Median family income in Vermont rose to a record high of $65,786 in 2007, according to The Vermont Economy Newsletter's annual analysis of just-released Vermont Tax Department income data. The income earned by the median family (half of all families earn more and half earn less than the median) rose by 4.6% or $2,900 in 2007.
While incomes grew by 4.6%, prices increased by 2.8%, yielding an inflation-adjusted income growth rate of 1.7%.
"Inflation-adjusted income grew by a healthy 1.7% in 2007," noted Art Woolf, co-author of the report and editor of The Vermont Economy Newsletter. "And that was on top of an equally healthy 1.6% growth in 2006. Over the long term, annual income growth in Vermont is 1.5%, so income growth in 2006 and 2007 was better than average."
The Vermont Economy Newsletter's forecast for 2008 and 2009 is not so sanguine. "The economy began slowing in 2008 and will continue to slow as the full impact of the recession takes hold," noted Richard Heaps, the study's other co-author. "We believe that while income gains were healthy in 2008, the high inflation caused by the rapid growth in energy and food prices eroded most of those gains," he said. "And the outlook for 2009 is even worse. Incomes will barely grow. And although inflation will be low in 2009, it will be high enough and income growth low enough to cause a decline in inflation-adjusted family income," he continued.
The study foresees a modest decline in inflation-adjusted family income in both 2008 and 2009.
Family income data for 2008, based on tax returns that Vermonters are now beginning to file, will be available in December 2009.
Actual Data:
Vermont Median Family Income
Year
Actual Dollars
Inflation Adjusted
1975
$12,036
$41,226
1976
$13,440
$43,537
1977
$14,466
$44,049
1978
$16,533
$48,221
1979
$17,967
$47,823
1980
$19,193
$45,982
1981
$20,622
$45,111
1982
$21,019
$43,362
1983
$22,510
$44,537
1984
$23,609
$44,875
1985
$25,343
$46,572
1986
$27,347
$49,361
1987
$30,618
$53,459
1988
$32,750
$55,157
1989
$34,680
$55,992
1990
$35,399
$54,439
1991
$35,460
$52,645
1992
$36,953
$53,505
1993
$37,557
$53,068
1994
$38,755
$53,616
1995
$40,407
$54,587
1996
$42,262
$55,613
1997
$44,516
$57,340
1998
$47,309
$60,098
1999
$49,578
$61,694
2000
$52,387
$63,076
2001
$53,609
$62,784
2002
$53,790
$61,995
2003
$54,958
$61,957
2004
$57,677
$63,312
2005
$59,959
$63,682
2006
$62,912
$64,697
2007
$65,786
$65,786
2008F
$68,089
$65,533
2009F
$68,429
$65,208