(Host) Administration Secretary Kathy Hoyt says lawmakers may have to consider additional cuts to this year’s budget if the state’s revenue picture does not improve in the coming months. On Tuesday afternoon Hoyt released the state’s new revenue report that shows that tax receipts for the first quarter of the new fiscal year are just below revised targets.
To deal with plummeting revenues, the Administration implemented a $39 million deficit reduction plan in September. Hoyt says the future of the Vermont economy is tied directly to the performance of the national economy. She’s not optimistic that economic indicators are going to turn around any time soon:
(Hoyt) “If the revenues start giving us some signals that it’s going south on us again, that we are not going to make those targets, I think we should be prepared to either – within our authority – make some additional cuts or to propose to the new administration where those cuts might be made, to be sure that 2003 will be balanced.”
(Host) Legislative leaders will meet next month to review updated revenue forecasts from economic experts. If those forecasts are negative additional budget cuts may be considered.