end of FY2010

[Carolyn Branagan]

Warning: if numbers bore you, skip to the last paragraph.

Pennies are still being counted, but the year end figures for fiscal year 2010 look OK. Not great, but OK.  At this point it looks like the General Fund will end the year with a balance. From the money in that balance a transfer will be made of $15.11 million to the FY2011 budget. An allocation of $6.9 million will be moved from the General Fund year end balance to the Education Fund to replace special funds needed for special education reimbursement. And the remaining $6.4 million left in the FY2010 General Fund will be used for three information technology projects as stated in section C102 of the FY2011 budget bill. The stabilization reserve amount, also know as 'rainy day funds', required by statute is 5% of the previous year's appropriations, making it $57.3 million.The stabilization reserve for the General Fund is full.   

Transportation Fund FY 2010 figures show about $1.2 million left at the end of the year. This money will be carried over for FY2011. The good news for the T.Fund is that people seem to be buying cars again. The Purchase and Use tax came in higher than was estimated last January, growing at 5.6%, higher than any of the last 5 years. The stabilization reserve amount for the Transportation Fund is at its statutory required amount, $10.3 million, that's 5% of the previous year's appropriation.

End of year figures are still changing in the Education Fund, but it looks like the sources are going to be $3.5 million that estimated.This came from lower property tax adjustments: income sensitivity came in $3.7million than expected. So the additional revenue will be used to help fill the stabilization reserve for the Education Fund to $27.6 million, that's 4.6% of the previous year's appropriations.

The bottom line is that fiscal year 2010 ended on June 30 and left us with money unspent.The unused funds from FY2010 will be mostly  transferred into the fiscal year budget for 2011and to fill the statutory reserve funds (rainy day funds). Fiscally, the world is looking a little brighter as Vermont is in a slightly better fiscal position than a year ago. Happy New Year.

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

[rod anode]

The $112 million general fund deficit projected for fiscal year 2012 — a number cemented Friday by Finance Commissioner James Reardon and the Legislature’s Joint Fiscal Committee — is less than the shortfalls faced in either of the past two fiscal years.

[Carolyn Branagan]

That's right, but I'm not sure we should be jumping for joy. A deficit still means there is not enough money to make ends meet. This is in part because there is no plan to fill the $157 million gap left by ARRA (that's the stimulus money from the federal  gov't that we aren't getting anymore) and also budget growth pressure (that's from salary increases, retirement costs, health care increases etc.) of $43.6 million.   

I'm pretty conservative fiscally and I've been thinking for quite a while that the state is hanging on by fingertips. All things are  relative of course.......when we compare ourselves to other states we aren't too bad off. 

What's the answer?
*Allow businesses to grow and/or locate here by making the climate more attractive for them. Businesses  bring  jobs.
* Improve the transportation infrastructure (that would have been a great use for all that ARRA money).
*Complete broadband access from every corner of the state (this is step one in a modern economy).
*Retain our educated and motivated workforce (we are giving our children fine educations but there are no jobs for them in state. They move out of state because there are no jobs here).
* Provide help for businesses trying to navigate the regulatory process.

I was in such a good mood this afternoon.

Carolyn





 

[Carolyn Branagan]

And it's not true that the Joint Fiscal Committee cemented the number. I'm on that committee and we haven't met yet. We  have received the proposal by e-mail, and Jimmy Reardon is OK with it  (he's a bright guy by the way) but no decision has been  made formally by Joint Fiscal Committee. We'll review any decision in October anyway.

It's all guess work, like looking into a crystal ball trying to read the future.

I think I'll go take a nap.

C.