Senate rejects amendment to shift surplus money to Ed Fund, passes Budget Adjustment Act

By Anne Galloway vtdigger.org The Senate rejected an amendment to the Budget Adjustment Act that would have required the state to put revenue surplus money toward a gap in the Education Fund transfer from the General Fund.
Sen. Randy Brock, R-Franklin-Grand Isle, and Sen. Peg Flory, R-Rutland, proposed the amendment, which was similar to a plan the House passed. The provision would have required the state to funnel half of future surplus funds toward the $27.5 million gap in the General Fund transfer to the Education Fund that was created last year when lawmakers agreed to ‘rebase’ the transfer amount to 2008 levels.
The General Fund transfer amount, with inflationary increases, would have been $309 million in fiscal year 2012. The new rebased amount is $282 million.
Brock, who is the Republican candidate for governor, proposed the amendment because he said, ‘I believe we should adhere to our commitment to Act 68. This in effect raises property taxes.’
Sen. Jane Kitchel, D-Caledonia, chair of the Senate Appropriations Committee, said the governor and Senate and House leaders reduced the transfer amount to reduce spending in the education system as part of the Challenges for Change initiative, which set targets for reductions in expenditures across state government. Kitchel argued that other areas of public spending had to be cut during the recession, including state government, which was cut by 15 percent and lost about 660 workers.
In the short debate on the floor, other senators argued that it was inappropriate to make a fundamental policy change without adequate testimony. Sen. Dick Sears, D-Bennington, said the surplus diversion plan would benefit second homeowners most.
The amendment was rejected in a 21-9 vote.
Shortly after the roll call, the Budget Adjustment Act was approved in a 27-3 vote. The mid-term budget correction includes about $1.5 million in emergency relief aid for towns facing extraordinary Irene recovery costs, a $3 million increase in expenditures for corrections and about $8 million for 49 new positions.
The House will take up the Olsen-Sharpe amendment, the original Ed Fund surplus proposal, today when members debate a one cent property tax increase.
Reps. Cynthia Browning, D-Arlington, and Heidi Schueurmann, R-Stowe, are offering an amendment that would repeal the rebasing of the Ed Fund transfer.
2.9.2012 vtdigger.org