Vermont Gov. Phil Scott outlined his budget proposal on Tuesday for the next fiscal year. The fiscal plan is expected to be challenging due to policies and cuts made at the national level.
The Scott administration’s $9.4 billion fiscal plan offers fiscal and structural changes the governor says are needed to buffer the state from the loss of federal stimulus money and potential policy changes from Washington.
“For some time, we’ve benefited from billions in stimulus dollars through COVID relief, ARPA funds and more. But today, even the traditional funding we’ve come to expect from Washington is uncertain. So, it’s more important than ever to focus on the issues we can control so we make sure Vermonters get the most out of the resources we do have.”
Scott detailed his fiscal proposal in each area of the budget including transportation, housing, education, health care and others. His proposed budget includes a one-time $105 million allocation for property tax relief. He urged legislators to support Democratic Sen. Phil Baruth’s proposal for an education spending cap. To address energy costs, the governor said nuclear sources must be considered as part of a renewable energy agenda.
House Speaker Jill Krowinski, a Democrat, says some shared priorities and goals between the Legislature and Scott administration such as affordable housing, lowering health care costs and education transformation were offered by the governor.
“I was surprised that the governor didn’t talk more about some of the challenges that we’re facing because of decisions that are happening in Washington. We are facing substantial cuts in our budget and the tariffs have had an impact. So we just have in a tight budget year these other pressures that are not in our control that are happening that are going to make it a tougher budget year for us.”
Independent columnist Rob Roper once led the Vermont conservative think tank The Ethan Allen Institute. He now says that laying the blame for some fiscal challenges on the loss of federal funding is problematic.
“It’s not having an impact on the budget but it is having an impact on state taxpayers because we’re being asked to backfill that with state revenue. We’re having a hard time picking up the tab for this. I mean, before COVID our budget was $6-point-something billion and now it’s $9.4 billion. It’s totally unsustainable.”
Roper is also critical of the proposed budget’s increase in spending.
“I know that it’s a 3% increase in spending, but it’s still an increase in spending and Vermonters couldn’t afford the last budget. So while I’m glad he’s trying to rein things in a little bit, I think he takes it a step too far to say we’re tightening our belts, when we’re actually just letting our belts out one notch instead of two or three.”
This is an election year in which all members of the Vermont Legislature and statewide offices are up for election. Speaker Krowinski doesn’t think that fact will be as distracting to lawmakers as potential outside elements from Washington that the state cannot control.
“It’s less about the election and more about what’s happening in Washington. There is so much anxiety and stress. The vibe here at the State House is concern about what other directives and cuts from Washington could happen and how they would impact us.”
