by Timothy McQuiston, Vermont Business Magazine Interim Secretary of Administration Sarah Clark today released Vermont’s revenue results for August 2024. The General Fund and Education Fund exceeded their respective monthly consensus cash flow target, as adopted by the Emergency Board at its July 2024 meeting, while the Transportation Fund missed its target.
Notably, the Meals and Rooms Tax was below its target for the second straight month, which affects both the General Fund and the Education Fund. That tax was below targets in July (-3.25%) and was right at projections in June. The data tends to lag and the effects of the eclipse in April and of the July flooding in July have not yet been full compiled.
The State’s General Fund, Transportation Fund, and Education Fund receipts were a combined $242.6 million, exceeding the $238.2 million monthly consensus target by $4.4 million, or 1.8%, which corresponded to the August monthly portion of the annual consensus forecast.
Total General Fund revenues for August were $160.8 million, although after taking out $7.0 million that is attributed to the childcare payroll tax, which was implemented on July 1 and will be reported separately later in the year, General Fund revenues for August totaled $153.8 million, $5.0 million, or 3.3%, above the $148.8 million monthly consensus cash flow target.
A -$2.2 million combined miss by the Meals and Rooms Tax, Corporate Income Tax, Insurance Tax and Liquor Tax offset the $7.2 million of combined gains made by all other revenues relative to their respective targets.
Revenues in the Transportation Fund missed their $28.1 million August consensus target by -$0.7 million, or -2.5%, yielding $27.4 million in total. A combined -$1.2 million miss of the Motor Vehicle Fees and Other Fees categories offset the $0.5 million aggregate above target performance achieved by the Gasoline, Diesel and Motor Vehicle Purchase and Use Taxes.
Monthly Education Fund revenues of $61.5 million were $0.1 million, or 0.2%, above their August $61.4 million cash flow target. The $1.1 million of combined above-target performance by the Sales and Use Tax, Motor Vehicle Purchase and Use Tax, and Education Fund Interest Earnings were offset by -$1.0 million of combined target misses by the Meals and Rooms Tax and Lottery Receipts.
According to Interim Secretary Clark: “In aggregate, the August revenue results remain positive, but it is still premature to draw any conclusions about the annual consensus forecast. The status of receipts will be clearer once the first quarter’s results are complete.”
Source: 9.26.2024. Montpelier, VT –Secretary of Administration