Week 19 Vermont Legislative Session – May 23, 2025
Provided by Shouldice & Associates
Week 19, weird right? Considering the legislature, as a rule, times out at 18 weeks but would you look at that… we are heading into overtime with an expected additional week or more to go as we head into the Memorial Day Weekend. It also means additional pay being delved out to the legislators even though the bulk of them are tasked with sitting on the sidelines while committees of conference hammer out the final details. But to be clear, as of Thursday, the “must-pass” bills have made their way across the finish line by both House & Senate. But it appears the General Assembly is saying “uncle” on the measures that constituents sent them there to address. There is no hiding or sweeping it under the rug and Governor Scott agrees wholeheartedly. Our fearless Governor is still holding out hope that the legislature will get to a well thought out, compromised bit of language regarding education funding, to his desk and allow him to keep his veto pen in its holster.
Whether through direct feedback on bills that are in no way acceptable to Scott, or through his weekly presser, the message is clear, “the legislature is not doing enough, passing confusing legislation, not meeting the mandate of Vermonters”. Governor Scott is not going to let the Legislature say, “they tried and it’s the best we can do; we will work on it next year.” This could mean multiple special sessions unless the General Assembly makes real progress on education/property tax reform, housing, and healthcare reform measures. Just using one-time funds to buy down property tax rates, giving more authority to the Green Mountain Care Board to control health care costs, or complicating a housing crisis, it doesn’t appear there is much positive feedback to take home to constituents.
Several bills have been passed to control health care costs and even buy down the increased rate of health care premiums. With Health Insurers releasing their exorbitant rate increases last week, the Statehouse was buzzing about the health insurance crisis and doing their darndest to find ways to help lower costs. Some think it is a little too late to be sounding the alarm bells while others think any aid to lowering premiums is a step in the right direction.
A big question being pondered is, will a panel of regulators control hospital budget increases when they had that authority for years? Will Blue Cross & Blue Shield go belly up? Maybe it’s time for hospitals to prescribe “Ozempic or Wegovy” for their budgets.
The federal implications coming down the road are wildly uncertain, which makes the budget writers very nervous and assume they will be called back in late fall to revisit the budget they just passed last week. What tools will be available at that point to keep the budget on track is anyone’s guess. Some money, not a lot, has been squirreled away but the unknown is worrisome and could be catastrophic.
Add insult to injury, the Transportation Fund revenues came in on target for the month of April with collections at $0.1 million (0.4%) above the monthly target. Gas tax, Motor Vehicle Purchase & Use, and other fees all came in slightly above target. Diesel fuel and Motor Vehicle Fees were both slightly below target this month. Year to date, the T-fund is below target by $2.2 million (-0.9%). This is a trend that will continue to fall below forecast.
As of Friday, it was unclear whether the General Assembly would try to adjourn next Friday, May 30th, but it doesn’t look good. If they want to at least meet Governor Scott halfway, they will need to put a bit more effort into education, housing, and health care reforms as they did with the FY ‘26 budget, which the Governor signed on Wednesday.
The House appeared to be lucky and drew the long straw this week as they scurried out of the statehouse midafternoon Friday and into the long Memorial Day weekend. Meanwhile, Senators were still debating bills on the Floor well after 6PM on Friday. The mojo throughout the Statehouse tells us we are nearing the end of the session with the addition of numerous recesses by both chambers throughout the day as they waited and pondered bill language being juggled around.
And what would a Friday under the Golden Dome be without a little incentive to the legislators from the Governor’s Administration? Not to worry, late in the afternoon, they sent out a press release titled "Facts Matter: There is a Path to Educational Transformation that Works for Students and Taxpayers” and discussed Scott’s prediction back in January that there have been campaigns from special interests and a focus on “critics say” headlines that are threatening to derail progress.
“We are clearly at a crossroads: we can make bold change and give our schools and taxpayers a better path, or we can yet again kick can, forcing these same budget cuts and rising taxes year after year.
Governor Scott’s plan is thoughtfully and intentionally crafted with direct input from teachers, students, and taxpayers to provide greater opportunities for our kids, and higher pay for many teachers, at cost Vermonters can afford.
It’s time to stop focusing on what all the paid, adult “critics say” and have the courage to do what’s right for our kids and communities and transform Vermont’s declining education system into the world-class system we know it can be.”
Tempers continue to surface throughout the halls which is normal this time of year, but if one is not necessarily invested in what they are doing, they might find the behaviors a bit curious. Even many of the calmest, levelheaded legislators come unglued on the way to adjournment. Not sure if I’d want to walk in any of their shoes.
H 319 - An Act Relating To Miscellaneous Environmental Subjects
NEW STATUS: Proposal of amendment to be offered by Senator(s) Brennan (05/23/25)
This bill has become a "Christmas tree" with many amendments trying to be tacked on. We are unsure if it will make it across the finish line this year.
H 481 - An Act Relating to Stormwater Management
NEW STATUS: Delivered to the Governor on May 21, 2025 (05/21/25)
H 483 - An Act Relating To The Expansion Of Existing Income Tax Credits
Rep. Kimbell of Woodstock moved that the bill be committed to the Committee on Ways and Means, which was agreed to (03/25/25)
H 484 - An act relating to Miscellaneous Agriculture Subjects
Referred to Committee on Finance per Senate Rule 31 (05/13/25)
H 494 - An Act Relating To Capital Construction And State Bonding
NEW STATUS: House message: Governor approved bill on May 22, 2025 (05/22/25)
On Thursday, the Committee of Conference finalized the two-year spending bill. It wasn't without equal pushback from each Chamber.
Report from the Committee of Conference regarding House Bill H.494, capital construction and state bonding for fiscal years 2026 and 2027.
Total authorized funding: $111,965,288.44.
FY 2026 appropriation: $61,969,761.44.
FY 2027 appropriation: Remaining funds.
Appropriations of Interest for FY 26-27
Clean Water Initiatives
FY 2026: $10,000,000.00 for water quality grants and municipal pollution control.
FY 2027: $10,000,000.00 for clean water implementation projects.
Total: $20,000,000.00.
Agriculture, Food, and Markets
FY 2026: $5,000,000.00 for renovations and heat system upgrades.
FY 2027: $1,500,000.00 for similar projects.
Total: $6,500,000.00.
Funding Sources
Reallocation of Funds
General Obligation Bonds
$100,000,000.00 in new bonds authorized.
$6,890,350.00 in previously unissued bonds authorized.
Total: $106,890,350.00.
S 45 - An Act Relating To Protection From Nuisance Suits For Agricultural Activities
NEW STATUS: Rep. LaLonde of South Burlington moved that the Committee on Judiciary be relieved of the bill and that the same be committed to the Committee on Agriculture, Food Resiliency, and Forestry, which was agreed to (05/22/25)
S 60 - An Act Relating To Establishing The Farm Security Special Fund To Provide Grants For Farm Losses Due To Weather Conditions
Referred to Committee on Appropriations per Rule 35(a) (04/25/25)
S 124 - Senate Miscellaneous agricultural subjects
NEW STATUS: Referred to Committee on Ways and Means per Rule 35(a) (05/22/25)
The House Environment committee amended the bill to add a more defined report back from the Agency of Natural Resources, as well as making the Clean Water Act the floor for enforcement. We suspect the Senate will not appreciate the amendment late in the process, we are not sure if they will concur or if this will be pushed to a committee of conference. More next week.