Often a rumor whispered in the marble-floored hallways of the Statehouse turns out to be true. Such was the case Wednesday.
Senate President Pro-Tem Peter Shumlin, D-Putney, confirmed the Senate is looking to set Vermont’s statewide property tax rate at 87 cents – a penny higher than the level set by the Vermont House when it passed the General Fund budget bill a few weeks ago. Vermont landowners pay a statewide property tax rate to support local schools.
The House had reduced the state property tax rate from 88 cents (the anticipated level) to 86 cents for fiscal year 2011 when it passed the budget a few weeks ago.
The House had reduced the state property tax rate from 88 cents (the anticipated level) to 86 cents for fiscal year 2011 when it passed the budget a few weeks ago. But the day that budget went through, the Vermont Department of Mental Health released information that the Vermont State Hospital would not be recertified by the Centers for Medicaid and Medicare, which means the state won’t receive reimbursements for patients who would be eligible to receive Medicaid benefits.
The upshot is, the House passed a budget with an $8 million to $10 million hole in it.
Now, Shumlin says, the Senate is looking to add one cent to the state property tax rate, which would generate about $10 million, to fill that hole.
“The speaker and I are working together to balance the budget and to adjourn the Legislature without raising broad-based taxes,” Shumlin said. “It’s probably not practical to reduce taxes. It’s not clear how a (Medicaid) revenue reduction would help us achieve that goal right now.”
Rep. Ann Manwaring, D-Wilmington, a member of the House Appropriations Committee, took issue with the Senate’s stance on raising the House’s reduction on the property tax in a letter to Shumlin and in a separate missive to Democratic House Speaker Shap Smith.
Manwaring wrote: “It is my opinion that if the State is willing to raise the property tax to meet the obligations of the General Fund, then all revenues and other sources of funding must also be considered to meet those obligations. To continue to have a bright line in the sand for all revenues EXCEPT THE PROPERTY TAX is at best bad policy and certainly is hypocritical.”
Rep. Ann Manwaring’s letter to Sen. Peter Shumlin
