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
