Prior to this year, a Vermont governor had vetoed the budget only twice in state history. Gov. Phil Scott may soon match that number in 2018 alone.
Last month, , saying he wouldn鈥檛 sign off on any spending plan that allowed for an increase in statewide property tax rates.
The Vermont House gave final approval Tuesday to a budget proposal they say accommodates the governor鈥檚 directive. And Senate President Pro Tem Tim Ashe said he expects his chamber will sign off on the latest spending plan later this week.
鈥淭here鈥檚 nothing in this bill that the governor opposes,鈥� Ashe said Tuesday. 鈥淭here is no 鈥� tax rate increase. That is reserved for a fight elsewhere about how to use all this one-time money that鈥檚 come into the state this year.
The Scott administration, however, said lawmakers鈥� latest plan is likely as the first one they sent him.
鈥淢ajority leadership appears inflexibly committed to raising tax rates on Vermonters in a year we have a surplus 鈥� and multiple proposals 鈥� to avoid it,鈥� Scott鈥檚 spokesperson, Rebeca Kelley, said in a statement Tuesday. 鈥淭heir 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.鈥�
House lawmakers passed their latest budget proposal on Tuesday. The Vermont Senate is scheduled to begin floor debate on that spending plan at 2 p.m. on Thursday.
Democratic leaders in the House and Senate said it鈥檚 Scott who鈥檚 been unwilling to compromise.
Their latest budget includes .
Instead, the proposal includes all appropriations both sides agree on, which encompasses the vast majority of the $5.8 billion needed to run state government next year.
And they say they鈥檒l leave the question of property tax rates to a separate bill.
With the fiscal year set to expire at the end of June, Morristown Rep. David Yacavone said lawmakers鈥� approach ensures government won鈥檛 shut down as a result of the fiscal impasse.
鈥淭he aged, the blind, the disabled and so many more must not be pawns in this political scrimmage,鈥� Yacavone said. 鈥淭his vote helps to assure that essential services for those with the least among us are protected.鈥�
But Scott鈥檚 Chief of Staff Jason Gibbs said last week that lawmakers鈥� proposal contains a poison pill.
Under existing statute, if lawmakers don鈥檛 pass a property tax bill before July 1, then the rate for businesses and second homeowners will jump by five and a half cents.
鈥淎nd as a result would put [lawmakers] in the position of being able to delay the negotiation on non-residential property tax rates to the point of July 1, when it would automatically increase,鈥� Gibbs said.
Ashe called Gibbs鈥� reasoning a political 鈥渟leight of hand鈥� that underscores the administration鈥檚 intransigence. Ashe said the Legislature has already made major concessions to appease Scott, by using one-time money to avoid an increase in property tax rates for residents.
鈥淚f what the governor鈥檚 saying is he won鈥檛 sign any bill that passes a state budget until he is assured that the Legislature basically adopts exactly his starting point on fairly broad sweeping and radical education proposals, then the Legislature can鈥檛 just do that,鈥� Ashe said. 鈥淭he governor has to start governing and moving in the direction of the Legislature, as we have moved in the governor鈥檚 direction.鈥�
Scott said newly release revenue numbers for the month of May bolster his stance on tax rates. Personal income and estate tax receipts came in more than $8 million above projections, adding to the $44 million surplus expected for the current fiscal year.
Administration Secretary Susanne Young said the windfall ensures 鈥渢here is sufficient tax revenue available to avoid residential and non-residential statewide property tax rate increases in [fiscal year 2019].鈥�
Ashe, however, said the question isn鈥檛 whether the Legislature has money to buy down next year鈥檚 tax rates, but whether it鈥檚 a fiscally responsible use of those funds.
Ashe said there鈥檚 no guarantee the Legislature will have one-time money to buy down rates again next year as well. And he said if they don鈥檛, then taxpayers will effectively see two years鈥� worth of rate hikes squeezed into one.
Ashe said this kind of budgeting practice 鈥渃reates a false sense of crisis in the education fund.鈥� And he said Scott is looking to use that 鈥渃risis鈥� as leverage in a broader 鈥渋deological鈥� battle.
鈥淚 can already see the future, which is they will propose even deeper cuts to public education 鈥� as a way of solving this so-called education funding crisis,鈥� Ashe said.
