General Fund revenues totaled $55.89 million for February 2013, and were +$0.09 million or +0.16% above the $55.80 million consensus revenue forecast for the month. Year to date, General Fund revenues were $806.44 million, and +$2.46 million or +0.31% ahead of the cumulative target of $803.98 million. Meanwhile, both the Transportation and Education funds were off, as consumption taxes lagged. Secretary of Administration Jeb Spaulding released the February 2013 General Fund (GF) Revenue results Tuesday. February is the eighth month of fiscal year (FY) 2013.
Secretary Spaulding commented, ‘ February General Fund revenues were essentially on target for the month. Higher than projected Corporate, Meals & Rooms, and Insurance taxes offset below target performance in Personal Income, Inheritance, and Property Transfer taxes. Importantly, General Fund receipts for February 2013 were 6.78% above February 2012 and, cumulatively, FY 2013 General Fund receipts through February 2013 exceed collections for the same period last year by 7.43%.’
Current targets reflect the Fiscal Year 2013 Consensus Revenue Forecast adopted by the Emergency Board at their January 23, 2013 meeting. Statutorily, the State is required to revise the Consensus Revenue Forecast two times per year, in January and July; the Emergency Board may schedule interim revisions if deemed necessary. The July 2013 meeting has not been scheduled at this time.
Personal Income Tax (PI) receipts are the largest single state revenue source providing approximately 48% of total GF revenue. PI Tax receipts are reported Net-of-Personal Income Tax refunds. Net Personal Income Tax is comprised of PI Withholding Tax, PI Estimated Payments, PI Refunds Paid, and PI Other. Net PI Receipts for February were recorded at a (negative) -$4.17 million against a monthly target of (negative) -$3.04 million. The negative target and results are due to the initial month of tax filings which are generally submitted by taxpayers receiving refunds, and which results in refunds exceeding payments for the month. Year to date, Net PI Receipts were $381.63 million is +0.80% above the FY 2013 target and +5.08% ahead of the results for the same period of the prior fiscal year (FY 2012).
Corporate Income Taxes are also reported net-of refunds. February Net Corporate Income Tax receipts of $1.07 million were +$0.61 million or +129.61% above the monthly target of $0.47 million. Year to date Corporate receipts were $53.49 million or +2.30% above target. Compared to the same period for the prior fiscal year (FY 2012), Corporate Income Tax receipts exceed the prior year by 51.23%.
Consumption tax results for February were mixed: Sales & Use Tax receipts of $16.83 million were behind target by -$0.43 million or -2.46%; while Rooms & Meals Tax receipts of $11.48 million were above target by +$0.75 million or +7.02%. Year to date, Sales & Use Tax receipts of $159.88 million are -0.80% below the target of $161.18 million. Cumulative Rooms & Meals Tax of $92.64 million exceeded target by +1.64%. Sales & Use Tax and Rooms & Meals Tax through February both exceed receipts for the prior year by +1.67% and +6.73%, respectively.
The remaining non-major tax components include Insurance, Inheritance & Estate Tax, Real Property Transfer Tax, and ‘ Other’ (which includes: Bank Franchise Tax, Telephone Tax, Liquor Tax, Beverage Tax, Fees, and Other Taxes). The results for the remaining non-major categories for February were as follows: Insurance Tax, $25.86 million (+5.44%); Inheritance & Estate Tax, $0.13 (-90.08%); Property Transfer Tax, $0.46 million (-4.44%); and ‘ Other’ , $4.23 million (+3.50%). The fiscal year to date February results for the remaining non-major categories were: Insurance Tax, $43.51 million (+3.02%); Inheritance & Estate Tax, $12.99 million (-11.59%); Property Transfer Tax, $6.06 million (+0.62%); and ‘ Other’ , $56.23 million (-2.77%). Cumulatively, the total non-major component receipts of $118.79 million exceeded the prior year total by +$10.78 million, or +9.98%.
General Fund By Major Element (In Millions)
Transportation Fund
The non-dedicated Transportation Fund Revenue for February was also reported on by Secretary Spaulding. Total non-dedicated Transportation Fund receipts of $14.44 million for the month fell short of the target by -1.21 million (-7.74%). Year to Date, non-dedicated Transportation Fund receipts of $141.10 were -0.76% below the target of $142.18 million. Compared to FY 2012, year to date February Transportation Funds receipts exceed the prior year by +$1.06 million or +0.75% for the same period.
Individual Transportation Fund revenue receipts components for February were mixed: Gasoline Tax, $4.09 million or -5.01% below target; Diesel Tax, $0.89 million or -26.74% behind target; Motor Vehicle Purchase & Use Tax, $3.07 million or -6.78% below target; Motor Vehicle Fees, $5.00 million or -8.68% below target; and Other Fees, $1.39 million or +2.07% in excess of the monthly target. Year to date results for the individual Transportation Fund revenue components for February were: Gasoline Tax, $39.27 million or -1.57% below target; Diesel Tax, $9.88 million or -1.27% below target; Motor Vehicle Purchase & Use Tax, $33.80 million or +0.01% above target; Motor Vehicle Fees, $45.84 million or -1.20% short of target; and Other Fees, $12.31 million or +1.91% above the monthly target.
Secretary Spaulding said, ‘ For the second month since the revised targets in January, gas and diesel taxes and other transportation related taxes and fees are resulting in less revenue than projected. While some of the underperformance is likely technical in nature due to February being a short month, it is also consistent with underlying issues in the Transportation Fund, which should be addressed in the current legislative session. Energy efficient vehicles and efforts to drive fewer miles, while good for climate change and reducing our dependence on foreign oil, have a negative impact on our ability to generate sufficient revenue to maintain our transportation infrastructure.’
The Secretary also reported on the results for the Transportation Infrastructure Bond Fund (’ TIB’ ). TIB Fund Gas receipts for February were $1.50 million or -2.84% behind the monthly target; year to date TIB Gas receipts were $14.21 million or -1.39% below target. TIB Fund Diesel receipts for the month were $0.10 million or -41.28% behind the monthly target; year to date TIB Diesel receipts were $1.06 million or -5.16% below target. The year to date TIB Gas and Diesel results were +0.15% ahead and -15.23% behind the TIB Fund Gas receipts and TIB Diesel receipts, respectively, from the prior year (FY 2012). TIB Fund receipts are noted below the following table:
Education Fund
Secretary Spaulding also released the ‘ non-Property Tax’ Education Fund revenues (which constitute approximately 12% of the total Education Fund sources) today. The non-Property Tax Education Fund receipts for February totaled $11.44 million, or -$0.99 million (-7.97%) below the $12.43 million target for the month. Year to date, non-Property Tax Education Fund receipts were $110.38 million, or -0.91% short of the year to date target. The individual Education Fund revenue component results for February were: Sales & Use Tax, $8.41 million, or -2.47% below target; Motor Vehicle Purchase & Use Tax, $1.54 million or -6.78%; Lottery Transfer, $1.49 million or -30.51%; and Education Fund Interest for February was less than $.01 million against a target of less than $0.00 million. Year to date receipts by component were:
Conclusion
Secretary Spaulding concluded, ‘ We are pleased with General Fund revenue performance eight months into the fiscal year and not surprised by the underperformance in the Transportation Fund revenues. The wild card remains what the impact on our economy will be from federal funding cutbacks. It may be some time before those impacts are manifested in our economy and revenue stream. The administration continues to evaluate the projected fiscal, programmatic, and economic impacts sequestration, or any successor efforts from Washington, may have on Vermont’ s budget and programs for the remainder of FY 2013 and for FY 2014.’
Treasurer's Office 3.12.2013