Vermont state budget and finances
 in Vermont |
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| Vermont budget and finances | |
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| General information | |
| Budget calendar: Annual | |
| Fiscal year: 2017 | |
| State credit rating: AA+ (as of 2017) | |
| Current governor: Phil Scott | |
| Financial figures | |
| Total spending (state and federal funds): $5,562,000,000 (estimated 2016) | |
| Per capita spending: $8,905 (estimated 2016) | |
| Total state tax collections: $3,085,865,000 (2016) | |
| Per capita tax collections: $4,941 (2016) | |
| State debt: $3,340,624,000 (2014) | |
| Per capita state debt: $5,336 (2014) | |
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| State budget and finance pages • Total state expenditures • State debt • Tax policy in Vermont | |
| Note: In comparing dollar amounts across the states, it is important to note that the cost of living can differ from state to state and within a state. The amounts given on this page have not been adjusted to reflect these differences. For more information on "regional price disparities" and the Consumer Price Index, see the U.S. Department of Commerce, Bureau of Economic Analysis. This article, which is updated on an annual basis, was last updated in June 2017. It contains information from several sources; consequently, the currency of the information can vary from source to source. | |
In Vermont, as in other states, lawmakers and public officials are elected in part to manage the state's finances. This includes generating revenues (money coming into the state from various sources) and approving expenditures (the money spent on governmental functions and servicing state debt). State budgets are complex and fluid, as they depend on anticipated revenues and planned expenditures, which may alter over the course of a fiscal year. If revenues do not keep pace with expenditures, states generally have to raise taxes, cut services, borrow money, or a combination of the three. State budget decisions are also influenced by policy decisions at the national level, such as the Affordable Care Act or energy and environmental regulations, and issues at the local level, such as crime and the quality of education.
Definitions
The following terms are used to describe a state's finances:
- Revenues come mainly from tax collections, licensing fees, federal aid, and returns on investments.
- Expenditures generally include spending on government salaries, infrastructure, education, public pensions, public assistance, corrections, Medicaid, and transportation.
- State debt refers to the money borrowed to make up for a deficit when revenues do not cover spending.
- The state credit rating is the grade given by a credit rating agency based on the general financial health of the state's government and economy.
- State funds include general and other state-based funds. A general fund is "the predominant fund for financing a state's operations." Other state funds are "restricted by law for particular governmental functions or activities."[2]
- Federal funds are "funds received directly from the federal government."[2]
- Total spending is calculated by adding together the totals for state and federal funds used for expenditures.
Revenues
2016 revenues
The table below breaks down state government tax collections by source in 2016 (comparable figures from surrounding states are also provided to give additional context). Figures for all columns except "2016 population" and "Per capita collections" are rendered in thousands of dollars (for example, $2,448 translates to $2,448,000). Figures in the columns labeled "2016 population" and "Per capita collections" have not been abbreviated.[3]
| State tax collections by source ($ in thousands), 2016 | ||||||||
|---|---|---|---|---|---|---|---|---|
| State | Property taxes | Sales and gross receipts | Licenses | Income taxes | Other taxes | Total | 2016 population | Per capita collections |
| Vermont | $1,056,323 | $1,031,257 | $117,328 | $828,322 | $52,635 | $3,085,865 | 624,594 | $4,941 |
| Maine | $35,425 | $2,077,913 | $272,253 | $1,689,129 | $55,522 | $4,130,242 | 1,331,479 | $3,102 |
| Massachusetts | $5,818 | $8,683,866 | $1,122,219 | $16,764,223 | $706,879 | $27,283,005 | 6,811,779 | $4,005 |
| New Hampshire | $406,394 | $982,832 | $329,549 | $788,210 | $134,961 | $2,641,946 | 1,334,795 | $1,979 |
| United States | $18,364,298 | $442,909,995 | $52,164,396 | $392,286,910 | $24,538,146 | $930,263,745 | 322,762,018 | $2,882.20 |
