[T]he Senate gave preliminary approval on Friday to a $5.86 billion budget proposal that would prioritize spending on the state’s mental health system, restore funding to programs that serve vulnerable Vermonters and make investments in workforce development.
Facing no debate on floor, the budget received unanimous support and is expected to pass on a second vote next week.
In the Senate’s budget bill, spending would increase slightly from last year’s $5.8 billion budget, but match the level in Gov. Phil Scott’s proposal which lands just under $5.86 billion, according to the Joint Fiscal Office.
The Scott administration laid out its proposal in January.
General fund spending in the Senate’s bill is higher than Scott’s by about $8 million, and $2 million higher than it would be under the House’s budget proposal, which passed in March.
The Senate’s budget makes several changes to Scott’s proposal, and restores millions of dollars to social service and health programs that his administration proposed cutting or eliminating.
Some of these restorations include:
• $4.3 million to a waiver program that provides support to more than 3,000 Vermonters with disabilities — $2 million of this funding would come from state dollars.
•$308,000 to a primary care loan repayment program that helps attract doctors and nurses to rural areas.
• $600,000 to Vermont’s cost sharing reduction program, which provides subsidies to help low-income Vermonters with medical deductible and copay costs
The budget boosts funding for the Choices for Care program by about $442,000 for services that allow the elderly and disabled Vermonters to stay in their homes.
It also provides $4.3 million to boost compensation for mental health workers at Vermont’s Designated Agencies and provides a million dollars towards a dozen psychiatric beds at The Brattleboro Retreat.
In crafting their proposal, Senate budget writers benefited from $35 million in one-time spending money that came from the state’s settlement with tobacco companies — $7 million more than previously expected.
The Senate proposes using $7 million for an overhaul of the state’s approach to child welfare cases and $5 million toward adding to the state’s mental health and substance abuse treatment workforce.
Sen. Jane Kitchel told the Senate Friday that the budget makes significant investments in Vermont’s fiscal health.
The budget would allocate $10 million of the tobacco settlement to help pay off the state’s teacher pension liability—a move lawmakers have said could save the state $30 million in interest.
It would also invest $5.5 million of these one-time dollars into paying off a $27 million loan for retired teachers’ health care costs.
“We are paying our bills first and foremost,” Kitchel said.
She noted that these financial obligations have eaten up Vermont’s natural growth in state revenue.
The Senate budget relies on making cuts to Scott administration proposals including a new tuition assistance program for the Vermont National Guard and ThinkVermont/Innovation, an economic development plan.
In an interview this week, Sen. Dick Sears D-Bennington, a member of the Senate Appropriations Committee said his panel put forth a strong budget, despite constraints.
“I feel given the situation that we’re in with no increase in fees and no increase in taxes, I think it’s very reasonable,” he said.
