Policymakers weigh education consolidation, corrections fee repeal, net‑metering costs and housing funding across multiple committee hearings
Lawmakers heard testimony Friday on a range of bills and budget requests, with committees focusing on education governance and spending, the removal of Department of Corrections supervisory fees, net‑metering economics, housing and homelessness funding, and shifts in administration of Medicaid school‑based reimbursements.
Ways & Means — supervisory fees, school foundation work and H.635
The House Ways & Means committee reviewed proposals affecting corrections fees and education finance. Office of Legislative Counsel staff described H.635 as removing the Department of Corrections’ authority to impose supervisory fees charged on certain sentences, including probation and parole. Committee material said the bill would prohibit the department from assessing, billing or collecting supervisory fees, bar use of collection agencies, require forgiveness of outstanding supervisory fees, and direct the department to cease collection efforts including wage garnishment and tax setoff. Legislative counsel said the bill delays effectiveness until July 1, 2027; the Joint Fiscal Office presented a fiscal note saying there would be no fiscal impact for the current year or fiscal 2027 and that the net loss of revenue to the Department of Corrections would begin in fiscal 2028. Testimony cited the department’s practice of charging $15 per individual per month (with statutory authority to charge up to $30) and described collection-related operating costs such as lockbox and postage.
Members also discussed work stemming from Acts 73 and 127 on the school foundation formula and teacher workforce issues. Witnesses and committee speakers described regional cost differences in labor and housing that they said Act 73 did not fully address and noted prior analyses, including by APA Consulting. Committee materials raised concerns about teacher workforce shortages and the need for targeted investments and potential regional adjustments to reflect higher labor costs in some districts.
Education — ESAs, Act 46 and estimates of consolidation savings
The House Education committee heard extensive testimony on restructuring supervisory unions into larger education service agencies (ESAs) under concepts tied to Act 46. Presenters described an analysis that modeled consolidation to 15 regional ESAs and estimated cost savings from shared services and SU consolidation. One estimate cited in testimony put potential savings from the supervisory union (SU) consolidation component at $133,000,000 for fiscal 2022, with an additional $200,000,000 in potential savings from moving other services to an ESA model, for a total of $333,000,000 in FY2022 dollars. Witnesses described comparisons to ESAs in other states, concerns about community ties and governance, and possible effects on superintendent, principal and school board roles. Committee materials also referenced Acts 46, 60 and 73 in discussing past spending trends and consolidation impacts.
The committee also received testimony on a program called the Free Degree Promise and early college pathways, with speakers describing participation, credit attainment and associated costs for accelerated postsecondary options. Presentations referenced leveraging existing state financial aid programs such as Pell, the Vermont State Grant and the 802 Opportunity program.
Energy & Digital Infrastructure — net metering and H.716
The House Energy & Digital Infrastructure committee heard testimony on H.716 and the net‑metering framework. Electric cooperative and utility witnesses described the economics of net metering, saying utilities were required to purchase excess generation at rates based on the application or certificate date and that the amounts paid for excess generation exceeded the utilities’ calculated value of energy, capacity and renewable attributes. One presenter described an average payment of about $180 per megawatt‑hour to net‑metering facilities while assigning roughly $60–$80 per megawatt‑hour in value, and cited a differential that was characterized as contributing to a $1,700,000 figure. Another witness estimated the total net‑metering cost in a service territory at about $6,000,000 per year, averaging $182 per megawatt‑hour, and contrasted that with lower costs for larger negotiated power purchase agreements. Representatives of utilities urged the Public Utility Commission’s biennial review process and rate‑making as the appropriate forum for benefit‑cost assessment and referenced federal investment tax credit changes as additional factors.
Some witnesses suggested alternatives for funding incentives outside customer rates, such as Vermont‑specific tax credits, and discussed programs that target income‑eligible customers using grants or bonus investment tax credits to avoid shifting costs to general ratepayers.
Environment — Healthy Homes, ANR budget changes and H.740
The House Environment committee heard from the Agency of Natural Resources and the Department of Environmental Conservation about the Healthy Homes program and other ANR budget items. DEC staff said the Healthy Homes program began with American Rescue Plan Act funds to address failed wastewater and drinking water systems and described program operations that pay contractors directly, with tiered awards up to $80,000 in some cases. Committee materials noted agency budget requests and reported that ANR’s fiscal 2027 budget recommendation was $299,600,000 and included an overall decrease of about $42,100,000, approximately 12 percent, compared with the prior year. Witnesses discussed specific funding requests, including a reporting program estimate that ANR said could be started with $500,000 (the agency had initially sought $800,000 with $300,000 a one‑time cost and $500,000 annual costs). The committee also heard requests from conservation districts and other programs for additional base funding.
Committee materials referenced H.740 in the context of ANR budget items and climate mitigation functions.
