by Timothy McQuiston, Vermont Business Magazine The usual suspects of personal income, corporate income and consumption taxes continue to bolster Vermont’s revenue.
Personal income, the largest source of revenue for the General Fund, was nearly 12% above the target for the month. Corporate income tax was over 81%. And the room and board tax is 28.3% above target.
Income from the General Fund and the Education Fund exceeded goals for the month of January and for the year. The income of the Transport Fund decreased again during the month and the year.
Combined Funds, General Funds, Transportation Funds and Education Funds in January were $305.9 million, or 5.8%, above revised monthly expectations.
Consolidated revenue remained 1.0% above the revised consensus estimate for the first seven months of the fiscal year.
General Fund revenues totaled $215.8 million, or $16.4 million below the monthly revenue target.
Fiscal year to date, the General Fund’s revenue was $1,071.6 million, exceeding its target by $16.4 million or 1.6%.
This month’s revenue in the General Fund was supported by good performance in personal income tax, food and room tax and income tax. -the company’s earnings, which far exceeded their monthly targets in January.
Revenues in the Transportation Fund were slightly lower than expected in January, bringing in $21.2 million compared to estimates of $21.7 million.
Last year, the T-Fund brought in $166.2 million which was $0.44 million or -0.3% below the cash flow target.
Last month, transportation earnings continued their trend after consensus expectations. January earnings in four of the five major categories fell short, albeit marginally, with only motor vehicle fees showing performance on target.
Despite the slight shortfall, T-Fund’s earnings remained within consensus expectations.
The Education Fund’s revenue was $680 thousand or 1.0% above the monthly revenue target, having collected $68.8 million in January.
During the first seven months of the fiscal year, the Ed Fund received $405.5 million, which is 0.2% higher than the revenue target of the agreement.
Ed Fund monthly revenues continued to track above goals, especially in the two largest revenue components – Sales and Operations, and Food and Rooms – which exceeded compensating for the failure of the other two components – Purchase and Use of Vehicles, and Lottery.
Overall, Ed Fund revenue is healthy for the 2022 fiscal year.
With a few minor exceptions, January’s earnings activity indicated a good start to the second half of the 2022 fiscal year.
According to Secretary of the Administration Kristin Clouser: “Revenue development so far in the fiscal year has been dominated by the negative effects of the COVID pandemic, and the season unique to the federal monetary and fiscal policy. We know that the impact of this policy will begin soon, and we remember that spending decisions must reflect a return to a normal financial environment more.”