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Financial regulators report $3.3 million revenue downgrade tied to fee impacts and a bookkeeping correction
Summary
The Vermont Department of Financial Regulation reported to the House Appropriations Committee a $3.3 million downward revision to expected FY25 revenues driven by a $1.1 million double-count correction, about $700,000 lower securities receipts and roughly $1.6 million weaker insurance-fee receipts after recent fee increases.
Acting Commissioner Sandy Bighlestone told the House Appropriations Committee on Jan. 21 that the Department of Financial Regulation (DFR) is recommending a roughly $3.3 million downward adjustment to its fiscal-year 2025 revenue projection.
Bighlestone said the reduction has three components: a $1.1 million correction to remove a double-counted sweep of the department’s financial regulation fund, about $700,000 in lower-than-expected securities-related receipts received in early January, and roughly $1.6 million removed from the insurance-appointments forecast after accounting for lower expected growth following fee increases.
Why it matters: DFR revenue is front-loaded in different ways across its licensing lines. Bighlestone said securities receipts arrive mainly in January and insurance receipts primarily in June, which complicates short-term forecasting and contributes to volatility in year-to-year collections.
The acting commissioner told members that securities revenue had grown at about 8% annually in prior years but that the January collection represented only about a 2.7% increase compared with the prior year; she and staff suggested the recent fee increase may have reduced registrations or delayed filings. Bighlestone recommended follow-up from the department’s securities deputy to better understand whether reduced filings are temporary or could lead to fewer investment products available to Vermonters.
DFR Deputy Administrative Services Director David Cameron joined the presentation and answered technical questions on timing and accounting. Committee members asked for further narrative and data for the FY2026 budget process, and Bighlestone said the department would provide more context then and that the department could have Deputy Commissioner Amanda Smith follow up on securities trends.
No formal committee action occurred during the briefing; members discussed whether the fee-driven decline would be temporary and noted June collections will provide a clearer picture of insurance fees.
Ending: The committee accepted the briefing and requested additional analysis for the next budget cycle; DFR said it would provide more detailed data and narrative ahead of FY26 deliberations.
