Vermont Business Magazine Several Vermont organizations responded to Governor Phil Scott's budget address on Tuesday. All those who offered remarks had a positive take on the new governor's balanced budget, which promised no-new-taxes, but offered more money for some educational strategies and affordable housing proposals.
Scott presents balanced budget, invests in education and housing
Governor Scott Supports the Vermont State Colleges System with Funding Increase
Today the Vermont State Colleges System (VSCS) lauded Governor Phil Scott’s proposal to boost their state funding by $4 million with inflationary increases to follow. The new funding for the five-college system would be the first increase in base funding in nearly a decade. It will encourage their work to boost post-secondary attainment in the state, build a more efficient operation, and allow them to devote resources to what matters most for students.
The VSC Board plans to consolidate Lyndon State (pictured) and Johnson State colleges to save money and make the new institution more collaborative academically. Courtesy photo.
VSCS Board of Trustees Chairwoman Martha O’Connor stated, “Governor Scott understands the pivotal role the Vermont State Colleges play in the current and future economy of this state. With his funding proposal, made during a challenging budget year, the Governor is taking a strong stand for post-secondary educational opportunity for all Vermonters.”
In his budget address, Governor Scott recognized the VSCS as critical to his priorities to build the Vermont workforce, keep young people in Vermont, and maintain access to affordable post-secondary education.
“This governor understands that economic growth and opportunity requires education from the pre-K years through the attainment of a meaningful post-secondary credential or degree,” said VSCS Chancellor Jeb Spaulding.
The $4 million in additional funding will allow the VSCS to turn the corner on years of stagnant State support. Currently, state funding supports only 16% of the system’s operating budget, putting pressure on colleges to raise tuition rates and impacting the ability of too many Vermonters to attend or continue in college in their state’s public college system. With this new funding, the VSCS is pledging to limit tuition rates to inflation or less for school years 2018-2020.
To incentivize their current efforts, the $4 million will be distributed to the five colleges based on their success at boosting on-time graduation rates, increasing the number of Vermonters and the number of first-generation college students of modest means who earn credentials and degrees.
In support of Governor Scott’s substance abuse initiatives, the Vermont State Colleges will host a summit before the end of March to convene Vermont’s substance abuse professionals with higher education institutions across Vermont to identify and address gaps in this critical workforce.
“We are heartened by this Governor’s support and recognition of our colleges’ important work. We look forward to sharing with the Legislature our strategic plans to increase post-secondary attainment and to position our colleges for a strong future with their support,” said Spaulding.
Governor Scott Announces $35 Million Housing Initiative
Earlier today, Governor Phil Scott announced a partnership with the Vermont Housing & Conservation Board that will continue its investments in the state’s working landscape and water quality while launching a new initiative to develop and improve homes Vermonters can afford. The announcement came in his budget address to the Vermont General Assembly. The Governor’s proposal calls for a $35 million revenue bond designed to help alleviate the housing crunch felt by Vermonters.
“My Administration is committed to strengthening the economy, making Vermont more affordable and protecting the most vulnerable. Housing plays an important role in meeting each of those goals, so I’m proud to make important investments in this area,” said Governor Scott of the announcement. “VHCB’s track record of public-private partnerships, promoting homeownership, and serving Vermonters in the greatest need, clearly demonstrates its ability to put these housing investments to work for Vermonters and their communities.”
The state’s shortage of affordable and available homes affects Vermonters of all incomes. The Vermont Futures Project, an effort of the Chamber of Commerce, recently issued a report highlighting the state’s deficit of housing for workers as constraint on economic growth. Also recently, the Corporation for Supportive Housing recommended aRoadmap to End Homelessnessto the Legislature that identified Vermont’s tight housing market and lack of housing supply as a barrier to reaching that goal.
Speaking for the board, VHCB Vice-chair Emily Wadhams said, “We are delighted at the Governor’s confidence in our work and look forward to this very exciting initiative that will provide much needed capital to build, improve and preserve Vermont’s affordable housing. Ramping up our efforts both for Vermonters with extremely low incomes and no home at all and for workers up to 120% of median, will improve our economy, strengthen our communities and help young Vermonters at the beginning of their careers.”
A backlog of projects exists statewide – homes waiting to be created when funding is available. Executive Director Gus Seelig said, “We look forward to meeting with housing nonprofits, members of the development community, regional planning and local officials to move this initiative forward in the most creative and efficient way possible.”
NFIB/VT
In response to Governor Phil Scott’s Budget Address today, the following statement may be attributed to Shawn Shouldice, Vermont State Director for the National Federation of Independent Business (NFIB):
Governor Scott’s call to reduce the magnitude of government is certainly a step in the right direction. Small business owners in Vermont are always looking for ways to become leaner and more efficient, and it is about time that our government does the same.
A balanced budget that includes a reduction in base spending without raising taxes is certainly an excellent start to address Vermont’s crisis of affordability. The small business community has consistently struggled with the cost to operate in our state and what we heard today from the Governor was reform that he hopes will reduce the property tax burden impacting so many. When small business owners pay fewer taxes, they often put that money back into their businesses by improving their infrastructure or hiring additional people.
We certainly agree that economic growth is pivotal to our future success. Empowering our workforce while simultaneously growing the small business sector will ensure that Vermonters will be able to find work and employers will have qualified candidates. While the efforts to promote our state outlined today are welcome by our members, in the end, what they desire most is a reduction in taxes and regulations stifling their economic growth. Today we heard many ideas from Governor Scott that will put Vermont on a new path. It is now incumbent upon the legislature to work with him to execute these ideas and make our economic prosperity a reality.
