Gov. Phil Scott plans to propose a budget reflecting a 3% increase over last year’s spending, he said in his State of the State speech on Thursday.
“We must also acknowledge our crisis of affordability is making it difficult to address public safety, as well as other areas like education and health care,” Scott said. “And the high cost of everyday life in Vermont is dulling the tools we’ve put in place to keep and attract working families.”
He plans to present the fiscal year 2025 budget in three weeks noting that “it will be a much different picture than previous years. ‘Sobering’ comes to mind.”
Last session saw the state receive and allocate an enormous amount of federal dollars associated with pandemic relief, much of it one-time funding. Now that it’s gone, Scott said, some hard choices will need to be made.
“Once again, we’ll face the discomfort of saying ‘no,’ choosing between many good things, and maintaining the discipline to focus on what Vermonters need most,” he said. “I know from experience, many of you view 3% growth as an austerity approach. So it’s important to know that with this increase, and after meeting our obligations, we have very little money left. So, if you go higher, we will be spending more than we’re taking in, leading to higher taxes and fees, adding to the burden Vermonters are already feeling.”
Scott, a Republican, noted that his party does not control the chamber.
“You’ve proven the final budget and the growing burden of taxes, fees and other policy-driven costs, is in your hands,” he said to lawmakers. “So all I can do is make my case, which is the same case I’ve made to Vermonters since I first ran for governor. What I hear from people every day is they can’t afford to pay more, or even what they are paying now.”
He brought up the forecasted 18.5% increase in state education taxes, saying if that’s allowed to persist then nearly everyone will see their housing costs go up, even renters.
“So think about those folks who are just barely getting by — living paycheck to paycheck, already deciding what bills to pay and what to do without,” he said.
“Not to mention inflation that’s still making everything more expensive. Or future burdens like the payroll tax you passed last year, that will take effect in July. Or the 20% increase in (Department of Motor Vehicle) fees that began three days ago — both over my, and some of your, objections.”
Education spending is too high for Scott’s liking, he said, claiming the state is spending about $25,000 per student though not reaping the benefits.
“Please know, this is not a critique of our teachers or our students. It’s the result of an education infrastructure that is too large for the number it serves, so not enough money is making it to the kids,” he said.
His speech touched on a number of topics, namely flood recovery and resilience, crime, the housing shortage and Vermont’s long-standing demographic issues.
“For as long as I can remember, our safe, close-knit communities, and the peace of mind healthy cities and towns provide, have been integral to keeping and attracting families to our state,” he said. “But with crime rising in too many places, I fear many see the Vermont they know, slipping away.”
He pointed out media reports of murders, drug violence, vandalism and theft. Citing the Council of State Governments he claimed that in 2017 Vermont was second in the nation for both low property crime rates and violent crime rates but by 2022 had slipped to 18 and eight respectively.
“And in the last 10 years, violent crime reported to police increased 56%, aggravated assault by 65%, sexual assault by 76%, and homicide by 166%,” he said. “We cannot deny these trends.”
Suspected offenders being let out of custody shortly after allegedly committing offenses, Scott said, has eroded people’s trust in the judicial system.
“Now, I want to give credit where credit is due: We’ve made progress on justice reform and treating addiction as the public health crisis it is,” he said. “But when spiking crime rates make it clear that not all the changes have been effective, we have a responsibility to take a step back and consider other strategies.”
Vermont has invested millions into solving the housing crisis, Scott said, which is a good thing but to make the most of it regulatory reforms will be needed.
Republicans in the House released a statement following the speech saying they’re supportive of Scott’s vision.
“Housing. Public Safety. Education. Three pillars of our State in dire need of transformation. The three-legged stool. Without housing, young families will not move to Vermont. Without safe communities and a safe Vermont, young families will not move to Vermont. Without a robust Education system, young families will not move to Vermont. We have a demographics problem. Our three-legged stool is failing our great State of Vermont,” stated Minority Leader, Rep. Pattie McCoy, R-Poultney, in the Republican Party’s release.
Education spending is too high, Act 250 needs reform, and there needs to be a focus on public safety, she stated, adding that these are all perennial issues Vermont faces.
“We stand ready, willing and able to support initiatives to change the paradigm of the past several years,” she stated. “The time is upon us. The needs have been upon us. We need to act. Now. We stand ready, willing and able to support the initiatives of our Governor.”
House Speaker, Rep. Jill Krowinski, D-Burlington, also released a statement.
“I was hopeful that we might hear some concrete proposals from the Governor today, and maybe those will come in the future,” she stated. “In the meantime, our members have been meeting throughout the summer to prepare for the legislative session, and now that we are back, we are hitting the ground running on issues that matter most to Vermonters.”
The 2024 session began Wednesday.
“We know that low- and middle-income Vermonters are struggling, and that is why we have made investments to provide the programs and resources that are desperately needed,” Krowinski stated. “These investments have created a universally accessible and affordable child care program, a child tax credit, universal school meals, education and job training programs at little to no cost, thousands of new housing units, and more. We are committed to making investments in an economy that works for everyone, not a select few.”
keith.whitcomb
@rutlandherald.com
