Public Assets Institute Statement on Gov. Phil Scott’s Jan. 28, 2025 Budget Address
Gov. Phil Scott said again today he would reform education by doing more with less. We’re hearing understandable concerns about his plan. While we don’t know all the details yet, we’ve heard this promise before—and don’t have a lot to show for it.
Here’s what we do know: Vermonters want good schools and fair taxes.
Right now, low- and middle-income Vermonters pay more of their income to support schools than the richest Vermonters. And the biggest cost drivers in recent years, like healthcare and inflation, are out of school districts’ control. Until we address those underlying problems, any changes won’t do much to help kids, communities, or taxpayers.
NFIB Reaction to Governor Phil Scott's Budget Address
The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy association, issued the following statement by NFIB Vermont State Director John Reynolds in response to Governor Phil Scott's budget address this afternoon before the state legislature:
"We applaud Governor Scott’s bold approach to property tax reform and responsible budgeting. Governor Scott recognizes that Vermont's small businesses cannot endure additional cost increases or tax hikes. Higher business taxes and rising property taxes impact small business survival, growth, and success, and we urge them to incorporate small business property tax relief in the final reform package. Vermont small business owners look to the legislature to follow the governor's lead and not consider any tax increases, additional burdens that would in no way make the Green Mountain State more affordable."
Environmental and Business Groups Blast Governor for Retreating on Climate Action
Just days after President Donald Trump ordered the U.S. to once again pull out of the Paris Climate Accord, Governor Phil Scott – reflected in the budget and policy proposals he put forward today – called to fundamentally retreat from Vermont’s commitment to climate action.
“While Gov. Scott’s rhetoric is very different from Trump’s, both are calling to roll back climate commitments which will effectively lock Vermonters into high-cost, price-volatile fossil fuels – all while there are cleaner, less costly energy solutions at our fingertips,” said Johanna Miller, energy and climate program director at the Vermont Natural Resources Council.
“Budgets are a reflection of values and priorities, and it is clear that on climate Gov. Scott's budget aligns more with President Trump and the Republican Party than with the needs of working Vermont families. Anyone who believes Vermonters want their lawmakers to take their cues from Trump’s MAGA agenda is seriously misreading the situation,” said Ben Edgerly Walsh, climate and energy program director with the Vermont Public Interest Research Group. “Vermonters deserve better than lip service towards energy affordability and climate action - they deserve actual action to solve actual problems.”
"Governor Scott grossly overstated the cost of the Clean Heat Standard to score political points - can we even trust him on energy and climate issues?" said Elena Mihaly, Vice President of Conservation Law Foundation Vermont. “From a climate perspective, his budget has Donald Trump written all over it, prioritizing fossil fuel interests over what's best for our families and businesses. Vermonters don’t want fear-mongering or exaggerated price tags—we want clean energy that’s affordable—that won’t drain our bank accounts or harm the planet. Almost all of us agree on that, so why doesn’t Governor Scott prioritize it?”
"The past two summers of consecutive record flooding have deeply impacted Vermont's businesses, especially our small businesses across the state. The economic impacts of climate change are here. They are monumental and only beginning," stated Vermont Businesses for Social Responsibility's Public Policy Manager, Johanna de Graffenreid. "Backing away from our climate commitments now isn't only retreating on our goals to reduce climate causing emissions, it's leaving working Vermonters and our local businesses to fend for themselves in the face of increasingly frequent climate disasters."
"The Governor and his allies have spent more time delaying action than helping mitigate the impacts of climate change. Meanwhile, Vermonters are stuck paying the bills from climate damage and are still dependent on expensive fossil fuels to heat their homes and fuel their vehicles. Vermont should strengthen our climate action policies, and not follow the Trump playbook tied to costly dirty fossil fuels," said Robb Kidd, Vermont Sierra Club Conservation Program Manager.
Miller added, “While it’s good to see the Governor finally supporting the evolution of Efficiency Vermont’s mission to focus more on climate pollution and reducing energy burdens – something we’ve long pushed for – that step is also radically insufficient. Pair the skyrocketing, billion-dollar price tag from recent climate disasters with the Trump Administration’s potentially budget-busting federal funding freeze, the need for state leadership is more important than ever. Unfortunately, it’s clear once again that Gov. Scott is failing to offer solutions that will actually help Vermonters cut energy costs.”
“Vermonters deserve leaders who will defend existing environmental protections and climate solutions to ensure that communities across the state are safe from the impacts of climate change and have access to affordable, clean energy,” stated Dan Fingas, Executive Director of the Vermont Conservation Voters. “Vermont needs climate solutions, not a furthering of Trump's backward environmental agenda.”
