by Timothy McQuiston, Vermont Business Magazine In a surprise move late Tuesday afternoon, Democratic leadership sent a letter to Governor Scott conceding key elements of the Budget Adjustment Act that the governor vetoed on Friday. While the Democrats have a majority in both the Senate and House, they do not have enough votes to override a veto. In their letter, Senate President Pro Tempore Philip Baruth and Speaker of the House Jill Krowinski wrote that they "will acquiesce to his requirements" to remove relatively small but politically significant portions of the BAA. In particular Scott opposed inclusion of $1.8 million to continue the hotel/motel homeless appropriation.
The hotel/motel funding was one of three housing items cut from the $163 million BAA (of a total FY25 budget of $8.7 billion), which included $2.8 million for disabled housing and $8.6 million to Vermont Housing and Conservation Board (VHCB) for home building. The total savings of the cuts is just under $15 million, or less than 10% of the BAA. The Democratic leaders said these cuts "significantly reduces the price tag below (Scott's) most recent proposal."
In return they asked that the governor use existing funds already available within the DCF budget to continue the hotel/motel program for children, pregnant women, disabled Vermonters, veterans, and those fleeing domestic violence. They did not state what the price tag of that would be.
Rep. Robin Scheu (D-Middlebury), Chair of the House Committee on Appropriations offered remarks after the announcement via Facebook that mostly took the governor to task for not compromising and for never having provided a solution to the homeless situation.
See letter below:
Sec. Clark, Secretary of Administration Agency of Administration
State of Vermont
109 State Street
Montpelier, VT 05609-0201
March 18, 2025
Dear Secretary Clark,
In light of Governor Scott’s veto of the FY25 Budget Adjustment Act (H.141), we write to offer a compromise proposal. We will acquiesce to his requirements that we remove the following appropriations in H.141:
● $27,800 in funding for an additional position in the Attorney General’s Appellate Unit
● $39,700 in funding for two positions with the Human Rights Commission
● $1.6 million in funding for grants to municipalities who were impacted by flooding events
● $8.6 million to Vermont Housing and Conservation Board (VHCB) for construction of housing units
● $2.8 million to VHCB for a housing pilot program for disabled Vermonters
● $1.8 million to extend the cold weather exemption through June 30th*
To speak frankly, we have very significant concerns about eliminating funding for the construction of affordable housing units and for essential funding for municipalities that suffered flood damage. We understand, however, that Governor Scott is firm in his demand regarding removing those funds.
We ask only one thing in return.
Our one remaining ask is that Governor Scott not exit children, pregnant women, disabled Vermonters, veterans, and those fleeing domestic violence from the hotel motel program on April 1st.
Given that the Administration has stated that the Department for Children and Families has existing resources – and in light of the need to reserve every dollar possible in response to uncertainty from the federal level – we are offering to remove the $1.8 million and ask that the Department’s existing funds be used to extend the winter weather exemption through June 30th.
Our compromise proposal accepts all of Governor Scott’s FY25 BAA requests and significantly reduces the price tag below his most recent proposal.
We hope that in the interest of true compromise and protecting the most vulnerable, Governor Scott will accept our offer.
Respectfully,
President Pro Tempore Philip Baruth
Speaker of the House Jill Krowinski
H.141 – Fiscal Year 2025 Budget Adjustment Act
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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