck locally getting a change in the legislature, the education department got their $121,000 dollar person to get all the schools to go green. ON and on and on!!
Wow, I am so glad that I got out of Maine when the opportunity came! I spent my entire life in Maine and wanted to retire in place. We sold everything running out of the State of Maine! When Janet Mills was elected, I knew the state was in deep trouble! I only experienced a short time under her first term. I cannot for the life of me understand a second term? (Insanity: doing the same thing over and over again with the same bad results)! If you don’t make any changes in 2024 elections, then Mainers deserve to drowned in the Democratic (Socialist) Debt. If a Socialist Society is how you want to live, then by all means vote for these Socialist Democrats and their rule? Would not be my choice!
Conservatives, you need to get out and vote for Conservative Candidates. Not only for Maine, but for our country. If Dems get their way in this 24 election we will be a Communist Socialist Country! It is Maine’s Last Stand and possibly our country’s at any chance at a prosperous future again.
Mills and the Democrats continue to squander millions on giveaway programs and illegal aliens. Mills continues to create useless and unnecessary jobs with high salaries to reward supporters. Neither individuals or business can afford more taxes so this needs to be made up 100% by cutting spending.
The piper will be paid. Dems are economically illiterate. Screw ’em. Everyone who voted for a democrat and intends to keep on voting for democrats needs to have their taxes raised to get out of this mess.
Everyone who did not Vote for Paul LePage is responsible for this. He fixed thirty years of democrat mismanagement when he was first in office, and would never have let this happen.
Every town needs a village idiot. Right Mike. Grove.
We have been saying she is ruining the state for years. Too many liberals voted for her and look she will leave us a mess, or try to get more taxes. We are being taxed to death there is no reason for this other than democratic spending that is out of control. So pat yourself on the back of you voted for Mills, you got what you asked for and screwed the rest of us.
Democrats =terrorists
Governor Paul Lapage left almost a billion surplus when he left office, the people of MAINE ARE FOOLS for not electing Paul,
We need state wide electoral college by county so that Portland Bangor and Lewiston Aburn don’t get to Zmake all the decisions for the STATE !!!
” Eight illegal migrants have been arrested in eastern Tennessee for looting homes devastated by Hurricane Helene,” And now FEMA is broke!
Thank you Joe/ Harris, Angus, Pingre,
To quote former President Trump, “So what”, when he was informed that his Vice President’s life was endangered on 1/6.
Trump set records for debt and deficit spending before the Trump pandemic hit and you never complained.
He looks pretty good in a dress.
This is what you get with one party rule. We are turning into California.
Well done to you Ms. Mills. You’ve once again proven how incompetent you are at governing our beautiful State.
Highway $ are short then start taxing the EV registrations! Why should they have a free ride
Rooster– In my area I have seen 3 signs come down. Take down as the owners walk up!
Mike Grove- Trump was fighting Joe Biden and Harris best friend Red China.
Not opening the boader to illegal imigrants.
These Democrats care more about taking care of Criminal Aliens then they are tax paying citizens. Mills has to go before she destroys this State anymore.
Thanks momma mills. I remember Governor Lepage having a surplus. That’s even after paying the hospital bills the previous governor stiffed them on.
No problem. The D legislature will announce it’s time for a tax increase.
Take a look at the article in Gateway Pundit –
https://www.thegatewaypundit.com/2024/10/watch-first-look-inside-furnished-maine-apartments-where/
This is why the State has a shortfall….
These illegals are living better than most Mainers – all on our dollar!
What did you expect with Socialist Democrats in charge! They are masters at turning surplus into deficit!
Toady Mills can’t be gone soon enough.
She and the other Socialists have destroyed Maine!
Questions, how the hell are we going to pay for all of this! We’re taxed to death up here already. On cars we have to pay taxes that we payed to buy the car. Lord Jesus help us out send up people that know what there doing. Lived in the county all my life and we may have to move.
Bring back fiscal responsibility. PAUL LEPAGE Republicans. Fire these democrats. Boys taking girls cross country races. Democrats. Fight for our daughters.