By Rep. Jim Harrison
Last Tuesday, Jan. 26, Governor Phil Scott addressed a virtual joint assembly of the Legislature, to highlight his administration’s budget proposal for the next fiscal year beginning July 1. The plan included use of $210 million of “one-time money” (such as a budget surplus from the current year or extra money from Washington), to make several investments and expenditures. One-time funds are not expected to repeat going forward.
Some of the major initiatives funded with the one-time money include:
$53 million for technology upgrades within state government
$20 million for affordable housing
$20 million for Vt. State Colleges
$25 million for weatherization (including $5 million for state building efficiency upgrades)
$20 million for broadband
$25 million for brownfields revitalization (contaminated sites)
$10 million for PCB testing in schools and emergency cleanups
$10 million for outdoor rec. trails
In his address, Scott also added a warning to lawmakers, “… if we don’t learn from past mistakes, and choose to use one-time money to create ongoing obligations that we can’t afford in the future, we’ll be forced to increase the burden on working Vermonters, slowing our recovery and missing an incredible opportunity.”
For the most part, the administration kept the extra funding to one-time investments or expenditures. For example, by far the largest item went to technology upgrades throughout state government. Too often, such investments are put on a back burner, which causes strains on some of our 40- or 50-year-old legacy systems.
Other investments, like weatherization improvements, can save low and moderate income homeowners money and energy in the future. And, too many of us know the need for broadband improvements, especially during the pandemic.
But there are some expenditures that might not easily fit into the definition of one-time expenditures and arguably should be funded by the base budget. For example, two new positions are requested for the state’s racial equity office. Hard to imagine they are one-year positions, so using one-time funds pushes the decisions until next year.
Another example is $300,000 for opening a trade office in Quebec. If it’s just a startup cost for the first year, then it fits as one-time, but if that is the ongoing annual cost, then arguably it should also be built into the base budget.
One of the bigger questions will involve the extra $20 million for the Vermont State Colleges. The schools believe it should be closer to $40-45 million higher than their current state base funding of $30 million and be ongoing for at least four to five years. If we use one-time funds, then it may be just a one-time expenditure. The difference and on-going funding of the VSC system will be a hot topic in the coming months.
Additionally, a large chunk of the record $103 million increase in pension contributions, is coming from the extra one-time funds. Is that a signal to stakeholders, that changes will need to be made as that type of increase is not sustainable without tax increases or significant cuts to other programs?
The budget also included an expansion of gambling (sports betting and keno) and exempting military pensions from Vermont’s income tax, both which have been proposed in the past. The gambling expansion is slated to increase funds for childcare assistance, which has widespread legislative support. But if the new funding source is turned down, something else may have to give.
Other items of interest:
The House approved the mid-year budget adjustment bill, H.138, after six long days of committee work. One area of potential contention was the removal of funds to help new businesses opened during the pandemic, that was proposed by the administration. Legislators indicated a willingness to take a second look after more guidelines were established on who may be eligible for state grants.
The Senate Natural Resources Committee has voted to block the governor’s modifications to the Act 250 Review Board through an executive order. Scott had proposed changes that would send major development projects to a professional state board (for more consistency) as opposed to one of the nine local district commissions.
A Senate committee is reviewing last fall’s mailing of ballots to all registered voters to see if Vermont should move in that direction for future elections. Secretary of State Jim Condos cautioned that while the mailing of ballots helped to increase participation, there are costs involved. This past fall there was money available from Washington because of the pandemic, which won’t be there for future elections.
It appears that a new gun control measure, S.30, which would ban firearms in all state and local publicly owned buildings, childcare centers and hospitals, does not have the votes to advance from the Senate Judiciary Committee in its current form. The sponsor of the measure, Sen. Baruth of Chittenden County, indicated he would try to refine the measure.
The House Ways & Means Committee advanced a bill to lower the projected average statewide education property tax from the tax commissioner’s estimates in December due to an increase in the revenue forecast. The final rate will be set later in the session after results from school budget votes are known.
Four weeks have now completed out of a typical 18-week session.
Jim Harrison is the state representative for Bridgewater, Chittenden, Killington and Mendon. He can be contacted at JHarrison@leg.state.vt.us.
