MONTPELIER, Vt. (WCAX) – It’s crunch time at the Statehouse in Montpelier as lawmakers face a key deadline Friday to advance bills that include hundreds of millions of spending earmarks. But the cost of new and continuing programs is once again causing perennial tensions between the Democratic supermajority and Republican Governor Phil Scott.
Legislative committees worked feverishly Thursday to advance bills which include roughly $200 million in new spending. That includes programs to keep unhoused Vermonters sheltered in hotel rooms, investments in housing, flood recovery, and public education. That includes about $15 million for more positions in the judiciary to address public safety.
“The critical way to address the issue that we have right now with public safety is to have the criminal justice system working more effectively. That means cases processed through the courts more effectively, more efficiently, more quickly,” said Rep. Martin LaLonde, D-South Burlington.
Pandemic-era cash has run dry but needs across Vermont continue to grow, leaving state lawmakers looking to raise new revenues, including a potential increase in the property transfer tax, sales tax, a tax on video streaming services, and more.
“I don’t think there’s any more taxing capacity left in the state,” said Gov. Phil Scott, who came out at his weekly press conference Wednesday swinging against the proposals, saying he’s worried about the cumulative effect of inflation, property taxes, DMV fees, and a new payroll tax. “We’re seeing many in denial, I believe, in terms of the reality that’s here before us. We simply don’t have the money.”
“The governor has said that we cannot afford further investments, but if we do not do this work, low and middle-class families will be harmed and our economy will suffer,” Vermont House Speaker Jill Krowinski, D-Burlington, said in a statement Thursday.
Some lawmakers have floated a tax on Vermont’s top earners, and this week more than 25 “wealthy Vermonters” signed on to a letter supporting the idea. But one looming issue, a 20% property tax hike, has both branches of government concerned.
Vermonters we spoke to also say the cost pressures are concerning. “I’m a true Vermonter. I’m going to stick it out for as long as we can, but it’s getting hard to live here,” said Crystal Pierce of Northfield.
“That would make me nervous. I would have to do some picking and choosing because of the loans we have to pay,” said Pearle Butler of Williamstown.
Governor Scott vetoed last year’s budget over cost concerns. It remains to be seen what the Legislature’s final spending and revenue plan will look like.
