Vermont's October Revenue Figures Below Target

Vermont's October Revenue Figures - General Fund, Transportation Fund and Education Fund - Below Target
Montpelier, VT - (November 12, 2008) Secretary of Administration Neale F. Lunderville today released General Fund revenue results for the
month of October, the fourth month of Fiscal Year 2009. General Fund revenues totaled $91.23
million for October 2008, -$3.42 million or -3.61% below the $94.65 million consensus revenue
forecast for the month. Cumulatively, General Fund revenues year-to-date were $385.26 million or
+9.55 million (+2.54%) above the consensus revenue forecast for Fiscal Year 2009. It is important
to remember that the year-to-date October revenue includes a legal settlement of $6.03 million
received in September.

At the time the consensus revenue was approved in July 2008, the outcome of the legal action was
unknown. Consequently, no amount was included in the consensus forecast for the potential
settlement; however, an estimated $5.57 million was anticipated and already earmarked for use.
Of
the $6.03 million included in the cumulative revenue total, $2.3 million was transferred to Teachers'
Retirement and the remaining $3.73 million was included in the August 2008 General Fund
Rescission, reducing the appropriation reductions necessary to balance the FY 2009 budget. This
means that only $0.46 million of the settlement was in excess of what was anticipated, not the entire
$6.03 million.

Without the portion of the settlement that was anticipated, the adjusted cumulative General Fund
revenues were +$3.98 million (+1.06%) above the consensus revenue forecast for Fiscal Year 2009.

As was the case in October and given the continued instability in the national economy, we do not
expect revenues to exceed the current targets going forward.

The monthly targets reflect the most recent Fiscal Year 2009 consensus revenue forecast that was
agreed to by the Emergency Board on July 29, 2008. The state's consensus revenue forecast is
normally updated two times per year in January and July. However, with the downturn in the
national economy, the Emergency Board has scheduled an interim review of the consensus revenue
forecast for November 18, 2008.

Personal Income Tax receipts are the largest single state revenue source, and are reported Net of
Personal Income Tax refunds. Personal Income Tax receipts for October were $51.49 million,
+$0.70 million or +1.37% above the monthly target. Corporate Income tax receipts for October were
$1.04 million, -$2.17 million or -67.66% below the target for the month. As reported last month, the
expected downturn in the Personal Income Tax and Corporate Income Tax receipts has begun.
Cumulative Personal Income Tax receipts of $202.21 million were +3.44% above target, down from
+4.17% last month. Cumulative Corporate Income Tax receipts of $15.21 million have fallen to
-$2.62 million, or -14.71% below target. We believe that the downward trend, particularly in
Corporate Income Tax receipts will continue in the coming months.

Sales & Use Tax receipts of $19.88 million was slightly above target for the month by +$0.12
million or +0.59%. Cumulatively, however, Sales & Use Tax fell -$0.29 million (-0.39%) below the
year-to-date target of $74.69 million. Rooms & Meals Tax receipts fell short of target for the month
by -$0.85 million or -7.79%. At $44.02 million, Rooms & Meals Tax results were -$0.31 million or
-0.71% below the cumulative October target.

The remaining tax component results for the month were: Insurance Premium, $0.35 million
(+32.77%); Inheritance/Estate Tax, $0.95 million (-39.95%); Real Property Transfer Tax $0.82
million (-0.62%); and Other, $6.57 million (-8.98%). Year-to-date results for these components
were: Insurance Premium, $8.53 million (+3.93%); Inheritance/Estate Tax, $2.77 million (-49.39%);
Real Property Transfer Tax, $3.87 million (-0.08%); and Other, $34.26 million (+32.62%), inclusive
of the $6.03 million settlement received in September.

Secretary Lunderville said that, "Although Vermont's economic situation is not as dire as the other
New England states and New York, this is nonetheless a very serious downturn that we expect to
deepen over the next 18 months. The worsening national economic decline threatens to become a
global decline. Dealing with this difficult and deepening economic downturn will require many
difficult choices. We will review the situation again after the revenue forecast is revised next week."