A nonpartisan state committee is expected to increase Maine’s general fund revenue forecast for the next two years by approximately $202.2 million, the state announced Monday.

The Revenue Forecasting Committee also recognized an additional $247.9 million in one-time money for the current fiscal year, the Maine Department of Administrative and Financial Services said in a statement.

But the revenue adjustments follow a recent report from the department projecting a $636.7 million structural budget gap between revenues and expenses over the next two years, and Gov. Janet Mills is warning that the next state budget “is going to be tight.”

The additional money for this fiscal year is the result of a delay in revenue collections due to the extensions of tax return filing dates by the IRS and Maine Revenue Service following last winter’s extreme storms, as well as significant interest earnings in the state’s cash pool.

Even with the increases, the updated forecast represents a leveling off of revenues after years of rapid growth immediately following the COVID-19 pandemic, and it underscores prior warnings from Mills that revenues are flattening and budgeting should be done responsibly, the department said.

Maine’s constitution requires a balanced budget, which means the projected revenue adjustments and structural gap considerations will prompt the governor to submit a supplemental budget for the 2025 fiscal year, along with a biennial budget proposal for 2026 and 2027, when the Legislature convenes in January.

“These projected revenues should not be seen as an opportunity for significant new spending,” Mills said in a statement. “As my administration has consistently warned, this next budget is going to be tight, and rather than create new programs, these revenues should be used to meet our existing obligations, like 55% of education, municipal revenue sharing, and health care.

“Come January, I intend to introduce a lean budget proposal that will honor these existing commitments to the greatest extent possible, with any new investments seriously limited.”

Maine experienced significant revenue growth during the pandemic, but general fund revenues have since plateaued and grown at a more limited and modest rate when compared to growth during the pandemic.

“Our administration has been warning that revenues are flattening and that the Legislature must take a cautious approach to spending, which is why the governor had proposed saving more than $100 million during the last session,” said Kirsten Figueroa, commissioner of the Department of Administrative and Financial Services.

“While the Legislature didn’t agree with that proposal, the budgetary pressures still exist – programs continue to cost money while revenues are leveling off. Lawmakers will need to contend with this fact, and we hope they agree with us that the priority should be to continue funding the programs they previously approved rather than trying to create more. This approach will be crucial to the long-term stability of the budget.”