What a difference a year can make. Over the past few years, with federal pandemic aid, we’ve had unprecedented revenues. As those funds dry up, we are in a very different place.
The Senate Committee on Appropriations voted its version of the fiscal year 2025 budget out of committee last week and the full Senate passed the $8.6 billion dollar-spending plan. The Senate’s spending plan includes all monies spent by all three major funds — transportation, education and the general fund. It also included monies from all state sources, while also including all federal fund sources unduplicated and spent by Vermont.
We knew when we started building the general fund budget this year that it wasn’t going to be an easy year. With federal COVID-19 funds disappearing and with state tax revenues not growing, we knew this would be a challenging year. In fact, in fiscal years 2024 and 2025, general fund revenues are forecasted to be a cumulative $111 million below fiscal year 2023 revenues.
Couple this with nearly unprecedented funding requests from a myriad of different organizations, I have to say it was a relief when the appropriations committee voted the budget out of committee this past week. Increases in health care, labor costs and inflation have put pressure on budgets everywhere while people’s expectations and needs haven’t stopped with the drying up of the federal dollars.
I think the accompanying chart from the Legislative Joint Fiscal Office says it all from a high-level about this year’s state spending.
Total spending in all funds is down more than $58 million. Spending on human services and the rest of state spending in the general fund is down over $191 million. The drop in revenues is particularly hard when you know that nursing homes and hospitals are dealing with increased costs. The State College System still needs transition funds to complete its stated transition goals to become financially solvent.
The state’s general fund is being asked to do more with less for many needed services.
Richard Westman, a Republican from Cambridge, represents all the towns in Lamoille County, except for Stowe.
(0) comments
Welcome to the discussion.
Log In
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexual language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be proactive. Use the "Report" link on each comment to let us know of abusive posts.
Share with us. We'd love to hear eyewitness accounts, the history behind an article.