Vermont’s September Revenue Figures Exceed Target for the Month

first_imgVermont’s September Revenue Figures – General Fund, Transportation Fund and Education Fund – Exceed Target for the MonthMontpelier, VT (October 10, 2008) – Secretary of Administration Neale F. Lunderville has released General Fund revenue results for themonth of September, the third month of Fiscal Year 2009. General Fund revenues totaled $127.44million for September 2008, +$13.84 million or +12.19% above the $113.60 million consensusrevenue forecast for the month. Cumulatively, General Fund revenues year to date were $294.03million or +12.97 million (+4.61%) above the consensus revenue forecast for Fiscal Year 2009.However, there are certain factors that impact the availability of this apparent above target result.It is important to note that the September revenue includes a legal settlement of $6.03 million. At thetime the consensus revenue forecast was approved in July 2008, the outcome of the legal action wasunknown. Consequently, no amount was included in the consensus forecast for the potentialsettlement; however, an estimated $5.57 million was anticipated and already earmarked for use. Ofthe $6.03 million, $2.3 million has been transferred to Teachers’ Retirement and the remaining $3.73million was included in the August 2008 General Fund Rescission, reducing the appropriationreductions necessary to balance the FY 2009 budget. This means that only $0.46 million of thesettlement is in excess of what was anticipated, not the entire $6.03 million.Without the portion of the settlement that was anticipated, General Fund revenue results for themonth of September were +$8.28 million or +7.29% above the $113.60 million consensus revenueforecast for the month. Cumulatively, adjusted General Fund revenues year to date were +$7.40 million (+2.63%) above the consensus revenue forecast for Fiscal Year 2009. However, giventhe instability in the national economy, we do not expect revenues to exceed targets for theremainder of the fiscal year.The monthly targets reflect the most recent Fiscal Year 2009 consensus revenue forecast that wasagreed to by the Emergency Board on July 29, 2008. The state’s consensus revenue forecast isnormally updated two times per year in January and July. However, with the downturn in thenational economy, the Emergency Board has scheduled an interim review of the consensus revenueforecast for November 18, 2008.Personal Income Tax receipts are the largest single state revenue source, and are reported Net ofPersonal Income Tax refunds. Personal Income Tax receipts for September were $67.33 million,+$4.50 million or +7.16% above the monthly target. Corporate Income tax receipts for Septemberwere $12.28 million, +$1.18 million or +10.65% above the target for the month. Both the PersonalIncome Tax and Corporate Income Tax receipts were significantly above target in the category ofestimated income tax payments. For those individual and corporate tax payers required to payestimated tax payments in lieu of withholding tax, those payments are generally paid at a minimumof 90% of their prior year tax amount. In light of national economic turbulence, it is veryprobable that a significant portion of these estimated payments will need to be refunded whenthe 2008 tax returns are filed. In other words, we do not believe that the elevated revenues seenin September will continue in future months.Sales & Use Tax and Rooms & Meals Tax were both above target for the month. Sales and Use Taxwas +$0.51 million (+2.95%) above the target for September of $17.30 million, while Rooms &Meals was +$0.71 million (+6.00%) above the monthly target of $11.82 million. The remaining taxcomponent results for the month were: Insurance Premium, $2.14 million (+85.72%);Inheritance/Estate Tax, $0.17 million (-88.00%); Real Property Transfer Tax $0.99 million(+1.53%); and Other, $14.19 million (+103.58%). Included in the Other category was $6.03 millionin Bank Franchise tax – the settlement dollars referred to earlier in this press release. Year to dateresults for these components were: Insurance Premium, $8.17 million (+2.97%); Inheritance/EstateTax, $1.82 million (-53.24%); Real Property Transfer Tax $3.06 million (+0.07%); and Other,$27.68 million (+48.86%), inclusive of the $6.03 million settlement.Transportation FundSecretary Lunderville also reported on the results for the non-dedicated Transportation Fund revenue.Transportation Fund revenue was $19.07 million, which was +$0.22 million, or +1.18%, above themonthly target for September. Cumulatively, Transportation Fund revenues year to date of $53.38million were -$1.71 million or -3.11% below the consensus revenue forecast for Fiscal Year 2009.For the month of September, Gasoline Tax revenue was slightly above target; actual revenues fromthe Gasoline Tax were +$0.32 million (+5.66%) above the consensus revenue estimate of $5.65million. The Other Fees of $1.87 was also above the target by +$0.38 (+25.20%). The Diesel Tax,Motor Vehicle Purchase & Use Tax, and Motor Vehicle Fees were all below their monthly targets;Diesel Tax, $1.28 million or -5.44% below the monthly target; Motor Vehicle Purchase & Use Tax,$4.69 million or -5.67% below the monthly target; and Motor Vehicle Fees, $5.27 million or -2.20%below the monthly target.Education FundSecretary Lunderville released revenue results for the “the non-Property Tax” Education Fundrevenues (which constitute approximately 12% of the total Education Fund receipts). The EducationFund receipts totaled $13.27 million for the month of September, or $0.18 million (+1.35%) abovethe $13.09 million consensus revenue target for the month. Cumulatively, Education Fund revenuesyear to date were $37.82 million or -$1.05 million (-2.70%) below the consensus revenue forecast forFiscal Year 2009.The portion of the Education Fund derived from the Motor Vehicle Purchase & Use Tax was belowexpectations for the month of September, as was the Lottery Transfer. The Education Fund portionof the Sales & Use Tax was above target for September.Specifically, the Education Fund components were: Sales and Use Tax, $8.90 million or +2.95%above target; Motor Vehicle Purchase & Use, $2.35 million or -5.67% below target; LotteryTransfer, $1.89 million or -2.16% below target; and Education Fund Interest $0.13 million or+454.47% above the monthly target.ConclusionSecretary Lunderville cautioned that, “The continued volatility in the national economy is a seriousconcern. We need to be very cautious because of the uncertainty of national markets and theexpectation that a significant amount of the Estimated Income Tax payments received to date in theGeneral Fund will likely need to be refunded. We will continue to monitor future revenues veryclosely and review the situation again after the revenue forecast is revised in November.”Note: Revenue Estimates are fiscal year total estimates.Prepared by Department of Finance & ManagementDate: October 02, 2008last_img read more