| Source: U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed June 26, 2017 | ||||||||
The table below lists 2016 tax collections by source as percentages of total collections. About 34.2 percent of Vermont's total state tax collections came from property taxes.[3]
| State tax collections by source (as percentages), 2016 | |||||
|---|---|---|---|---|---|
| State | Property taxes | Sales and gross receipts | Licenses | Income taxes | Other taxes |
| Vermont | 34.2% | 33.4% | 3.8% | 26.8% | 1.7% |
| Maine | 0.9% | 50.3% | 6.6% | 40.9% | 1.3% |
| Massachusetts | 0.0% | 31.8% | 4.1% | 61.4% | 2.6% |
| New Hampshire | 15.4% | 37.2% | 12.5% | 29.8% | 5.1% |
| Source: U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed April 4, 2016 | |||||
Federal aid to the state budget
- See also: Federal aid to state budgets
State governments receive aid from the federal government to fund a variety of joint programs, mainly in the form of grants for such things as Medicaid, education, and transportation. In 2014, federal aid to the states accounted for roughly 31 percent of all state general revenues. Federal aid varies from state to state. For example, Mississippi received approximately $7.2 billion in federal aid in 2014, accounting for about 41 percent of the state's general revenues, the highest percentage of all of the states. By contrast, North Dakota received about $1.5 billion in federal aid in 2014, or just 17 percent of the state's general revenues, the lowest percentage in the nation.[4]
The table below notes what share of Vermont’s general revenues came from the federal government in 2014. That year, Vermont received approximately $1.9 billion in federal aid, 33.6 percent of the state's general revenues. Taking into consideration the state's 2014 population, this came out to about $3,091 in federal aid per capita. Figures from surrounding states are provided for additional context.[4]
| Federal aid to state budgets, 2014 | |||||
|---|---|---|---|---|---|
| State | Total federal aid ($ in thousands) | Federal aid as a % of general revenues | Ranking (by % of general revenues) | Est. 2014 population | Aid per capita |
| Vermont | $1,938,148 | 33.6% | 20 | 626,984 | $3,091 |
| Maine | $2,997,132 | 36.6% | 9 | 1,330,719 | $2,252 |
| Massachusetts | $13,658,836 | 27.8% | 37 | 6,749,911 | $2,024 |
| New Hampshire | $1,658,713 | 28.0% | 36 | 1,328,743 | $1,248 |
| Sources: United States Census Bureau, "2014 State and Local Government Finances," accessed June 26, 2017 Note: Per-capita figures were generated by Ballotpedia by dividing total federal aid for the state by the estimated population of that state in 2014. | |||||
Spending
Estimated 2016 expenditures
- See also: Total state expenditures
The table below breaks down estimated spending totals for fiscal year 2016 (comparable figures from surrounding states are included to provide additional context). Figures for all columns except "Population” and “Per capita spending" are rendered in millions of dollars (for example, $2,448 translates to $2,448,000,000). Figures in the columns labeled "Population” and “Per capita spending" have not been abbreviated.[5]
The total estimated government spending in Vermont in fiscal year 2016 was $5.6 billion.
| Total estimated state spending, FY 2016 ($ in millions) | |||||
|---|---|---|---|---|---|
| State | State funds | Federal funds | Total spending | Population | Per capita spending |
| Vermont | $3,546 | $2,016 | $5,562 | 624,594 | $8,905 |
| Maine | $5,519 | $2,536 | $8,055 | 1,331,479 | $6,050 |
| Massachusetts | $50,652 | $9,751 | $60,403 | 6,811,779 | $8,867 |
| New Hampshire | $3,623 | $2,162 | $5,785 | 1,334,795 | $4,334 |
| Per-capita figures are calculated by taking the state's total spending and dividing by the number of state residents according to United States Census Bureau estimates. Source: National Association of State Budget Officers, "State Expenditure Report (Fiscal 2014-2016)," accessed June 26, 2017 | |||||
Spending by function
State spending in Vermont can be further broken down by function (elementary and secondary education, public assistance, etc.). Fiscal year 2015 information is included in the table below (information from neighboring states is provided for additional context). Figures are rendered as percentages, indicating the share of the total budget spent per category.[5]
In fiscal year 2015, education accounted for 33.5 percent of Vermont's total expenditures.