“As the Governor calls to reduce costs for Vermonters, it makes no sense for him to question whether we should continue our efforts to ask Big Oil - some of the most profitable companies in the world - to help pay for the damage their products have caused,” said Lauren Hierl, executive director of Vermont Natural Resources Council, and Montpelier City Councilor. “As a city councilor from a flood-devastated community, we are now facing a dire budget shortfall – too many of the costs of climate disasters are currently falling on the shoulders of communities like mine.”
Hunger Free Vermont: Governor Scott Should Repeal His Proposal to End Universal School Meals
Since the Vermont Legislature passed, and Governor Phil Scott enacted Vermont's permanent Universal School Meals Program in 2023, no student had to learn what hunger feels like at school. The program has delivered countless other benefits to thousands of children, families, and communities — all while costing 40% less than originally projected and accounting for less than 1% of total education fund spending.
"Governor Scott's proposal ignores Universal School Meals' proven benefits and cost-effectiveness. This cruel proposal will not save money, but it will increase stress on families, teachers and school administrators — and it will take food out of the mouths of students, many of whom have never known what a school day looks like without Universal School Meals," Anore Horton, Executive Director of Hunger Free Vermont, said Tuesday.
Universal School Meals has proven its value every day: students are less stressed, nurse visits and behavioral issues have decreased and students are ready to learn. Secretary of Education Zoie Saunders’ own Listen and Learn Tour Summary Report highlights numerous statements on the clear, positive impact of Universal School Meals from education leaders, educators and the public.
Research shows that school meals are the healthiest meals that children receive. Through the Universal School Meals program, more students are eating nutritious school breakfasts and lunches than ever before. According to the Agency of Education, 1.4 million more breakfasts (a 36% increase) and 1.1 million more lunches (a 20% increase) were served last school year, compared to the last pre-pandemic school year.
As a direct result of this dramatic increase in student participation, federal funding for Vermont school meal programs has increased 44% from 2019, to $34.5 million in fiscal year 2024.
This increased federal funding supports Vermont farmers, employs neighbors in school nutrition programs and boosts our local economy. Vermont’s Universal School Meals program has also secured an additional $3.8 million in federal funding for summer meal programs, ensuring kids have access to nutritious meals year-round.
Before Vermont made the commitment to Universal School Meals, means-testing created barriers for families, left thousands of students without a way to eat at school and created stigma and shame for students in the cafeteria. Data shows that about 15,000 children — or 1 in 6 of the state's students — were eligible for free school meals but did not eat free lunch at school.
Vermont’s Universal School Meals program has also eliminated unpaid school meal debt and the negative dynamic it creates between schools and Vermont families. In states that did not implement a Universal School Meals Program after the COVID-19 pandemic, unpaid school meal program debt increased by 60% on average and up to 620% in places like Concord, New Hampshire.
Scott’s proposal would subject Vermont students and families to a broken system that turns school principals into bill collectors and costs local school districts hundreds of thousands of dollars in unbudgeted costs. It would also force school staff to go back to collecting money in the cafeteria instead of supporting the students.
Vermont’s Universal School Meals Program saves families with students about $1,500 per year — money they are spending to feed their children better at home and to cover other critical basic needs. Investing in school meals is supporting tens of thousands of families’ household budgets, driving economic growth and supporting Vermont’s farm economy.
At a time when the federal government is already creating uncertainty for Vermont families, Scott has the opportunity to provide stability by protecting programs like Universal School Meals.
Cutting this innovative, cost-effective program — that accounts for less than 1% of the total cost of the education fund — will harm Vermont’s children and families, cost Vermonters more and undermine a proven solution to invest in the state's next generation.
Scott in his budget address said his education plan is intended to create “stronger schools and stronger students.” Ensuring students are well-fed is fundamental to this commitment.
Hunger Free Vermont urges Scott to reconsider his proposal and continue Vermont's commitment to ensuring every child has access to nutritious meals at school.
Statement of Vermont State Colleges (VSC) Chancellor Elizabeth Mauch on Governor Phil Scott’s Fiscal Year 2026 Budget Proposal
“The Vermont State College system’s focus is to ensure that every Vermonter, regardless of age, income or location, has access to high-quality education and training. Building on this foundational mission, we are committed to meeting workforce needs, driving economic growth, and preparing learners at every stage of life for the opportunities of tomorrow. Our transformation over the last five years, undergone in partnership with the Legislature and Governor, has positioned the VSC for long-term financial stability and sustainability. We are grateful for their continued support.
