FY2026 Transportation Fund Rescission Plan
Vermont Business Magazine At the Emergency Board meeting held in July, an updated FY2026 revenue forecast was adopted that is $7.5 million less than the forecast used to construct the FY2026 budget adopted by the Legislature. Pursuant to32 V.S.A. § 704(b)(1), the Agency of Transportation hereby submits the attached plan to realign appropriations with the reduction in Transportation Fund revenue.
The Transportation Fund is expected to be -$7.5 million in FY26 and -$7.8 million in FY27. The Transportation Fund in actual revenues in FY25 (ending June 30, 2025) was -$7.4 million below expectations. In June alone, the T-Fund missed its $31.9 million June consensus target by -$3.1 million, or -9.8%, yielding $28.8 million in total. This was driven by Motor Vehicle (MV) Purchase and Use (-$3.0 or 26.8% below) and MV Fees (-$0.4 million or 4.0% below).
AOT has been struggling for several years to generate revenues via the fuel tax, as vehicles have become both more fuel efficient and as more electric vehicles are now on the roads. To meet the latter challenge, the Legislature has doubled annual registration fees for EVs.
The vast majority of the savings are internal to the Vermont AOT, such as delay in the Springfield garage upgrade ($2 million); "projected position management savings in FY2026 beyond vacancy savings reflected in the FY2026 as passed budget" ($2.3 million); and "Travel and conference participation suspension savings" ($230,000).
As for projects, some funds for tree cutting ($415,000), culvert maintenance ($300,000) and mowing ($200,000) will be reduced. The biggest public project is a delay in the Rutland train station platform project ($500,000).
The public will have a chance to weigh in on the proposed recessions at two meetings next week: Wednesday September 17 and Thursday September 18. See details below.
VTrans sent this statement to VermontBiz: "According to Transportation Secretary Joe Flynn, we will be informing the Legislature next week about the rescission plan, and to comment any further in detail prior to that would be inappropriate."
Public Comment on the Vermont Agency of Transportation Rescission Plan
There will be two (2) opportunities to provide public comment on the Agency of Transportation Rescission Plan.
The first will be at the Joint Transportation Oversight Committee meeting on Wednesday, September 17, 2025, from 3:00 p.m. – 5:00 p.m. at the State House, Room 10. Public Comment is expected to begin at 4:20 p.m.
The second will be at the Joint Fiscal Committee meeting on Thursday, September 18, 2025, from 9:30 a.m. – 3:30 p.m. at the State House, Room 11. Public Comment is expected to begin at 10:45 a.m.
If you are interested in providing comment at either meeting, in person or via zoom, please email Sorsha Anderson at [email protected].
The AOT Rescission Plan can be found here: https://ljfo.vermont.gov/assets/Meetings/Joint-Fiscal-Committee/2025-09-18/FY2026-TF-Rescission-Plan_September-2025_Submitted-9-10-25.pdf
Source: 9.11.2025. Vermont Legislative Joint Fiscal Office. VTrans | Agency of Transportation
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