Budget and Spending

Budget and spending issues.

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Scott administration to present budget rescission plan Thursday

MONTPELIER — The Scott administration will present its plan Thursday to cut $12.6 million from the state’s General Fund and $3.5 million from the Transportation Fund to balance the state budget after a revenue downgrade was issued last month. Administration officials will meet with the Legislature’s Joint Fiscal Committee Thursday. The plan relies primarily on the expected generation of new revenue, some budget cuts and some reversions, or reallocating previously unspent funds. The administration’s budget rescission plan comes after economists for the administration and Legislature issued a revenue downgrade in July. The General Fund was downgraded by $28.8 million, including $16.3 million that is expected to be paid out in the form of corporate income tax refunds during the 2018 fiscal year. Continue Reading →

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Scott picks Rep. Adam Greshin as Finance commissioner

MONTPELIER — Rep. Adam Greshin, an independent from Warren, has been appointed by Republican Gov. Phil Scott as commissioner of the Department of Finance and Management. The 56-year-old Greshin was first elected to the Vermont House in 2009 where he has represented the towns of Warren, Waitsfield, Fayston, Moretown and Duxbury. He replaces Andrew Pallito, who departs Friday to become the director of health system finances for the Green Mountain Care Board, the state’s health care regulatory body. “Adam is a valuable addition to our administration and with his business and legislative experience, brings a wealth of knowledge and understanding of the needs of Vermonters, as well as the critical need for fiscal responsibility, to the position,” Scott said in a statement. “His experience on House Education and Health committees also give him important insight into the state’s largest expenditures as we look to make the best use of taxpayer dollars in those areas and beyond.”

The Department of Finance and management, and the commissioner, help the governor craft the state budget and track state financial information. Continue Reading →

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Scott signs 2018 budget

MONTPELIER — Gov. Phil Scott signed the 2018 fiscal year state budget into law Wednesday, just days ahead of the new fiscal year that starts Saturday. Scott, a first-term Republican, was surrounded by members of his administration, Democratic and Republican lawmakers and advocates for various state-supported programs as he touted the budget. Lawmakers passed the budget last week in a special veto session after Scott vetoed their initial effort last month. Scott said the 2018 spending plan “represents real progress and a shift in thinking.”

“This budget, for the first time in recent memory, does not raise taxes or fees. That includes property tax rates. Continue Reading →

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Lawmakers pushing forward on budget deal

MONTPELIER — Gov. Phil Scott stood side-by-side with legislative leaders Wednesday morning to announce a deal on how to save property tax dollars on teacher health care plans, an issue that held up the end of the legislative session last month and led to vetoes of the state budget and property tax yield bill. Wednesday was the first of a scheduled two-day veto session after Scott, a Republican, vetoed the state budget and a the yield bill, which sets property tax rates, because lawmakers did not include his demand to save up to $26 million on the cost of teachers health care plans by, in part, creating a statewide negotiation for health benefits. The day began with Scott, House Speaker Mitzi Johnson, D-South Hero, and Senate President Pro Tem Tim Ashe, D-Chittenden, holding a State House news conference to tout the accord. Scott said the deal “will help the state achieve significant savings in the Education Fund” and “will set property tax rates at or below fiscal year 2017 levels.”

“The resolution reached is indeed a compromise, but it’s a good one that saves taxpayers millions. We found areas of common ground and we each gave on areas where there was none,” Scott said. Continue Reading →

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Governor, lawmakers strike budget deal on eve of veto session

MONTPELIER — Gov. Phil Scott and legislative leaders struck a deal Tuesday to end a month-long impasse on the state budget and property tax bills as rank-and-file lawmakers prepared to return to the State House for a veto session Wednesday. The breakthrough on the eve of the veto session should pave the way for a relatively smooth process Wednesday. House Speaker Mitzi Johnson, D-South Hero, said a new budget was being drafted and would likely be distributed to all rank-and-file members of the Legislature Tuesday night. “I feel like we have a strong compromise that … everybody will be able to say yes to. I think, conceptually, we’re agreed to stuff, which is a huge step forward from yesterday,” she told reporters Tuesday afternoon. Continue Reading →

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Scott fulfills promise to veto budget, property tax bills

MONTPELIER — Republican Gov. Phil Scott fulfilled his promise Tuesday to veto the state budget and a bill that sets property tax rates over a disagreement with Democratic lawmakers about how to negotiate teacher health care benefits. Scott sent a single veto message to House Clerk William MaGill Tuesday morning for both the budget, H.518, and what is known as the yield bill, H.509. MaGill promptly rejected the single message, however, saying two bills cannot be vetoed in a single message. “Every bill needs to have it’s own objections, according to the [Vermont] Constitution,” MaGill said. “There hasn’t been, as far as I’ve ever seen, a veto message for two bills at the same time.”