Cost-cutting ABP lowers contribution by nearly 4 percentage points

first_imgThe €293bn civil service scheme ABP has lowered its contribution by 3.8 percentage points to 21.6%, mainly following cost-cutting measures for its pension fund.It said the main reasons for its decision were the reduction of the yearly pension accrual from 2.05% to 1.95% for 2014 and the increase of the official retirement age from 65 to 67.Half a percentage point of the premium reduction came as the result of ending a temporary recovery levy, leaving the excess contribution for recovery at 3 percentage points for 2014.ABP said it based its decision on its funding of 106.2% on 1 November. However, it stressed that the financial position at year-end would be “crucial”.If its coverage ratio is less than the minimum required level of 104.2%, a second rights cut – effective as of 1 April 2014 – will be unavoidable, it warned.However, if the scheme’s funding is sufficiently solid at year-end, the board may decide to undo last April’s rights discount of 0.5%, ABP said.If the coverage ratio is unexpectedly high on 31 December, the board may even look into the possibility of removing the remaining recovery levy or indexation, it said.Opposition politicians have been suspicious of the motives behind the sudden and significant premium reduction at ABP.Barry Madlener of the Freedom Party (PVV) said he suspected the government might have played a role in the decision.“Other pension funds don’t seem to be keen to follow ABP’s example,” he said.Paul Ulenbelt, spokesman for the Socialist Party (SP), echoed the sentiment.“It is very odd that, soon after a 0.5% rights discount, the contribution is decreased by 3.8 percentage points,” he said.“It seems the Cabinet is granting the civil servants a salary rise, without paying them from the national budget.”On its website, the AbvaKabo, the largest public sector union, claimed it achieved a net salary increase of 2% for civil servants as compensation for the reduced pensions accrual.last_img read more

