Vermont's twice-a-year revenue forecast is being revised downward, with a $10 million reduction in collections expected in the just-started fiscal year and a $20 million reduction in the fiscal year that starts in July of 2013.
Consulting economist Tom Kavet told lawmakers continued economic uncertainty in Europe and disagreements over budget policy in Washington have created significant uncertainty in the economy.
Kavet says not all signs are bad. He says the housing market has bottomed out and should begin trending upward in the coming year. He says the state rooms and meals tax has been performing well, with Vermont ski areas beating back the effects of a low-snow winter with their extensive snowmaking operations.
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