Several weeks ago, the state of Vermont’s consulting economists reported that projected revenues were not increasing as expected. On Wednesday, the Legislature’s Joint Fiscal Committee approved a revised package of budget cuts.
The two economists for the state of Vermont told the Emergency Board Thursday that the national economic downturn in the first quarter of this year has resulted in softer-than-expected state revenues. As a result, Governor Shumlin is asking state agencies to recommend cuts in their budgets averaging 4 percent.
The state of Vermont's financial picture may begin to clarify by the end of the week.
On Wednesday, the Emergency Board — a panel made up of the four legislative money committee chairs and Governor Peter Shumlin, is to hear a report from two economists on their forecasts for how much money the state is likely to take in during the coming year.
Amid the uncertainty of the fiscal cliff and declining state revenues, this week Massachusetts Governor Deval Patrick proposed a series of mid-year budget cuts to close a half-billion dollar gap in state funding. WAMC’s Berkshire Bureau Chief Lucas Willard spoke to some that are concerned about the cuts.
Governor Patrick used his authority to propose emergency cuts in the state’s budget to close a $540 million gap in funding. And many are hoping that some of the governor’s planned cuts can be avoided.
Vermont's twice-a-year revenue forecast is being revised downward, with a $10 million reduction in collections expected in the just-started fiscal year and a $20 million reduction in the fiscal year that starts in July of 2013.
Consulting economist Tom Kavet told lawmakers continued economic uncertainty in Europe and disagreements over budget policy in Washington have created significant uncertainty in the economy.