Gov. Phil Scott: Making the most of historic funding requires a clear vision, strategic priorities, pragmatic leadership

This commentary is by Vermont Gov. Phil Scott.

Town Meeting week is not only a good time to get involved in local politics, but also check in on what’s going on in State government.

In January, I presented my budget to the Legislature and my priorities haven’t changed. In fact, they haven’t changed much at all since I first ran for governor. I still believe it’s important to focus on the fundamentals, work together to find practical solutions, and follow through to finish what we started.

Phil Scott for Vermont

Gov. Phil Scott

One thing that has changed over the last three years, is the billions in federal recovery aid we’re receiving. This – coupled with historic state surpluses due to responsible budgeting – has given us a once-in-a-lifetime opportunity to fund our obligations and invest in addressing challenges we’ve faced for decades. If we do this right, we’ll restore the vitality of left-behind communities, help people get ahead and let them keep more of what they earn.

But we know the federal money won’t last forever – and when it does dry up, even the Legislature’s economist predicts a downturn. So instead of spending on programs we won’t be able to afford in the years ahead, we must invest in initiatives that put us in a stronger economic and fiscal position to generate more dollars in the future, rather than raise taxes.

After last year’s election, there was a lot of talk about a super majority of Democrats and Progressives in the Legislature, but this is nothing new. What’s been overlooked is the real majority: More than half the Legislature serves towns with less than 1,000 people – small, underserved communities who desperately need our help. And as Governor, I represent all of them. So regardless of party, they should be our priority.

Real transformation requires us to lift up the regions that have been left behind. That’s why the budget I proposed would expand economic growth to more areas of the state and strengthen our very foundation. We’re focused on the basics – housing; water, sewer and stormwater infrastructure; high-speed internet; small businesses; the workforce; and health and safety – because these are the sparks that ignite revitalization. We’ve invested historic amounts in these areas, and the budget I proposed this year follows through on this strategic approach.

Right now, there’s still a lot of common ground, like housing. But there are also storm clouds on the horizon.

Before leaving for Town Meeting break, the Legislature passed the Budget Adjustment Act, which is supposed to take care of things that can’t wait until the next fiscal year. In this one bill, they spent about $50 million more than I proposed. This is concerning because they haven’t told us what they’ll cut in the full budget to pay for it.

The Legislature is also considering bills – many cited as top priorities – that could add hundreds of millions of dollars in costs for everyday Vermonters. This includes adding a payroll tax for paid leave that may cost workers and employers about $100 million a year. They’re also considering increasing a whole host of taxes to pay for a childcare proposal advocates say requires $279 million a year. Then there’s the so-called “Affordable Heat Act,” which just passed the Senate, and we estimate could cost $2 billion dollars in total with Vermonters seeing heating bills rise by at least 70 cents per gallon and/or needing to pay thousands in upfront costs to transition to cleaner heat.

I’ve proposed alternatives to each of these priorities without raising taxes and fees, including a voluntary family leave program; tripling the State’s annual investment in childcare to help thousands more families; and a more effective way to plan for a transition to cleaner heat. We can do all of this without asking those who can least afford it to pay more.

Elected officials need to remember that the decisions we make during these volatile and inflationary times have real life consequences on people who can’t carry more financial burden. And because the silent majority are at work, trying to make ends meet, they’re counting on us to protect them and their pocketbooks. Town Meeting week is a chance for Vermonters to remind us of that, so we can finish this legislative session with a clear focus on the needs of our communities, not our political parties.

Images courtesy of Office of Governor and Phil Scott for Vermont

5 thoughts on “Gov. Phil Scott: Making the most of historic funding requires a clear vision, strategic priorities, pragmatic leadership

  1. “Federal money won’t last forever” Brilliant reflection there. Where does federal money come from? The same sources that State money comes from? Staffer must be using ChatGPT for public statements now.

  2. How about reducing the size of Vermont government budget, and give Vermonters a huge tax cut, such as eliminating the income tax, sales tax, inheritance tax, and distributions from pension funds, such as SS and IRAs?

    NewHampshire already has that, and has a thriving economy

    • Willem what the state of Vermont has done is completely disincentivized work, of progressing, of working harder to do better.

      They steal the Value of Hope from people which then cheapens it for whoever they handed it too.

      Today in the Socialist state of Vermont, the better you do the more will be taken from you to give to the downtrodden that the state actually produces and attracts.

      The harder and harder it is to get somewhere in Vermont, the less the people are equipped to succeed because of failed education.. the less opportunity is around.. this all is a plan to drive people downward..
      And the rates of addiction, of suicide, of mental health issues.. the amount of broken families, the level of need, this all shows how well the government has done at breaking the state.

      To stay in Vermont at this point is to agree to continue to play this losing game with your life.

      • Problem is Laura, that some of us are pretty attached to this place we call home. I for one will continue to be involved, albeit on a local governmental level, in doing what I can for the Vermont I love.

  3. It’s quite clear that what the governor is wanting and what the legislature is pushing are miles apart.

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