Lawmakers review budget, education restructuring language, pay act and program authority in multiple committee hearings
Legislative committees on March 24 received briefings and considered language and fiscal details across budget, education, human services, economic development, and judiciary matters. Major topics included the FY2027 budget and related transfers, education restructuring and mandatory study‑committee requirements, appropriations for state employee pay increases, proposed authority for an ADA coordinator to seek grants and donations, and criminal penalties related to image‑based abuse.
Ways & Means — budget totals, transfers and tax administration funding
The Ways & Means Committee heard an overview of the FY2027 budget construct. Committee members were told the "total unduplicated budget for FY 2027" is $9,300,000,000, with over a third of that coming from federal funds, mostly Medicaid. The general fund and the education fund were each described as comprising 27% of the total, special funds about 7%, and the transportation fund about 4%.
Committee staff reported specific transfers and appropriations in the House‑proposed budget. A $1,300,000 transfer to the Community Resilience and Disaster Relief Fund was noted. The budget also includes additional funding for a tax department position to assist with implementation of contemplated changes to the Homestead Declaration, and $150,000 appropriated to the treasurer’s office for the Volunteer Income Tax Assistance Program.
Members reviewed year‑to‑year changes: a reported 1.6% overall increase tied to adjustments including immunization and Medicaid case‑level costs, and an approximate $146,000,000 increase with $105,000,000 attributed to the education fund. The committee was warned that planned reductions in the provider tax will reduce revenues in FY2028, with an $18,500,000 reduction noted as the first of five years of provider tax reductions. Staff also cautioned that one‑time resources used this year may not be available next year, and cited possible shortfalls on the order of tens of millions of dollars.
Committee discussion touched on high per‑day costs for secured youth residential beds and the fiscal challenge of oversight and management of such expenditures.
Education — study committees, mandatory reports and school district protections
The House Education Committee reviewed a draft that would require facilitators to group school districts for study committees and to put that grouping guidance into legislative language. The draft retains a contiguity requirement for districts and requires participation by school districts assigned to study committees.
Several new or clarified requirements in the draft were described as mandatory. If a study committee determines it is inadvisable to form a new union school district, the committee would be required to prepare a report before dissolving, including named school districts and analyses of strengths and challenges. If a study committee determines it is advisable to form a union school district, it must prepare a report and proposed articles of agreement.
Proposed articles of agreement for a newly formed union school district would be required to prohibit closing a school within the district during the first three fiscal years without approval of the electorate of the town or city where the school is located; after those three years, closure would be prohibited unless the electorate of the union school district approves. The draft also contemplates guidance listing suggested school district groupings and would require facilitators to include rationale if they form study committees that differ from the guidance.
Committee members discussed funding and appropriation mechanics for facilitators and study committees, noting that the amount appropriated could affect vote requirements under current law.
The Education Committee referenced Act 46 in the context of the broader policy history.
Human Services — prekindergarten funding, categorical aid and ADA coordinator duties
The Human Services Committee discussed how pre‑K funding is treated in education finance. Witnesses explained the draft would move pre‑K from per‑pupil spending to a categorical grant and noted the question of whether the base amount enacted in Act 73 already included pre‑K costs. Committee members identified that Joint Fiscal Office review would be needed to determine how prior decisions in Act 73 interact with the draft’s categorical aid approach.
The committee also considered H‑861, relating to an ADA coordinator position at the Agency of Administration. An amendment discussed in Human Services and in other committees would authorize the coordinator, if funds are appropriated, to apply for grants and accept donations to support the coordinator’s work. Committee discussion included whether that authority is clearly provided in statute and how it would operate in practice.
Human Services members examined implementation and reporting timelines for facilitator duties and study committee deliverables tied to education restructuring language.
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General & Housing — authorization for fundraising and grant‑seeking for coordinator
The General & Housing Committee reviewed language proposed to add to the coordinator position’s duties authorizing the coordinator to apply for grants and accept donations. Members discussed the legal and administrative implications of such authority, including whether soliciting donations differs from applying for grants and whether establishment of a supporting nonprofit (a 501(c)(3)) might be an outcome. Committee discussion referenced analogous funds, such as the Animal Welfare Fund, and noted practical questions about state acceptance of donations.
