Legislature roundup: housing tax credits, property-tax changes, energy program extensions and Medicaid investments dominate committee hearings

Legislative committee hearings on Jan. 23 covered a range of policy and fiscal issues, with major attention on housing financing and state tax-credit programs, proposed changes to education property-tax classifications and school funding, proposals to move education fund dollars to transportation, requests to extend a Burlington electric utility energy program using thermal efficiency funds, and state Medicaid investments and waiver renewal work. Appropriations panels discussed year-end close procedures for a new child care contribution special fund and budget adjustment reversions.

Economic Development, Housing & General Affairs

Witnesses described the structure and limits of state housing finance tools, including tax-credit sales to banks that fund deferred down-payment loans and VHFA mortgage programs. Testimony noted programs that serve households up to 150% of median income and described revolving loan activity tied to tax-credit sales, repayments and re‑lending. Presenters said repayments to a loan fund have slowed and asset limits for down-payment assistance were tightened; program awards and reallocations were discussed alongside a $16 million allocation to reopen middle-income homeownership and rental pilots. The committee also reviewed proposals in a broad housing and zoning package, including an on-site construction accelerator pilot, municipal planning grants, and authority for the Vermont Economic Development Authority to provide joint financing for multiunit housing developments.

Education

Members considered statutory revisions tied to Act 73 and proposals to update the foundation formula and student weights. Testimony outlined a proposal to add a secondary student weight for grades 9–12, repeal class-size minimums and remove Act 73 amendments to the property tax classification system that would have created a new non-homestead residential tax class. Witnesses discussed the second-home tax and property tax impacts under Act 73, the possibility of transition mechanisms for districts that would see tax increases under a foundation formula, and the department’s plan to develop model policies on chronic absenteeism and coordination with health providers to address student attendance and related supports.

Ways & Means

Committee members examined the mechanics and fiscal effects of proposals involving the statewide property tax and transfers between education and transportation funds. Presenters cited current property tax rates for homestead and non‑homestead and described modeling that showed a $50 million transfer could increase the property tax by roughly 3% under one set of assumptions, while a phased approach in the governor’s budget would have a smaller annual effect. The committee reviewed a proposal to reserve unallocated general fund balances and discussed “pennies for roads” transfers intended to leverage federal highway multipliers for transportation projects.

Energy & Digital Infrastructure

Testimony addressed an energy-efficiency and modernization authorization that has allowed Burlington Electric to use thermal energy and process fuel (TEPF) funds for broader customer programs. Witnesses sought an extension limited to Burlington Electric for TEPF authority (not extending Efficiency Vermont’s EEC authority), citing the utility’s program uses for EV charging, heat pumps and other customer incentives, and noting market differences and program metrics. Committee discussion covered program accountability, layering of incentives, the use of funds for weatherization and pilot programs for seed-stage energy businesses and load-control initiatives.

🍁 Make a One-Time Contribution — Stand Up for Accountability in Vermont 🍁

Health & Welfare

Agency witnesses summarized work under a statutory working group to coordinate health care and transportation services and presented a report on findings required by prior law. The committee heard about nonemergency medical transport coordination, volunteer driver recruitment, and efforts to pair rides for recurring treatments such as dialysis. Health officials reviewed Vermont’s use of an 1115 Medicaid waiver to fund a suite of investments, described the waiver’s budget-neutrality requirement, and outlined the state’s effort to prepare outcome documentation for the waiver renewal and federal review, noting that investments have supported programs not otherwise eligible for federal match.

Appropriations

Appropriations panels reviewed a revised budget adjustment and related reversions, reporting an increase in reappropriable reversions to $25.8 million and a late $2 million revenue increase from departmental estimates. Committee members discussed one-time appropriations included in the revised budget adjustment and technical statutory language to govern year-end close procedures. Significant discussion focused on establishing a process to reserve and reconcile amounts owed to the newly created child care contribution special fund at fiscal year close: the proposal would have tax and fiscal staff estimate fourth-quarter childcare‑contribution receipts, reserve that estimated amount during general-fund closeout, complete standard stabilization and pension reserve steps, then unreserve and transfer the reconciled amount to the child care special fund. Members also reviewed carryforwards, agency reversions and targeted one-time appropriations for pensions and education-related programs.

Conclusion

This report summarizes Jan. 23 committee hearings of multiple legislative panels, including Economic Development, Housing & General Affairs; Education; Ways & Means; Energy & Digital Infrastructure; Health & Welfare; and Appropriations. Discussions focused on housing finance and tax-credit programs, education funding and property-tax classification changes, proposals affecting transfers between education and transportation funds, utility energy‑efficiency program authority, Medicaid waiver investments and coordination of health and transportation services, and budget adjustment and year‑end reserve procedures.

If you found this information valuable and want to support independent journalism in Vermont, become a supporter for just $5/month today!

FYIVTBOT | FYIVT

You can find FYIVT on YouTube | X(Twitter) | Facebook | Instagram

#fyivt #vtleg #goldendome #vermontpolitics

Support Us for as Little as $5 – Get In The Fight!!

Make a Big Impact with $25/month—Become a Premium Supporter!

Join the Top Tier of Supporters with $50/month—Become a SUPER Supporter!