Scott spokesman Ethan Latour said the administration disagrees with MaGill’s ruling, saying there is not constitutional provision or statute “for the house clerk to impost a restriction on how, or in what way, a governor communicates his objections in writing.”

“We feel the House Clerk’s actions are obstructionist, unconstitutional and partisan, which makes them exponentially more concerning,” Latour said. Continue Reading →

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Scott receives budget bill after formal request for immediate delivery

MONTPELIER — Gov. Phil Scott’s office received the 2018 fiscal year budget bill from the House Friday afternoon after it submitted a formal request for immediate delivery, setting the stage for the governor to veto the budget and a property tax bill sometime next week. Lawmakers had maintained possession of the 2018 fiscal year budget since they passed it two weeks ago and adjourned the 2017 legislative session. Another bill that sets property tax rates, known as the yield bill, was delivered to the governor Thursday. Scott has vowed to veto both pieces of legislative because they do not account for a savings of up to $26 million in the Education Fund that he began demanding from lawmakers in mid-April. Scott is seeking to capture savings from new health care plans that will be offered to all Vermont teachers in January. Continue Reading →

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Governor, lawmakers look to set ground rules for VEHI savings negotiation

MONTPELIER — As a June 21 veto session nears, Gov. Phil Scott and lawmakers are mired in negotiations over how negotiations should proceed on Scott’s desire to push all Vermont teachers into a uniform health care benefit to save money. Scott said at his weekly news conference Wednesday that legislative leaders reached out to him late last week about setting up a meeting to rekindle negotiations on his teacher health care savings plan. But Scott indicated he wasn’t interested in meeting with the group of lawmakers Democratic legislative leaders proposed. “It’s about the process at this point, just trying to set up a way for us to move forward so we’re not wasting our time and we have the right people in the room,” Scott told reporters. “We’re going to respond to them in writing and set some guidelines as to how I think this negotiation should work. Continue Reading →

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Lawmakers adjourn, await veto

MONTPELIER — Lawmakers ended the legislative session early Friday morning, passing a state budget and other key bills, but with no accord reached with Gov. Phil Scott on the cost of teachers’ health care benefits, lawmakers will surely return next month for a veto session. House Speaker Mitzi Johnson, D-South Hero, and Senate President Pro Tem Tim Ashe, D-Chittenden, met with the Republican governor several times Thursday hoping to hammer out a deal. The meetings occurred with such frequency that rank-and-file lawmakers began to assume a deal was imminent. But the legislative leaders finally acknowledged Thursday evening that a deal was to remain elusive and set in motion the process required to complete the budget and other money bills without the governor’s approval for adjournment. Scott, who spoke to both chambers before they adjourned, reaffirmed his intention to veto the budget and a bill that sets property tax rates. Continue Reading →

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Dems declare impasse, look to end session without agreement with governor

MONTPELIER — Democratic leaders in the Legislature, frustrated by a lack of movement in negotiations with Republican Gov. Phil Scott, said Wednesday they are moving forward with wrapping up work on the state budget and other key bills and hope to end the legislative session Thursday. House Speaker Mitzi Johnson, D-South Hero, and Senate President Pro Tem Tim Ashe, D-Chittenden, held a State House news conference Thursday morning and declared an impasse in their talks with the governor over how to save on the cost of teachers’ health care. The two leaders presented a united front after several weeks of talks with the governor failed to produce an agreement. “We have reached an impasse,” Johnson said. “We’ve had over a dozen meetings in the last couple of weeks where we brought proposals forward to the governor to talk about how reduce property taxes for Vermonters and what we’ve discovered is that the key component of this is not actually the money piece, it’s about who’s controlling the conversation.”

“There is a point where negotiation becomes a dictation,” Ashe said. Continue Reading →

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