“The Governor’s proposed Fiscal Year 2026 budget, as outlined today, includes investments that are essential to securing our future and building on our progress to date. These include:
- $52.4 million in our annual appropriation, including a modest inflationary increase over FY2025;
- $5 million in essential transformation dollars - the last installment of the 5-year commitment made by the Legislature and Governor in 2021; and,
- funding for student affordability initiatives, financial aid, and workforce development offerings administered by our partners, including VSAC and the Vermont Department of Labor.
“As we continue our forward momentum, we will stay focused on enrollment growth, especially in our programs that address acute workforce challenges, enhancing our partnerships with Vermont employers, and modernizing our campuses and learning locations to meet the demands of today’s learners.
“We are deeply grateful for the support of the Governor and Legislature, which has been instrumental in our progress. We look forward to continued partnership now and in the years to come.”
VT Senate and House Republicans’ Joint Statement on Gov. Scott’s FY2026 Budget Address
Vermont’s House and Senate received Governor Scott Budget Address on Tuesday. In his address, the Governor outlined his $9B budget proposal, $5.9B of which will be paid by Vermont tax payers. The Governor’s proposed budget will protect Vermont’s most vulnerable while providing over $108M of tax relief for Vermonters, including $94M of property tax relief and$14M of relief for military retirees, social security recipients, EITC recipients, and an increase in the age eligibility for the Vermont child tax credit.
Governor Scott noted the importance in not just funding existing programs by throwing money at those that don’t function properly, but actually fixing programs through new legislation and repealing programs that do not benefit Vermonters. Governor Scott and House and Senate Republicans are committed to solving four main issues that are hurting Vermonters: Education Funding and Delivery, Housing, Public Safety, and Energy Affordability, including the repeal of the Clean Heat Standard and private right of action in the Global Warming Solutions Act, Standards and Acts Vermonters cannot afford.
Vermonters deserve an Education Fund that is transparent, understandable, and much more closely connects a district’s tax rate to its local spending decision. The Agency of Education will soon propose a funding system that will meet these goals by shifting to a foundation formula that equally distributes money to all Pk-12 students throughout Vermont. This switch, and soon to be announced governance changes, will move Vermont to a more streamlined education delivery system that works for Vermont children, families, educators, and taxpayers. This is terribly difficult work, but Vermonters spoke clearly in November, and House and Senate Republicans are committed to working with the Administration and our Democratic colleagues. Senate Minority Leader Scott Beck adds, “Vermont can improve the education received by its Pk-12 population and reduce cost to property taxpayers. This will be terribly important work that we must complete this year.”
Housing availability and affordability are a significant problem in Vermont and causing ripple effects - workforce, homelessness, age demographics, healthcare, and population stagnation. Gov. Scott proposes to make a dent in this problem by reducing regulatory barriers and increasing support for infrastructure. Importantly, these changes benefit affordable and market home building. Gov. Scott also proposes to increase support for programs focused on affordable housing including making VHIP funding permanent. House Minority Leader Pattie McCoy adds, “Housing is crucial. We can’t expect Vermonters to thrive if affordable housing is not available. We need to treat this as a crisis.”
Public Safety can be addressed by repealing the “Raise The Age” for 19 year-olds, sealing criminal records in lieu of expungement, providing our judicial system more tools to hold repeat offenders accountable, bail reform, and improving access to addiction treatment for our incarcerated population. House Minority Leader Pattie McCoy adds, “Vermonters deserve to feel safe in their communities. We can adopt common sense legislation this year to prevent repeat offenders from preying on Vermonters.”
Governor Scott recommends that Vermont continue to reduce its carbon emissions by focusing on what Vermonters can afford, rather than making national headlines. This is achievable by making realistic changes to the Global Warming Solutions Act, including measuring our goals by accounting for net emissions rather than gross, and revisiting last year’s Renewable Energy Standard to reduce the cost for taxpayers. The Governor and House and Senate Republicans are committed to repealing the Clean Heat Standard and removing the private right of to action in the Global Warming Solutions Act. Senate Minority Leader Scott Beck adds, “Vermont has made tremendous progress on reducing our carbon emissions and moving toward electrification, but Vermont can only move as fast as Vermonters can afford. I support repealing the Clean Heat Standard.”
With Governor Scott’s lead, House and Senate Republicans are prepared to address all of these issues this session to deliver better education that is cost-effective, more affordable housing, safer streets, and a cleaner climate without raising taxes or fees.
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