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Scott says no new taxes and fees in $9 billion budget

After Gov. Phil Scott outlined budget priorities for housing, schools, public safety and climate, House Speaker Jill Krowinski (left, with Appropriations Chair Robin Scheu) said she’d work with Scott but hoped to hear more about healthcare funding and diminishing federal funds.

By Guy Page

Governor Phil Scott delivered his ninth budget address January 28 at the Vermont State House, outlining a $9 billion spending plan to provide education reform, affordable housing, and revitalized communities, while also focusing on public safety and climate change.

No Tax or Fee Increases: The proposed budget does not include any tax or fee increases, and instead invests in growing the economy and protecting vulnerable populations.

Four Key Bills: Governor Scott will forward four bills to address housing, public safety, education, and affordability, aiming to make Vermont more affordable.

Housing Initiatives: The budget includes funding for the Vermont Housing and Conservation Board (VHCB) and initiatives to help “mom and pop” investors build and restore home.. The Vermont Housing Improvement Program (VHIP) and the Mobile Home Improvement and Repair (MHIR) program are also made permanent with base (as opposed to one-time) funding.

“More housing can help pay for schools without adding to your property tax… It gives families financial security that can improve health and public safety,” Scott said.

Public Safety: The Governor is calling for greater accountability for young offenders and the repeal of the “Raise the Age” law that, in April, would allow offenders as old as 20 to be treated as juveniles by the criminal justice system. He also proposed measures to make it easier to revoke bail, limit the ability to reduce or suspend sentences, and provide more tools to hold repeat offenders accountable.

“Enough is enough,” the governor said about repeat “revolving door” crime, prompting a lengthy standing ovation, mostly by Republicans. “Let’s fix it.”

Education Reform: The Governor is proposing a new approach to education funding, establishing a base amount distributed equally for all students, and streamlining the system into only five, very large districts statewide. He also aims to increase teacher pay and ensure equitable access to resources.

“Taxpayers also made it clear they want us to fix broken systems not just fund them,” Scott said. 

“Our kids are not getting what they deserve from the $2.4 billion we spend. Neither are teachers or taxpayers,” he added. “We are committed to seeing this through with the least amount of disruption for kids, teachers, schools and taxpayers.”

Climate Resilience: The budget invests in climate resiliency through federal resources and aims to reduce emissions while accounting for the role of farms and forests. The governor seeks to make changes to the Global Warming Solutions Act and direct the Agency of Natural Resources to create a practical plan to reach the 2050 goals.

Tax Relief: A $13.5 million tax reduction package is proposed, including increased eligibility for social security income tax exemptions, expansion of the Earned Income Tax Credit, and the expansion of the Child Tax Credit to families with children up to the age of six. The governor also proposes eliminating the income tax on military pensions.

After the governor’s address, House Speaker Jill Krowinski (D-Burlington), Appropriations Chair Robin Scheu (D-Middlebury) and Ways & Means Chair Emilie Kornheiser (D-Brattleboro) pledged to work with the governor towards common goals. Krowinski said she wished she had heard more from the governor on rising health care costs and dealing with the looming loss of some federal funding.

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