Vermont's fiscal situation deteriorates
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Staff Report - Published: January 14, 2009
MONTPELIER — The state's financial situation got even grimmer Tuesday as economic consultants forecast additional downgrades in the already embattled General Fund.
Slumping investment portfolios among the state's wealthier residents have stunted personal income tax revenue. Economic consultants Thomas Kavet and Jeff Carr shaved their revenue projections accordingly, slicing another $10 million from the fiscal year 2009 General Fund and $35 million from fiscal year 2010 projections. Total downgrades now amount to more than $80 million for fiscal year 2009 and $150 million for 2010.
The worst could be yet to come. Kavet and Carr said global economic stress could exacerbate what is already a historic national downturn.
"Now we're talking about how long is it going to go and how deep is it going to go," Carr said. "I think at this point it's fair to say no one really knows."