Lawmakers Hear Budget, Tax and Housing Measures Across Multiple Committees
Legislators across multiple House and Senate committees on Feb. 17 took up a range of budget, tax, education and housing measures, focusing on unclaimed-property revenue changes, school construction aid, pension oversight and a proposal to expand commercial property-assessed clean energy financing. Committees also discussed appropriations for housing assistance and payment reforms affecting disability services.
Ways & Means (House)
The Ways & Means Committee reviewed a multi-part measure tied to unclaimed property, school construction aid and retirement oversight. Committee counsel said the bill is largely administrative in places and includes substantive changes to how unclaimed property is reported to medical providers, proposals to raise certain thresholds and transfers, and a package of provisions moving oversight responsibilities.
On unclaimed property, witnesses outlined a proposal to raise the threshold for small-dollar, over‑10‑year unclaimed property that is swept into the Higher Education Trust Fund from $100 to $150. Fiscal estimates cited in committee projected that raising the threshold to $150 would make about $2,870,000 of additional unclaimed property eligible for transfer. Committee discussion noted an amendment that would cap transfers to the combined recipient funds at $300,000 annually and prioritize use of up to $300,000 to support the Vermont Saves program (the Vermont Retirement Security Fund), with any remainder returned to the Higher Education Trust Fund.
The panel also discussed school construction provisions tied to Act 73. Counsel described language that would make school districts with outstanding capital debt as of Dec. 31, 2025 eligible for construction aid covering 100% of annual debt‑service costs for that outstanding debt, subject to an unspecified annual maximum and to annual appropriation. Members discussed how a 100% debt‑service aid award would interact with project prioritization and the need for appropriation limits.
On retirement oversight, committee materials and testimony described creation of a pension benefits and funding task force to review funding and amortization policies for state and teachers’ retirement systems and other post‑employment benefits. The draft included a December 15 due date for the task force report, an appropriation of $75,000, and authorization of per diem reimbursement for unpaid participants. Multiple sections moved administrative oversight of other post‑employment benefits from the state treasurer’s office to the Board of Public Investments and related entities; the bill text states the task force “shall not make recommendations on member benefits, contribution levels, or assumed rates.”
Members also considered technical changes to the capital debt affordability advisory committee’s reporting requirements, including narrowing metrics the committee must consider when preparing its annual estimate and report.
Finance (Senate) — S.138 and Commercial PACE
Senate Finance began consideration of S.138, a bill to authorize commercial property‑assessed clean energy (CPACE) programs. Committee testimony described CPACE as a voluntary municipal special‑assessment mechanism that would allow property owners of commercial or industrial buildings to finance energy efficiency, renewable energy and resilience improvements through private loans recouped as a special assessment on property tax bills.
The proposed CPACE framework discussed would permit municipalities to become CPACE districts by voter approval, require property‑level analyses of project costs, energy savings and estimated carbon impacts before owner entry into written agreements, and allow municipalities that adopt a special assessment to charge a fee for providing services to third‑party lenders. The bill text and testimony specify that entry into such written agreements may occur only after Jan. 1, 2027.
Committee members examined lender protections in the draft. The proposal would add commercial PACE obligations to a list of obligations exempt from certain Title 9 provisions on deposit requirements and prepayment penalties, and would permit parties to contract for interest rates in excess of statutory caps; that change was reported with an effective date of July 1, 2026. Finance members and outside witnesses discussed lender notification and lender‑consent mechanisms and raised questions about provisions setting a cap that the combined PACE assessment plus outstanding mortgage obligations not exceed 90% of assessed property value. Witnesses noted differences between assessed value and market value and emphasized lender consent provisions to protect existing lenders’ interests because special assessments take priority as property tax liens.
Appropriations (House) — Housing, Disability Services and Resilience Hubs
The House Appropriations Committee reviewed FY 2027 budget items and amendments tied to housing, health and community resilience.
Committee staff presented line items and amendments including a request to make a $3.2 million FY 2027 appropriation for the Land and Opportunity Office budget, with commentary that the governor’s recommended base funding would be smaller and the office seeks $3,200,000 in base funding to reflect operating needs.
Appropriations materials described language on a $50,000,000 appropriation in a larger housing-related appropriation and two lines of discussion about use of $5,000,000 for Section 8 housing authority assistance. House language had redirected $5,000,000 of a larger appropriation to an agency for emergency use; Senate amendments clarified emergency board authority to transfer parts of appropriations for that purpose and required proportional distribution based on housing assistance payments in use as of Jan. 1, 2026, if funds were made available.
