S.P. 783 - L.D. 2110
An Act to Amend the Laws Regarding the Consensus Revenue Forecasting Process
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 5 MRSA §1664, 2nd ¶, as amended by PL 1995, c. 665, Pt. S, §1, is further amended to read:
Part 1 must consist of a budget message by the Governor-elect or the Governor that outlines the 4-year financial policy of the State Government for the ensuing biennium and the following biennium, describing in connection therewith the important features of the financial plan. It must embrace a general budget summary setting forth the aggregate figures of the budget in such a manner as to show the balanced outlines relations between the total proposed expenditures and the total anticipated revenues together with the other means of financing the budget for each fiscal year of the ensuing biennium, contrasted with the corresponding figures for the last completed fiscal year and the fiscal year in progress. The following biennium financial plan must include the forecasted Highway Fund and General Fund appropriation requirements and projected revenues and other available resources shown in a budget fund flow statement and a comparative statement that presents income source for revenue projections and appropriation estimates by major program categories. This forecast must assume the continuation of current laws and include reasonable and predictable estimates of growth in revenues and expenditures based on national and local trends and program operations. General Fund and Highway Fund revenue must be forecasted for the following biennium by income sources as provided in current law chapter 151-B. Expenditure forecasts for the General Fund and the Highway Fund must be forecasted on the basis of current law and assumed inflation variables related to program operations. It must specifically describe the estimated loss in revenue during the last completed fiscal year and the fiscal year in progress, and the
anticipated loss in revenue for each fiscal year of the ensuing biennium, caused by tax expenditures provided in Maine statutes; the term "tax expenditures" means those state tax revenue losses attributable to provisions of Maine tax laws that allow a special exclusion, exemption or deduction or provide a special credit, a preferential rate of tax or a deferral of tax liability. The general budget summary must be supported by explanatory schedules or statements, classifying the expenditures contained therein by organization units, objects and funds, and the income by organization units, sources and funds.
Sec. 2. 5 MRSA §1665, sub-§3, as enacted by PL 1989, c. 501, Pt. P, §13, is amended to read:
3. Revenue estimates. Tentative revenue estimates prepared by the The State Budget Officer during the month of September of the even-numbered years shall be revised by this officer during the following November shall use the revenue projections recommended by the Revenue Forecasting Committee in setting revenue estimates for inclusion in the budget. The revenue estimates shall must be classified so as to show the income by organization units, sources and funds, or in any other manner, at the discretion of the State Budget Officer.
Sec. 3. 5 MRSA §1665, sub-§7, as amended by PL 1995, c. 665, Pt. S, §2, is further amended to read:
7. General Fund and Highway Fund revenue and expenditure forecasts. By September 30th of each odd-numbered year and May 31st of each even-numbered year, the State Budget Officer shall prepare and deliver a report to the Governor, the Legislature and the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs containing a forecast of revenue and expenditures for the following biennium. The forecast must assume the continuation of current laws and include reasonable and predictable estimates of growth in revenues and expenditures based on national and local trends and program operations. General Fund and Highway Fund revenue must be forecasted by income source as provided in current law chapter 151-B. Expenditure forecasts for the General Fund and the Highway Fund must be forecasted on the basis of current law and assumed inflation variables related to program operations. The forecast for the General Fund and the Highway Fund must be presented in a budget fund flow statement and a comparative statement showing each income source for revenue projections and expenditure estimates for each major program category.
Sec. 4. 5 MRSA §1710-E, as enacted by PL 1995, c. 368, Pt. J, §1, is amended to read:
§1710-E. Revenue Forecasting Committee; established; membership
There is established the Revenue Forecasting Committee, referred to in this chapter as the "committee," for the purpose of providing the Governor, the Legislature and the State Budget Officer with analyses, findings and recommendations relating to the projection of revenues for the General Fund and the Highway Fund based on economic assumptions recommended by the Consensus Economic Forecasting Commission. The committee includes the State Budget Officer, the State Tax Assessor, the State Economist and an economist on the faculty of the University of Maine System selected by the chancellor and, the Director of the Office of Fiscal and Program Review and an analyst from the Office of Fiscal and Program Review designated by the director of that office. One of the 5 6 members must be selected by a majority vote of the committee members to serve as the chair of the committee.
Sec. 5. 5 MRSA §1710-G, as amended by PL 1997, c. 157, §1, is further amended to read:
§1710-G. Use of revenue forecasts
The State Budget Officer shall consider use the revenue projections recommended by the committee in setting revenue estimates in accordance with section 1665, subsection 3. The State Budget Officer shall use the revenue projections of the committee in preparing General Fund and Highway Fund revenue and expenditure forecasts in accordance with section 1664 and section 1665, subsection 7. If new information becomes available and the State Budget Officer adjusts wishes to recommend an adjustment to the revenue projections already recommended by the committee in setting revenue estimates in accordance with section 1665, subsection 3, the State Budget Officer shall submit to the Governor, the Legislative Council and the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs a report that presents the analyses, findings and recommendations by revenue line and explains the variances from the revenue projections recommended by the committee, the State Budget Officer shall convene a meeting of the committee as soon as practicable so that the committee may review any new data and make any additional recommendations it feels necessary.
Sec. 6. 5 MRSA §1710-H, as enacted by PL 1995, c. 368, Pt. J, §1, is amended to read:
The committee shall meet at least 4 times a year. Additional meetings may be called by a majority vote of the committee or by the State Budget Officer as specified in section 1710-G.
Effective June 30, 1998, unless otherwise indicated.
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