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Gov. Phil Scott unveiled a $9.4 billion budget proposal on Tuesday that would steer $105 million toward keeping down property taxes — a record amount, but still not enough to prevent an average 6 percent tax hike next year.
The proposed allocation to keep taxes down was one of the most closely watched items in his annual budget address, which he delivered to a joint session of the legislature. Wrestling the property tax increase down further would require significant additional work by school boards, district administrators and lawmakers, he said.
“I know many districts are doing their best, but we need everyone pulling in the same direction to lower the tax burden on Vermonters this year,” Scott said.
He stressed that he supports the tax-reduction plan only if school districts keep a lid on their budgets and lawmakers move forward with the education reform efforts that began last year under Act 73.
“We cannot continue to prop up a failing system at the expense of other priorities, and we cannot ask Vermonters to continue to pay more while providing less and less for our kids,” Scott said.
During his recent State of the State address, Scott said he would not pass a budget that did not advance the reforms outlined in Act 73, specifically work toward consolidation of school districts.
On Tuesday, Scott laid out his priorities for a range of other issues, too, including housing, energy, health care and crime.
The proposed budget contains a $300 million increase over the current year’s $9.1 billion budget. That’s largely because of increasing costs of state salaries, pensions and health care benefits.
“This is not an austerity budget by any means, but it will feel tighter than past years’,” Adam Greshin, commissioner of the Department of Finance and Management, told reporters before the governor’s remarks.
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