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.