Lawmakers Hear Budget, Tax and Mandate Proposals Across Multiple Committees
Legislative committees on February 17 heard testimony and briefings on a range of fiscal and regulatory matters, including proposed reallocations of purchase-and-use tax revenue affecting education and transportation funds, budget and fee requests for public safety and licensing programs, proposed licensing and workforce requirements for early childhood educators, school nutrition testimony on H.260, housing and zoning initiatives tied to Act 181, and discussions of local option taxes and grant matches for municipal transportation projects.
Appropriations (House) — 10:50
Appropriations members reviewed proposals to phase down allocations of the purchase-and-use tax to the Education Fund and shift that revenue to the Transportation Fund. Witnesses said the governor’s recommendation would reduce the Education Fund allocation by $10,000,000 per year and fully allocate purchase-and-use tax revenue to the Transportation Fund by FY31, with a one-time $10,000,000 general fund transfer proposed to offset that year’s shift. Committee discussion referenced Act 73 and noted a $50,000,000 amount identified as needed to cover the purchase-and-use tax over five years. Members described historical changes in the purchase-and-use and gas tax rates, including references to Act 60 and earlier rate changes, and outlined that under current law the Education Fund receives one third of purchase-and-use revenue while the Transportation Fund receives two thirds and all gas tax revenue. Testimony also highlighted that shifting purchase-and-use revenue to the Transportation Fund could increase pressure on property taxes and that rising education costs, particularly health insurance for school staff, were significant drivers of education spending.
Witnesses discussed transportation-related registration fees for electric vehicles and questioned how additional registration revenue is accounted for. Presenters provided percentage figures for historical fund shares and projections, including a statement that under the proposal by FY31 the Transportation Fund would receive about 44% of its revenues from purchase-and-use tax and the Education Fund would receive 0% of non-property revenues from that tax.
Appropriations (House) — 09:30
Earlier in the morning, the committee received multiple budget requests and program briefings. The Vermont Labor Relations Board described stipend levels for neutral board members, noting a $125 monthly stipend for members and $175 where a member acts as chair. The Enhanced 911 Board and related witnesses presented statistics on call volume and funding, reporting over 233,000 calls handled in 2025 with approximately 77% cellular calls and about 15,000 abandoned calls, which were cited as roughly 7% of incoming calls. The Enhanced 911 presentations addressed the Vermont Universal Service Fund revenue distribution, noting a statutory hierarchy that directs 17% of fund revenue to the Vermont Community Broadband Board before other program allocations, and that the Enhanced 911 Board consumes a substantial portion of the remaining revenue.
The Vermont Labor Relations Board and other entities presented budget figures and requests. The Vermont Labor Relations Board’s budget request was described as approximately $5,560,000, an increase of 3% over the current year, with personnel cost increases and a line item of about $60,000 for two part-time positions cited. The enhanced 911 testimony referenced projections from a 2024 study estimating fund revenue at roughly $7,300,000 at a 70¢ per access-line fee.
Health & Welfare (Senate) — 10:30
The committee heard testimony on H.260 and on proposed restrictions on certain ingredients in school meals. School nutrition directors testified in opposition to S‑26 (referenced in testimony) and described federal nutritional standards and program operations. Witnesses described rigorous federal rules under the Healthy Hunger Free Kids Act governing fat, calories, sodium and sugar and urged caution about additional mandates, noting administrative burdens and the complexity of procurement and compliance.
Testimony also discussed possible programmatic or administrative changes to ensure unwanted ingredients do not enter school meals, with suggestions to incorporate checks into administrative reviews rather than imposing new mandates. Speakers emphasized farm-to-school initiatives and shared operational experience, including examples of procurement strategies and infrastructure needs to support scratch cooking in school systems.
Health & Welfare (Senate) — 11:30
Senators reviewed language and fiscal implications in a bill to establish early childhood educator licensing and to create a boarded profession. Committee discussion described new licensing pathways, variances and transition provisions. Witnesses noted a proposed eight‑year variance period allowing alternative pathways to an ECE‑2 license, such as 21 college credits and competency areas or assessed experiential learning. Committee members discussed the potential cost implications for childcare providers and families, the interaction with the STARS program, and scholarships and supports available through colleges and funding programs. Office of Professional Regulation testimony explained that board professions are typically supported by licensing fees that cover licensure, rulemaking and enforcement activities, and that some upfront general fund allocations were being requested to hire staff to establish the profession prior to fee collection.