Economic Development, Housing & General Affairs — cannabis compacts, grower fees and housing amendments
The Senate Economic Development, Housing & General Affairs Committee took up amendments to S.278 related to cannabis. Legislative counsel described two added sections: an intent section explaining flexibility based on potential federal changes, and a provision granting the governor authority to enter into compacts with other states if federal contingencies are met. The amendment would establish requirements for compact compatibility and regulatory authority for the Cannabis Control Board over out‑of‑state licensees operating pursuant to compact agreements, subject to specified federal contingencies.
The committee also discussed proposed reductions in fees for outdoor cannabis growers, noting the challenges of Vermont’s climate for outdoor cultivation and a fiscal estimate mentioned in committee that one cultivator renewing at a reduced rate would affect revenues by roughly $170,000. Members discussed potential effective‑date changes to avoid impacting the current year’s budget and scheduled consideration of housing amendments and S.198.
Appropriations — pay act, judicial and executive branch appropriations and salary increases
The Appropriations Committee considered H.950, the pay act covering collective bargaining and statutory salary provisions. Legislative counsel described H.950 as the semiannual act setting and appropriating funding for negotiated collective bargaining increases for executive, judicial and legislative branch employees.
Committee discussion detailed the pay act’s structure. For FY2027 the bill was characterized as providing a typical 1.9% average step increase and a combination of percentage increases resulting in a 5.9% total increase for that fiscal year (1.9% step plus a 2% increase in July and an additional 2% in January). For FY2028 the bill was described as a 4.9% total increase (1.9% average step plus a 3% overall increase).
Appropriations staff provided dollar appropriations for branches: an executive branch appropriation figure for FY2028 was cited as $24,974,632, with transportation fund and other funds also enumerated for that fiscal year. The judicial branch general fund appropriation for FY2027 was given as $3,800,867 with additional other sources cited; FY2028 judicial branch amounts were also noted. The legislative branch general fund appropriations were described as $914,634 for FY2027 and $778,939 for FY2028. The committee recorded total general fund amounts for the pay act as $28,600,000 for FY2027 and $28,200,000 for FY2028.
The committee reviewed statutory salary increases across branches, noting specific statutory percentage increases and county variance for probate judges and sheriff statutory salary adjustments. Members indicated the pay act may be incorporated into the budget or passed separately.
Judiciary — H.626 and image‑based abuse provisions
The Senate Judiciary Committee took testimony on H.626 concerning image‑based abuse and related offenses. Testimony from the Department of State’s Attorneys and Sheriffs and from victim advocacy organizations explained provisions restructuring voyeurism offenses and adding penalties for criminal threatening that involves explicit images or sexual conduct. Committee discussion included extension of statutes of limitations for voyeurism and related offenses and the role of nondisclosure and disclosure offenses, including digital and AI‑altered images. Advocates and prosecutors noted the harms of disclosure and the need for statutory modernization to address image‑based abuse.
Health & Welfare and Health Care — peer‑to‑peer mental health, parental notification debate
House Health Care and Senate Health & Welfare reviewed programmatic language on mental health literacy and peer‑to‑peer programs. An amendment under consideration for H.17 (reported in committee as part of a bill denoted by its draft language) would add parental consent language to the peer‑to‑peer component, emphasizing parental consent to participate in programming. Committee members debated whether parental consent or parental notification should be required for peer‑to‑peer programs, with testimony noting existing mandatory‑reporting obligations, confidentiality considerations for peer support, and that similar programs in other states have involved legislative funding to make services low‑barrier.
Senate Health & Welfare also received discussion about Saluna‑style online support models, examples from other states, and funding approaches to provide services at no cost to users.
Commerce & Economic Development — H.337 and scheduling
The House Commerce & Economic Development Committee noted H.337 concerning rounding cash transactions ("penny bill") as an item for further consideration. The committee outlined its schedule and indicated potential follow‑up later in the day.
Conclusion
This article covers committee activity on March 24, 2026, across multiple legislative panels including Ways & Means, Education, Human Services, General & Housing, Economic Development, Appropriations, Natural Resources & Energy, Health & Welfare, Health Care, Judiciary, and Commerce & Economic Development. Committees reviewed FY2027 budget totals and transfers, appropriations for collective bargaining (H.950), proposed education restructuring language with mandatory study‑committee duties, authority and funding details for coordinator positions, cannabis compact authority and fee changes, criminal penalties and statutes of limitations for image‑based abuse (H.626), and programmatic language and debate on parental consent for peer‑to‑peer mental health programs.
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