Vermont Secretary of Administration Neale F Lunderville released the June 2010 General Fund Revenues today. General Fund revenues totaled $103.42 million for June 2010, and were +$5.53 million or +5.65% above the $97.89 million consensus revenue forecast for the month. These year-to-date General Fund performance of $1,038.40 million was +$7.50 million, or +0.73% ahead of full year target of $1,030.90 million. June is the final month of fiscal year 2010.
The monthly targets reflect the revised Fiscal Year 2010 Consensus Revenue Forecast approved by the Emergency Board at their January 13, 2010 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 next Emergency Board meeting is scheduled for today, July 15, 2010.
"While we are pleased to exceed the targets set in January ‘ even if by just under 1% ‘ it is important to note that the excess FY 2010 General Fund revenues have already been largely spent to shore up the FY 2011 Education Fund and other critical projects."
Personal Income Tax (PI) receipts are the largest single state revenue source, and are reported Net-of-Personal Income Tax refunds. Personal Income Tax receipts for June were recorded at $55.34 million, or +$3.46 million or +6.66% above the monthly target of $51.88 million.
Corporate Income Taxes for June, which are also reported net-of refunds, were recorded at $13.60 million against a target of $10.40 million, or +$3.19 million (+30.70%) above target.
The consumption taxes were above target for June; Sales & Use Tax receipts of $16.27 million were above target by +$0.14 million (+0.88%), while Rooms & Meals Tax receipts of $8.58 million were above target by +$0.17 million (+2.07%).
The year to date preliminary results for the four major General Fund categories are as follows: Personal Income Tax, $485.96 million (-1.23%); Sales & Use Tax, $207.43 million (+0.50%); Corporate, $74.83 million (+18.58%); and Meals & Rooms Tax, $117.97 million (+1.34%).
The remaining 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 month of June were as follows: Insurance Tax, $0.30 million (-80.64%); Estate Tax, $0.57 million (-63.58%); Property Transfer Tax, $0.80 million (+35.51%); and ‘Other’, $7.97 million (+8.03%). Year to date results for these categories were: Insurance Tax, $53.26 million (-1.74%); Estate Tax, $14.16 million (-15.69%); Property Transfer Tax, $7.78 million (+7.78%); and ‘Other’, $77.01 million (+2.99%).
Transportation Fund
Secretary Lunderville also reported on the preliminary results for the non-dedicated Transportation Fund Revenue for June. Total non-dedicated Transportation Fund receipts of $23.71 million for the month fell short of target by -$0.34 million (-1.41%), against the monthly target of $24.05 million. The year to date non-dedicated Transportation revenue was $213.26 million versus the target of $212.23 million (+$1.02 million, +0.48%).
Individual revenue receipts components for June were: Gasoline Tax, $5.09 million or -9.59% short of target; Diesel Tax, $2.06 million or +13.52% above target; Motor Vehicle Purchase & Use Tax, $5.89 million or +8.04% above target; Motor Vehicle Fees, $8.49 million or -3.52% below target; and Other Fees, $2.18 million or -7.35% below the monthly target. The June year to date Transportation Fund revenue results were: Gasoline Tax, $61.02 million or -0.46% short of target, Diesel Tax, $15.10 million or +0.64% ahead of target; Motor Vehicle Purchase & Use Tax, $46.52 million or +3.99% above target; Motor Vehicle Fees, $72.38 million or +0.39% above target; and Other Fees, $18.25 million or -4.46% short of target.
Lunderville also reported on the preliminary results for the Transportation Infrastructure Bond Fund (’TIB’). TIB Fund Gas receipts for June were $1.31 million or -9.56% short of target; year to date receipts of $13.36 million were -1.75% below target. TIB Fund Diesel receipts were $0.27 million or +26.83% above target for the month; year to date TIB Diesel receipts were $1.49 million or +35.51% ahead of target. TIB Fund receipts are noted below the following table:
Education Fund
The preliminary ‘non-Property Tax’ Education Fund revenues (which constitute approximately 11% of the total Education Fund sources) were released today by Secretary Lunderville. The non-Property Tax Education Fund receipts for June totaled $13.27 million, or +$0.20 million (+1.51%) above the $13.07 million target for the month. Year to date, Education Fund revenues were $147.19 million or +0.78% ahead of the full year target of $146.06 million.
The preliminary individual Education Fund revenue component results for June were: Sales & Use Tax, $8.13 million, or +0.88% ahead of target; Motor Vehicle Purchase & Use Tax, $2.95 million or +8.04%; Lottery Transfer, $2.19 million or -3.84%; and Education Fund Interest, -$0.01 million against a target of less than $0.00 million. Year-to-date results were: Sales & Use Tax, $103.72 or +0.50%; Motor Vehicle Purchase & Use Tax, $23.26 million or +3.99%; Lottery Transfer, $20.12 million or ‘1.35%; and Education Fund Interest, $0.097 million or +2.15%.
Conclusion
‘The June results are preliminary; finals will be issued by the end of the month,’ Lunderville said. ‘However, we do not expect the final over all totals to change significantly.’
‘While we are pleased to exceed the targets set in January ‘ even if by just under 1% ‘ it is important to note that the excess FY 2010 General Fund revenues have already been largely spent to shore up the FY 2011 Education Fund and other critical projects. We will have very limited unallocated carry-forward funds to help with continuing budget pressures across state government.’
‘The FY 2010 General Fund finished nearly 6% below FY 2009 numbers ‘ a clear sign of the impact of the Great Recession on the Vermont economy. Although the numbers for FY 2011 signal the start of a recovery, the road back will be long, slow, and bumpy. We will not return to FY 2008 revenue levels until FY 2013.’
Lunderville concluded: ‘We will now turn our attention to the new Consensus Revenue Target for FY 2011 and will begin monitoring the monthly results going forward.’