Committee members also discussed the payroll tax and other subsidies that currently support childcare affordability up to 300% of poverty, and how licensing and compensation changes could affect program costs and workforce supply.
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Natural Resources & Energy (Senate) — 09:00
Natural Resources & Energy members heard testimony on housing, zoning and related funding programs. Presenters described long-term municipal planning efforts, neighborhood development area designations, and the Homes for All toolkit. The Community Partnership for Neighborhood Development was characterized as a funding round with $100,000,000 in support for redevelopment projects. Witnesses referenced Act 181 and said state engagement informed that act, and they described municipal and regional planning resilience funding derived from the property transfer tax. A speaker identified that 13% of the property transfer tax currently supports a municipal and regional planning fund and said they planned to propose increasing that share in another bill. Testimony highlighted grant requests and awards over recent years, noting $4.6 million in grant requests and $2.8 million awarded for municipal planning projects in a recent four‑year span.
Speakers emphasized zoning modernization, enabling infill and missing‑middle housing, and coordinating state investments with local planning to reduce redevelopment expenses and enable affordable housing near existing infrastructure.
Economic Development, Housing & General Affairs (Senate) — 10:30
The committee heard from construction and labor representatives about workforce development, apprenticeship programs and proposals tied to housing projects. Witnesses discussed apprenticeship training hours, retention of skilled workers, and the role of union labor in producing a trained workforce. A presenter cited survey figures from external research showing differences in contractor staffing and delay risk, and committee discussion referenced an infrastructure program and workforce shortages as considerations for housing development.
Commerce & Economic Development (House) — 09:00
Community action agency representatives described microbusiness development, financial coaching, and requests to expand funding for microbusiness and financial coaching services. Presenters said the current microbusiness development allocation was $493,000 and described a request for increases including a $500,000 boost in microbusiness development, $500,000 for financial coaching, and a $150,000 increase in base funding, totaling $1,150,000 in the cited request. Testimony included examples of referrals to lending organizations and supports that help entrepreneurs access grants and loans.
Judiciary (Senate) — 10:30
The committee reviewed a proposed committee‑struck amendment to S.193 concerning establishment of a forensic facility for certain criminal justice‑involved persons. Counsel walked through highlighted changes in the draft amendment. Discussion addressed two tracks for placement at a forensic facility: defendants found incompetent to stand trial and defendants found not guilty by reason of insanity, and the differences between competency proceedings and the insanity defense. Committee members discussed re‑evaluation intervals, confidentiality of records with exemptions for parties in the underlying criminal case, and interactions with existing civil commitment processes.
Transportation (Senate) — 10:30 and 11:35
Transportation committees received local testimony on town highway, bridge and sidewalk maintenance needs and on local option taxes and grant match programs. Morristown testimony described 92.13 miles of town highway and the town’s consideration of local option taxes projected to raise an estimated $1,200,000 annually if all classifications were approved by voters. Presenters described grant programs for paved roads with a maximum award of $200,000 and town matches of 30% or 20% depending on adoption of standards, stating that $200,000 would cover about 25% of the town’s annual paving needs if awarded annually. Sidewalk grant program testimony cited a $150,000 project with a 50% town match and a maximum award of $75,000. Tax department witnesses discussed administration of local option tax returns and the department’s authority to limit implementation timing if many local option taxes come online simultaneously.
Health & Welfare (Senate) — S.206 and Related Items
The Senate Health & Welfare committee opened consideration of S.206 and related bill language during its markup session. Committee materials indicated S.206 was under review for possible action, and other Health & Welfare items discussed included earlier testimony on licensing, funding, and program enforcement.
Conclusion
The article covers committee meetings held February 17 across House and Senate panels, including Appropriations, Health & Welfare, Natural Resources & Energy, Economic Development, Commerce & Economic Development, Judiciary and Transportation. Testimony and briefings focused on tax and fund allocations, budget requests and program funding, licensing and certification mandates for early childhood educators, school nutrition and ingredient restrictions, housing and zoning initiatives, workforce and apprenticeship topics, and forensic facility legislation. The sessions addressed fiscal figures, statutory allocations, grant programs, and proposed regulatory and licensing changes as presented to the committees.
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