28-01-2025
Gov. Scott pitches $9 billion budget to Vermont lawmakers
MONTPELIER, Vt (ABC22/FOX44) – Gov. Phil Scott laid out his fiscal plan to increase Vermont's housing stock, transform education and address growing concerns about crime in his annual budget address Tuesday.
His $9 billion proposal to lawmakers in Montpelier highlighted housing, public safety, education and affordability, with a promise to forward bills to the General Assembly soon that will provide a blueprint for the governor's plans.
Saying that taxpayers want long-term solutions to the state's problems, Scott said, 'Focusing on these issues is critical to improving our demographics, which – alongside making Vermont more affordable – has to be at the center of everything we do.
'This session won't be easy because we're expected to solve big problems. But if we stay focused and you put your community and the wellbeing of the entire state first, we will deliver the brighter future Vermonters asked for and deserve.'
Here are some brief highlights of a few of the issues the governor addressed:
HOUSING:
'The data tells us we need over 7,000 units just to keep our head above water. With the lack of supply, it's no surprise that a quarter of renters spend half their income on housing. Or that the median home price increased by 43% in just four years.'
Scott has proposed:
$37 million for the Vermont Housing and Conservation Board for affordable housing;
$4 million for the Vermont Housing Improvement Program's technical assistance programs;
$3.3 million for the Housing Opportunity Program;
$2 million to Agency of Human Services for emergency shelters;
$2 million in base funding for Mobile Home Improvement and Repair;
$30 million for the state's 'Hotel/Motel' program. 'But I want to be clear,' Scott said. 'This is funding, not fixing the problem.
Scott is also proposing an expansion of the Act 250 carveouts, which granted exemptions to towns in order to encourage more housing starts.
'If this is truly a goal we all share, we must take more steps to legalize housing, so communities and families can thrive in all parts of our state.'
CRIME
'We have all seen the headlines. There are far too many people with hundreds of law enforcement encounters, dozens of arrests and many active criminal court cases. Yet, they're still walking free.'
The governor cited data that shows that 2024 was the third straight year that Vermont saw more than 20 homicides. He said that between 2018 and 2023, aggravated assaults increased by 40%; car, retail and identity thefts have each more than doubled; and reports of shoplifting increased by 40%.
The governor said, 'I believe one solution is more accountability.'
He is proposing to raise the age of criminal suspects prosecuted as adults, as well as making changes in how youthful offenders are handled in the system.
He also proposed making it easier to revoke bail; limit the ability to reduce or suspend sentences; and provide more tools to hold repeat offenders accountable, including funding to expand a pilot for pre-trial supervision.
'These crimes impact our communities. They hurt our retailers and downtowns. And customers, residents and visitors are staying away.'
EDUCATION
Scott said he would commit $4 million to help the Agency of Education make the transition to a new education-funding system introduced last week.
'As you know, we are proposing a new approach to education funding,' he said. 'This starts with setting a base amount that will be distributed equally for all students, so that kids in Sudbury get the same quality as kids in Stowe.'
The governor also said he would use $7.7 million from the General Fund to head off projected property tax increases next year.
And he introduced a $13.5 million tax reduction package that would:
Increase eligibility for our social security income tax exemption.
Expand the Earned Income Tax Credit for workers without dependents;
Increase the eligibilty for the Child Tax Credit to age 6.
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