Lawmakers debate taxes, spending, mandates and authority across multiple committees on Feb. 18
Lawmakers heard testimony across a range of policy areas on Feb. 18, including budget and spending details, tax proposals, land‑use and zoning jurisdiction, enforcement and penalties for property posting, energy code and building compliance, cannabis market structure and excise revenues, and homelessness and housing funding. Committees addressed program funding and authority questions, debated enforcement and penalty language, and considered changes to how state services are governed and financed.
Appropriations (House)
Members of the House Appropriations Committee heard presentations on housing, shelter and conservation funding, and on the role of leverage and tax credits in affordable housing finance. Witnesses said during the pandemic the Vermont Housing Conservation Board and related programs used a mix of general fund and trust fund dollars to expand the shelter system and preserve affordable housing, citing past investments and per‑unit cost comparisons for low‑income tax credit projects. Testimony referenced Act 186 in the context of funds for pilot projects for people with intellectual and developmental disabilities and described plans for farm worker and elderly housing projects, with several speakers noting specific past dollar investments and leverage effects from tax credits.
Committee members and witnesses discussed permanent affordability, the role of VHCB and VHFA in meeting estimated housing needs, and the use of 9% and 4% low‑income housing tax credits and the different amounts of equity they generate. Witnesses detailed examples of past capital investments in rental preservation and conversion projects and described collaboration with federal programs including HUD and USDA Rural Development.
Finance (Senate)
The Senate Finance Committee discussed tax policy, authority over interconnection and special contracts, and potential changes to tax brackets and a miscellaneous tax package. Committee testimony touched on a pending “second homes” tax adjustment to non‑homestead residential rates and the possibility of adjusting top income tax brackets, and staff indicated they were preparing data analysis to inform any bracket changes.
The Public Utility Commission described its current authority over interconnection agreements and special contracts between utilities and large loads, and explained that siting of facilities such as data centers typically proceeds through local processes and Act 250, with the PUC reviewing grid interconnection and upgrades. Committee members raised a proposed moratorium and a requirement for PUC investigation of large energy users and AI data centers, with discussion of whether additional appropriations or regulatory authority would be needed for such investigations.
Ways & Means (House)
The House Ways & Means Committee reviewed multiple tax and fee matters and bills tied to property valuation, fee authority, and programmatic tax credits. Witnesses testified on the treatment of 529 college savings plans under state tax credits and on suggested statutory edits to align state holding periods with federal rules to avoid taxpayer confusion. The committee discussed enforcement tools for obtaining communications property inventories and a proposed $100 fee per violation to improve compliance and data collection.
Members and presenters also debated regional assessment district (RAD) proposals in S.1 and S.2, focusing on municipal capacity for grand list maintenance, funding mechanics for reappraisals and appeals, and whether municipalities should retain rights to appeal placement in RADs to the Commissioner. Testimony described an estimated workload for appeals and suggested state funding for RADs and reappraisals rather than municipal assessments.
Environment (House)
The House Environment Committee heard testimony on land posting, property rights, hunting and enforcement, energy and local energy committee work, and the implementation of Act 181. Witnesses described efforts by town energy committees on residential solar and weatherization outreach and discussed mandates and penalties tied to property posting and enforcement of posted land. Several speakers raised concerns about convenience for landowners and enforcement practices, and the law enforcement response to posted land complaints was described with reference to warden service statistics.
Other testimony highlighted municipal energy and resilience work, and community‑level initiatives to promote energy efficiency and weatherization, with references to specific local programs and outreach methods.
Energy & Digital Infrastructure (House)
The Energy & Digital Infrastructure Committee considered H.717 and broader changes to energy codes and enforcement. Builders and industry witnesses described how energy code updates, enforcement, liability, and professional regulation interact on construction projects, and they raised concerns about compliance costs and the cumulative effect of regulations on housing supply. Committee discussion addressed balanced ventilation requirements, heat‑recovery ventilators, and the energy and cost consequences of tighter building envelopes under the 2024 energy code.
The committee also discussed potential funding sources for implementation, including RGGI revenues, and options for municipal enforcement authority and permitting pathways. Members scheduled additional testimony on behind‑the‑meter battery policy and on utility and PUC rule updates.
