Wednesday

The House Environment & Energy Committee heard from a few repeat presenters on Wednesday from the Agency of Natural Resources, the Department of Public Service, and Green Mountain Power. They didn't have much new to add to the conversation and one of them even said “I don’t really know what else I can offer to help you.”

Chairmen Marcotte shared on Tuesday in the House Ways & Means Committee that the impetus for the H.10 was that “others” saw what has been described as “mission creep” with some Vermont Employment Growth Incentive (VEGI) awards that did not fit within the statutory requirements. There was concern that they were moving away from the mission to increase employment. Testimony from Tom Kavet (the state economist) and the Joint Fiscal Office (JFO) indicated they were using VEGI as an “employment retention program” and that would be a policy shift that the Legislature did not authorize.

On Tuesday, Chairwoman Kornheiser asked Legislative Counsel to walk the House Ways & Means Committee through the draft language making changes to the two tax credit programs.

Legislative Counsel explained that the draft language which would amend the EITC and Child Tax Credit has lots of moving parts; part-time and full-time residents would both eligible. The Child Tax Credit was described as a “refundable credit” against Vermont income tax liability. Taxpayers receive $1000 per qualifying child five years old or younger. The payments will change, under this bill, from a lump sum payment (at filing) to a quarterly payment system that the tax department will create. This is similar to how the tax credits for individual health insurance plans work today.

Brad James (Finance Manager, Agency of Education) joined the Committee on Tuesday. He informed them that all but three districts have reported their budgets so far and the remaining ones were very small. He noted that if they assumed the remaining districts came in at the statewide average, the overall average spending increase would come out just under 8%.

On Tuesday, the Joint Fiscal Office (JFO) and the Agency of Education (AOE) provided their customary update to the House Ways & Means Committee. Chairwoman Kornheiser shared that she had asked JFO to include a new line item for cloud taxes, which would amount to $16.9M in revenue if added. This addition would result in a 5% increase in average property tax bills if coupled with the additional spending items the Committee is considering.

Brad James shared with the House Ways & Means Committee on Tuesday that 93% of budgets are in and education spending is now projected at 7.8%. The December letter originally projected 8.5%. Burlington is still not in yet, and this has the potential to move the needle. Milton also out, their building manager has been out sick.

Brad James shared with the House Ways & Means Committee on Tuesday that now 73% of districts are reporting (a significant jump from last week). With the latest budgets, the Agency is now showing an 8.2% increase from FY2024. Champlain Valley and Burlington are still not in yet, which are both large budgets and could sway the final numbers. James noted that if both went up by 10% it would increase the statewide average to 8.4%.

Brad James (Director of Finance, Agency of Education) provided the House Ways & Means Committee with an update on school budgets. The December letter from the Tax Commissioner estimated an 8.52% increase in spending over FY2023. James has heard from about 20% of schools about their budgets (as passed by school boards) as of right now, budgets are coming back closer to 9%.