state revenue update

I attended the Joint Fiscal Committee meeting last week in Montpelier. Interesting things are happening with our state revenue. The revenue shortfall in July and August had fiscal watchers somewhat nervous as to the direction of our state economy. To my happy surprise, revenues were up during September......way up. Consumers felt confident enough to spend money, and revenues including those generated from Sales tax, Purchase and Use tax and Rooms and Meals tax increased beyond expectations. But, don't start cheering yet. These consumer taxes sometimes fluctuate as new seasons create different needs for Vermonters. One month's tax revenue results don't make the entire picture.

By mid October, Vermonters who withhold income tax money on a quarterly basis will have submitted paperwork into the state for the third quarter. That's when we'll get a good look at how people are doing with earnings. I expect capital gains income to be down, and other income totals may follow. When the quarterly returns are in, we'll get a look at earnings and that will tell us more completely how the Vermont economy is functioning.

In the meantime though, there's no doubt that state revenues are a healthy $8 million above expectations. Stay tuned!

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