fiscal update

The Joint Fiscal Committee met earlier this week at the statehouse to hear reports on budget revenue and other issues regarding the fiscal situation in the state of Vermont.

I was pleased to hear that revenues are clearly tracking higher than was expected a few months ago. The General Fund is now $13.8 million higher than expected at this point in the fiscal year thanks in part to strong Corporate tax revenue. The Transportation Fund and the Education Fund are holding their own, showing revenue figures just about where we thought they'd be. We are just 4 months into the fiscal year, so there is still quite a ways to go. But so far so good

Now about that deficit..... the most accurate estimates to date show a probable shortfall of $112 million, but it's a bit like trying to stand on shifting sand. The state employee retirements are slightly less than expected, so we'll save some money there. Revenues are strong, so that's a plus. However: Medicaid costs are higher than anticipated; reimbursement from the federal government for Medicaid will be lower due to our decreasing unemployment rate and the Challenges for Change are not going to meet the targeted $38 million in savings. So inspite of various bits of good news, the deficit is still going to be between $112-$120 million by June, when the fiscal year ends.

Rep. Carolyn Branagan
Franklin-1, Fairfax/Georgia
Vermont House of Representatives