State tax revenues surge ahead of targets

State tax revenues surge ahead of targets

Vermont Business Magazine Secretary of Administration Kristin Clouser released Vermont’s revenue results today for April 2024. The General Fund and Education Fund exceeded their monthly consensus cash flow targets, as the vital personal income tax finished over 25% ahead, corresponding to the annual fiscal 2024 consensus forecast update as adopted by the Emergency Board at its January 2024 meeting. The Transportation fund was slightly below its monthly target. All three funds remain ahead of the fiscal year-to-date consensus cash flow targets.

The State’s General Fund, Transportation Fund, and Education Fund receipts were a combined $475.2 million, exceeding the $408.0 million monthly consensus target by $67.2 million, or 16.5%. Combined receipts are $2,811.0 million, which is $113.2 million above the updated $2,697.3 million target tied to the annual fiscal year 2024 consensus forecast adopted at the most recent Emergency Board meeting.

General Fund revenues for April totaled $385.4 million, $67.0 million, or 21.1%, above the $318.4 million monthly consensus cash flow target. Virtually all components in the General Fund category exceeded their monthly target, but the largest single contributor to the monthly above target performance was the personal income tax which continues to reflect the healthy underlying economy and full employment. State fiscal year-to-date General Fund receipts are $102.6 million, or 5.6%, above the consensus cash flow target of $1,832.8 million adopted at the most recent Emergency Board meeting.

Revenues in the Transportation Fund failed to achieve their $27.1 million April consensus target by just over -$1.1 million, or -4.3%, yielding $26.0 million. Lagging MV Purchase & Use taxes and Gasoline taxes were the main reason for the small monthly deficit relative to the consensus cash flow target. Receipts remained $6.3 million, or 2.7%, above their $238.9 million fiscal year-to-date consensus cash flow target.

Monthly Education Fund revenues of just under $63.8 million were $1.3 million, or 2.1%, above their April $62.5 million cash flow target. While all revenue components of the Education Fund exceeded their monthly target, except MV Purchase & Use, Lottery proceeds were the largest single contributor to above target monthly performance. Receipts were $4.7 million, 0.8%, above their $625.6 million fiscal year-to-date consensus cash flow target.

According to Secretary Clouser: “The annual Spring personal income tax filing season was clearly beneficial to state revenues, and with only two months remaining in the fiscal year, we are well placed to finish well above forecasted revenuer.”

 

Source: 5.17.2024. Montpelier, VT - Secretary of Administration

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