The Vermont General Fund took a hit last month as both the Personal Income and Corporate tax revenues fell below expectations. Secretary of Administration Jeb Spaulding today released the December 2011 General Fund (GF) revenue results. December is the sixth month of fiscal year (FY) 2012. General Fund revenues totaled $96.47 million for December 2011, and were -$9.70 million or -9.14% below the $106.18 million consensus revenue forecast for the month. Year to date, General Fund revenues were $569.12 million, and +$2.43 million or +0.43% ahead of the target of $566.69 million for FY 2012. Cumulatively, General Fund receipts through December 31, 2011 exceed the prior fiscal year (FY 2011) to date receipts as of December 31, 2010 by +3.16%.‘After four consecutive months of above target General Fund receipts, it is disappointing to see results slide below target for the month. However, this is not a total surprise and not necessarily an indication of the health of the Vermont economy. Our recent monthly revenue releases have been cautionary about Corporate Income Tax receipts, which accounted for the majority of above target performance for the year and also underperformance for the month of December. A correction here was not unexpected and we can expect more in the coming months,’ explained Secretary Spaulding.Current targets reflect the Fiscal Year 2012 Consensus Revenue Forecast adopted by the Emergency Board at their July 21, 2011 meeting. Statutorily, the State is required to revise the Consensus Revenue Forecast two times per year, in January and July; the Emergency Board may schedule interim revisions if deemed necessary. The next Emergency Board meeting is scheduled for January 18, 2012.Personal Income Tax (PI) receipts are the largest single state revenue source providing approximately 50% of total GF revenue. PI Tax receipts are reported Net-of-Personal Income Tax refunds. Net Personal Income Tax is comprised of PI Withholding Tax, PI Estimated Payments, PI Refunds Paid, and PI Other. Net PI Receipts for December were recorded at $51.98 million, -$3.32 million or -6.00% below the monthly target of $55.29 million. The year to date Net PI Tax receipts were $283.90 million, or -$0.86 million or -1.07% below the cumulative target.Corporate Income Taxes are also reported net-of. At $6.68 million, the December Net Corporate Receipts were close to 50% short of the monthly target of the $12.42 million (-$5.74 or -46.19%). Year to date Corporate receipts were $37.99 million, +$4.45 million or +13.27% ahead of target, as significant drop from last month. The current month drop has pushed the cumulative receipts down to -14.87% below the same period in the prior fiscal year.Consumption tax results for December were mixed ‘ both hovering close to the targets for the month: Sales & Use Tax receipts of $18.35 million were above target by +$0.06 million (+0.31%); Rooms & Meals Tax receipts of $7.79 million fell short of target by -$0.03 million (-0.42%). Year to date, Sales & Use Tax receipts of $113.38 million remains slightly ahead of target by +$0.16 million or +0.14% and Rooms & Meals Tax receipts of $65.41are above target by +$2.19 million or +3.46% for the current fiscal year (FY 2012). As compared to the same period for the prior fiscal year (FY 2011), cumulative December consumption taxes (Sales & Use, and Meals & Rooms) exceeded the prior year results by +5.74% and +3.46% respectively.The remaining non-major tax components include Insurance, Inheritance & Estate Tax, Real Property Transfer Tax, and ‘Other’ (which includes: Bank Franchise Tax, Telephone Tax, Liquor Tax, Beverage Tax, Fees, and Other Taxes). The results for the remaining non-major categories for December were as follows: Insurance Tax, $1.74 million (9.70%); Inheritance & Estate Tax, $1.32 (-26.61%); Property Transfer Tax, $0.64 million (-24.52%); and ‘Other’, $7.98 million (-1.81%). The year to date December results for the remaining non-major categories were: Insurance Tax, $16.56 million (-1.26%); Inheritance & Estate Tax, $9.41 (-3.76%); Property Transfer Tax, $4.19 million (-13.89%); and ‘Other’, $38.28 million (-5.55%). Cumulatively, the total non-major component receipts of $64.45 