NFL faces tough times for 2020, then bright economic outlook

first_img SUBSCRIBE TO US COMMENT Associated Press Television News First Published: 2nd September, 2020 07:54 IST WATCH US LIVE LIVE TVcenter_img Last Updated: 2nd September, 2020 07:54 IST NFL Faces Tough Times For 2020, Then Bright Economic Outlook Let’s get this straight from the outset: If the NFL has no fans at any games this season — or doesn’t have much of a season at all — it will not go out of business Let’s get this straight from the outset: If the NFL has no fans at any games this season — or doesn’t have much of a season at all — it will not go out of business.Sure, the 32 teams and the league itself will lose millions, very possibly billions of dollars. Its broadcast partners will take a hit harder than any that Von Miller has delivered on the field. Same for sponsors and advertisers who pinpoint pro football as the best way to reach fans (read: consumers).And unless the coronavirus pandemic stretches beyond the 2020 season, the NFL will come out right where it has been for decades: on top of the sports world.“The NFL is to the sports and entertainment industry the way Amazon is to the retail industry,” says Marc Ganis, co-founder of Chicago-based consulting group Sportscorp and a confidant of many NFL owners.“We need to look at this as an overarching umbrella: This has a likelihood of being a one-season problem. So as we get to the 2021 season, the problem will have gone away, so it is a one-year aberration.“There’s a semi-permanent impact (on other industries) I don’t see for the NFL. I see the NFL coming back stronger than ever for two reasons:— “The value of the NFL for non-attendance activity. Broadcasting, gambling, Internet, video gaming, those all need the NFL more than ever before. The kinds of people and consumer activities it attracts, it will come back more strong.— “The new CBA with the players, the 11 years of labor peace. When it was approved in March there were a host of high-profile players saying they were against it, in large measure because they didn’t see a rush to do it so quickly. They were as wrong as anybody could ever be. You just don’t know what tomorrow will bring, so get it done when you can get it done.”Getting done the biggest chunk of NFL revenues, new broadcast deals, is on the horizon, too. From network TV to cable to satellite to radio to streaming rights, the NFL is likely to fill its vaults with untold riches even with the overall U.S. economy struggling.First, of course, there is the COVID-19-impacted 2020 season, and the financials won’t be pretty even if the entire regular season and playoffs go off as scheduled. Certainly not with empty stadiums across the nation — less than a dozen teams are likely to have fans on hand this season, barring a turnaround in the pandemic that no one in the medical community is predicting.If games are canceled, or the playoffs and Super Bowl need to be moved back in the calendar, the monetary effect will be substantial — felt perhaps the most by NFL marketing partners.“The general consensus is nobody is completely jumping ship right now,” says Mark Reino, CEO of Merit Mile, a Boca Raton, Fla.-based advertising, PR and sports marketing agency.”However, no one is signing the level of lucrative contracts they signed in previous years. They are still assessing and trying to understand how these dynamics will play out. We are not even sure where this is going to take us. Most of us expect the NFL to play a season, but it could take a different turn.”Naturally, corporate sponsors need that visibility to drive a lot of initiatives … but they’re not eager to make the aggressive moves given the current situation.“The fan base is hungry, and if the teams can figure out the right way to package up corporate sponsorship value and deliver unique ideas to the advertisers and corporate sponsors, they will be OK. This will be a unique year, and everybody will take hits, but those who have progressive thinkers likely will win. And teams with ownership interest in their stadiums will have much more opportunity to capitalize than those that don’t.”That’s a common theme.The Dolphins, who have announced plans to have about 13,000 fans at Hard Rock Stadium for their home opener in Week 2 against Buffalo, already have gotten creative.Owner Stephen Ross and his staff came up with an idea that met with raised eyebrows: turning the stadium into a drive-in theater.Similar to Ganis, Reino suggests there will be other potential programs in tangential areas of sports marketing, such as gambling and online betting — once taboo in NFL circles.“Rest assured all 32 teams have some sort of task force on how they will monetize online betting as soon as it is approved nationwide,” Reino says.How about providing season ticket holder’s extra value such as access to players socially distanced and on an experimental basis?“These are the ideas that all of a sudden rise to the concept state because it is 2020 and where we are in 2020,” Reino adds.So where is the NFL in 2020, at least financially? Like nearly every other business in America — and certainly like all sports — it’s in a tough spot. Teams could afford recent contracts such as the megabucks given to Patrick Mahomes and Joey Bosa under normal circumstances.Because of economic effects from the pandemic, future player deals and a salary cap that will be adjusted due to some monetary setbacks, upcoming free agents might find the marketplace tighter.But to hold a bake sale — well, something a bit larger — to aid the NFL won’t be necessary.“There are activations being planned that are different from what we have seen in the past,” Ganis says. “Auto companies are planning on major sponsorship activations; Americans always need to buy cars. There is a major plan for much more production by manufacturers and they have to get the cars out the door. Auto companies are major team sponsors.“Airline sponsorships will be a problem, and the NFL has a deal, as do each of the teams. Anything travel-related is a problem.“But there is so much interest in the NFL coming back in broadcasting and digital, and all the ancillary programming and fantasy leagues and sports gambling. Nobody wants to leave the NFL right now. ”Image credits: AP Written By FOLLOW USlast_img read more