General Fund Revenues Miss Targets Big Time in April

by Rob Roper

The Agency of Administration reports that revenue for the State General Fund missed its target by a whopping $21.65 million, or 9.7% below expectations. The shortfall was due primarily to a $25.34 drop off in personal income tax receipts. Given that April is a significant tax month (April 15th and all), this is an ominous development.

The Vermont unemployment rate is just 3%, so there is not a large pool of people looking for work who, if they were to find jobs, could bolster the income tax.

Overall, the state is now $3.5 million below our annual revenue target with just two months left in the fiscal year to either make that up or dig a deeper hole. If the latter develops, another budget adjustment will be necessary.

Here’s the overall picture from the Secretary of Administration’s Report: “Year-to-date receipts in the Transportation Fund are $216.19 million against a target of $219.16. The Education Fund collected $15.75 million for the month of April, which is -$1.22 million below its $16.97 million target. Compared to revenues collected at this point in FY2016, there is an increase of 2.42%, or +$29.26 million in the General Fund; a 1.28%, or $2.73 million increase in the Transportation Fund; and a -0.01%, or -$0.01 million decrease in the Education Fund.

So keep in mind that with the slight exception of the Education Fund, the state is still taking more money out of our pockets year over year. We’re still paying more, just not as much as they would like.

Rob Roper is president of the Ethan Allen Institute.

{ 1 comment… read it below or add one }

Ralph Colin May 6, 2017 at 1:49 pm

This also might suggest that the Democratic Party line in Vermont that a significant number of upper income individuals are NOT leaving the state is – and has been for almost ten years – just another one of their many big lies. Those who have been in a position to do so and have had enough of the spendthrift Democratic/Progressive leadership and their ever-increasing taxing policies have said adieu to the state. And it’s not going to stop here!

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