By Guy Page

The Vermont Senate Tuesday, May 13 accepted a House-Senate conference committee compromise on H.493, the 2025-26 General Fund state budget.

Sen. Andy Perchlik (D-Washington), chair of the Appropriations Committee, delivered the conference committee report to the full Senate. Acceptance of the report brings the House and Senate into agreement on their respective budgets for funding state government in the coming year. 

A significant part of the $21.6 million total spending reduction comes from a $19 million shift in Child Care Financial Assistance Program (CCFAP) funds. This money was moved from the general fund to the childcare special fund, reducing the base expenditures drawn from the general fund. The infant and toddler rate for CCFAP was also increased by five percent, meeting the House halfway between the Senate’s proposed increase and the Governor’s position.

Funding for Green Mountain Care Board positions and the $4 million for education transformation were moved to other bills (S.126 and H.454 respectively) for conference committees on those bills to address. A small increase was made to the sustainable jobs fund, and the international business office in Montreal was retained. Grow grants were also put back into the tourism marketing budget.

Regarding specific line items, the conference report removed two positions from the Labor Relations Board and reduced funding for pre-charge diversion. Funding for the Attorney General and the Defender General was moved from base to one-time expenditures. The Urban Search and Rescue program was funded at $450,000, reflecting a reduction from the Senate’s initial position. The Maple Mountain residency program, aimed at supporting primary care doctors in rural areas, was added as a one-time expenditure, pending a potential Medicaid match. A smoking cessation program for pregnant Vermonters was funded at half the initial Senate request, using general funds instead of tobacco funds.

The report also detailed changes to tax credits, indicating the conference report supports up to $13.5 million in tax credits, including the military pension tax exemption. This matches the House bill amount and is an increase from the Senate’s prior $10 million proposal. The Senate Finance committee is expected to address how these tax credits will be allocated.

Perchlik said the bill also provided an update on the state’s reserves. General fund reserves are projected to end fiscal year 2025 at $328 million, including stabilization, rainy day, human service caseload, and a specific reserve. 

Additionally, a contingency list of potentially another $118 million is available depending on revenues exceeding the consensus forecast, designed to help address potential federal funding cuts and other emergencies. Revenues are currently running above forecast by about $100 million. $77 million is being moved to the education fund and reserves. Despite fiscal uncertainty, the state’s reserves are considered healthy.

In response to a question, the Senator confirmed that a provision in the initial Senate bill that would have delayed the 2% pay rate increase for designated agencies was removed in the conference committee. This decision was influenced by information about potential losses of federal matching funds and the expectation of excess state revenues. The 2% rate increase for designated agencies will now take effect on July 1.

In addition to the budget, the Senate acted on several other legislative items:

H.401, exemptions for food manufacturing establishments, passed in concurrence with a proposed amendment. Clarifications were provided regarding the Department of Health’s practice not to share business information and that raw vegetable sales do not count towards the $30,000 threshold for canned/pickled goods.

S.R.11, a Senate resolution supporting warm relations with Canada and urging President Trump to remove tariffs on Canadian imports, was adopted.

S.56, an act creating an office of new Americans, was passed in concurrence with the House’s proposed amendment. The amendment adds a governor’s appointee nominated by the Vermont State College system to the body overseeing the office.

A point of personal privilege by Perchlik later in the session sparked debate. He spoke at length about the actions of the Trump administration concerning federal program cuts, specifically citing the mid-year termination of AmeriCorps and the handling of the Low Income Home Energy Assistance Program (LIHEAP). 

The Senator characterized these actions as potentially illegal, politically targeted, and causing waste, confusion, and harm, arguing they were not standard budget processes but an abuse of power. 

“Trump’s actions should raise alarm that we’re sliding away from democracy and rule of law towards autocracy,” Perchlik said. 

Senate Pro Tem Phil Baruth took exception to what he said is the increased use of the ‘point of personal privilege’ to make speeches on the Senate floor.

“I had tried to avoid speaking on this because it free speech and the change. And I truly believe that everyone should speak their mind. A point of personal privilege since I’ve been here has always been a very rare occurrence. So we have now created what is in effect a rolling program of having people occupy a speaking slot each day that we’re in session.”

Unfazed, Sen. Alison Clarkson (D-Windsor) moved that Perchlik’s comments be entered into the Senate Journal. The Senate agreed.