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Health & Welfare (Senate) — crisis continuum, hospital outsourcing and Act 55
The Senate Health & Welfare committee considered testimony on behavioral health system components and bills S.14 and S.20. Presenters described Vermont’s crisis continuum—call lines, mobile crisis teams, urgent care and intensive residential treatment—and said recent system evolution included more integration with substance use crises. Committee materials referenced Act 55 and an estimate that some hospital price reductions could translate into an $87,000,000 effect associated with Act 55, equating to about a 4 percent impact on premiums. The committee discussed hospital outsourcing of physician groups, the implications for the Green Mountain Care Board’s rate‑setting authority, and the treatment of outsourced provider revenue relative to board oversight. Witnesses raised provider tax implications if revenue shifts to entities outside the board’s rate‑regulated structure and discussed proposals such as reference‑based pricing and possible rate caps tied to Medicare multiples.
Economic Development, Housing & General Affairs (Senate) — HOAs, VHFA down payment assistance and housing language
The Senate Economic Development, Housing & General Affairs committee addressed proposed changes affecting common interest communities and affordable housing financing. Committee discussion covered proposed statutory revisions that would prohibit homeowners associations from restricting leasing and would apply retroactively to common interest communities created before January 1, 1999; staff flagged potential constitutional concerns with retroactive application and urged careful drafting to avoid overriding affordable housing covenants and regulatory requirements used to secure secondary market financing.
The Vermont Housing Finance Agency and other witnesses sought an extension and expansion of an existing down payment assistance program administered through VHFA. Committee material said VHFA asked to extend the program for five years and to increase annual authority from $250,000 to $350,000—an additional $100,000 per fiscal year—to replenish funds and meet demand. Committee discussion noted the tax credit authority that supports VHFA programs and that the tax credit authorization was originally set to expire.
Human Services — SNAP outreach, Reach Up and homelessness funding
The House Human Services committee reviewed budget and program requests tied to basic needs, SNAP outreach (ThreeSquares Vermont), Reach Up supports and homelessness. Witnesses described SNAP outreach as historically funded with a 50/50 federal/nonfederal match and said recent reductions required local partners to raise more nonfederal match funds. Committee materials noted a decline in outreach funding in the governor’s recommended budget of over $100,000 and cited requests to sustain program outreach funding. Separate testimony described homelessness and shelter proposals and funding requests, including an item noted as about $600,000 for an homelessness organization, and other shelter and prevention funding asks discussed as part of a larger homelessness package.
Appropriations — multiple spending requests and conference items
Appropriations committees in both chambers discussed a wide set of budget requests submitted at public hearings. Committee exchanges described a substantial cluster of housing requests that staff characterized as totaling tens of millions of dollars, with figures cited including $41,000,000 for a housing opportunities program, $35,000,000 for general assistance, and $11,000,000 for shelter expansion; staff said further analysis was needed to reconcile what was in the governor’s recommendation versus request totals. The House Appropriations committee also discussed a draft committee report and proposals to adjust smaller grants, including Meals on Wheels and Vermonters Feeding Vermonters funding levels. Senate Appropriations materials detailed draft conference report instances of amendment addressing food bank and housing language and called for housing authority submissions and DCF‑administered guidelines by May 1 to distribute any emergency housing funds based on need.
Health Care — Medicaid school‑based reimbursement, H.558 and specialty medication access (H.736)
The House Health Care committee considered bills that would alter administration of Medicaid school‑based services and other health measures. Committee materials on a bill described as H.558 indicated the proposal would repeal a special fund provision in Title 16 and create a new special fund under the Agency of Human Services to receive federal Medicaid reimbursements for medically related services provided to students. The description said the change would place sole program administration with Agency of Human Services and the Department of Vermont Health Access while services would continue to be delivered by school personnel. The proposal would give rule‑making authority to AHS and require the agency to support compliance and program administration.
The committee also took initial testimony on H.736 in short form, a proposal framed in committee materials as addressing hospital and nursing facility access to specialty pharmacy medications for patients with rare diseases who enter inpatient settings. The short form description cited legislative findings on limited on‑site stock of specialty medications and the need for timely procurement to maintain treatment regimens for some patients.
Conclusion
This article covers committee hearings held February 20, 2026, in multiple House and Senate committees. Committees addressing Ways & Means, Education, Energy & Digital Infrastructure, Environment, Health & Welfare, Economic Development, Housing & General Affairs, Human Services, Appropriations, Health Care and Judiciary discussed proposals involving corrections supervisory fees, school governance and consolidation, net‑metering economics, environmental and healthy homes funding, behavioral health and hospital pricing issues, housing program extensions and safeguards for common interest communities, SNAP outreach and homelessness spending, and administrative changes to Medicaid school‑based reimbursements and specialty medication access.
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