State tax receipts miss targets in July
State revenue missed expected collections again in July, according to a monthly report released Thursday by the Agency of Administration.
The news comes just weeks after state economists downgraded the new fiscal year's revenue forecast by $31.2 million, or about 2 percent, forcing significant cuts to be made in state budgets that were finalized in May.
Administration Secretary Jeb Spaulding said the missed target reinforces the need to quickly reduce spending "and to remain prepared in the event we need further budget adjustments in January." Gov. Peter Shumlin has said he does not support raising additional revenue through tax increases to fill the gap. The administration instead will target discretionary spending, program efficiencies and staffing, according to a July news release.
Although the budget news was grim, Spaulding noted some improvements over the same time last year.
Collections in personal income and sales and use taxes were up around 4.5 percent over July 2013. Sales and use was up almost 7.5 percent, and the motor vehicle purchase and use tax exceeded last July's collections by nearly 19 percent.
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