In its initial vetting of the Scott administration’s budget, the House Appropriations Committee has pushed back on a number of proposals. Dozens of items have been temporarily restored until legislators can review the $44 million “wish list” and determine which programs will be fully funded, which will be eliminated and which will be cut.
Among the items on the chopping block? Funding for 3,000 people who are currently receiving disability services. More than $600,000 in cuts to the Defender General’s office, which provides legal representation for low-income Vermonters accused of committing crimes. The elimination of a primary care subsidy and payments to hospitals for medical treatment of uninsured Vermonters.
The deadline for the House Appropriations Committee is this Friday when the crossover deadline hits for money bills (any legislation that has an appropriation, fee or tax).
The House gets the first crack at Gov. Phil Scott’s proposed budget. Once it is approved by the House, it goes to the Senate where it will be tweaked further. Then the two bodies will reconcile their differences in the final act of the legislative session, as the budget is the only bill that the Legislature must pass. The legislation then goes to Scott’s desk for his signature.
The budget is comprised of spending in three major categories — general government (known as the general fund), education and transportation. All in, this year’s budget, as proposed by the Scott administration, is $5.9 billion, up from $5.8 billion.
In January, Scott called for no new taxes or fees in his budget address. It’s the second year in a row that Scott, a Republican, has insisted on level funding state spending.
Many of the House Appropriations “wish list” items would reverse cuts to the general fund, which under the Scott administration proposal would grown by 2.33 percent, from $1.49 billion to $1.56 billion in fiscal year 2019.
In his budget speech, Scott said his plan increases spending by $82 million this year and he doesn’t want to see costs go up any higher.
“Too many hardworking Vermonters face the same problem the state budget faces: Expenses and costs growing faster than income,” Scott said. “Except unlike us, they can’t tax anyone to make up the difference. And we know it’s not just taxes. It’s utility bills, healthcare costs and other necessities that also make it harder for many Vermonters to get ahead – and too many aren’t even getting by. As a matter of principle, I don’t believe any of these costs should be growing faster than wages.”
Lawmakers say they are keenly aware of the fiscal pressures on constituents and are working to rein in spending, too.
Rep. Kitty Toll, D-Danville, chair of House Appropriations, said in an interview that the panel is trying to strike a balance — “keeping in mind affordability” and the impact of “new initiatives on future budgets” and the impact of “cuts on vulnerable Vermonters.”
The Scott administration’s largest area of proposed savings, about $17 million, is slated to come from human services, which represents the biggest piece of the budget pie.
Lawmakers have said this is “not a tough budget year,” in large part because the economy has improved and pressure on the Agency of Human Services budget is down. Fewer Vermonters are using Medicaid, a federally subsidized health care program for low-income residents, and Reach Up, the state’s welfare program for mothers with children.
This week the public will get a window on whether lawmakers can find a way to reconcile their spending priorities with the governor’s. While the majority of the legislators on the appropriations panel is comprised of Democrats, Toll works to build consensus among Republicans and members of her own party.
Each lawmaker on the panel takes a section of the Big Bill for each department in state government and works with members of the administration to understand program proposals. They each then make proposals to the committee. The budget items on the wish list are then voted on, one by one, by the committee.
At the outset, the wish list includes a number of Scott’s new initiatives, including tax exemptions for Social Security beneficiaries ($1.9 million) and retired military personnel ($2.7million). In addition, the spreadsheet includes tax credits for several of the governor’s pilot economic development programs for first time homebuyers, a new renovation subsidy and downtown development projects (about $1 million total).
There are also several new legislative initiatives in the mix, namely $1.5 million for an energy efficiency revolving loan fund and $215,000 for a carbon tax study. The University of Vermont is slated to receive $3.5 million for the Morgan Horse Farm, a scholarship program and a 2.36 percent increase in funding from the state. The Vermont State Colleges would receive $2 million in support, and the Vermont State Assistance Corporation would get about $1 million to support an expansion of its non-degree program.
Up for grabs? $2 million in cuts to a $198 million grant program in the Agency of Human Services that funds 686 nonprofit programs. Cuts to Vermont Legal Aid, which represents the interests of low-income residents. Child care transportation for low-income families. And the elimination of a loan repayment program for doctors who work in rural areas.
Lawmakers say a $400,000 investment in Scott’s signature ThinkVT economic development program is off the table.
