Appropriations Committee

The House Committee on Appropriations considers matters relating to appropriating money from the State Treasury.

The Appropriations Committee recently finished its work on the annual mid-year Budget Adjustment Act (BAA) which passed from committee with a unanimous, bipartisan vote. In the BAA, the current year’s budget is updated to better reflect updated income and expenditures. The BAA also allows the legislature to respond to emergent needs that arise between the passage of the current fiscal year and next year’s budgets. The most significant adjustment this year is the use of $5 million of state funds to protect the State’s reserve of Section 8 vouchers from further erosion, given anticipated program underfunding The state dollars are coming from funds set aside in the 2026 budget for the purpose of responding to disruptions to Federal funding. These funds will ensure that Vermonters remain in and have access to affordable housing.

As required in the Vermont Constitution, the annual appropriations bill begins in the House of Representatives. As the House Appropriations Committee works toward drafting the FY27 state budget, the committee has been reviewing the Governor’s recommended budget (which includes budget requests from state agencies and departments), legislative policy committees, and Vermonters.  There are many parts of the state budget that are standard annual expenses. We must pay for our state employees and their benefits, maintain state buildings and offices, and keep our agencies and departments running. A much smaller portion of the budget goes to one-time, discretionary expenditures, which can include funding new initiatives, such as updating state computer systems or supporting programs.

Vermont faces a number of challenges this fiscal year. The state has seen reductions in some federal funds and uncertainty remains for many aspects of the federal budget. There are many cost pressures on the budget, including rising healthcare costs for state employees. Also, a recent downgrade to the state’s economic forecast shows the state’s revenues are growing more slowly than costs are increasing. 

In light of these pressures, the legislature is focused on funding top priorities. Basic needs, such as food, housing, and healthcare are of great concern for many in our state.  There also are long-term investments to be considered, such as road paving, bridge projects, and support for school reconstruction. Amidst these challenges, the Appropriations Committee is working to craft a fiscally-responsible and balanced budget that will best serve the needs of Vermonters. Although not required in either our Constitution or statue, the Legislature always passes a balanced budget.