As has been the case for the last several years, we returned to Montpelier in January facing another year of spending that outpaced revenues.  Unfortunately, this has become the new normal in Montpelier.  Unlike families and businesses across this state that have to live within their means, we refuse to ensure that our state government does the same. 

As a result, once again this year, we were required to adjust the current year’s budget significantly.  In fact, the current year’s Budget Adjustment Bill (Fiscal Year 2016) that was passed in February increased expenditures for this current year by $91.8 million in order to cover the expenses that outpaced revenues.

Then, as if on cue, the day before we adjourned, it was announced that our April revenues were $16.5 million below what had been forecasted. 

With regard to the Fiscal Year 2017 budget, the budget that passed on the final day of the session increases General Fund spending by 4.8% over the FY 2016 budget.  Of course, as has also become the norm, these increase exceed the underlying growth in our economy.  Simply put, our spending has become completely unsustainable.