Last week the Vermont House passed its version of the 2024 budget and sent it to the Senate for consideration. During his weekly briefing Friday, Governor Phil Scott criticized a provision in the proposal that would increase DMV fees.
The statetransportation budget bill passed by the House would increase most Department of Motor Vehicle fees beginning January 1st, 2024.
Republican Governor Phil Scott, long an opponent of raising taxes or fees, noted that officials from the DMV had testified that the department doesn’t need any fee increases.
“We’ve actually seen organic revenue growth and couple that with an historic amount of funding Vermont is in better financial shape than I can ever remember," Scott said. "But what we’re hearing from lawmakers is we need to raise DMV fees by 20 percent because we haven’t done it in six years and that’s what inflation has increased since 2016. And in this case the Department of Motor Vehicles has testified they don’t need the money.”
Vermont Secretary of Transportation Joe Flynn says the agency has delivered seven consecutive budgets without increasing DMV fees, including the latest proposal.
“The House budget though is suggesting to increase DMV fees resulting in Vermonters paying 20 percent more and collecting another $20 million across the board," Flynn said. "Over 200 fee categories are proposed to be increased. It is not necessary now to increase DMV fees on Vermonters and the Transportation Fund should be kept intact, left alone and used for transportation purposes.”
Scott said the Joint Fiscal Office was asked to supply the House Ways and Means Committee with inflation information since 2016, the last time DMV fees increased.
“Our Department of Finance and Management decided to take a look a bit deeper," the governor said. "Here’s what they found. Vermont’s drivers’ license renewal fees have increased at more than double the rate of inflation since 1996, and that includes the six-year pause of no taxes and fees. If what the House passed becomes law registrations would be twice the average of our six neighboring states.”
State senators are considering S.39, which would create a working group to determine if legislators’ pay should be raised. It would also make them eligible for the state employees’ health benefit plan, reimbursement for child, dependent and elder care expenses and other compensation.
Governor Scott said he could support the idea with a caveat.
“I would be in favor of raising the pay of legislators and benefits if we could restrict the length of the session," Scott said. "Maybe a 90-day period. The thought is that this will attract more people to run for the legislature. You don’t know how long the session’s going to last. It can be anywhere from four to six months. So if we could restrict and shorten the session I think that would attract more people. But, if they wanted to raise pay then I would be in favor of that if we could couple it with reducing the length of the session.”
