(Host) There are new signs of a slowdown in Vermont’s economy.
According to Administration Secretary Mike Smith, state revenues for March were 10 percent lower than expected. And several consumption taxes have been soft.
(Smith) "Vermont is beginning to feel the impact of the national economic condition and I think for a short duration here we will be in for a rough period. Hopefully it will be a short duration. But, nonetheless, Vermont will be impacted by the national economy."
(Host) Next week, the state’s Emergency Board will meet to consider reducing the amount of state revenues expected for the fiscal year that begins in July.
Smith is expecting a sizeable drop in the consensus economic forecast. And it’s a situation that could affect the Legislature’s debate over the budget in the coming weeks.
(Smith) "I think we’re going to have to see reductions above and beyond what the governor had originally recommended. So we’ll have to decide that process as we move forward and certainly I foresee that we’re going to have to tighten out belts in the near future."
(Host) The Vermont Senate has decided to delay consideration of next year’s budget until the new revenue forecasts have been finalized.