Budget Cycle

Governor Submits Budget
January (3rd Tuesday of session)

Fiscal Year Begins
July 1

Governor Signs Budget 

Budget Links

FY2023 (enacted)
FY2023 (proposed)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)
FY2019 (enacted)
FY2018 (enacted)

Enacted Budget – Fiscal Year 2023

Vermont Governor Phil Scott signed the $8.1 billion fiscal 2023 budget on June 9. Total appropriations for fiscal 2023 including funding allocated in related bills equals $8.3 billion, compared to $7.9 billion in fiscal 2022, reflecting a 4.4 percent increase. The general fund totals $2 billion, a 1.3 percent decrease from the prior year, and the education fund totals $1.9 billion, or 4.3 percent above fiscal 2022. Federal funds total $3 billion in fiscal 2023. The budget includes major investments of $66 million to train, retain and recruit more workers; $96 million for broadband; $225 million to help reduce carbon emissions; $104 million to improve and expand water infrastructure; $87 million to help retain jobs, support businesses and strengthen communities; and $90 million to increase and improve rental housing, build more homes and help families exit homelessness. The budget also provides $40 million in tax relief measures including an expanded income threshold for social security exemption, an expansion of the earned income tax credit and a new child tax credit.

Proposed Budget - Fiscal Year 2023

On January 18, Vermont Governor Phil Scott released his proposed fiscal 2023 budget totaling $8.2 billion in all funding sources, 6.51 percent above the fiscal 2022 budget adjustment amount. Of the total funds, the general fund represents 24.7 percent, education funds 23.2 percent, and federal funds 36.2 percent. Two thirds of total expenditures are for education and health and human services. The general fund at $2.0 billion is 4.21 percent below the fiscal 2022 governor’s recommended budget adjustment. The proposed budget supports fiscal 2023 total general fund uses of $2.07 billion and includes $437 million in general fund reserve balances. The fiscal 2023 general fund consensus revenue forecast of $1.9 billion is 1.3 percent above the estimated fiscal 2022 amount.

Proposed Budget Highlights 

The proposed fiscal 2023 budget is focused on retaining and building the workforce by meeting the needs of families. Funding recommendations:

  • Fully funds all state retirement and debt service obligations and maintains or exceeds statutory reserve requirements.
  • Provides tax relief to low-and-moderate income families, critical occupations, military retirees, and students, including increasing the Earned Income Tax Credit, the Child and Dependent Care Credit, expanding the social security income tax exemption, and removing the tax on military pensions.
  • Makes major investments in workforce training and expansion through education, internships, and outreach.
  • Expands early care and learning subsidies for families and launches new initiatives to help those suffering from mental illness and addiction including an expansion of a mobile crisis pilot and suicide prevention model.
  • Upgrades or replaces legacy software and equipment to deliver better, more timely information and services.

The governor also proposed uses of American Rescue Plan Act (ARPA) funds for fiscal 2023 in the following categories:

  • Economic development - $101 million
  • Climate change mitigation - $162 million
  • Water/sewer infrastructure - $72 million
  • Housing - $145 million
  • Connectivity/broadband - $95 million
  • Administrative costs - $10.5 million