DAS commissioner: federal funds roughly equal to general fund in FY2026 estimate; May 1 revenue forecast will adjust figures

Kirsten Figueroa, Commissioner of the Department of Administrative and Financial Services, told the Maine Legislature’s Appropriations Committee on April 1 that the administration’s fiscal 2026 estimate shows federal funding and the state general fund at nearly the same level.

“We estimate the budget in ’26 is $13,600,000,000 and the estimate for fiscal year ’27 … is $13,700,000,000,” Figueroa said, and added that federal funds shown in the chart are a combination of federal grants and block grants used across state accounts.

Why it matters: committee members pressed the administration for clarity about how the two-year budget in LD 210 will reconcile with the baseline “current services” budget already enacted (LD 609) and with a May 1 revenue forecast that could change revenue projections used to balance the biennial budget.

Figueroa told members the figures she brought were based on the administration’s December forecast and the LD 210 proposals and that the numbers will be adjusted after the formal revenue forecast. “These numbers are what the forecast was as of December,” she said. The commissioner also said the administration will present a change package with technical adjustments and any revenue-forecast driven changes after May 1.

Lawmakers asked how current-year revenue collections compare with projections. Figueroa said that year-to-date revenues were ‘‘under budget right now by about $28,000,000’’ and that much of that difference was refunds being paid out faster than receipts coming in. She said April 15 (tax‑filing season) is a key data point and that the Economic Forecasting Commission’s meeting the previous day supplied updated employment and wage assumptions the revenue forecasters will use for the May 1 projection.

Representative Beyer asked whether the administration was seeing revenue growth or erosion ahead of May 1; Figueroa said the state is “basically holding steady” and that major rating agencies (Moody’s, S&P) are not prompting large forecast moves. She confirmed the administration will bring forward a change package with technical corrections regardless of the forecast and will incorporate any May 1 changes when available.

Committee chairs and members raised process questions about timing and effect. Members noted that if the legislature passes a majority (not two-thirds) supplemental budget, many items will take effect 90 days after enactment, potentially delaying some spending. Figueroa said the state has a baseline budget that starts July 1 and that the administration would flag items that would cause operational concerns if funding did not take effect immediately.

The committee scheduled additional briefings: the State Economist and the Economic Forecasting Commission will present later in the week, and the administration will return with a change package and further detail after the May 1 revenue forecast.

Ending: committee chairs asked staff to circulate the Economic Forecasting Commission materials from the prior day and requested that the administration provide updated figures after April 15 and the formal May 1 revenue forecast.