Vermont Business Magazine The Vermont House of Representatives today voted to pass the $162.7 million Budget Adjustment Act (H.141), which has already passed the Senate. It will now go to Governor Scott for his review. The governor said at his press conference today that he would veto the legislation as written, principally because of the continued funding for the hotel/motel program used to provide shelter for unhoused Vermonters. The governor has offered a separate plan that would provide money directly to municipalities to help mitigate the homeless situation as they see fit. The Legislative proposal is $1.8 million, while the governor countered with $2.1 million for local grants.
The BAA makes mid-year adjustments to the current fiscal year budget. See full description below.
Scott said even if his veto is sustained, the state will be able to continue to fund all necessary functions. He added that the shelter program now in use will continue through the end of the current fiscal year (June 30, 2025). Scott also said there are some other funding elements in the BAA he said he thinks are too expensive, without naming them, especially in light of the ongoing uncertainty in federal funding coming out of the White House. A loss of federal funding could severely impact the state's fiscal situation, he said.
The number of unhoused in Vermont more than tripled during the COVID-19 pandemic and housing people in hotels or motels was largely funded by federal subsidies, which have expired.
According to the advocacy group End Homelessness Vermont, there are over 1400 households being sheltered in GA. At least 457 households, including 590 adults and 160 children, will lose access to the General Assistance Emergency Housing program when the emergency winter housing policy expires on March 31, 2025.
The House vote was 87-51 and the Senate voted 18-12 vote. The House would need 100 votes to override a veto, and the Senate would need 20.
Speaker of the House Jill Krowinski said in a statement today following the vote in the House:
“Today the House voted to approve the Budget Adjustment Act which now goes to the Governor for his review. The Legislature and Governor Scott agree on 99% of this budget adjustment—an overwhelming consensus on the importance of funding the Vermont Veterans’ Home, ensuring nursing homes stay open, and continuing flood recovery efforts. However, there remains a fundamental disagreement over whether children, military veterans, and medically vulnerable Vermonters should be forced onto the street while we work toward long-term housing solutions.
“The Legislature has put forward a reasonable compromise—one that ensures shelter and stability for the Vermonters who need it most while allowing us to continue building the housing and services necessary for the future. The Governor’s current proposal would abruptly remove state support, shifting the burden onto municipalities that lack the staff and resources to take on such a complex crisis with less than two weeks' notice.
“I strongly encourage the Governor to meet us in the middle and allow this bill to become law. The stakes are too high—if this bill is not enacted, children will be uprooted from their schools, veterans will not have access to the care they deserve, and nursing homes could be forced to close their doors. I urge Vermonters to make their voices heard and share their support for this critical legislation by calling the Governor at 802-828-3333.”
H.141 – Fiscal Year 2025 Budget Adjustment Act
As Recommended by the Conference Committee on Appropriations
OVERVIEW
• This budget adjustment fills all statutorily-required reserve requirements, meets all pension obligations, stabilizes several special funds, closes out defunct special funds, and makes essential investments in the Judiciary, human services, housing, and other major areas.
• This budget adjustment (BAA) includes an additional $107.33 million in changes to appropriations and transfers and an additional $3.81 million in net changes to direct applications and reversions.
REVENUE OVERVIEW
• The consensus State revenue forecast was upgraded in July 2024 and January 2025, putting anticipated fiscal year 2025 General Fund revenue in 2025 at $2,362.3 million – $248.8 million higher than the estimate that was used to build the fiscal year 2025 budget (Act 113).
BASE APPROPRIATION ADJUSTMENTS
• Funds courthouse security contracts and current information technology expenses in the Judiciary.
• Funds caseload and utilization adjustment of $78.8 million Global Commitment in the Department of Vermont Health Access Medicaid Program.
• Funds Department of Mental Health caseload and utilization increases in Private Non-Medical Institutions.
• Funds various costs at the Vermont Veterans’ Home, including $5.9 million General Fund for traveling nurses.
• Funds increased demand for the Agency of Education’s Adult Diploma Program.
• Funds Service Level Agreement charges throughout State government.
• Provides additional $1.0 million Cannabis Regulation Fund to the Department of Health for substance use prevention programming.
• Provides additional $1.3 million federal funds for 3SquaresVT regular benefit caseload adjustment.
• Provides $21.0 million Global Commitment for nursing home emergency fiscal relief.
• Provides $24.5 million Global Commitment for nursing home Medicaid bed day adjustment.
• Corrects allocation of Property Transfer Tax revenues to align with legislative intent.
ONE-TIME GENERAL FUND APPROPRIATIONS AND TRANSFERS
• Provides additional $150K funding for the Department of Health’s Vermont Household Health Insurance Survey.
• Provides $10 million for provider stabilization grants for Medicaid participating providers with stabilization needs and sustainability plans.
• Provides $800K to the Judiciary to upgrade network wiring and security systems in county court houses.
• Provides $50K to the Judiciary to construct ADA-accessible bathrooms in the Essex Meeting House. VT LEG #381371 v.1
• Provides $2.8 million to the Vermont Housing and Conservation Board for Act 186 (2022) developmentally disabled housing pilot projects.
• Adds $1.8 million to support General Assistance Emergency Housing, extending emergency winter weather housing provisions for eligible populations through June 30, 2025.
• Adds $8.6 million to the Vermont Housing and Conservation Board for various housing initiatives.
• Transfers an additional $5.7 million from the General funds, for a total of $6.5 million, to the Emergency Relief and Assistance Fund for State contribution to local FEMA match for flood recovery.
• Transfers an additional $5 million, for a total of $78.2 million, to the General Obligation Bond Debt Service Fund.
• Transfers $18.5 million to support anticipated claims and increased pharmacy costs in the State Employee Medical Insurance Fund.
• Transfers $3.1 million to address deficit in the Correctional Industries Fund.
• Transfers $900K to the Act 250 Permit Fund to mitigate loss of revenue.
• Reverts an additional $23.9 million, including $2 million from the Treasurer’s Bond Redemption not currently utilized, to the General Fund from prior year appropriations.
• Adds $27.8K to the Attorney General office Appellate Unit for a new position.
• Adds $39.7K to the Human Rights Commission for two new positions.
• Adds $1.8 million for grants to municipalities impacted by floods.
• Provides $220K to the Treasurer for the Emergency Personnel Survivors Benefit Fund.
• Transfers $133.7 million General Fund to the Other Infrastructure, Essential Investments, and Reserves subaccount of the Cash Fund for fiscal year 2026 investments.
OTHER:
• Directs the Department for Children and Families to fully utilize the State’s allocation of discretionary exemptions in the Supplemental Nutrition Assistance Program to the extent permitted by federal regulation.
• Includes language to expand allowable use of one-time funds appropriated in fiscal year 2024 to offset denied FEMA claims and allow for the appropriation to be used by the State Recovery Office for presidentially-declared disasters in fiscal years 2024 or 2025.
• Authorizes the Commissioner of Finance and Management to utilize the Human Services Caseload Reserve to maintain an appropriate balance in the Child Care Contribution Special Fund to support the Child Care Financial Assistance Program (CCFAP) in fiscal year 2025.
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