Vermont increased its revenue forecast by about $50 million over the next two years on the back of a strong economy and recent tax reform.
State economists have issued the first-ever ‘provisional’ consensus forecast in the aftermath of the federal tax reform in 30 years. Many Vermont taxpayers will pay higher state taxes as a result of changes.
Most of the projected uptick in tax receipts, roughly $30 million, is the result of tax increases that were enacted this year.
Vermont’s general fund revenue is slightly ahead of target heading into the final month of the fiscal year. Revenue was disappointing in May, at 7.1 percent below target, but are 1.72 percent above forecast for the year. General fund receipts were $67.9 million in May, $5.2 million below projections, according to figures from the Agency […]
Revenue forecasts had already been downgraded, but July collections came up $1.82 million short for the General Fund. Administration officials will propose budget cuts Monday.
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.
The biggest change in the forecast is a reduction in revenues as a result of the anticipated closure of Vermont Yankee at the end of 2014.