May 28, 2018
Politics Latest News | Poll Questions | George HW Bush | Memorial Day | Long Creek

Impact of US deficit cuts unknown in Maine

The Associated Press

AUGUSTA, Maine — Revenue officials in Maine say it’s much too early to say what federal deficit-reduction efforts will mean in the state.

The issue came up Monday as the Legislature’s Appropriations Committee got an update on state revenues amid a stubbornly slow economy.

At the same time, the deficit-reduction supercommittee in Washington failed to find at least $1.2 trillion in savings over the coming decade, triggering about $1 trillion over nine years in automatic across-the-board spending cuts.

But chief state economic forecaster Michael Allen says that what those cuts will mean in Maine is unknown.

He says the cuts would be at least a year off, and revenue forecasters don’t look that far into the future. And the cuts could entail “a thousand different scenarios” involving possible program reductions or tax increases.

Have feedback? Want to know more? Send us ideas for follow-up stories.

You may also like