(Host) Vermont’s economic advisors say the outlook in Vermont for the next 12 months is good. The state finished the recent fiscal year at the end of June with a strong showing. Revenues for the year were $25 million above projections.
Legislative economist Tom Kavett believes the up-turn in the state economy will continue throughout the 2005 fiscal year and will result in a $27 million surplus at the end of the year.
Kavett says the key factor in the recovery is an increase in the state’s job growth rate that’s fueled by a dramatic increase in corporate profitability levels:
(Kavett) “So we see this as a period in the next year at least where almost all the signals are pointing up and we’re expecting good economic performance in that period, certainly through the election and somewhat beyond. There’s some concern after the election that there may need to be some measures taken to address the fiscal imbalances that exist at the federal level and there may be some retrenchment no matter who wins the election in November. There may be some retrenchment in terms of fiscal policy because the path that we’re on now is not sustainable.”
(Host) Kavett says there are other signs of a strong economy. They include increases in the state’s personal income revenues and the continuation of a very strong housing market in most parts of Vermont.