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AUGUSTA (AP) – Maine fiscal officials say rising unemployment is cutting into state revenue.

Gov. John Baldacci’s budget chief, Ryan Low, told lawmakers Thursday that General Fund revenue in February was under budget by $20.5 million, or by 15.2 percent. That put the General Fund below budget by $16.1 million – about 1 percent – for the first eight months of the fiscal year.

A major drag has been sales and use tax receipts – down by more than $5 million for February.

Year-to-date sales tax revenue is under budget by $26 million, or 4.3 percent.

Maine’s unemployment rate in January was 7.8 percent – up from 4.8 percent a year earlier.

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