Vermont reports lagging income tax revenue

State finance officials say personal income tax revenues have fallen about $6.4 million below target through the end of October, dampening the state's general fund.

"This clearly is concerning, and warrants more in-depth analyses and caution pending the next update of the consensus revenue forecast for fiscal year 2018 and beyond," Administration Secretary Susanne Young said in a statement last week.

Each month, the state compares revenues to budget forecasts that were set in July.

In October, according to the Agency of Administration, the state took in $5.7 million less than expected from personal income taxes. 

For the first four months of the fiscal year, state officials say the general fund is running about $3.1 million below target. Transportation and education revenues are close to expectations, while meals and rooms taxes are about $800,000 above target.

The House Appropriations Committee is expected to begin adjusting the current budget on Dec. 18. 

As the state approaches a new fiscal year, the governor and lawmakers will need to close an estimated budget gap of about $45 million — the difference between expected revenues and the cost of continuing to fund current state programs.