Budget Cycle

Governor Submits Budget
January (3rd Tuesday of session)

Fiscal Year Begins
July 1

Governor Signs Budget 

Budget Links

FY2024 (proposed)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)
FY2019 (enacted)

Proposed Budget - Fiscal Year 2024

On January 20, Vermont Governor Phil Scott released a proposed budget for fiscal 2024, calling for total spending from all funds of $8.4 billion, a 2.8 percent decrease from the governor’s recommended budget adjustment level for fiscal 2023. The decline is mainly attributable to the inclusion of one-time federal American Rescue Plan Act (ARPA) funds of $510 million in the fiscal 2023 figure, as well as a 2.6 percent decline in all other federal funds from fiscal 2023. The budget calls for general fund spending of $2.3 billion in fiscal 2024 (a 13.2 percent increase) and education fund spending of $2.1 billion (6.0 percent increase). On top of the current services budget of $2.0 billion, the general fund budget recommends $77.8 million in new ongoing initiatives and $237.2 million in one-time appropriations funded with surplus money. The budget is based on an official revenue forecast for available general fund revenue in fiscal 2024 of $2.02 billion (a 7.2 percent decrease from fiscal 2023). After direct applications, reversions, transfers and recommended policy changes, base general fund revenue for fiscal 2024 is projected at $2.11 billion. In addition, the budget includes one-time revenue of $390 million from the fiscal 2023 surplus and reversion of FMAP savings due to the public health emergency (PHE). The governor’s budget projects a general fund operating surplus of $187 million to be transferred to reserves and other state funds. Total general fund reserves are projected at $358 million in fiscal 2024, or 15.5 percent as a share of recommended general fund spending.

Proposed Budget Highlights 

The governor’s budget recommendation for fiscal 2024 focuses on a comprehensive approach to regional economic equity and investing in communities that have been left behind. The budget proposes historic investments in childcare, housing, education, economic development, community infrastructure and other areas, including strategic one-time investments using surplus funds. Specific budget recommendations include:

    Community Recovery and Revitalization

    • $12.5 million to turn abandoned and underutilized sites (Brownfields) into housing and commercial properties
    • $10 million to create the Regional Investment and Growth Fund, prioritizing investment and job creation in rural communities
    • $5 million to continue the Vermont Training Program to provide workforce training
    • $4 million for refugee resettlement assistance and community support
    • Additional funds for trade scholarships, work-based internships and the Upskill Vermont free professional development program



    • $48 million to expand a childcare subsidy, tripling the state’s investment in the program
    • $7 million to expand access to after school programs through subsidies
    • $3.4 million for free tuition at community colleges for income-eligible students
    • $10 million to reduce community college tuition for students pursuing high-demand careers
    • Additional funds to Vermont State University for operating and capital support


    Climate and Energy

    • $5 million to the Clean Heat Homes initiative to improve energy efficiency in homes
    • $1 million for electric vehicle charging stations on state-owned parking lots


    Health and Safety

    • $41.2 million of state and federal funds for a two-year pilot to improve primary care practices that address substance abuse and mental health
    • $10 million in additional funding to stabilize the health care provider network
    • $13.2 million in state and federal funds to increase Medicaid dental reimbursement rates
    • $10 million for a violence prevention grant program



    • $45 million for various housing development and rehabilitation initiatives, including the Vermont Housing Improvement Program, Healthy Homes initiative, and “missing middle” rental housing development
    • $30 million in emergency housing support


    Tax Relief

    • $8 million to expand eligibility for the Vermont Social Security income tax exemption
    • $5.2 million to expand earned income tax credit
    • $3.2 million to eliminate the tax on military pensions


    Good Government

    •  $150 million in surplus funds set aside to meet future state match obligations for enhanced federal funding streams, including Infrastructure Investment and Jobs Act (IIJA) requirements
    • Fully funds all state retirement and debt service obligations and maintains statutory reserve requirements