MONTPELIER, Vt. (WCAX) – A budget battle is looming at the Statehouse between Vermont’s Republican governor and Democrats in the Legislature. Gov. Phil Scott on Tuesday laid out his $8.6 billion budget plan, leaving out many Democratic priorities and scolding lawmakers for overspending in recent years.
The governor’s budget rests on three tenets he presented during his State of the State address earlier this month: housing, public safety and affordability. His proposal keeps spending level with inflation at 3% and does not raise fees or taxes.
“I don’t think there will be a lot of disagreement about what’s in this budget. The disagreement will lie in what’s not in it,” said Scott, R-Vermont.
The governor said addressing the housing shortage is key to addressing other challenges like declining demographics and a shrinking tax base. He’s proposing loosening regulations on local zoning and Act 250, and continued rehabbing of old homes.
“Having a multipronged approach is what will turn the tide,” the fourth-term governor said.
Scott says the housing crisis is also directly linked to rising crime and public safety concerns. He’s pitching a public safety package repealing bail reform, and more accountability for repeat offenders, drug dealers and juveniles, saying the pendulum has swung too far.
“I may have been wrong. I’ve supported and signed some of the very legislation I’ll ask you to change today,” he said.
Scott also addressed an eye-popping forecasted 17% school property tax increase, which would cost more than $200 million to buy down. He said lawmakers should have listened to his past proposals to rein in education spending.
“Maybe we need to revisit and undo some of the things we have done that added to school pressures, or rethink the funding formula,” the governor said.
The budget includes $60 million in one-time investments, including:
- $16.5 million for hotel vouchers for the homeless
- $12.5 million earmarked to match FEMA flood funds
- $5 million for the state colleges
- Nearly $5 million to tackle opioid addiction and treatment
Scott’s recommendations follow a somewhat encouraging revenue upgrade from state economists. But the governor is still concerned, citing pandemic cash going away, matching money for FEMA flood aid, inflation and public employee pensions.
“When we fail to address the fundamentals of decades-old problems, they get worse, making it harder to find money to catch up,” he said.
Scott acknowledged Democrats will be at odds with parts of his spending plan. The last session ended in a dramatic veto override of the state budget.
This is just the beginning of the session and lawmakers will now use the governor’s plan as a baseline to build their own budget.
Leaders of the Democratic supermajority said the devil will be in the details, and that Scott left out several key areas.
Democrats in the Senate said they did not hear any solutions to skyrocketing property taxes and education funding, and a shortfall in the transportation fund. They also said they didn’t hear about what they describe as widespread economic benefits from their priorities– such as the $120 million child care bill or additional financial help for survivors of this summer’s floods.
“He talked a lot about fixing problems rather than funding them when he didn’t want to spend money. When he did want to spend money, it was a great initiative he was willing to describe,” said Sen. Phil Baruth, D-Vt. Senate President Pro Tem.
“I think in Vermont we have challenges, that’s for sure, but we also have opportunities. I think his speech was long on fear and short on hope,” said Rep. Jill Krowinski, D-Vt. House Speaker.
Lawmakers said they agree with Scott that something needs to be done on public safety, but they pushed back on pulling back the Raise the Age initiative and said putting young offenders in prison is not the answer.
They said they also have concerns about the level funding of government and what it means for recruitment and staffing in mental health.
They described their relationship with the governor as strained at times, where they said he has not weighed in on bills until the end of the session.
Click here for the full transcript of the governor’s Budget Address.
Click here for the Executive Budget Summary.
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