| State spending by function as a percent of total expenditures, FY 2015 | |||||||
|---|---|---|---|---|---|---|---|
| State | K-12 education | Higher education | Public assistance | Medicaid | Corrections | Trans- portation |
Other |
| Vermont | 31.8% | 1.7% | 2.0% | 28.5% | 2.9% | 10.9% | 22.2% |
| Maine | 17.6% | 3.8% | 2.1% | 32.8% | 2.2% | 8.5% | 33% |
| Massachusetts | 11.6% | 10.1% | 2.1% | 23.8% | 2.4% | 9.1% | 41.0% |
| New Hampshire | 20.7% | 2.4% | 1.3% | 29.7% | 2.1% | 9.4% | 34.4% |
| Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[5] | |||||||
Spending trends
The table below details the spending trends in Vermont in previous years. Figures are rendered as percentages, indicating the share of the total budget spent per category.[1][6][7]
| Spending by function from 2010 to 2015 (as percentages) | |||||||
|---|---|---|---|---|---|---|---|
| Year | K-12 education | Higher education | Public assistance | Medicaid | Corrections | Transportation | Other |
| 2015 | 31.8% | 1.7% | 2.0% | 28.5% | 2.9% | 10.9% | 22.2% |
| 2014 | 31.7% | 1.8% | 2.2% | 26.8% | 2.8% | 10.4% | 24.4% |
| 2013 | 32.0% | 1.8% | 2.3% | 28.3% | 2.9% | 10.9% | 21.7% |
| 2012 | 31.1% | 1.8% | 2.1% | 25.3% | 2.8% | 12.8% | 24.2% |
| 2011 | 31.9% | 2.0% | 2.2% | 25.5% | 2.9% | 10.9% | 24.5% |
| 2010 | 33.0% | 2.2% | 2.2% | 25.9% | 2.9% | 9.8% | 23.8% |
| Source: National Association of State Budget Officers Note: "Other" expenditures include "Children's Health Insurance Program (CHIP), institutional and community care for the mentally ill and developmentally disabled, public health programs, employer contributions to pensions and health benefits, economic development, environmental projects, state police, parks and recreation, housing and general aid to local governments."[5] | |||||||
State debt
- See also: Vermont state debt
State debt refers to any debt owned by a state government. Debt may include any financial obligations a state has that have not been paid, such as bonds issued by state governments, money borrowed by a state government that has not been repaid, or post-retirement benefits promised to state employees. According to the U.S. Census Bureau, Vermont had a debt of $3,340,624,000 in fiscal year 2015. The state debt per capita was $5,336. This ranked Vermont 45th among the states in debt and ninth in per capita debt. The total state debt owned by the 50 states was $1.15 trillion with a per capita debt of $3,582.[8]
Economic indicators
- See also: Economic indicators by state
Broadly defined, a healthy economy is typically one that has a "stable and strong rate of economic growth" (gross state product, in this case) and low unemployment, among many other factors. The economic health of a state can significantly affect its healthcare costs, insurance coverage, access to care, and citizens' physical and mental health. For instance, during economic downturns, employers may reduce insurance coverage for employees, while those who are laid off may lose coverage altogether. Individuals also tend to spend less on non-urgent care or postpone visits to the doctor when times are hard. These changes in turn may affect the decisions made by policymakers as they react to shifts in the industry. Additionally, a person's socioeconomic status has profound effects on their access to care and the quality of care received.[9][10][11]
Among its neighboring states, Vermont had the smallest portion of residents (9 percent) that earned incomes below 100 percent of the federal poverty level in 2013. The median annual household income in the state was $56,175. Vermont had the lowest unemployment rate in September 2013, with little change over the following year.[12][13][14][15]
Note: Gross state product (GSP) on its own is not necessarily an indicator of economic health; GSP may also be influenced by state population size. Many factors must be looked at together to assess state economic health.
| Various economic indicators by state | ||||||||
|---|---|---|---|---|---|---|---|---|
| State | Distribution of population by FPL* (2013) | Median annual income (2011-2013) | Unemployment rate | Total GSP (2013)† | ||||
| Under 100% | 100-199% | 200-399% | 400%+ | Sept. 2013 | Sept. 2014 | |||
| Vermont | 9% | 19% | 31% | 40% | $56,175 | 4.5% | 4.4% | $29,509 |
| Maine | 12% | 20% | 31% | 37% | $50,668 | 6.6% | 5.8% | $54,755 |
| Massachusetts | 12% | 15% | 24% | 49% | $64,555 | 7.2% | 6% | $446,323 |
| New Hampshire | 9% | 13% | 29% | 49% | $69,888 | 5.2% | 4.3% | $67,848 |
| United States | 15% | 19% | 30% | 36% | $52,047 | 7.2% | 5.9% | $16,701,415 |
| * Federal Poverty Level. "The U.S. Census Bureau's poverty threshold for a family with two adults and one child was $18,751 in 2013. This is the official measurement of poverty used by the Federal Government." † Median annual household income, 2011-2013. ‡ In millions of current dollars. "Gross State Product is a measurement of a state's output; it is the sum of value added from all industries in the state." Source: The Henry J. Kaiser Family Foundation, "State Health Facts" | ||||||||
Budget process
The state operates on an annual budget cycle. The sequence of key events in the budget process is as follows:[16]
- Budget instructions are sent to state agencies in August or September of the year preceding the start of the new fiscal year.
