Vermont’s General Fund finishes year with surplus; Education, Transportation downMontpelier, VT – Secretary of Administration Michael K Smith announced on July 18, 2008, the fiscal year 2008 revenue results for the state of Vermont: the General Fund surpassed fiscal year 2008 revenue targets by $9.87 million; transportation and education fund revenues were below target for the fiscal year.General FundSecretary of Administration Michael K. Smith today released General Fund revenue results for the final month of fiscal year 2008. End-of-year General Fund revenues totaled $1,199.57 million, $9.87 million above the cumulative General Fund revenue targets for FY2008. Secretary Smith noted, “Unlike many states struggling with general revenue fund deficits, Vermont ended the 2008 fiscal year with a revenue surplus. This is very good news. General Fund revenues, for the month of June, finished under -$0.68 million or -0.63% below the consensus revenue target for the month, but revenue strength throughout the year was strong and contributed to the surplus.”The revenue targets reflect the most recent fiscal year 2008 Consensus Revenue Forecast that was agreed to by the Emergency Board in April. The State’s Consensus Revenue Forecast is normally updated two times per year in January and July; this year, there was an additional meeting held in April. The next Emergency Board meeting is scheduled for July 29, 2008 at 2:30 p.m. in the Pavilion Building.The majority of the higher than projected, year-to-date, General Fund revenue can be traced to the two income taxes. The Personal Income Tax (+$11.82 million or +1.94%) and the Corporate Tax (+$1.70 million or +2.35%) both completed the fiscal year ahead of the year-to-date April consensus forecast. The Sales and Use Tax ended the fiscal year at $225.45 million, which was -$4.48 million or -1.95% below the yearly target, but up 1.33% from the prior year. The Rooms and Meals Tax ended the fiscal year at $121.03 million, which was -$1.67 million or -1.36% below the yearly target, but up 5.34% compared to the prior year.Transportation FundSecretary Smith announced that the Transportation Fund finished the fiscal year at $223.05 million, which was -$3.14 million below the yearly target. Four out of the five major components of the Transportation Fund, including the Gasoline Tax, the Diesel Fuel Tax, the MV Purchase & Use Tax, and Other Fees were below their respective targets for the fiscal year. The Gasoline Tax ended the year at $62.59 million, which was -0.18% below yearly targets. The Diesel Tax ended the year at $16.59 million, which was -3.03% below yearly targets. The MV Purchase and Use Tax ended the year at $52.69 million, which was -2.42% below yearly targets. Using reversions of carryforwards ensures ending the year without a deficit and with a full 5% Transportation Fund stabilization reserve. This fund finished the month of June 2008 at $23.80 million, which is -$1.67 million below the monthly revenue target.Education FundSecretary Smith reported that the Education Fund cumulative revenue will finish the fiscal year at $158.87 million, approximately -$3.40 million or -2.09% below the cumulative revenue forecast of $162.27 million for the fiscal year. As a result of expenditures coming in lower than anticipated, the Education Fund will end the year without a deficit and with a full 5% Education Fund stabilization reserve. The preliminary June non-property tax Education Fund revenue (which constitutes about 13% of total Education Fund receipts) was below expectations by -$0.97 million.Conclusion”Unlike many states, Vermont is very fortunate to end the fiscal year with a General Fund revenue surplus. The Transportation and Education Funds will also balance after final adjustments are made. All of these results will be considered very carefully by the Emergency Board when they meet later in July to review the State’s Consensus Revenue Forecast for Fiscal Year 2009,” noted Smith.