Secretary of Administration Michael K. Smith Announces August 2004
Revenue Results For The State Of Vermont
General Fund
Secretary of Administration Michael K. Smith released September 7 General Fund revenue results for
the month of August, the second month of fiscal year 2005. General Fund revenues totaled
$68.18 million for August 2004, $4.86 million or 7.7 % more than the $63.32 million consensus
revenue target for the month. August results were also $9.59 million (or 16.4%) more than
General Fund revenues in August 2003. Year to date, General Fund revenues totaled $148.65
million.
Secretary Smith noted, We are encouraged that after two months, General Fund
revenues are $9.03 million or 6.5% ahead of expectations.
The monthly targets reflect the updated fiscal year 2005 Consensus Revenue Forecast that was
agreed to by the Emergency Board on July 15, 2004. The States Consensus Revenue Forecast is
updated two times per year in January and July.
Monthly Personal Income Tax receipts, which are reported Net-of-Personal Income Tax refunds,
exceeded target by $1.69 million (or 6.5 %) in August. Personal Income Tax Receipts, by far the
largest single state revenue source, were also up 13.9% from August 2003.
All personal income
tax revenue categories had positive results except refunds, which were higher than expected.
Secretary Smith noted results for the other major General Fund revenue categories were also
encouraging.
Receipts in the Sales and Use Tax were substantially ahead of expectations in
August (+$1.89 million or 12.5 %), reflecting actual purchases in July. Rooms and Meals taxes
were essentially on target. The Corporate Income Tax also surpassed (+$0.28 million or 30.6%)
forecast.
Among the other General Fund revenue categories, Insurance and Liquor Taxes surpassed the
latest targets. Estate and Property Transfer Taxes fell short of the forecast for August, although
both are ahead of expectations for the first two months of the fiscal year.
Secretary Smith concluded the discussion of General Fund results by noting that, We are
encouraged to continue the broad-based revenue success which started the fiscal year.
General Fund By Major Element (In Millions)
Tax Component FY04 YTD FY05 YTD % Change Aug-03 Aug-04 % Change
Personal Income $63.26 $68.71 8.6% $24.23 $27.60 13.9%
Sales & Use $37.43 $36.01 -3.8% $17.09 $16.98 -0.6%
Corporate $1.27 $2.65 108.3% $0.63 $1.19 89.2%
Meals & Room $14.51 $19.05 31.3% $7.76 $9.99 28.7%
Insurance Premium $5.04 $6.07 20.5% $4.76 $5.78 21.4%
Inheritance & Estate $1.96 $3.90 99.2% $0.70 $0.32 -54.6%
Real Property Transfer $1.78 $2.17 21.9% $0.61 $0.98 60.2%
Other $6.53 $10.08 54.5%* $2.81 $5.34 90.1%
Total $131.78 $148.65 12.8% $58.59 $68.18 16.4%
*Please note that comparisons from prior year are difficult, given the change in tax component
distribution from FY04 to FY05.
Transportation Fund
Secretary Smith also announced revenue results for the Transportation Fund. Transportation
Fund receipts for the month were $18.98 million, which surpassed the revenue target by $0.25
million or 1.35 %. Total Transportation Fund revenues surpassed August 2003 receipts by $1.01
million or 5.6 %. Revenues surpassed projections in Gasoline, Motor Vehicle Fees, and the
Other Fees category. Diesel Taxes substantially lagged expectations, while Motor Vehicle
Purchase and Use Tax revenues were slightly below projections for the month.
Transportation Fund By Major Element (In Millions)
FY2004 FY2005 % Change August-03 August-04 % Change
Tax Component Y-T-D Y-T-D
Gasoline $8.79 $11.44 30.1% $4.24 $6.21 46.3%
Diesel Fuel $1.85 $1.98 7.0% $1.08 $1.11 3.4%
MV Purchase & Use $11.18 $9.34 -16.5% $6.72 $5.25 -21.9%
Motor Vehicle Fees $8.22 $9.47 15.2% $4.65 $4.73 1.7%
Other $2.50 $3.20 27.9%* $1.27 $1.67 31.5%
Total $32.54 $35.42 8.8% $17.97 $18.98 5.6%
*Please note that comparisons from prior year are difficult, given the change in tax component
distribution from FY04 to FY05.
Education Fund
In announcing the Education Fund results for August, Secretary Smith reported that collections
totaled $12.84 million in August, up substantially from last year. Due to Act 68 Education
Finance Reform Legislation passed in 2003, the Education Fund now receives two percentage
points (1/3 of the 6% tax) from the Vermont Sales Tax, and the motor vehicle purchase and use
tax.
Although Sales and Use taxes were ahead of projections, the motor vehicle purchase and
use tax performed below projections for August, said Secretary Smith.
Conclusion
The State of Vermont continued fiscal 2005 ahead of forecast for the General Fund,
Transportation Fund and Education Fund, concluded Secretary Smith.