by Timothy McQuiston, Vermont Business Magazine Despite the Personal Income Tax taking a hit, the State’s General Fund, Transportation Fund, and Education Fund receipts were a combined $188.6 million, exceeding the $181.1 million monthly consensus target by $7.5 million, or 4.1% for the month of February. Combined receipts are $45.5 million, or 2.2%, above the updated $2,044.2 million target adopted at the most recent Emergency Board meeting in January. General Fund revenues for February totaled $110.3 million, $4.7 million, or 4.4%, above the $105.6 million monthly consensus cash flow target.
According to Secretary of Administration Kristin Clouser, the PI tax was down over 12% for the month. and while it's by far the state's most important revenue source, the tax season can produce mixed results, as refunds and payments play out. It could take a couple more months for PI revenues to be fully rendered. In the meantime, other revenue sources picked up the slack.
The $12.0 million of combined receipts above target by the Meals and Rooms Tax, Insurance Tax, Net Property Transfer Tax, and Other categories more than offset the -$7.3 million combined underperformance by the Health Care Taxes, Personal Income Tax, Corporate Income Tax, Estate Tax, and Liquor proceeds.
State fiscal year-to-date General Fund receipts are $34.3 million, or 2.5%, above their $1,350.8 million target adopted at the most recent Emergency Board meeting.
Revenues in the Transportation Fund exceeded their $20.2 million February consensus target by $2.1 million, or 10.2%, yielding $22.3 million. All receipts, except for an insignificant underperformance by the Other Fees category, surpassed their combined targets by $2.1 million. Receipts are $9.3 million, or 5.0%, above their $185.2 million target adopted at the most recent Emergency Board meeting.
Monthly Education Fund revenues of $56.0 million were $0.7 million, or 1.3%, above their February $55.3 million cash flow target. All receipts, except for a -$1.0 million underperformance by the Lottery Transfer, exceeded their combined targets by $1.7 million. Receipts are $1.9 million, 0.4%, above their $508.3 million target adopted at the most recent Emergency Board meeting.
According to Secretary Clouser: “The February results are welcome news as receipts have exceeded expectations for the third consecutive month. The revenue cushion is particularly welcome as we head into the critical income tax filing season facing an uncertain economic outlook.”
