With a month left in the current fiscal year, state revenues are running roughly $15 million below projections. The biggest factor in the shortfall is slower than anticipated revenue growth from the state's personal income tax. Vermont's two major consumer based taxes, the sales tax and the rooms and meals tax are also performing below expectations.
Secretary of Administration Justin Johnson says he expects to have a balanced budget when the fiscal year ends on June 30. That will happen, he says, through a combination of additional revenue and some reductions in spending.
"I don't think we have an immediate budget issue and you should also keep in mind that our economy is still growing," says Johnson. "We're at two and a half percent higher revenue this year than last year so that shows that the economy is growing even though perhaps not at quite the same pace than we expected."
Johnson says next year's budget assumes revenue growth of just over three percent. He says the state's Emergency Board will meet in July to consider possible adjustments to the projection. A downward revision could result in a number of budget cuts.
