BUDGET While it was only the third week of the 2022 legislative session, the budget process is already well underway. On Tuesday, Governor Phil Scott gave his annual budget address and submitted his $7.7 billion FY2023 budget proposal to the legislature. His FY2023 budget focuses on workforce development, tax relief, the ongoing COVID-19 response and the five core issue areas he had proposed funding through the American Rescue Plan Act (ARPA) last year. These issue areas are broadband, climate change, water/sewer/stormwater infrastructure, housing and economic development. The governor characterized the current situation as an unprecedented opportunity to use large state surpluses and almost half a billion dollars in remaining ARPA money to make investments that would be impossible at any other time in recent history. The governor proposed millions of dollars in one-time funding for internships, training, higher education, broadband deployment and recruitment to bolster Vermont’s workforce. He proposed a $50 million tax relief package that includes exempting military retirement income from state tax, increasing the earned income tax credit, a student loan interest deduction and increasing child and dependent care credits. He also proposed $45 million property tax rebates. The governor proposed well over $100 million in housing investment between the FY2023 budget and the FY2022 budget adjustment act and expanded the mobile mental health crisis response pilot project that was approved for Rutland county last year. His budget includes funding for suicide prevention, substance abuse prevention and recovery efforts. The governor proposed paying off debt to free up state funds that can be used as matching funds for federal dollars made available through the recently approved Infrastructure Investment and Jobs Act (IIJA). The IIJA can fund broadband deployment, improvements to state transportation infrastructure and upgrades to state and municipal water systems, among other things. The governor proposed investing $51 million to expanding cell service, $30 million in grand list enhancement grants, $50 million for capital investment grants and $20 million for a PPP-style short term loan program that aims to help boost economic recovery. The House Committee on Appropriations took initial testimony from administration officials this week on the governor’s proposed FY2023 budget, but much of the committee’s focus was on passing H.679, the FY2022 Budget Adjustment Act. H.679 makes significant new investments in workforce stabilization, housing and other initiatives as reported in last week’s newsletter. H.679 passed the House on Friday and consideration on the bill will begin in the Senate next week. |