Emergency Board

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Economists downgrade state revenue projections

MONTPELIER — Economists for the Scott administration and lawmakers say the state is expected to take in $24.6 million less in revenue during the remainder of the current fiscal year because of a significant decline in corporate income tax it is owed. Economists Jeff Carr and Tom Kavet, who work for the governor and Legislature, respectively, issued their twice yearly revenue forecast Thursday for the state’s Emergency Board. They declared Vermont’s economy is growing, albeit slowly, and prompting businesses to expand and hire. But that, in turn, is causing a drop in their profits as their expenditures increase, resulting in less corporate tax revenue for the state. “Revenues … absent one category would be upgraded this time. Continue Reading →

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Scott administration prepares for revenue downgrade

MONTPELIER — General fund revenues are lagging halfway through the state fiscal year and the administration of new Republican Gov. Phil Scott is preparing for state economists to project a revenue downgrade later this month for the second half of the fiscal year. New Secretary of Administration Susanne Young released revenue figures for December on Wednesday, which showed the general fund coming in $2.78 million below its monthly target set. Total general fund revenues last month were $127.33 million. The state Emergency Board, compromised of the governor and the chairs of the four money committees in Legislature, last set revenue targets in July 2016. State economists will present a new revenue forecast to the Emergency Board later this month. Continue Reading →

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Economists: state revenues to grow less than expected

MONTPELIER — Economists for the Shumlin administration and Legislature issued a revised state revenue forecast for the current fiscal year Thursday that projects a total of $28 million less in revenue, but growth over the 2016 fiscal revenues. Tom Kavet and Jeff Carr, consulting economists for the administration and lawmakers, issued their revised revenue forecast Thursday to the state’s Emergency Board, which includes the governor and the four chairs of the Legislature’s money committees. Revenue for the state’s general fund was lowered by $21 million, while revenues for the transportation and education funds were lowered by $3.5 million and $3.4 million, respectively. Still, revenues are expected to grow above the 2016 fiscal year, which closed on June 30, both Kavet and Carr said. “The upturn continues, that’s the good news,” Carr told the Emergency Board. Continue Reading →

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Revenue downgrade expected Thursday

MONTPELIER — The Shumlin administration is expecting economists to issue a downgraded revenue forecast this week, continuing a trend of lackluster revenue growth in recent years. The state’s Emergency Board — comprising the governor and the heads of Legislature’s four money committees — will gather Thursday to receive a new consensus forecast. The updated revenue prediction is not expected to be good news. Administration Secretary Justin Johnson said the administration expects Tom Kavet and Jeff Carr, consulting economists for the administration and lawmakers, to predict lower revenues for the 2017 fiscal year than they first forecast in January. The revenue forecast accepted by the Emergency Board in January already included a $9.1 million downgrade for 2017. Continue Reading →

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State revenues get slight downgrade

MONTPELIER — Economists for the Shumlin administration and the Legislature have revised projected state revenues downward for the remainder of the current fiscal year and the next fiscal year for the general and education funds. The new consensus forecast was delivered to the Emergency Board Tuesday by Tom Kavet and Jeff Carr, consulting economists for the administration and lawmakers. The general fund is now expected to see $4.7 million less revenue in the current 2016 fiscal year and $9.1 million less in the 2017 fiscal year. The education fund, meanwhile, is expected to see $1 million less in the current fiscal year and $500,000 less in the 2017 fiscal year. The transportation fund is now expected to grow by $900,000 more in the current fiscal year and $1.1 million more in the 2017 fiscal year. Continue Reading →

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Incentive money for 2 firms OK’d

MONTPELIER — The Emergency Board voted Monday to authorize incentives totaling $700,000 proposed by Gov. Peter Shumlin for two companies, with the money coming from an enterprise fund containing $2 million for economic development efforts. According to the Shumlin administration, $500,000 would go to G.W. Plastics in Bethel if the company accepts the terms. The company, as part of the deal, would create up to 73 new jobs to add to its current workforce of 300. The company has no available additional manufacturing space at the moment and recently signed a new contract for additional work orders, necessitating expansion. Gov. Peter Shumlin said G.W. Plastics has additional facilities in Texas, Arizona, Mexico and China and the proposed incentives are part of a pitch by the state for the company to expand here in Vermont. A potential new site has been identified by the company in New Hampshire, Shumlin said. Continue Reading →

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Economists predict continued, moderate growth in Vermont

MONTPELIER — Economists for the Shumlin administration and the Legislature provided an updated economic forecast Monday that predicts continued moderate growth for the state’s economy into the foreseeable future. Thomas Kavet and Jeffrey Carr, economists for the Legislature and administration, respectively, presented a consensus economic forecast to the Emergency Board Monday that predicts a 3 percent increase in general fund revenues over the last forecast in January for the 2016 fiscal year. That means the state is expected to collected about $40 million more in revenue than expected in January. The 2016 expected revenues are aided by about $30 million in news taxes and fees signed into law following the recent legislative session. The new forecast also predicts about $30 million more in general fund revenues in the 2017 fiscal year, which represents about 2 percent growth. Continue Reading →

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Economists: Revenue downgrade for general fund, despite drop in oil prices

MONTPELIER — Gov. Peter Shumlin and lawmakers crafting the 2016 fiscal year budget will have to dig a little deeper after state economists provided a downgrade to the general fund revenue forecast Tuesday, despite positive signs in the economy related to lower oil prices. The Emergency Board, comprised of the governor and the chairs of the Legislature’s money committees, were told Tuesday that revenues are projected to be $18 million lower than previously expected in the 2016 fiscal year budget. The state was already facing a $94 million projected gap, which Shumlin’s proposed budget would close through a combination of cuts and tax increases. Economists Jeffrey Carr and Tom Kavet, who provide revenue forecasts to the state twice a year, also downgraded revenues for the current fiscal year by $10 million. The Shumlin administration and lawmakers, anticipating that, are working to lower the current budget in the annual budget adjustment process by $17 million. Continue Reading →

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