Vermont Business Magazine Vermont tax revenues reached their targets for the month and the fiscal year, which ended June 30, but just barely, as the vital personal income tax continued to lag. State revenues have been bailed out the last few months mostly by the corporate and estate taxes. General Fund revenues totaled $124.67 million for June 2014, $.31 million or 0.25 percent ahead of the monthly target. For the fiscal year, General Fund receipts were $1,327.53 million, $2.43 million or 0.18 percent ahead of the cumulative target for the fiscal year. GF revenues were $38.92 million or 3.02 percent ahead of the prior fiscal year (FY 2013). Secretary of Administration Jeb Spaulding released the preliminary June and fiscal year (FY) 2014 revenue results today for the General, Transportation, and Education Funds.
The Transportation Fund also came in higher than projected for the month of June, finishing at $28.42 million, or 4.51 percent, higher than its monthly target. At $253.56 million for the year, the fund was -$1.54 million or –0.60 percent below target. TF revenues were $25.37 million or 11.12 percent ahead of the prior fiscal year (FY 2013).
The Education Fund came in lower than budgeted for the month of June, finishing at $16.18 million, or -4.94 percent, lower than its monthly target. At $175.37 million for the year, the fund was -$3.10 million or -1.74 percent below target. EF revenues were $8.91 million or 5.35 percent ahead of the prior fiscal year (FY 2013).
Secretary Spaulding stated, “It appears that our revenue forecasters practically hit the nail on the head, in terms of projections for the Fiscal Year. That’s pretty amazing given all of the components in our tax mix, and the complex interaction between our strengthening state economy and the broader national and international economies. We are very pleased to end the fiscal year slightly ahead of our economists’ projections and well ahead of last year’s actual performance. While the previous two months saw unexpected dips in projected paid income tax returns and extensions as a result of strategic decision making by large taxpayers at the end of 2012, that underperformance was offset by increases in other areas including estate tax collections significantly higher than projected.
"Otherwise, the year went pretty much as expected. Rooms & Meals Tax collections were ahead of target for the fiscal year, and were 5.87 percent higher compared to last year. Sales and Use Tax collections were essentially on target for the fiscal year. Corporate tax receipts were also ahead of target for the year by 6.33 percent and only slightly behind (-0.11 percent) last year. Volatility in the Personal Income Tax withholding component led to receipts that were slightly less than their target (-0.02 percent less than target), but were $33.7 million or 6.61 percent ahead of last year.
"The Administration is particularly pleased that General Fund revenues were on target and 3.02 percent greater than last year. That is a good economic indicator and helpful from a budgetary perspective. However, we are cognizant that State economists are closely analyzing state, national, and global indicators leading up to the revenue forecast update on July 24. We will be prepared for quick action should they recommend a downgrade of projected revenues going forward."
