Vermont Secretary of Administration Neale F Lunderville announced today that Vermont s final fiscal year revenue figures were above projections for the General and Transportation funds, but below target for the Education Fund. The fiscal year ended June 30. General Fund revenues exceeded the target for the month as compared to the consensus revenue target, last revised in April 2009. The General Fund revenues of $100.23 million (+$3.66 million, +3.79%) for the month of June 2009 were above target against the recently revised forecast of $96.57 million. For FY 2009 end-of-year, General Fund revenues of $1,104.01 million (+$14.47 million, +1.33%) were slightly above the full year target.
While the General Fund finished above target for fiscal 2009, it is important to remember two key factors that led to this result, said Secretary Lunderville. First, the revenue estimate for fiscal 2009 has been downgraded in each forecast since January 2008 because of a progressively worsening economy. That is six consecutive downgrades with the last downgrade coming three months ago in April. Second, the only reason for any excess revenue is a one-time estate tax settlement of nearly $14 million.
Although the carry forward is welcome news especially in the context of another downgrade for fiscal 2010 it is in no way indicative of the economic circumstances facing Vermont, said Lunderville.
Due to fiscal 2009 year-end statutory commitments, only $7.47 million of this carry forward is estimated to be available for fiscal 2010. A breakdown of those close-out obligations is as follows:
The June revenue targets are based on the most recent FY 2009 consensus revenue forecast that was agreed to by the Emergency Board on April 24, 2009. The state s consensus revenue forecast for FY 2010, which began July 1, 2009 and ends on June 30, 2010 was revised on July 15, 2009. Normally the consensus revenue forecast is updated two times per year in January and July. However, with the unstable economic situation, the Emergency Board has been scheduling interim revenue reviews. The next consensus forecast is scheduled to be reviewed by the Emergency Board in mid-November, 2009.
Personal Income Tax receipts are the largest single state revenue source, and are reported Net of Personal Income Tax refunds. Net Personal Income Tax Receipts for June of $52.54 million were slightly above target for the month by +$0.09 million or +0.18%. For FY2009 end-of-year, the net Personal Income Tax results of $530.32 million fell short of the $531.70 million target by -$1.38 million or -0.26%.
Corporate Tax receipts are also reported net of refunds. Corporate Income Tax revenue results for the month of June were above target by $3.37 million, pushing the end-of-year results to $66.17 million or +$4.97 million and +8.13% above the target established in April.
While receipts for the month in the consumption taxes (Sales & Use Tax and Meals & Rooms Tax) were mixed, end-of-year results fell short of target: Sales & Use Tax, $214.11 million (-0.04%); Rooms & Meals Tax, $117.06 million (-0.55%).
Estate Tax is always difficult to project accurately under target for the first 10 months of the year, Estate Tax closed well above target due to significant receipts in May and June. End-of-year, Estate Tax receipts were $23.40 million versus the target of $9.30 million. The remaining year-to-date non-major tax component results for June all fell slightly below target: Insurance Premium, $53.72 million (-$0.13 million, -0.23%); Real Property Transfer Tax $8.48 million (-$0.25 million, -2.83%); and Other , $90.76 million (-$2.11 million, -2.27%).
Transportation Fund
Secretary Lunderville also released the monthly and 2009 Fiscal Year non-dedicated Transportation Fund revenue results today. Transportation Fund receipts for the month were $22.59 million, exceeding the current forecast by +$0.35 million or +1.59%. For FY 2009 end-of-year, the Transportation Fund revenues of $203.60 million were +$0.97 million or +0.48% above target.
The results for the individual Transportation Fund revenue components were mixed for the month and year. For the month of June results were: Gasoline Tax, $5.08 million (-2.45%); Diesel Tax, $2.42 million (+31.26%); Motor Vehicle Purchase & Use Tax, $5.25 million (-1.30%); Motor Vehicle Fees, $7.95 million (+0.75%); and Other , $1.89 million (-4.33%). End-of-year, the Transportation Fund revenue components were: Gasoline Tax, $60.64 million (+0.40%); Diesel Tax, $15.50 million (+4.04%); Motor Vehicle Purchase & Use Tax, $43.95 million (-0.85%); Motor Vehicle Fees, $65.51 million (+0.02%); and Other , $18.00 million (+2.81%).
Education Fund
Non-Property Tax Education Fund revenues constitute approximately 11.4% of the total Education Fund receipts. Non-Property Tax Education Fund revenue receipts for the final month and Fiscal Year FY 2009 of $14.57 million were released by Secretary Lunderville today; these receipts are +$1.37 million (+10.36%) above the monthly target for June of $13.20 million. End-of-year, non-Property Tax Education Fund revenues were $150.24 million or +$0.97 million (+0.65%) above target.
The results for the components of the non-Property Tax Education revenue for June: Sales & Use Tax, $8.12 million (+1.23%); Motor Vehicle Purchase & Use, $2.63 million (-1.32%); Lottery Transfer, $3.81 million (+57.19%); and Investment Income, $0.006 (-93.34%). End-of-year results were: Sales & Use Tax, $107.05 million (-0.04%); Motor Vehicle Purchase & Use, $21.98 million (-0.85%); Lottery Transfer, $20.95 million (+6.89%); and Investment Income, $0.26 million (-36.10%).
Conclusion
Secretary Lunderville concluded by saying that, The recent fiscal 2010 revenue estimate was sobering. There is still no clear indication that Vermont has reached the bottom of this recession. The economists remain guarded and reminded the Emergency Board that they still believe that the risk is on the down side. Vermont s recovery will be slow and we must take decisive action now to stabilize the state budget for years to come.
Source: Lunderville's Office. July 23, 2009.