The state of Vermont brought in less money in taxes and fees in September than officials had projected.
Vermont’s general fund — the main pot of money that funds state government expenses, including health care — brought in just under $145 million from all revenue sources, less than the target of approximately $148 million.
Personal income taxes underperformed, bringing in $2.87 million, or 3.52 percent, less than projected. Corporate income taxes also underperformed, bringing in $15.95 million, or 10.74 percent, less than expected. The state also collected just $530,000 from inheritance and estate taxes, well below the $1.38 million it was projecting.
The Vermont education fund, which largely funds K-12 public schools, and the transportation fund, which is set aside to pay for roads, both outperformed targets in September.
The education fund brought in $17.67 million, more than 5 percent above the $16.79 million projected in September. The major outperformer was the motor vehicle purchase and use tax, which contributed in $7.83 million, 12.66 percent more than the $6.95 million projection.
The transportation fund brought in $1.26 million more than expected, also thanks in large part to revenues from the motor vehicle purchase and use tax, which contributed $3.92 million, slightly above the $3.48 million projected.
Portions of the motor vehicle tax go to both the education fund and the transportation fund.
“We are pleased to see some year-over-year revenue growth but continue to be concerned the economy is growing at a rate lower than expected,” Susanne Young, the secretary of the Agency of Administration, said in a news release announcing the September revenue numbers.
“The first quarter (which runs from July to September) typically represents the first major milestone of any fiscal year, and while the underperformance was less than 1 percent, it is nevertheless a concern that we missed on the negative side of the forecast,” Young said.