million were below the prior year total of $69.08 million by -$4.64 million, or -6.71%. However, the shortfall versus prior year in ‘Other’ is primarily due to one-time extraordinary settlement activity in Bank Franchise Tax during August of the prior year. Transportation FundSecretary Spaulding also released the non-dedicated Transportation Fund Revenue for December. Total non-dedicated Transportation Fund receipts of $17.34 million for the month exceeded target by +$0.40 million (+2.38%), against the monthly target of $16.94 million. The December year to date Transportation Fund receipts of $107.59 million was ahead of the $105.64 million target by +$1.95 million or +1.84%. Year to date December FY 2012 non-dedicated Transportation Funds have now exceeded the prior year (FY 2011) by 2.84% for the same period.Gasoline Tax and Diesel Fuel Tax both fell short of target for the month, while the remaining taxes and fees were above target. Individual Transportation Fund revenue components for December were: Gasoline Tax, $4.98 million or -2.17% behind target; Diesel Tax, $1.46 million or -19.95% below target; Motor Vehicle Purchase & Use Tax, $4.07 million or +4.40% ahead of target; Motor Vehicle Fees, $4.85 million or +5.22% above; and Other Fees, $1.98 million or +30.57% above the monthly target. Year to date results for the individual Transportation Fund revenue components for December were: Gasoline Tax, $31.14 million or -0.42% short of target; Diesel Tax, $7.80 million or +0.37% above target; Motor Vehicle Purchase & Use Tax, $26.11 million or -0.90% behind target; Motor Vehicle Fees, $33.67 million or +3.95% ahead of target; and Other Fees, $8.86 million or +12.83% above the monthly target.Secretary Spaulding said, ‘Despite below target performances in Gasoline and Diesel Fuel Taxes for the month, cumulative non-dedicated Transportation Fund receipts through December continued to out-pace the prior year. Of the five Transportation Fund revenue components, only Gasoline Tax is below the prior year (FY 2011) by -1.50%.’The Secretary also reported on the results for the Transportation Infrastructure Bond Fund (’TIB’). TIB Fund Gas receipts for December were $1.78 million or +12.98% in excess of target; year to date TIB Gas receipts were $10.97 million or +15.82% ahead of target. TIB Fund Diesel receipts for the month were $0.17 million or +16.63% above the monthly target; year to date TIB Diesel receipts were $0.94 million or +7.86% ahead of target. The TIB Fund receipts are noted below the following table: ConclusionSecretary Spaulding concluded, ‘General Fund receipts for December were not what we wanted, but we are still slightly ahead of target for the year and we have collected $17.4 million more for the first six months of this year than we did last year. We look forward to the report from the two State economists next week when the Emergency Board adopts a revised revenue forecasts for the rest of 2012 and 2013.’ Education FundToday, Secretary Spaulding released the ‘non-Property Tax’ Education Fund revenues (which constitute approximately 12% of the total Education Fund sources). The non-Property Tax Education Fund receipts for December totaled $12.72 million, or +$0.06 million (+0.46%) above the $12.66 million target for the month. Year to date, non-Property Tax Education Fund receipts were $79.49 million, or -0.41% short of the year to date target. The individual Education Fund revenue component results for December were: Sales & Use Tax, $9.18 million, or +0.31% above target; Motor Vehicle Purchase & Use Tax, $2.03 million or +4.40%; Lottery Transfer, $1.51 million or -3.69% below; Education Fund Interest for December was under $0.00 million against a similar target. Year to date receipts by component were: Sales & Use Tax, $56.69 million, or +0.14% ahead of target; Motor Vehicle Purchase & Use Tax, $13.06 million or -0.90%; Lottery Transfer, $9.40 million or -3.17% below target; year to date Education Fund Interest for December was under $0.02 million against a target of below $0.01 million. As compared to prior year, FY 2012 year to date non-Property Tax Education Fund receipts are 5.59% ahead of the FY 2011 results for the same period.