[{"_1":2,"_87":-5,"_88":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":56,"_74":56},"mediaId",6260909,"mediaKeyId","3126628-0905c97295e9470de25ff524be6640ed","parentId",3126628,"title","Joint Fiscal Office outlines rescission rules, emergency‑board options and draft Senate language to respond to federal funding cuts","audioSeconds",1330,"startMs",2490000,"endMs",3820000,"viewUrl","/Search/View?dp=1&key=3126628-0905c97295e9470de25ff524be6640ed&start=2490&end=3820","thumbnailUrl","https://assets.pipeline.soar.com/3126628-0905c97295e9470de25ff524be6640ed/thumbnail_2490000.jpg","articleUrl","/articles/6260909/Vermont/Joint-Fiscal-Office-outlines-rescission-rules-emergencyboard-options-and-draft-Senate-language-to-respond-to-federal-funding-cuts","mediaUrl","https://secure.pipeline.soar.com/6260909-4c62b2237fd32b9d7db03ff805af6349/orig.mp4?Expires=1771193525&Signature=DcW9tJt2J~3GdhbzGDL7v~6ZCnnrmfIGCobCxr04h-r4cOMlmW1Vm4NNSPNZHt5G8nXycUDT9ZSObkCsz3ELuuCBkhkAassWtKunNFpmF3PoQUmwdXFlwkg~Esw~Q8Gs00isExr30FDeLz~8H2Y~aWjmo9R4TXCHzEcAVw9Ju26K~OArQHyfcGouCyoeVm-4sY0WctAypkmUYI1OxxZP6yWpIRKfUvlWzrVj3CbnkhQpD8GEqFxHsL-ZXUzf2V-PLHkoim5Gi2rdAOP99wjRiblzH9mY8U3R4Ndi6~E28YI~Y~VmuqG0coGkZiXOmG7MpnfpUnGtwTS-AFA-Iq-b4A__&Key-Pair-Id=KUT5TJCACFTXG","author","","date","2025-04-25T19:55:50.837Z","article","Emily Burton and Catherine Benham of the Joint Fiscal Office (JFO) briefed the committee on April 25 about current rescission law and proposed budget language the Senate added to address potential federal funding reductions.

The JFO presentation summarized current statute and described a three‑tier approach the budget language uses to provide administrative flexibility without bypassing legislative oversight. The memo presented to the committee explains how reductions in the state revenue forecast normally trigger a rescission process and how the emergency board and Joint Fiscal Committee (JFC) participate when the General Assembly is not in session.

Why it matters: Committee members and JFO staff emphasized that federal funding is large and unevenly distributed across departments. The language under consideration would create a clearer baseline for measuring federal reductions, give the emergency board limited authority to transfer a specifically appropriated contingency, and preserve legislative review in larger rescissions.

Key points from the briefing

- Current rescission process: JFO summarized the current law: rescission is triggered when the revenue forecast declines and the governor or administration prepares a plan for expenditure reductions. The transcript identifies the rescission statute as “32 BSA 704 B” and related budget statutes referenced by JFO staff.

- Three‑tier mechanics and thresholds: Under current statute the governor may implement reductions for small forecast declines, while larger shortfalls require the Joint Fiscal Committee or the General Assembly. JFO discussed the statutory 1% and 4% thresholds (illustrative dollar amounts were given from recent forecasts) and how those trigger different review paths. JFO noted the e‑board adoption of a federal‑funds baseline historically uses the federal funds number in the most recent Appropriations Act, which creates problems because federal funds change year to year.

- Senate budget language and contingency pot: JFO described Senate language in the FY26 budget that (1) designates $138,520,000 as unallocated carryforward into FY26 and (2) creates a contingent appropriation of up to $45,000,000 to the Agency of Administration to be transferred by the Emergency Board if federal funds are reduced while the General Assembly is out of session. JFO staff said the appropriation is intended to be a dedicated pot that the Emergency Board could access for federally driven shortfalls rather than reverting to other recurring appropriations.

- Definitions and calculation method: The JFO proposal recommends measuring changes in federal funds against an unduplicated appropriation baseline by government function (for example, human services, corrections, natural resources). The proposal excludes interdepartmental transfers and Global Commitment from the denominator and excludes the Education Fund from the government‑function calculation to avoid skewing thresholds.

- Process safeguards and reporting: The draft language would require the Secretary of Administration to prepare expenditure reduction plans for JFC consideration at thresholds below statutory limits, and would allow JFC to recommend emergency board transfers, rainy‑day fund access, or reversions as part of a coordinated plan. If reductions exceed specified thresholds, the General Assembly would reconvene to act.

Quotes

- Emily Burton, Joint Fiscal Office: “Rescission ... is when spending authority that is previously approved by the General Assembly has to be reduced when the General Assembly is out of session, typically triggered by a change in the revenue forecast.”

- JFO presenters on the Senate approach: staff described the goal as establishing a clear FY26 baseline for federal funds, measuring subsequent reductions against that baseline, and creating a narrowly‑scoped contingency appropriation to be used only if federal funding is reduced while the legislature is not meeting.