- Agencies submit their budget requests to the governor in October.
- Agency hearings are held in October and November.
- The governor submits his or her proposed budget to the state legislature in January.
- The legislature typically passes a budget in May. A simple majority is required to pass a budget. The fiscal year begins July 1.
In Vermont, the governor cannot exercise veto authority over the budget.[16]
The governor is not legally required to submit—and the legislature is not legally required to pass—a balanced budget.[16]
Agencies, offices, and committees
The following standing committees in the Vermont State Legislature deal with budget and finance matters:
- Appropriations Committee, Vermont House of Representatives
- Appropriations Committee, Vermont State Senate
- Finance Committee, Vermont State Senate
- Fiscal Committee, Vermont State Legislature
Public Interest Research Group 2016 report
The U.S. Public Interest Research Group, a consumer-focused nonprofit organization based in Washington, D.C., released its annual report on state transparency websites in April 2016. The report, entitled "Following the Money," measured how transparent and accountable state websites were with regard to state government spending. According to the report, Vermont received a grade of B+ and a numerical score of 88, indicating that Vermont was "Advancing" in terms of transparency regarding state spending.[17]
Budget and finance ballot measures
Ballotpedia has tracked no ballot measures relating to state and local budget and finance matters in Vermont
Budget and finance legislation
The following is a list of recent budget and finance bills that have been introduced in or passed by the Vermont state legislature. To learn more about each of these bills, click the bill title. This information is provided by BillTrack50 and LegiScan.
Note: Due to the nature of the sorting process used to generate this list, some results may not be relevant to the topic. If no bills are displayed below, no legislation pertaining to this topic has been introduced in the legislature recently.
Recent news
The link below is to the most recent stories in a Google news search for the terms Vermont budget. These results are automatically generated from Google. Ballotpedia does not curate or endorse these articles.
Contact information
Vermont Department of Finance and Management
109 State Street
Montpelier, Vermont 05609
Telephone: 802-828-2376
See also
- Historical Vermont budget and finance information
- Tax policy in Vermont
- Vermont government sector lobbying
- Vermont public pensions
- Governor of Vermont
- Vermont State Senate
- Vermont House of Representatives
- Vermont State Legislature
Footnotes
- ↑ 1.0 1.1 National Association of State Budget Officers, "State Expenditure Report (Fiscal 2014-2016)," accessed June 26, 2017
- ↑ 2.0 2.1 National Association of State Budget Officers, "State Expenditure Report: 2013-2015," accessed April 7, 2016
- ↑ 3.0 3.1 U.S. Census Bureau, "2016 annual survey of state government tax collections by category," accessed June 26, 2017
- ↑ 4.0 4.1 United States Census Bureau, "2014 State and Local Government Finances," accessed June 26, 2017
- ↑ 5.0 5.1 5.2 5.3 National Association of State Budget Officers, "Summaries of Fiscal Year 2015 Proposed and Enacted Budgets," July 11, 2014
- ↑ National Association of State Budget Officers, "State Expenditure Report, 2009-2011," accessed February 24, 2014
- ↑ National Association of State Budget Officers, "State Expenditures Report, 2010-2012," accessed February 24, 2014
- ↑ United States Census Bureau, "State Government Finances," accessed June 4, 2017
- ↑ Academy Health, "Impact of the Economy on Health Care," August 2009
- ↑ The Conversation, "Budget explainer: What do key economic indicators tell us about the state of the economy?" May 6, 2015
- ↑ Health Affairs, "Socioeconomic Disparities In Health: Pathways And Policies," accessed July 13, 2015
- ↑ The Henry J. Kaiser Family Foundation, "Distribution of Total Population by Federal Poverty Level," accessed July 17, 2015
- ↑ The Henry J. Kaiser Family Foundation, "Median Annual Household Income," accessed July 17, 2015
- ↑ The Henry J. Kaiser Family Foundation, "Unemployment Rate (Seasonally Adjusted)," accessed July 17, 2015
- ↑ The Henry J. Kaiser Family Foundation, "Total Gross State Product (GSP) (millions of current dollars)," accessed July 17, 2015
- ↑ 16.0 16.1 16.2 National Association of State Budget Officers, "Budget Processes in the States, Spring 2015," accessed February 9, 2023
- ↑ U.S. Public Interest Research Group, "Following the Money 2016 Report," accessed June 29, 2017
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