MONTPELIER, Vt. (AP) - The Vermont House approved its second budget bill of the year Tuesday, but Republican Gov. Phil Scott already has indicated that he will not support it.
The House voted 83 to 40 in favor of the bill. Democratic leaders introduced the budget as a compromise that would allow Scott and the Legislature to continue to debate how to use the state’s budget surplus while averting a government shutdown on July 1.
“This bill allows us to continue working on those areas of disagreement while taking the threat of government shutdown off the table,” Democratic Speaker of the House Mitzi Johnson said after the bill’s passage. “Vermont must stay open for business while we continue working to resolve the remaining areas of disagreement with the governor.”
Scott said last week that he would support a compromise bill, but spokesperson Rebecca Kelley said Tuesday that Scott will not sign this budget bill because it results in increased taxes on non-homestead properties. A non-homestead is any property that does not serve as a primary residence, regardless of whether the owner lives in Vermont or outside the state.
Republican Rep. Scott Beck of Caledonia County introduced two amendments that would have held non-homestead property tax rates at the previous year’s levels, but the House rejected both shortly before the final vote.
Kelley said the rejection of Beck’s amendments put the Democratic leaders further from an agreement with Scott.
“Their 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,” Kelley said.
Most of the votes against the budget bill came from lawmakers in the Republican minority who said the bill did little to address Scott’s disapproval of the Democratic leader’s proposals.
“Unfortunately it appears that this stalemate will go on longer at the expense of hardworking Vermonters,” said House Minority Leader Don Turner. “Why would we raise property taxes when there isn’t an immediate need?”
The property tax increase is largely driven by school budgets, which voters approved earlier this year. Scott opposes any increase in taxes or fees and hopes to use the state’s budget surplus to pay down property tax rates to maintain them at the previous year’s level.
Democratic leaders have repeatedly said Scott’s plan amounts to “governing on credit” and that the surplus would be better used to fund teacher pension obligations, a plan they said will save the state $100 million.
The budget bill will now move to the Senate, which is scheduled to meet Thursday. In the House, many seemed resigned to the fact that they will be back next week to address the budget.
After the vote, a number of representatives addressed the retirements of a number of long-serving representatives, but Republican Rep. Kurt Wright of Chittenden County suggested their well wishes were premature.
“At this rate we’re going to be seeing them a while longer,” Wright said.
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