Vt. governor eyes economic recovery in budget plan

A scenic view from Mount Tom in Woodstock, Vermont. (Meg Henderson Photo)

With higher-than-expected revenue providing a boost, Vermont Gov. Phil Scott is proposing a range of investments to fuel the state's recovery from the pandemic and sustain the economy.

In his address to the Legislature on Tuesday, Scott pitched a $6.8 billion state budget, including $210 million in one-time investments in the state, including more funding for the Vermont State Colleges System, broadband, weatherization efforts and brownfield rehabilitation. The $210 million is fueled by federal aid, and Scott emphasized using one-time funds in a way that has long-term benefits.

"How we choose to proceed, the priorities we choose to set and how we spend one-time money will have a lasting impact on Vermont," Scott said. "If we're cautious, we can solve problems and fund projects that have been stalled for years, improving communities, services, outcomes and state government itself, and lay the foundation for an economic resurgence around the state, without having to ask more from taxpayers to do so."

The governor's proposal also included $680 million for roads, bridges, and other transportation projects and $1.89 billion for preK-12 education. Scott is also looking to exempt child care organizations from property taxes.

On Tuesday, Scott also repeated his call for taking a hard look at the preK-12 education system and its funding, to give "every student the same chance to succeed."

"This year, that has to include tackling the impact of remote learning on our kids," he said. "So, the Agency of Education and Department of Health are working with school leaders on how to measure, and then address, the developmental gaps students might have."

As for the Vermont State Colleges System, the governor called his current proposal a "one-year bridge, with one-time money." Last year, a proposal by then-Chancellor Jeb Spaulding to shudder several campuses sparked an outcry. Long-held financial issues in the system had greatly deepened during the pandemic.

"My budget proposes $20 million in addition to (the college system's) $30-million base appropriation, giving Vermont State Colleges a total of $139 million in state and federal funds in two years," Scott said. "We do, however, have to be realistic. Like our pension system, our state colleges need restructuring as well. It’s my hope the State College Board, in partnership with the Legislature, will continue working to address the underlying structural issues we face."

The budget proposal also includes more funding for the state's Downtown and Village Center Tax Credit program and the Vermont Housing Investment Program — parts of an effort to boost local economic development. 

Additionally, the $20 million broadband package in Scott's budget plan anticipates additional relief money from Congress. The $20 million in broadband funding includes $2.5 million to extend internet to more Vermont homes; $1.5 million to help our local utility and communications districts plan for broadband buildout; and a nearly $16 million dollar fund for grants and loans to expand broadband in the areas that need it.

"Broadband is an area we know will grow the economy, increase equity and quality in education and expand our workforce," the governor said. 

Click here for the governor’s full budget address provided by Vermont Public Radio.

— Gareth Henderson

State budget heading to Senate

The Ottauquechee River is shown in Woodstock, Vermont. (Gareth Henderson Photo)

After the House passed it last week, the $7.1 billion Vermont state budget plan is on its way to the Senate.

The proposal, which covers the last three quarters of the current fiscal year, includes $23.8 million in bridge funding to keep the Vermont State Colleges system functioning this year through the fiscal challenges of the pandemic. The Legislature passed a first-quarter budget in June.

Rep. Charlie Kimbell, representing Woodstock, Reading and Plymouth, said the House's budget includes much of the governor's initial proposal, with several exceptions. Overall, the House proposal includes $100 million in new grants and incentives to aid the economy. Additionally, the plan makes more sole proprietors eligible for economic recovery grants, Kimbell added. It also leaves major social assistance programs intact. 

The $7.1 billion plan is inflated over last year's budget because it includes federal COVID-19 relief money, Kimbell said. In the proposal, the House spends the remainder of the CARES Act funding, about $200 million. Kimbell said some voters have asked him about funding for the state colleges for the following year, fiscal year 2022. 

"We don't have that answer at all yet," he said. In total, the state colleges system is getting over $98 million in the budget, including the $23.8 million in bridge funding and also $29.8 million for the colleges' annual general fund appropriation.

A statewide committee which includes some legislators is discussing the long-term future of the college system. Kimbell pointed out that Southern New Hampshire University, for example, is laser-focused on its remote learning program. SNHU has unveiled a plan to revamp on-campus learning to a model that would cost students $10,000 per year.

"This (situation) could permanently change how people think of higher education," Kimbell said. 

Maintaining the funding for the college system is a top priority for Windsor County Sen. Alison Clarkson, of Woodstock. The main struggle is how to spend the remaining federal relief money, she said, adding there are many businesses, organizations and programs in great need of funding.

"They're all areas that we care about," Clarkson said. "That's very hard when the slice of the pie is not very big." 

She lamented the fact that the U.S. Congress hadn't been able to agree on a second stimulus package. 

"Need is not a partisan thing," Clarkson said. "Every state has municipal needs, health care needs, educational needs, business needs, individual needs."  

On a positive note, Clarkson pointed out that the federal relief money has allowed the state to fund some permanent housing, which is crucial because of the housing situation in Vermont. The pandemic's financial strain has exacerbated the already-challenging issues of homelessness and low-income housing. And winter is just around the corner.

"We need 10,000 new housing units tomorrow, but ... every permanent unit is a blessing," Clarkson said. "That's a good example of taking CARES Act money and using it for maximum long-term benefit." 

After the state Senate creates and approves its version of the budget bill, it's back to the House to reconcile the two proposals. Then, the finalized budget bill will head to the governor's desk. The process might be a more rapid one than usual. The House Appropriations Committee spent under three weeks reviewing the governor's proposal. As Kimbell noted, that's usually a two-month process. 

— Gareth Henderson