The Vermont House gave final approval to a new budget Tuesday, and the Senate is expected to do the same later this week. But while it was pitched as a controversy-free proposal, the bill appears destined for yet another gubernatorial veto.
Gov. Phil Scott, who rejected the legislature’s first budget last month, opposes its second attempt because the proposal wouldn’t prevent an increase in the nonresidential property tax rate.
His objections didn’t stop the House from voting 83-40, along party lines, for the new budget. Before doing so, lawmakers rejected several amendments designed to meet the Republican governor’s demand that property tax rates stay level.
Rep. Scott Beck (R-St. Johnsbury) proposed keeping rates level by using about $33 million in one-time general fund money to pay for Act 46 school district merger incentives. That money would be paid back to the general fund in later years. Last week, the House voted down a similar proposal from Rep. Cynthia Browning (D-Arlington).
Democrats suggested the amendment would simply postpone a tax increase, which would occur when it came time to pay the money back. “We don’t like the idea of turning it into a loan. We think that’s bad policy,” said House Ways and Means chair Janet Ancel (D-Calais).
Beck’s amendment would also have altered the education funding formula, leading to steeper tax increases for high-spending school districts. Ancel made the case that these changes, which her committee considered earlier this year, would have a draconian effect on some school districts.
The Senate is expected to take up the budget bill Thursday, but with 25 days left in the fiscal year, the legislature and governor appear no closer to a compromise. In the meantime, both sides appear to be working hard to ensure the other would shoulder the blame in the event of a government shutdown.
House Speaker Mitzi Johnson (D-South Hero) said in a statement after the vote that “this bill allows us to continue working on those areas of disagreement while taking the threat of government shutdown off the table.”
An hour later, Scott spokeswoman Rebecca Kelley released a statement putting the blame back on lawmakers.
“Their unwillingness to compromise or seriously consider any alternatives, and their complete lack of urgency surrounding this issue, are unnecessarily pushing the state closer to the July 1 budget deadline,” Kelley wrote.
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This is all a charade. Johnson and Ashe have no intention of avoiding an unnecessary tax increase on taxed out Vermonters. The Governor should veto this BS budget as soon as legally possible and force them to start again. Record revenues for the year and these two still feel the need to raise more taxes, unbelievable.
Gov. No-New-Taxes would raise taxes on half the towns in Vermont even under his so-called fiscally responsible budget. The remaining towns would would join the tax party next year with a hefty post-hangover tax bill once the bonus money is gone. These are facts the governor and his supporters choose to ignore.
Meanwhile, debts accrue that the right clearly has no intention of honoring because of their war on anyone left of Ted Cruz. And Repub legislators scramble to backtrack on a budget they already approved. It would be funny if it weren’t so consequential.
It’s time for the legislature to stand up to right-wing bullying tactics.
It’s the Republicans in the General Assembly who voted FOR the budget they then walked away from when Scott did his veto BS. And now it is the Republicans in the General Assembly and Governor’s office who are threatening to shut down government if they don’t get their new way – and this “new way” is brand spanking new for the disingenuous, dishonest General Assembly Republicans who have already once voted overwhelmingly for what they now deride.
In short: any government shutdown or automatic tax increases is on the REPUBLICAN politicians.
It seems a little odd that no one else is seeing what’s going on? Whether it’s right or left, just step back and look!!! They want to use state money to cover today expenditures and then when the money is gone hit the local’s with tax increases on wages and groceries to cover what they didn’t save for. The bottom line is who gets the break ????? NON-RESIDENT property tax payers. They “non-residents” get the free ride while the state locals take the full frontal hit in taxes. They need not spend the money like drunken sailors to wake-up tomorrow with a tax hangover for most local residents.
One other key point is that these non-residence property owners are not just vacation homes or camps! They are Mall, Motel, Hotel, Store, and Corporate properties.
Just Saying
The problem is that the legislature has in the past not been meeting its obligations ( under funding pensions) and has been hiding expenses in the Education Fund. On top of that Act 46 incentives promised to schools were never funded and these incentives ended up being paid by school property taxes themselves. With an ever increasing surplus now is the time to set things right.
First , remove the 20 million still remaining in other than K-12 programs controlled by school boards from the Education Fund. Then use the surplus to pay for these General Fund obligations and this years 14 million in Act 46 incentives. Remaining surplus can be used to shore up Reserve Funds and pay off obligations sooner.
There would be no need for any property tax increases this year. Future years budgets would also be more accountable and transparent and there would be no ongoing hole in the Education Fund caused by programs outside of school board control.
A Vermont governor holds out for the ability to threaten government shutdown over less than one percent of the overall state budget. Think about it,