BURLINGTON, Vt. (AP) – Drivers are buying less gas which is affecting the state budget.
During the fiscal year that ended June 30 the state collected $63.8 million in revenues from taxes on gas sales. That’s $2.3 million below what was forecast for the fiscal year and $1.8 million lower than last year.
“It’s off by more than we’d like it to be,” said Jeffrey Carr, of Economic & Policy Resources Inc. in Williston.
Vermont collects 20 cents on the sale of a gallon of gas.
Since January, gas taxes have missed targets every month.
The biggest shortfalls were in March and June when the gas taxes were 13.2 percent and 14.9 percent lower projections.
Although the state had a surplus in the general fund by the end of the fiscal year, the gas tax is added to the transportation fund, which had a $5.8 million deficit.
The money is used for road and bridge work, snow plowing, and airport and rail projects, said Administration Secretary Michael Smith.
The state shifted when it paid for projects to address the deficit, said Administration Secretary Michael Smith.
The price of regular unleaded gasoline hit a high of $3.21 per gallon in Vermont last September, according to the AAA Daily Fuel Gauge Report. On Thursday, the average price for a gallon of unleaded gas in Vermont was about $2.92.
Officials said the lack of snow this winter and rain in the spring also were factors. Fewer tourists visited the state to ski. “With fewer people, there are less people buying gasoline,” Smith said.
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