Vermont Business Magazine Governor Phil Scott announced action on the following bill, passed by the General Assembly.
On March 14, Governor Scott returned without signature and vetoed H.141, An act relating to fiscal year 2025 budget adjustments.
As he had stated in his press conference Wednesday, and previously, Scott opposed additional spending this fiscal year (ending June 30) on the hotel/motel program which serves the unhoused. He also opposed other non-time sensitive, but unspecified, spending items in the $162.7 million BAA, which the Legislature sent to him on Wednesday. The veto was expected. A new BAA could be negotiated and passed.
See detail of the BAA below.
Scott sent the following letter to the General Assembly:
Dear Ms. Wrask:
Pursuant to Chapter II, Section 11 of the Vermont Constitution, I’m returning H.141, An act relating to fiscal year 2025 budget adjustments, without my signature.
For weeks, I have been clear that I do not support H.141 as passed by the House or the Senate for many reasons including:
1. Given growing uncertainty around federal funding and the potential for significant funding cuts to critical programs, spending additional general funds in the budget adjustment for expenses that are not time sensitive is irresponsible. These new spending proposals should be considered as part of the FY26 budget to be weighed against other initiatives that may have been reduced due to federal budget cuts.
I proposed a compromise path to the Committee of Conference which would have moved these spending and policy decisions to the FY26 budget while providing $2.1 million in flexible grants to municipalities to address needs in their communities during April, May and June. My compromise proposal protects the most vulnerable, develops emergency shelter capacity, adheres to the agreement from the last session, and limits unnecessary appropriations while we monitor federal action.
This compromise proposal, or something similar, remains on the table.
For these reasons, I’m vetoing H.141 pursuant to Chapter II, Section 11 of the Vermont Constitution.
It’s my hope the Legislature will reconsider and send me a budget adjustment I can agree to.
Sincerely,
/s/
Philip B. Scott
Governor
109 State Street | The Pavilion | Montpelier, VT 05609-0101 | www.vermont.gov
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.
To support vital journalism, access our archives and get unique features like our award-winning profiles, Book of Lists & Business-to-Business Directory, subscribe HERE!
