by Sen. Scott Beck

There’s an old saying in Montpelier: ‘When the budget is done, we’re done.’ Agreement on the budget marks the end of the legislative session. Each year, more than a hundred bills may pass, and every bill that includes spending must be incorporated into the budget bill. Without legal authorization, no money can be spent in FY27, which begins July 1. As a result, any bill that contains spending but isn’t included in this year’s budget dies and must wait for a new legislature after the upcoming elections.

Although budgets are crafted annually, they exist within a much longer fiscal trajectory. This year’s budget is the largest in Vermont’s history—$9.1 billion—yet its year‑over‑year increase is the smallest I can recall, just 1.6%. The story of how budgets grow over time—compounding increases, program expansions, and staffing changes—is enormously complex.

Comparing Vermont’s spending before the pandemic with today shows just how dramatic the growth has been. In FY21, Vermont budgeted $6.1 billion. Seven years later, we’re at $9.1 billion—an increase of 49%. Inflation during the same period was 28%.

Federal funding is another major factor. Not all state spending is paid for through state taxes and fees. Federal revenues to Vermont have also grown substantially. In FY20, Vermont received $2.05 billion in federal support. This year, we expect $3.15 billion. That trend runs counter to any narrative suggesting the federal government is pulling back.

Most Vermonters understandably don’t track every line of the annual budget or its long-term growth. What they do see is the impact of state government on daily life—and how much it costs them in taxes and fees.

Vermonters feel it when they blow a tire, bend a rim, or lose a strut because our roads continue to deteriorate while the Transportation Fund remains underfunded. Transportation is a core responsibility of government and essential to Vermont’s economy. And Vermonters certainly feel the financial strain as taxes continue to climb.

According to Vermont’s Joint Fiscal Office, our major tax revenue sources have surged over the last six years. Personal income taxes are up 59% ($536 million). Corporate income taxes are up 161% ($153.5 million). Sales, meals, and rooms taxes have each increased 43% ($277.6 million). The difference between this revenue growth and inflation—28%—amounts to $507 million.

In other words, had government grown only at the rate of inflation, Vermont taxpayers could have saved $507 million. To put $507M in context. This amount would allow Vermont to decrease homestead education property taxes by 77%. Or we could eliminate Vermont income tax on those who earn less than $100k, people under the age of 30, and anyone with Social Security income, and we’d still have a couple hundred million to play with. Instead, Montpelier continues to prioritize new programs, new positions, and underperforming initiatives over tax relief and essential services like transportation.

Vermont must pivot to a growth strategy that puts essential programs and taxpayers first. We can do both—but we will accomplish neither if we keep placing Vermonters behind special‑interest groups pushing for more programs, more positions, and continued funding for programs that aren’t delivering results.