The state's unemployment rate dropped again giving Vermont one of the lowest rates in the country. But state revenues have fallen for the third month in a row, creating a $14 million hole in next year's budget.

VPR's Ross Sneyd discusses some of the week's top news stories.

Senator Patrick Leahy discusses the work of the Congressional super committee, Legislature economist Tom Kavet looks at the state's revenue picture and we listen to the voices in the news.

State economists tell the governor and legislative leaders that Vermont's economic recovery is slow and tentative. So while state revenues are climbing higher, Governor Peter Shumlin says he wants to be cautious about spending any surplus. 

There are more signs that the Vermont economy is pulling out of its long recession. Personal and corporate income tax revenues are up significantly from a year ago, and the state could end the fiscal year in June with a small surplus.

The state is paying out some larger than expected income tax refund checks this winter. And while income tax revenues are running 10% higher than a year ago, they're not meeting projections for this year.

Vermont took in about $20 million more in revenues than expected in the second half of 2010. And economic forecasters say the state should be able to raise about $27 million more than expected for this fiscal year.

There are new signs that Vermont is not coming out of the recession as quickly as anticipated. The Douglas Administration says an unexpected drop in state revenues means there will need to be more cuts in next year's budget.

Vermont state officials are being told the economy may have bottomed out, but the recovery is going to be slow and painful.

Vermont state officials are set to get an update on state finances Thursday.