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Economic Development, Housing & General Affairs (Senate)
The Senate EDHGA Committee reviewed S.2026, S.7 and other cannabis‑related proposals focused on market structure, excise tax allocations and a Cannabis Business Development Fund. Testimony described distribution of $1.5 million for the Cannabis Business Development Fund, technical assistance and beneficiary payments for social equity businesses, and business and public‑health concerns tied to market oversaturation, excise tax rates, product THC limits and packaging sizes. Witnesses and the Cannabis Control Board discussed appropriations for land access and community reinvestment, and the LAOB’s proposed uses for funds, including developer training and resilience awards.
The committee also heard from agricultural and small business witnesses on economic impacts and land‑use implications of the cannabis sector and on workforce and market access concerns.
Health Care (House) and Health & Welfare (Senate)
House Health Care members reviewed the committee’s budget‑ranking process and discussed governor’s budget recommendations, including proposed increases in prescription copays for certain programs and internal budget tradeoffs. A number of speakers urged reconsideration of spending reductions and proposed alternative revenue choices tied to tax policy.
The Senate Health & Welfare Committee took up S.197 and S.210 and heard testimony on primary care payment reform and other health system proposals. Speakers outlined appropriations and fee‑revenue timing for proposed programs, described models for alternative payment and savings reinvestment, and discussed workforce and access issues in primary care. Testimony included fiscal note detail showing proposed appropriations for staff and timing of fee revenue availability.
Human Services (House)
The House Human Services Committee received testimony on coordinated entry, homelessness services and HomeShare Vermont. Witnesses described HUD‑defined coordinated entry processes to prioritize households for housing resources, use of HMIS for program referral and tracking, referrals from Economic Services Division for motel placements, and retention and prevention programs that operate within HMIS. Presenters discussed case examples, program expansion funded by prior appropriations, and the role of HomeShare Vermont and other community programs in prevention and shelter navigation.
Natural Resources & Energy (Senate)
The Senate Natural Resources & Energy Committee discussed Act 50 jurisdiction, the Land Use Review Board and PACE (property assessed clean energy) program principles. Testimony described appointment and removal processes for board members, the distinction between major and minor permits and permit amendments, and the concept of pre‑existing development and when substantial changes trigger Act 50 permitting. Witnesses discussed commercial PACE legal principles, the role of first‑and‑prior liens that run with the land, and the financing mechanics that enable long‑term repayment schedules.
Appropriations (Senate) and Agency Digital Services
Senate Appropriations members reviewed agency budgets and federal grant interactions, including broadband deployment BEAD funding, digital equity grant cancellations and personnel funding tied to new programs. Agricultural fair and capital grant testimony described stipend uses, capital repair needs and environmental permitting challenges for fairgrounds. The Office of Digital Services presented a budget restructure that separates core enterprise IT services funded by general appropriation from demand‑driven, project‑based “bespoke” services and described changes in internal service fund accounting and cost recovery across agencies.
Education (Senate)
The Senate Education Committee considered a committee amendment and two draft approaches to funding after‑school and summer programming for libraries. The proposals differed on whether to allocate a reasonable portion of fund revenue to the Department of Libraries or to set a fixed percentage (discussed at 5%) or capped amount for library grants. Committee discussions also covered model policies, enforcement mechanisms, civil arrest and access to school spaces, the interaction of proposed language with other bills on civil arrest in sensitive spaces, and options for ensuring compliance with nondiscrimination and privacy provisions.
Conclusion
This article covers the Feb. 18 meetings of multiple standing legislative committees, including House and Senate Appropriations, Senate Finance, House Ways & Means, House Environment, House Energy & Digital Infrastructure, Senate Economic Development, House Health Care, Senate Health & Welfare, House Human Services, Senate Natural Resources & Energy, and Senate Education. Testimony and committee discussion addressed spending and budget structure, tax proposals, mandates and penalties, authority and regulatory scope, housing and homelessness programs, energy codes and clean‑energy financing, cannabis market and excise allocations, and program funding mechanisms.
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