Governor Scott Reacts to Emergency Board Upgrade ff Consensus Revenue Forecasts
Montpelier, Vt. – As the Scott Administration prepares the fiscal year 2022 budget adjustment and fiscal year 2023 state budget, it will do so with more revenues than were anticipated.
The Emergency Board, chaired by Governor Scott, met with the State’s executive and legislative economists today to adopt new revenue estimates for fiscal years 2022 and 2023.
These forecasts are projections of future revenue receipts into the State’s largest funds – the General Fund, the Transportation Fund and the Education Fund – and exclude ongoing and one-time federal funds.
The Emergency Board accepted an updated revenue forecast that increased anticipated revenues in fiscal year 2022 by $190.2 million in the General Fund, $13.3 million in the Transportation Fund and $39 million in the Education Fund (excluding property taxes).
These amounts are compared to revenue projections accepted at the last official meeting of the Emergency Board on January 19, 2021.
Estimates for fiscal year 2023 were similarly strong. Compared to the January 19 forecast, General Fund revenues are projected to increase by $199 million next fiscal year; Transportation Fund revenues by $14.7 million; and Education Funds (excluding property taxes) are expected to increase by $54.3 million.
Governor Phil Scott provided the following statement in reaction to today’s revenue upgrades:
“Given the nearly $200 million surplus in the General Fund in fiscal year 2021, the news about 2022 and 2023 does not come as a complete shock. However, the size of this revenue upgrade is still extraordinary.
“It is important we all remember that unprecedented federal spending on the recovery efforts is a major driver of what we’re seeing. While the impact on our revenues from this has been a benefit to our state, we cannot count on it forever.
“That’s why it’s critical we take advantage of this situation now and invest in initiatives that will help grow our economy and making Vermont more affordable, so we can build a stronger fiscal foundation for the future.
“We can’t fall into the trap of using one-time surplus to create new programs that will require ongoing funding after federal money stops flowing.”