first_imgSecretary of Administration Neale F. Lunderville today (March 6, 2009) released General Fund revenue results for the month of February, the eighth month of Fiscal Year 2009. General Fund revenues exceeded target for the month as compared to the consensus revenue target revised in mid-January. The General Fund revenues of $60.32 million for the month of February 2009 were +$2.91 million or +5.08% above the $57.41 million consensus revenue forecast for the month. Year-to-date, General Fund revenues of $735.23 million remain below the forecast by -$11.13 million or -1.49% for FY 2009. We have seen a very modest bounce back in General Fund revenue receipts, but it is important to understand that about half of the favorable results for the month were due to a one-time settlement in Corporate Income Tax. Through February, we remain $11 million below the year-to-date forecast, said Secretary Lunderville.The monthly targets reflect the most recent FY 2009 consensus revenue forecast that was agreed to by the Emergency Board on January 13, 2009. The state s consensus revenue forecast is normally updated two times per year in January and July. However, with the downturn in the national and regional economy, the Emergency Board has been scheduling interim revenue reviews.Personal Income Tax receipts are the largest single state revenue source, and are reported Net of Personal Income Tax refunds. February is not only a short month, it is also a month where receipts from taxpayers who pay on an estimated basis are low, but refunds to early tax filers begin ramping up. The result is that the February forecast is the month with the fewest net Personal Income Tax receipts, followed by March. Personal Income Tax receipts for February were $0.48 million, +$0.04 million or +9.29% above the monthly target. Year-to-date, the Personal Income Tax receipts of $360.98 million were below the $368.60 million year-to-date estimate by -$7.62 million or -2.07%.Corporate Tax receipts are also reported net of refunds. Corporate Income Tax revenue results for February were $2.48 million versus the monthly target of $0.80 million, or +$1.68 million (+211.07%) above for the month; the monthly receipts include the settlement referenced above. Year-to-date, Corporate Income Tax receipts of $27.10 million were +$0.54 million or -+2.03% above the target of $26.56 million.For the month, receipts for the consumption taxes (Sales & Use Tax and Meals & Rooms Tax) bounced back slightly with Sales & Use Tax receipts of $17.06 million exceeding target by +$1.94 million or +12.88%, and Rooms & Meals Tax receipts of $9.79 besting the target by +$0.22 million or +2.35%. Although the forecast had been reduced due to the anticipated pull back in personal consumption in the US, Canadian visitors may have taken advantage of the favorable exchange rates, positively impacting consumption taxes. With the rates becoming less favorable, we cannot expect substantial positive impact on our consumption taxes going forward. Year-to-date, Sales & Use Tax was $151.55 million (-$.09 million, -0.06%) and Rooms & Meals Tax receipts were $82.23 million (-$0.47 million, -0.57%).The remaining components of the General Fund revenue were below target for the month, except Estate Tax. The non-major tax component results for the month were: Insurance Premium, $23.55 million (-7.95%); Inheritance/Estate Tax, $2.34 million (+117.77%); Real Property Transfer Tax $0.35 million (-17.29%); and Other, $4.27 million (-2.73%). Year-to-date results for these components were: Insurance Premium, -5.72%; Inheritance/Estate Tax, +2.48%; Real Property Transfer Tax, -1.14%; and Other, -1.80%.General Fund By Major Element (In Millions)* FY 2009 YTD Target Revenue$ Change% Change Tax ComponentTargetRevenue$ Change% ChangeTargetRevenue$ Change% ChangePersonal Income0.440.480.049.29%368.60360.98(7.62)-2.07%Sales & Use15.1217.061.9412.88%151.64151.55(0.09)-0.06%Corporate0.802.481.68211.07%26.5627.100.542.03%Meals & Room9.579.790.222.35%82.7082.23(0.47)-0.57%Insurance Premium25.5823.55(2.03)-7.95%43.2840.80(2.48)-5.72%Inheritance & Estate1.082.341.26117.77%6.486.640.162.48%Real Property