Governor Scott gave is budget address on January 28th, proposing a $9B budget for FY2026 with heavy investments in housing and other areas while simultaneously cutting taxes for the most financially vulnerable Vermonters.

Governor Scott presented his FY2025 budget to state legislators on Tuesday in the annual budget address. They will, of course, toss it out and write their own, but it’s still a purportedly important ritual.

Scott led with a more admonishing tone than normal, telling legislators that Vermonters “want to do their part, but they are being crushed by the burden of property taxes or the higher rents that come with it as well as by increased fees just to renew a license or register a vehicle, or the looming payroll tax, or the unknown in higher fuel and electricity costs, not to mention inflation.” He is of course referring to the 13% budget increase from last year that the legislature overrode his veto to pass. He continued on to tell them that “when we spend beyond our means, it catches up to us… When we fail to address the fundamentals of decades-old problems, they get worse.”

Governor Scott kicked off the Legislative session by congratulating Vermonters on their ability to “turn catastrophe into opportunity” in the face of the flooding this past year. He quoted Calvin Coolidge, saying that “the indomitable courage of Vermonters is stronger than ever.”

Today we announced the partial results of a scientific public opinion poll of Vermonters. The survey interviewed 400 randomly selected Vermont residents to measure their feelings towards state leaders, various issues that policymakers are pursuing, and general sentiments about the direction the state is heading.

“What we have found is shocking. Vermonters have very clear opinions on a number of policy differences between the Administration and the Legislature. And consistently the legislature has missed the mark in setting their priorities.”

-Pat McDonald, CFV President

The House took up S.5 on Thursday to override the Governor’s veto of the bill.

Last week was Governor Scott’s State of the State Address, which seemed to be well received be legislators and commentators on both sides of the isle. However, a few things jumped out at me, one of which was the Governor’s hold-the-line stance on statewide property taxes. Historically, this is difficult to promise. Despite having a statewide system, Vermont property taxes are quite complex in how they impact Vermonters’ actual tax bills.

We actually have three statewide tax rates: residential, income-sensitized, and non-residential. Both the residential and income-sensitized rates are applied to a local multiplier (which is determined by a district’s per pupil spending) while non-residential is a flat statewide rate. To make this even more tricky, the local multiplier that effects residential and income-sensitized rates is calculated using a statewide base that is set by the Legislature. Complicated, isn’t it?