Henry Raymond
Fairfax News => Political Issues/Comments => Topic started by: Carolyn Branagan on May 10, 2011, 04:28:29 PM
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The legislature started the task of preparing the fiscal year 2012 budget knowing there was a $176 million shortfall in revenue. Most of the deficit came from the loss of $158m in ARRA funds. Like many other states we received the ARRA funds for a few years, but for fiscal 2012 this money from the federal government was stopped. Along with about a $20 million gap of our own doing, the total deficit for the 2012 budget came to $176 million.
Throughout the session, debate has centered on how much money should be spent and from where the needed extra revenue, if any, would come. In the end the 2012 budget as presented was balanced. This was achieved through a combination of spending reductions, one-time revenues, health care provider assessments, a health claims assessment, and tobacco tax changes. There is also a $23 million reduction in the education fund transfer.
Here’s how the 2012 budget gap was closed:
$60 million from one time revenues
$87 million from budget cuts and transfers
$24 million from new revenue in Misc Tax
Coming to agreement is never easy with a large group of people. In addition, the extremely liberal make up of the current legislature makes the starting point very far to the left. The work to bring the final product back to center is tough. My areas of concentration have been on limiting tax impact for hospitals (the final impact was $5.4 million, down from $17.4 million starting point) limiting impact on dental care (final impact was $650,000, down from $6million starting point) and making sure school taxes remained reasonable (homestead is at $.87 and non-resident is at $1.36, both as voted on town meeting day).
Representative Carolyn Branagan
Franklin-1, Fairfax/Georgia
Vermont House of Representatives
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Thank you Carolyn! Just out of curiosity, can you give me an example of what a "one time revenue" would be?
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One time revenue is money that you can't (or shouldn't) count on getting again. Estate tax is a good example of one time revenue because people only die once and then the family settles the estate. That's not going to happen every year. Another example is fund balance money left unspent at the end of the fiscal year, some call this cash on hand. We can't count on having the same amount for use in next year's budget.
There is one time revenue and there is also one time expenditure. I wanted the legislature to treat the ARRA money as one time revenue and use it for a one time expenditure, for something like the new state mental hospital or bridge repair or some other very expensive infrastructure need. If we had used the ARRA money for a one time need, and had reduced our ongoing expenditures, we'd be in better shape fiscally. Oh well.........water over the dam. :)
from, C.
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that one time tax always seem to be more that (one time}
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I think with the exception of property taxes, most taxes are "one time". The money you make this year is only taxed "by income taxes" one time. You only pay fuel taxes one each gallon purchase "one time" (directly anyway). Telecommunication taxes are "one time" per month of services purchased/used.
*Note: while there is a little bit of truth to the rationale provided above, I am only providing this thought process for argument's sake.