Vermont state budget (2012-2013)

Note: This article was last updated in 2013. Click here for more recent information on state budgets and finances.

The state faced a $50 million gap between revenues and expenditures, one of the smaller gaps in the past few years. The state had set aside $13 million in the Agency of Human Services caseload reserve, $3.9 million for revenue shortfalls and $1.9 million for federal cuts. There was also $3 million in unanticipated revenue coming from the attorney general’s settlement with big banks.

The budget bill as enacted can be accessed here.

Legislative proposed budget

The House passed a $5.01 billion state budget with a vote of 99-41. The budget spent about $124 million on recovery from Tropical Storm Irene. Gov. Peter Shumlin said he believed the House budget adhered to the priorities of his proposed budget.

The total budget spent 6.4 percent more than the fiscal year 2012 state budget. The general fund accounted for $1.3 billion of the overall spending plan and under the House budget general fund spending would have increase 5.8 percent over fiscal year 2012. The transportation budget, which was up by more than $103 million, saw the highest dollar increase.

New spending in the budget included:

• $20.5 million to make up for a cut in federal support for Medicaid;
• $14 million to cover the increasing costs of government employee retirement programs;
• $13.6 million in pay increases for current state employees;
• $6 million to make up for dwindling payments under the state's share of a settlement reached between states and the tobacco industry 15 years ago.

Surplus

The House's budget plan took a new approach to a state surplus, should there be one, and devoted half of any surplus to the state education fund to help reduce property taxes, and a quarter each to a newly established rainy day fund and to money set aside to offset federal cuts.

Revenues

Prior to considering the budget bill, the House had already passed revenue-generating legislation — namely a fee bill for the Department of Motor Vehicles that increased rates for driver’s licenses and vehicle registrations, a one penny increase to the statewide property tax and a provision that would push surplus funds toward the General Fund transfer to the Education Fund to make up for $27.5 million in “rebasing” that would have a three-cent impact on local property taxpayers.

Governor's proposed budget

The governor's budget recommendations can be accessed here.