The Joint Fiscal Office says receipts could be off as much as $32 million. Corporate taxes are soft, but personal income taxes have been slightly higher than expected.
Alcohol and drug abuse programs will lose $673,000. Funding for the Department for Children and Families cut by $3.8 million.
Legislative committee digs on its heels in taking more from the governor’s discretionary economic development fund but otherwise accepts most of the proposed reductions in FY15 spending.
Level-funding Medicaid payments will make up $10 million of $31 million in budget cuts needed to offset a drop in projected state revenue.
State agencies have submitted plans to cut 4 percent from their previously approved budgets to offset an anticipated $31 million shortfall in estimated revenue. Not all of the agencies will see a 4 percent cut.
State economists outlined several factors behind Vermont’s slower than expected economic recovery. Some reflect trends beyond the state’s control, others highlight regional differences in Vermont’s economy, and a few remain a mystery.