The committee reviewed language on Disability Services Payment Reform and staff described that changing payment thresholds for provider payments increased anticipated gross costs by about $9,500,000 with a state general‑fund impact of about $3,900,000. Staff also noted smaller appropriations changes, including shifts in one‑time grants and transfers among programs such as Meals on Wheels and Vermont Food Bank grants.
Appropriations members also heard from presenters on resilience hubs and other community resilience toolkit efforts; testimony described participation with frontline organizers after the 2023 floods and a toolkit developed by a municipal or community organization to strengthen local capacity.
Human Services (House)
The Human Services Committee heard budget testimony from statewide child and family service organizations and advocates. Multiple presenters requested increases to base appropriations and described program impacts and capacity constraints.
Parent‑child center network testimony described an FY 2027 integrated grant request totaling $8,900,000 with an increase request of $1,880,000 to support concrete family supports, benefit assisters in centers, and other services. Witnesses described grant administration, federal and state reimbursement timing issues, and program outcomes tied to preventing family crises.
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Prevent Child Abuse Vermont and other child‑serving organizations testified on prevention, program reach and return‑on‑investment materials. Committee materials flagged that cuts to prevention funding would reduce program capacity and participants served.
Human Services staff and witnesses also discussed placement, contractor licensing and provider oversight issues tied to specific program operations and facility licensing.
Environment (House)
The House Environment Committee received budget and program briefings from environmental nonprofits and agency witnesses. Presentations covered Clean Water Fund allocations, Solid Waste Management Assistance account transfers, and proposed new grant authority and fee‑funded programs.
Committee materials described a proposal to move specified Clean Water Fund dollars to the Solid Waste Management Assistance account to support product responsibility organization collections. ANR testimony described one‑time funding requests to stand up commercial applicator and municipal applicator voluntary programs, with an initial one‑time request of $200,000 to establish certification and best management practices and a fee‑report to determine future fee levels.
Environment witnesses also discussed flood safety implementation, dam removal priorities, permitting workload and staffing constraints in the Agency of Natural Resources, and the end of certain federal ARPA funds, with several presenters urging attention to capacity and permitting modernization.
General & Housing (House)
The General & Housing Committee discussed multiple housing‑related bills, including S.1 and H.602 provisions and a draft rural finance bill described as “tools for housing production.” Committee counsel described changes in a rural finance package intended to facilitate financing and other interventions for housing production in rural communities, including pilot programs, municipal tools, and changes to treasurer authority for a credit facility.
Materials showed a proposal to increase the treasurer’s existing credit facility cap from 10% to 12.5% of the state’s average cash on hand and to reserve up to 1% within that cap for off‑site construction and housing initiatives, with consultation requirements prior to fund distribution and a direction that losses from the 1% facility be repaid from the Vermont Housing Special Fund.
The committee also reviewed a bill on manufactured homes and limited equity cooperatives (draft of 757). Counsel walked members through revisions, including inventory and appraisal reporting requirements for limited equity cooperatives and new articles of incorporation provisions regarding subleasing and hardship exemptions.
Members discussed legal and procedural aspects of special assessment bonds and bond market considerations for small issuances, and the Bond Bank’s role in aggregating issuances.
Education (Senate and House panels)
Education committee meetings addressed structural reforms and budgets touching K‑12 governance, school consolidation, and career and technical education.
Senate Education members reviewed draft proposals to modernize school governance, seek efficiencies and preserve local voice, and discussed foundation formula timing and school consolidation approaches. Committee materials emphasized goals to moderate education spending growth, preserve local input where demonstrably necessary for quality and cost‑effectiveness, and prepare for a foundation formula slated for 2030.
Education committees also reviewed Act 73 implementation related to school construction and heard that many districts were submitting budgets and capital requests; staff reported about 84% of district budgets received representing roughly 88% of weighted ADM for preliminary fiscal projections.
Other committee notes
Senate Appropriations and other panels reviewed multiple agency budgets and capital items, including public safety staffing, ethics commission responsibilities tied to Act 171 municipal ethics code training, Agency of Digital Services budget requests, and emergency management grant delays tied to federal award timing. The Senate Finance committee also considered elements of S.138 alongside the House Finance session that addressed CPACE topics.
Conclusion
This article summarizes discussions from Feb. 17 committee meetings in the House and Senate covering Ways & Means, Finance, Appropriations, Environment, General & Housing, Education and Human Services. Lawmakers reviewed proposals affecting unclaimed‑property transfers and thresholds, school construction aid and debt service coverage, pension oversight and a pension task force, expansion of commercial PACE financing and lender protections, housing appropriations and voucher funding mechanisms, disability services payment reform costs, and several environmental and administrative budget and program items.
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