Thanks to a resurgent Vermont economy, state tax revenue is up – and that’s $52 million of good news for the state’s pension fund.
According to a quarterly revenue report posted today, the State’s General Fund, Transportation Fund, and Education Fund receipts were a combined $38.8 million, or 18.2% above monthly consensus expectations from the January 19, 2021 upgraded consensus revenue forecast.
General Fund revenues collected for the month totaled $165.6 million, or $33.1 million above the monthly consensus revenue target. General Fund revenues year-to-date are $197.6 million, or 11.3% above the cumulative revenue target.
“Strong receipts in the General Fund were driven by the Personal Income Tax, which cumulatively brought in $124.4 million more than expected from the January consensus revenue forecast,” Administration Secretary Suzanne Young said. “The large surplus will allow us to put away more money in reserves and will, by operation of current law, also add over $52 million to the Vermont State Employees’ Postemployment Benefits Trust Fund.”
The Transportation Fund was $1.31 million, or 4.55%, above consensus expectations for the month, bringing in $30.03 million. Cumulatively in fiscal year 2021, the Transportation Fund receipts total $282.7 million, 2.82% above cumulative consensus expectations.
The Education Fund was $4.4 million, or 8.5%, above the monthly consensus target, having collected $56.3 million for the month. Cumulatively in fiscal year 2021, the Education Fund receipts total $620.9 million, 5.3% above cumulative consensus expectations from January.
“The extraordinary federal financial support, and the resurgent economic activity in Vermont which has contributed to elevated revenues, are likely to continue for at least the near-term, and possibly through most of the two-year consensus forecast update timeframe,” noted Young.