1. ©2008 Public Assets Institute State Taxes and Budgets: Policies for Prosperity October 2, 2008 Paul A. Cillo Jack Hoffman Public Assets Institute www.publicassets.org

2. ©2008 Public Assets Institute Public Assets Institute Mission: To conduct research, perform fiscal analysis, disseminate information, and develop policies that apply the powers of government to improving the well being of ordinary citizens, especially the most vulnerable.

3. ©2008 Public Assets Institute

6. 2007 Vermont Income Tax

7. ©2008 Public Assets Institute

11. General Fund FY2009

12. ©2008 Public Assets Institute FY2010 Projected Budget Gap Revenue Millions Current forecast$1,194 Expenditures 3% growth over FY2009($1,236) Gap($42)

13. ©2008 Public Assets Institute FY2010 Projected Budget Gap Revenue Millions Current forecast$1,194 Expenditures 3% growth over FY2009($1,236) Reg. Medicaid increase($10) Gap($52)

14. ©2008 Public Assets Institute FY2010 Projected Budget Gap Revenue Millions Current forecast$1,194 Expenditures 3% growth over FY2009($1,236) Reg. Medicaid increase ($10) Medicaid deficit($38) Gap($90)

15. ©2008 Public Assets Institute FY2010 Projected Budget Gap Revenue Millions Current forecast$1,194 Expenditures 3% growth over FY2009($1,236) Reg. Medicaid increase ($10) Medicaid deficit($38) LIHEAP($5) Gap($95)

16. ©2008 Public Assets Institute FY2010 Projected Budget Gap Revenue Millions Current forecast$1,194 Expenditures 3% growth over FY2009($1,236) Reg. Medicaid increase ($10) Medicaid deficit($38) LIHEAP($5) Teachers’ retirement($2-10) Gap($97-107)

17. ©2008 Public Assets Institute