Vermont National Guard Announces Support of Governor Scott’s Higher Education Budget Plans
The Vermont National Guard fully supports Governor Scott in his focus on higher education and in particular, the Vermont National Guard Education Assistance Program. Governor Scott’s higher education package includes 500,000 dollars in the Next Generation Fund for the men and women of the Vermont National Guard.
“Increased funding for the National Guard Educational Assistance Program provides our Soldiers and Airmen opportunities to serve their State and Nation while furthering their education,” said Maj Gen Steven Cray, the adjutant general. “The education package is two-fold for us: first, it provides educational opportunities to our Vermont men and women that every neighboring state already provides their National Guard. Second, it allows our youth to have the opportunity to stay in Vermont and serve in the National Guard, receive an affordable education, start a family and compete for high paying jobs.”
Tuition waivers for service members will be for in-state public schools, or in-state private schools that provide tuition support for our troops.
Smart Growth, Downtown and Village Center Vitality Boosted in Governor Phil Scott's Fiscal Plan
Smart growth development supporters today praised Governor Phil Scott's Budget Address proposals. He proposed:
- Raising the annual Downtown and Village Center redevelopment tax credit cap by $200K to $2.4M;
- Allocating $16.3M to the Vermont Housing and Conservation Board for in FY'18, which is a $1M rise from last year; and
- Investing $35M, raised through a special purpose bond, in the construction of affordable housing.
"Vermont communities and our character as a special place depend on sustained investments in our downtowns and village centers as places to gather, work, live and shop," said Paul Bruhn, Executive Director of the Preservation Trust of Vermont. "The Governor's proposed increase in the resources dedicated to the improvement of historic properties, his sustained commitment to working land and natural area conservation, and the big bond for the construction of permanently affordable housing are a welcome boost that will encourage private investment, create jobs, and make our community centers better."
Statement from Scott Giles, President and CEO, Vermont Student Assistance Corp:
“We applaud Governor Scott’s focus on postsecondary education in Vermont, particularly the Governor’s emphasis on the nondegree grant program. We know this landmark program pays off for Vermonters and for the state. At a time when we need to grow our workforce and our economy, the nondegree grant opens the doors to education and training that Vermonters need now to move ahead in their careers and in their lives.
“Last year, we helped over 1,700 Vermonters take the next step in their education and job opportunities right here in Vermont. Because of the huge demand for the program, Governor Scott’s call for increased funding means even more Vermonters will be able to move ahead.
“Education and training has never been more important for Vermonters. In fact, the Department of Labor finds that seven out of 10 jobs created in the state over the next decade will require continued education and training after high school.
“Governor Scott’s investment in this area will prepare Vermonters for the future and we thank him for his foresight and commitment to the state.”
Let’s Grow Kids
In his budget address this afternoon, Governor Phil Scott outlined his plan for increasing investments in Vermont’s early care and learning programs. His proposal calls for expanding public education to include support for the early care and learning needs of our youngest children.
“Governor Scott’s address underscored his commitment to giving every Vermont child a strong start,” said Let’s Grow Kids Campaign Director Robyn Freedner-Maguire. “His recommendation to invest $9.6 million into high-quality early care and learning programs is a game changer for young children and their families who struggle and for supporting the healthy development of Vermont’s children,” Freedner-Maguire said.
The investments are part of what Governor Scott called “a realignment of priorities and spending that allows us to unify the system from early care to higher education and trades training.”
“Our current system is not working to the best of its capacity for our kids, parents, teachers, administrators or taxpayers,” Governor Scott said, adding that we need to rethink how we do things in order to “create the best education system in the nation, give our kids the brightest possible future, and attract more families to Vermont for a stronger economy.”
Governor Scott called on Vermonters to work together and look towards a future that provides every Vermont child the best opportunity for success.
In his address, Governor Scott noted that numerous reports have listed Vermont as being among the least affordable states when it comes to child care. He told the story of a woman in Peacham who was forced to leave her job in the dairy industry after she and her husband discovered that the cost of child care would eat up her entire paycheck.
“We know that middle-income families with two parents and two young children are spending as much as 38% of their income on child care. Meanwhile, child care providers are struggling to stay in the field. That's because the average annual income for a child care worker in Vermont is less than $25,000—often without benefits. Significant investment is long over-due and, frankly, our kids, families, providers and Vermont businesses that rely on a dependable workforce are counting on us to start solving the problem,” Freedner-Maguire said.
In its recent report, the Blue Ribbon Commission on Financing High-Quality, Affordable Child Care cited research that has found that for every dollar invested into early childhood education programs there is a yield of $4–$9. Yet, nearly half of Vermont infants and toddlers likely to need care don’t have access to any regulated child care. And, when it comes to high-quality programs, nearly 80% don’t have access.
A key strategy to address affordability, accessibility and increasing quality in the system is investing in the state’s Child Care Financial Assistance Program (CCFAP), which has been chronically underfunded for several years. CCFAP provides tuition assistance for families who meet certain financial, health, work or education criteria, allowing them to enroll their children in quality child care programs while parents work or attend school.
Right now, only 23% of Vermont families with young children qualify for tuition assistance benefits under CCFAP. Governor Scott’s budget proposal includes a significant $7.5 million funding increase for this program which would expand eligibility to an additional 500 low-income families who don’t currently qualify for assistance.
Governor Scott’s budget proposal also includes funding for grants that would give children from low-income families access to full-day pre-K as well as grant funding for municipal innovation programs.
“We appreciate that the governor is focused on strategic investments that have a comprehensive and systemic impact on supporting our children, working parents, Vermont businesses and the economy. We look forward to working with the Administration and the Legislature as they seek out innovative ways to meet this forward-thinking goal,” Freedner-Maguire said.