As the Legislature and the Scott administration plan the 2025 state budget, those hoping to limit austerity measures received some good news today: state revenue is trending upward, the Agency of Administration reported January 31.

The State’s General Fund, Transportation Fund, and Education Fund receipts for December were a combined $287.7 million, exceeding the $280.9 million monthly consensus target by $6.8 million, or 2.4%. Year-to-date combined receipts are $26.1 million, 1.7%, above their $1,512.6 million target. 

The report follows a no-recession economic forecast for the State of Vermont delivered earlier this month to legislators and Gov. Scott by state economist Tom Kavet.

General Fund revenues for December totaled $204.2 million, $4.4 million, or 2.2%, above the $199.8 million monthly consensus cash flow target. Corporate Income Tax receipts, Health Care Taxes, and the net Other receipts category surpassed their combined targets by $18.9 million. 

These positive gains were offset by a combined -$14.5 million dollar underperformance by the Personal Income Tax, Meals and Rooms Tax, Insurance Tax, Estate Tax, Liquor Tax and net Property Transfer Tax. Year-to-date General Fund receipts are $28.9 million, 2.9%, above their $991.0 million target. 

Revenues in the Transportation Fund exceeded their $23.6 million December consensus target by $1.0 million, or 4.5%, yielding $24.6 million. The Gasoline Tax, Diesel Tax and Motor Vehicle Purchase and Use Tax all exceeded their monthly targets by a combined $1.2 million 

These positive gains were offset by a marginal -$0.1 million underperformance in the Motor Vehicle and Other Fees categories. Year-to-date receipts are -$5.9 million, -4.0%, below their $149.0 million target. 

Monthly Education Fund revenues of $58.9 million were $1.4 million, 2.4%, above their December $57.5 million cash flow target. The $2 million of combined receipts above target from the Sales & Use Tax, and the Motor Vehicle Purchase and Use Tax were offset by a -$0.6 million underperformance by the Meals and Rooms Tax, Lottery Transfer and Interest Earnings. Year-to-date receipts are $3.1 million, 0.8%, above their $372.6 million target. 

“The December revenue results represent the first time since August that all three funds have managed to simultaneously meet or exceed their targets,” Administration Secretary Kristin Clouser said. “This is welcome news as the Administration and General Assembly, once again, work to adjust the  current year’s budget and prepare a financial plan for the upcoming fiscal year.”