By Glenn Adams,Associated Press Writer

AUGUSTA – State revenues for the first month of fiscal 2006 exceeded projections by $2 million thanks almost entirely to an unusually large estate-tax collection, the Baldacci administration reported Monday.

Income from sales and personal income taxes fell short of projections for July and lottery revenues were under budget by nearly $1.2 million.

The report reflects lackluster economic activity amid questions of how greatly the state’s economy will be affected by rising energy prices. Fuel prices are closely tied to tourism, one of the pillars of Maine’s economy.

Maine sales and use tax revenues in July totaled $92 million, which was 2.8 percent under budget, while individual income taxes came in at $81.5 million, or 2.2 percent under budget. Corporate income tax revenues totaled $6.5 million, which is 35 percent above projections.

Coming in over budget were estate taxes, which exceeded projections by $7 million. Most of that surplus came from collections from a single estate.

“Estates of this magnitude are extremely rare and should be treated as one-time revenue,” said the report.

The new figures come out a month after Gov. John Baldacci reported Maine state government ended fiscal 2005 in a good financial position, with revenues exceeding budgeted estimates by $29 million during the year ending June 30.

They also came out as the Congressional Budget Office projected this year’s federal budget shortfall will drop to $331 billion, 20 percent lower than last year’s record shortfall of $412 billion. The drop is attributed to surging revenues and the steadily growing economy.

Figures from the Federal Reserve improved tourism activity and automobile sales nationwide, but state tourism and auto revenue figures were not yet available for the month, the report said.

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