Vermont Business Magazine Governor Phil Scott announced action on the following bill, passed by the General Assembly. Action on additional bills will be taken later today.
On June 6, Governor Scott returned without signature and vetoed H.887, An act relating to homestead property tax yields, nonhomestead rates, and policy changes to education finance and taxation, and sent the following letter to the General Assembly:
Dear Ms. Wrask:
Pursuant to Chapter II, Section 11 of the Vermont Constitution, I’m vetoing H.887, An act relating to homestead property tax yields, nonhomestead rates, and policy changes to education finance and taxation, because of my objections described herein.
Vermonters cannot afford a double-digit property tax increase. Especially while facing a historic eight-percent property tax increase last year, a 20% increase in DMV fees, a new payroll tax taking effect July 1, increased fuel costs to heat homes and businesses from the Clean Heat Standard, and increased electric costs if my veto of the Renewable Energy Standard is not sustained. All on top of several years of inflation – the most regressive tax of all – driving up the cost of household essentials like food, clothing and services faster than paychecks are growing.
We must provide property tax relief now. This can’t wait for another study before implementing cost containment strategies. We must also reform our education funding formula to ensure sustainable spending growth and equitable opportunities, and prioritize funding educational opportunities that improve outcomes by reinvesting in the strategies that best serve kids over maintaining the status quo.
We can achieve each of these goals this year if legislators will work with me.
Sincerely,
/s/
Philip B. Scott
Governor
House Speaker Jill Krowinski issued the following statement Thursday following Governor Scott’s veto of H.887:
"I am deeply disappointed by Governor Scott’s veto of the yield bill, H.887. This legislation is a critical step toward providing much-needed tax relief to Vermonters while ensuring the long-term stability and sustainability of our education system.
“The Governor has been unable to provide any alternative plan that would be workable for the start of the fiscal year on July 1. If we do not have a yield bill on July 1, our education system is projected to face a $93 million dollar budget deficit and will exacerbate the stability and affordability issues we are facing at this moment."
“H.887 represents a collaborative and forward-thinking effort to address the current and future needs of our education system and the affordability issues facing many Vermonters. The bill contains tens of millions of dollars that would immediately lower the property tax bills facing Vermonters and would also create the Commission on the Future of Public Education. This commission will allow Vermonters to provide input on the state of our education system, make recommendations for a statewide vision, and prepare us to take legislative action to support our children, teachers, and Vermont taxpayers.
“The legislature cannot do this alone, and it is imperative that we continue to work together, across all branches of government, to find solutions that balance affordability while providing a high-quality education for our children.”
At his weekly press conference Thursday, Scott said he vetoed the bill as soon as it landed on his desk to give his team and legislative leaders time to negotiate, before a meeting next week. He said he believes there is a "path forward." One option his administration has suggested is a cash-back option for some property taxpayers.
Regardless, based on the previous votes on the bill, there is a change the veto will be sustained. If that is the case, the two sides will have to find some sort of compromise because the state must enact a statewide property tax in order to fund the school systems.
To view a complete list of action on bills passed during the 2024 legislative session, click here.
Governor Scott recently discussed his decision-making approach to the bills passed by the Legislature, highlighting the challenge of balancing benefits, costs and risks, and concerns about the realities of new costs and short timelines for numerous new initiatives coming out of the Legislature. In part, Governor Scott said, “As I’ve always done, I will carefully weigh the good against the bad to make a decision based on whether the benefits outweigh the negative impacts for our entire state. These decisions aren’t easy and they’re not always popular here in Montpelier. But I’ll take that heat when I believe I’m making the right choice for the everyday Vermonter.” Read his full statement here.
Source: 6.6.2024. 109 State Street | The Pavilion | Montpelier, VT 05609-0101 | www.vermont.gov
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