House budget spends remaining CARES money

Vermont Business Magazine The Vermont House today gave preliminary approval to the Fiscal Year 2021 Budget, H.969 on a vote of 140-4. The bill must go through the Senate and then back to the House for any reconciliation before it lands on Governor Scott's desk. This could take three or four weeks.

Chair of the House Appropriations Committee, Representative Kitty Toll (D-Danville) presented the bill on the floor, saying, “building on priorities from our work at the beginning of the year, this full-year budget contains provisions from the Quarter One Budget implemented in June, as well as the Governor’s restated budget that was presented in August, and importantly, it appropriates the remaining Coronavirus Relief Funds (allocated from the $2 trillion federal CARES Act), providing critical relief across the state. Scattered throughout the budget are targeted 3% General Fund reductions and 5% Internal Service Fund reductions. The committee paid close attention to what these reductions mean and through testimony, determined that the missions and goals of departments and agencies remain intact.

“Additionally, this budget makes important investments in our communities and local businesses, and supports our education system - from pre-k to our colleges and universities - providing a variety of educational opportunities that can be found in every corner of the state. It expands the much needed broadband infrastructure that is necessary for our state to grow and thrive, and it provides for those who need a guiding hand and support when struggling with addiction, mental illness, loss of jobs, and homelessness. During these unusual and unsettling times, this budget is a steady ship in a storm.”

House Speaker Mitzi Johnson (D-South Hero) added, “the House worked collaboratively and quickly to ensure the budget is in balance, and ensure that there are no cuts to the services Vermonters count on. At the same time, the House fully funded future obligations and kept our reserves healthy to ensure we are in a strong financial position heading into the uncertain months that lie ahead.

“In addition, this budget makes the largest single-year investment in higher education in modern history. Between the Coronavirus Relief Funds and General Fund dollars allocated, our higher education institutions will see nearly $210 million dollars this year. That includes $98.4 million for the Vermont State Colleges System, $80.5 million for the University of Vermont, $20 million to the Vermont Student Assistance Corporation, and $10 million for distribution to the other independent or private institutions in the state through the Association of Vermont Independent Colleges. The appropriation for the Vermont State Colleges System includes both their annual appropriation and the $23.8 million in bridge funding they desperately need in order to stabilize this year for a strong future moving forward. Knowing the invaluable anchor these institutions are in Vermont’s rural communities, for Vermonters pursuing post-secondary education, and for Vermont employers, the House made this funding a top priority.

“We want a Vermont that works for all of us. This steady budget delivers for Vermonters in need, invests in our state’s future, and ensures our communities have the tools they need to rebuild from the pandemic.”

As for the Administration's response, Governor Scott said at his Friday press briefing that the budget process still has a long way to go and the Senate still has to receive the budget and make their own adjustments.

Adam Greshin, Commissioner of Finance and Management, told VBM that, "It appears the House allocated $88 million to economic grants, $3 million to workforce training, $4 million for marketing and $5 million for the ski areas – a total of $100 million for economic development. The Governor had called for $133 million in economic grants in his proposal. While he is certainly happy the House agrees we need to focus on Vermont’s economy, he would have preferred a larger allocation to the successful grant programs."

Source: Speaker 9.10.20