Legislature committee hearings on Feb. 27 cover taxes, education funding, housing finance, environment and health policy
Lawmakers and outside witnesses on Feb. 27 advanced a range of proposals and panel discussions across multiple committees, focusing on potential new tax bases and revenue, mandates tied to education and special education funding, housing finance tools and appropriations, environmental conservation and use‑value appraisal, greenhouse gas reporting and energy program pilots, and several health‑care items including school mental‑health supports and regulation of AI and neurotechnology in health settings.
Finance: wealth‑proceeds tax, migration and revenue potential
The Senate Finance Committee heard a presentation on a proposed "wealth proceeds" tax that would tax proceeds derived from owning wealth. A presenter referenced a report analyzing the policy, types of income subject to it, administration at the state level, and a 50‑state revenue potential comparison. Committee testimony cited federal precedents including the Affordable Care Act’s net investment income tax and reviewed state examples such as New Jersey’s 2004 "millionaire" tax, which raised rates by 2.6 percentage points on income above $500,000. Witnesses discussed the composition of the tax base — noting long‑term capital gains as a substantial share — and migration evidence from state tax records. Members and witnesses debated use of potential revenue to reduce property taxes, pay for school lunches or school construction, and to address unfunded education mandates.
Education (House and Senate): special education, Act 73 and Act 173, and school policies
House and Senate Education panels received extended testimony on special education funding, implementation of Act 73 and Act 173, and related mandates. Members of the Vermont Special Education Legislative Advisory Committee and parents described experiences navigating special education and urged that any foundation or funding design must fully fund special education without competing with general education dollars. Witnesses cited statistics presented to the committee indicating special education spending growth and urged maintenance‑of‑effort language and full funding for special education services.
The Senate Education Committee considered language requiring school policies to be reviewed at least every two years, involvement of the Vermont Superintendents’ Association and Vermont School Boards Association in developing procedures, and clarifications about immigration‑related resources and designated school contacts. Committees also discussed municipal planning and grant programs that would require municipal plan updates as part of grant eligibility, and provisions to include libraries in grant consideration and planning elements.
A separate Senate Education segment addressed a targeted revision to prekindergarten tuition and access for Essex North supervisory union students, proposing authority for that supervisory union to pay tuition to public prekindergarten programs across the border in New Hampshire and a waiver process for rule provisions impractical for cross‑border programs.
Ways & Means and Economic Development: housing finance, credit facilities and appropriations
The House Ways & Means committee reviewed language altering the treasurer’s authority for credit facilities to support housing production, including pilot programs, consultation requirements with housing agencies, and a report deadline. Testimony described a provision authorizing the treasurer to create a credit facility up to 10% of the state’s average cash on hand and proposed increasing that cap in some drafts. Joint testimony from fiscal staff estimated foregone general‑fund interest revenue tied to the treasurer retaining interest for a proposed Vermont Housing Special Fund; one estimate cited a fiscal‑year impact of approximately $1.2 million and the potential to make about $30 million in additional loans if lent out.
The Senate Economic Development, Housing & General Affairs committee reviewed S.4 and related bills and proposals including a $5 million appropriation to the Department of Housing and Community Development for a developmental housing initiative, an increase to base funding for a housing program, and $3 million for affordable housing for individuals with disabilities. Testimony discussed pilot planning grants and prior pilot projects that used planning grants to access capital funding later.
Committee discussion also covered tax credit programs for down‑payment assistance, their multi‑year accounting effects, and proposals to reauthorize or increase annual authorizations that would change fiscal impacts over a multi‑year horizon.
Environment: H.70, Act 59 and use‑value appraisal
The House Environment Committee heard testimony on H.70 proposing changes to Act 59 and the State’s conserved land inventory, including adding land enrolled in the Use Value Appraisal (UVA) program to the conserved land inventory and clarifying definitions of "conserve" and "natural resource management areas." Multiple witnesses — including landowners, timber industry representatives, conservation organizations and land‑trust advocates — supported including UVA land in inventory and discussed the complementary roles of current use taxation and permanent conservation. Committee members reviewed data cited by witnesses showing substantial portions of priority forest blocks enrolled in UVA, the number of acres withdrawn from UVA in 2025, and the 10% withdrawal penalty for heirs electing removal. Discussion included stewardship capacity for land trusts and pressures on the landscape.
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Energy & Digital Infrastructure: H.740 greenhouse gas reporting and energy pilots
The House Energy & Digital Infrastructure Committee considered a committee amendment to H.740 to expand ANR rulemaking authority to create a comprehensive greenhouse gas emissions reporting program covering fuel suppliers and to require reporting by sector and by the smallest geographies practicable. The committee amendment included a proposed base appropriation of $500,000 for the Agency of Natural Resources to support staff and implementation.
The committee also examined proposals extending pilot authority for utility‑administered programs funded through efficiency or thermal funds. Testimony addressed whether PUC review would be required for certain pilot spending, allocations proposing that 60% of specific funds be used for weatherization and income‑qualified customers, projected increases in weatherization funding under the pilot, and the balance of other program categories.
Health Care: school mental‑health funding, AI and neurotechnology, emergency evaluations
The House Health Care Committee received testimony on H.817 to support mental‑health and substance‑use disorder prevention in schools. Vermont After School and other witnesses described after‑school and summer programs’ capacity to contribute to youth mental‑health supports, program funding sources, training and credentialing, and recommendations to broaden eligibility to out‑of‑school‑time providers in grant language.
The committee considered two bills on AI and neurotechnology in health care (H.814 and H.816). Testimony from medical and nursing representatives emphasized protecting patient privacy, establishing requirements for informed consent where AI processes identifiable therapeutic communications, and forming an advisory council to recommend regulatory guardrails. Witnesses raised drafting concerns about broadly framed definitions of "processing" and the potential operational impact on clinical documentation and clinical workflows. An amendment under consideration would establish neurological rights and convene a council to report recommendations.
The committee also debated H.573 on the role of physician assistants in initial emergency department certifications that bring individuals to hospital evaluation after a warrant. Hospital representatives described emergency department wait times, the clinical environment, and the potential harms of prolonged waits. Committee discussion focused on the distinction between initial certificates to bring a person for evaluation and subsequent involuntary admission decisions.
Appropriations and agency budgets
The Senate Appropriations Committee reviewed agency budget presentations and bills with appropriation elements. Department of Financial Regulation testimony summarized fee and enforcement activity, including authorizing the department to deposit up to 15% of enforcement action proceeds into a special fund for restitution and financial‑education grants. Appropriations members discussed removing small appropriations from bills for centralized budget consideration and noted that some bill duties were contingent on appropriations. Committee members referenced a roughly 2.9% overall budget increase presented by an agency and that 86% of a cited increase was driven by salaries and benefits.
Conclusion
These reports cover hearings and testimony delivered Feb. 27 before multiple legislative committees: Senate Finance; Senate and House Education panels; House Ways & Means; Senate Economic Development, Housing & General Affairs; House Environment; House and Senate Appropriations; House Energy & Digital Infrastructure; House Health Care; and House Human Services. Committees discussed proposed tax changes and revenue options, mandates and funding for education and special education, housing finance and appropriations, conservation and use‑value appraisal, greenhouse gas reporting and energy program pilots, and a range of health‑care policy matters including school mental‑health supports and the governance of AI and neurotechnology in clinical settings.
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