Vermont

Vermont

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FY2025 (proposed)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)

Proposed Budget - Fiscal Year 2025

On January 23, Vermont Governor Phil Scott released his proposed budget for fiscal 2025, calling for total spending from all funds of $8.58 billion, a 1.2 percent decrease from recommended fiscal 2024 levels. General fund appropriations are recommended at $2.18 billion before transfers, a 9.6 percent reduction compared to recommended adjusted spending levels for fiscal 2024.  Base general fund spending, excluding one-time changes and transfers, are recommended to increase 3.6 percent in fiscal 2025. The budget is based on forecasted base general fund revenue of $2.11 billion, or $2.22 billion after direct applications, reversions, transfers, and policy changes. Total general fund resources, including the prior-year carryforward balance, amount to $2.28 billion. The budget also recommends education fund appropriations totaling $2.35 billion. The budget projects an operating surplus of $101 million; of that amount, $81 million would be allocated to a series of funds (mostly the General Obligation Debt Service Fund) and $20 million would be designated for reserve deposits, leaving no unallocated general fund ending balance. Total general fund reserves are projected at $312 million in fiscal 2025, or about 14.3 percent as a share of recommended general fund appropriations.

Proposed Budget Highlights 

The governor’s fiscal 2025 budget invests in key priorities including health care affordability, safe communities, housing, helping the most vulnerable, building resiliency, higher education, and good government, particularly as enhanced federal funds wind down and revenues return to a more normal growth rate. Key fiscal 2025 budget initiatives in these areas include:

Health Care Affordability

• $4.2 million general fund ($9.9 million Global Commitment funds) to skilled nursing facilities to reduce reliance on emergency financial relief and stabilize reimbursement rates.
• $3.9 million general fund ($9.3 million Global Commitment funds) to continue moving away from “fee for service” models and adopt a national health care reform model (AHEAD).

Safe Communities

• $4.9 million in opioid settlement funds for a variety of uses, including criminal justice reform, transitional housing services, and school-based prevention services.
• $1 million to start up a psychiatric youth inpatient facility.
• $1.7 million to bolster mental health workforce in state police barracks.

Housing

• Lifts the cap on Downtown and Village Center tax credits ($2 million revenue impact).
• $6 million for the Vermont Housing Improvement Program. 
• $2 million for the Manufactured Home Improvement and Repair Program. 
• Property transfer tax exemption for purchasers of blighted properties ($400,000 revenue impact).

Helping the Most Vulnerable

• $16.5 million (and $8.2 million as an adjustment for fiscal 2024) to supplement base funding for the General Assistance emergency housing program.
• $320,408 general fund to launch a Permanent Supportive Housing pilot.
• $7.2 million (and $4 million as a fiscal 2024 adjustment) to expand shelter bed capacity.
• $800,000 state matching funds to support technology and program enhancements for the federal summer EBT meals program for school-aged children.
• $150,000 general fund to establish a drug repository program.
• $4 million to expand the Healthy Homes Initiative to help low-income residents with failed or inadequate wastewater and drinking water systems.

Building Resiliency

• $12.5 million to assist municipalities with state match requirements for FEMA assistance with flood hazard mitigation measures.
• $1 million for Unsafe Dam Revolving Loan Fund.
• $500,000 in state matching funds for federal assistance with flood measures from the U.S. Army Corps of Engineers.

Higher Education

• $5 million to help Vermont State University with operational expenses as they transition to a unified higher education institution.
• $1 million for Vermont Tuition Advantage Program, which reduces community college tuition for certain programs.
• $121,700 general fund ($289,000 Global Commitment funds) to increase support for the Vermont Nursing Forgivable Loan Incentive Program.

Good Government

• $30 million (as a fiscal 2024 budget adjustment) towards an anticipated $60 million state match for FEMA flood recovery public assistance.
• $6 million (as a fiscal 2024 budget adjustment) and $5 million in fiscal 2025 to help municipalities with state match requirements for FEMA flood recovery public assistance.
• $3.3 million to close deficits in three special funds.

Proposed Budget Information
Fiscal Year 2025 Budget Proposal 

Executive Budget Summary 

Governor’s Press Release & Budget Address 

Revenue Forecast (January 2024)