Transfer0.430.35(0.08)-17.29%6.646.56(0.08)-1.14%Other4.394.27(0.12)-2.73%60.4659.37(1.09)-1.80%Total57.41 60.32 2.91 5.08%746.36 735.23 (11.13)-1.49%Transportation FundThe non-dedicated Transportation Fund revenue results were also released today by Secretary Lunderville. The Transportation Fund revenues were $13.52 million, which was -$0.36 million or -2.57% below the monthly target for February. Year-to-date, the Transportation Fund revenues remain below the year-to-date consensus target at $129.62 million (-$1.95 million, -1.50%).The results for the Transportation Fund revenue components were mixed for the month. The components of the Transportation Fund revenue for the month were: Gasoline Tax, $4.38 million (-6.40%); Diesel Tax, $0.98 million (+7.10%); Motor Vehicle Purchase & Use Tax, $2.29 million (-9.77%); Motor Vehicle Fees, $4.29 million (-1.49%); and Other , $1.59 million (+13.64%). Year-to-date, the Transportation Fund revenue components for February were: Gasoline Tax, $40.69 million (-0.81%); Diesel Tax, $9.92 million (-3.36%); Motor Vehicle Purchase & Use Tax, $27.30 million (-2.68%); Motor Vehicle Fees, $38.51 million (-0.72%); and Other , $11.25 million (-2.10%).Transportation Fund By Major Element (In Millions)* Month FY 2009 YTD Tax ComponentTargetRevenue$ Change% ChangeTargetRevenue$ Change% ChangeGasoline4.674.37(0.30)-6.40%41.0240.69(0.33)-0.81%Diesel Fuel0.920.980.067.10%10.269.92(0.34)-3.36%MV Purchase & Use2.542.29(0.25)-9.77%28.0527.30(0.75)-2.68%Motor Vehicle Fees4.354.29(0.06)-1.49%38.7938.51(0.28)-0.72%Other1.401.590.1913.64%11.5011.25(0.25)-2.10%Total13.88 13.52 -0.36-2.57%129.62 127.67 -1.95-1.50%Education FundNon-Property Tax Education Fund revenue receipts of $11.76 million were released by Secretary Lunderville today; these receipts are +$1.50 million (+14.66%) above the February monthly target of $10.26 million. Non-Property Tax Education Fund revenues constitute approximately 12% of the total Education Fund receipts. Year-to-date, non-Property Tax Education Fund revenues are essentially on target at $102.09 million or +$0.11 million (+0.11%).The results for the components of the non-Property Tax Education revenue for February were mixed: Sales & Use Tax, $8.53 million (+12.85%); Motor Vehicle Purchase & Use, $1.15 million (-9.77%); Lottery Transfer, $2.08 million (+10.88%); and Investment Income, $0.002 (-99.50%). Year-to-date results were: Sales & Use Tax, $75.77 million (-0.07%); Motor Vehicle Purchase & Use, $13.65 million (-2.68%); Lottery Transfer, $12.45 million (-3.01%); and Investment Income, $0.22 million (-131.57%).Education Fund By Major Element (In Millions)*Non-Property Tax ComponentMonth Sales & Use7.568.530.9712.85%75.8275.77-0.05-0.07%MV Purchase & Use1.271.15-0.12-9.77%14.0213.65-0.37-2.68%Lottery Transfer1.882.080.2010.88%12.8412.45-0.39-3.01%Investment Income(0.45)(0.00)0.45-99.50%(0.70)0.220.92-131.57%Total10.26 11.76 1.50 14.66%101.98 102.09 0.11 0.11%ConclusionSecretary Lunderville said, The modest rebound in the consumption taxes, coupled with the one-time settlement, kept the General Fund from losing more ground in February. Despite a modest uptick against the current forecast, we remain $11.1 million down for the fiscal year. Further, we lost more ground again as compared to February 2008. Year-to-date revenues through February 2009 are $32 million less than the same time period last fiscal year falling an additional $4 million in the month versus February 2008.Lunderville continued, As was the case in January, there is still no clear indication of when revenues will stop declining; the recession continues to deepen. The March-April tax filing season will give us a better indication of the remainder of the fiscal year, but the risk remains all on the downside. Although the federal funds that Vermont will receive through the American Recovery and Reinvestment Act will help cushion the downturn, we must maintain fiscal discipline and prevent reliance on these one-time funds. We must make structural changes to state government and resist tax increases to position Vermont for a strong economic recovery. FY 2009 YTD Target Revenue$ Change% Change Monthlast_img