The State of Vermont is projecting a $430 Million budget loss from the recent Coronavirus shutdowns they voluntarily subjected themselves too. Vermont lives on high taxes and sales tax revenue from its tourism industry.
The Vermont Legislature’s economist projects revenue losses from the Covid-19 crisis will triple in the upcoming fiscal year and that the state could see tax receipts drop by $430 million.
Lawmakers are already contending with a massive budget gap in the current fiscal year, with the state expected to lose $144 million in revenue across all of its funds by the end of June.
He expects the Vermont’s tourism industry will be particularly hard hit in fiscal year 2021, dealing a blow to meals and rooms tax revenues.
“A lot of spending on tourism and travel is done by older age cohorts and that is the group that’s most affected by the virus and probably will be the most fearful about coming back,” he said.
The state’s general fund, which relies on personal income and corporate taxes is expected to lose $266 million, while the education fund, which is funded by sources including sales and use, meals and rooms, and property taxes is expected to take a $113 million hit.
Source: VT Digger