Committee discussion and next steps

Members asked operational questions on timing (the July forecast, how quickly the Emergency Board could act), the interaction between the 2% Emergency Board cap (about $44M) and the $45M contingency the Senate set aside, and how receivables and timing differences in federal payments would be handled. JFO staff and committee members noted that federal funding streams can be slow to change and that program‑specific impacts vary widely (a small grant can be critical to one provider while a large program can absorb some reduction).

JFO staff encouraged committee members to review the budget text and flagged that language may move in conference committee. The committee scheduled follow‑up briefings and asked JFO to provide clarifying language and worked examples showing how the calculations and transfer authority would play out across government functions.","mediaType","Video","parentTitle","House Appropriations - 2025-04-25 - 1:00PM","oneSentenceSummary","Joint Fiscal Office staff briefed the House Appropriations Committee on the statutory rescission process, emergency board authority, and Senate budget language that would set aside carryforward and a $45 million contingency for federal funding reductions while the General Assembly is out of session.","taxTitle","Appropriations, HOUSE OF REPRESENTATIVES, Committees, Legislative , Vermont","taxId",30573,"location","Vermont","headline","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":80,"_47":81,"_49":82,"_51":83,"_53":84,"_55":56,"_57":58,"_59":85,"_61":62,"_63":64,"_65":86,"_67":68,"_69":70,"_71":72,"_73":56,"_74":56},6260914,"House Appropriations hears Family Services officials warn federal funding underpins 38% of division budget; Title IV‑E cited as largest stream",821,33000,854000,"/Search/View?dp=1&key=3126628-0905c97295e9470de25ff524be6640ed&start=33&end=854","https://assets.pipeline.soar.com/3126628-0905c97295e9470de25ff524be6640ed/thumbnail_33000.jpg","/articles/6260914/Vermont/House-Appropriations-hears-Family-Services-officials-warn-federal-funding-underpins-38-of-division-budget-Title-IVE-cited-as-largest-stream","https://secure.pipeline.soar.com/6260914-cca243900646ab9ac9305e213a78e70e/orig.mp4?Expires=1771193525&Signature=UUEMxJXie0sLVw9NegI7P44Br3CJ2bjo95I4AbWRMnG6fqNSyRzt5I5RdvqeME-0cjJhqfHqEK9IdCL7gV-90xM3GGL-aU79brx82aY6YUXef0L1wjiai-DGKRJgidXrXMgAoNFH93SuHgxt7W3PtVaOeKam5IR1EGOXGUkm-qbPFFGNOxdht5rpi08Mwt736SwupAZSXNSekHfoR47asK9-txhJJWBpHTyt0kPtVndlnYBGpTjUynn6W2EfXYYzg3YifPHEJCoPXNkwgL1yQ93UOj30FRLbhMYKViqui-MXYAETE5rRoqp9VzuPImhy9PxFxLIFv3aYq4xs0H53wQ__&Key-Pair-Id=KUT5TJCACFTXG","Erica Radke, Deputy Commissioner of the Family Services Division at the Department for Children and Families, told the House Appropriations Committee on April 25 that the division has “not received any notice that federal funds have been reduced” but wanted to give lawmakers “a clear picture of the federal funding we rely on, what it does pay for, and what the potential consequences could be if those funds are reduced or eliminated in the future.”

Federal dollars account for roughly 38% of the Family Services Division (FSD) budget, according to slides presented at the meeting. Heather McClain, Revenue Enhancement Director for DCF Family Services, walked the committee through the federal funding streams and said the portfolio includes many separate grants and funding streams — with Global Commitment, Title IV‑E and TANF among the largest — that together fund staff time, foster care room-and-board, subsidized adoption and a range of supports for children and families.

Why it matters: FSD officials said a cut to one or more federal sources could force the state to shift costs to state dollars, curtail non‑statutory supports, or reduce services. Committee members pressed officials on contingency planning, program priorities and which commitments are legally constrained.

Most important details

- Scale and composition of funding: Heather McClain told the committee “38% of our budget is federal,” and presented a breakdown showing many smaller federal streams alongside several large ones. McClain and colleagues identified Title IV‑E, TANF, CHIP, Global Commitment and SSBG among the streams that support FSD operations and services.

- Title IV‑E: McClain described Title IV‑E as a “huge funder” for foster care and subsidized adoptions. She said Title IV‑E funds room and board for eligible children in out‑of‑home care, supports staff and caregiver training, and provides education and training vouchers for youth aging out of care. McClain said the division’s Title IV‑E budget for the coming year is “just over 21,000,000.” She also said the adoption‑subsidy eligibility rate is about 86% and that “we cannot change those [adoption subsidy] contracts with families unless the family consents to that change.”

- TANF and other streams: Officials said TANF revenue is used to fund a portion of social worker time on TANF‑eligible activities (the division estimates about $11,300,000 of TANF revenue attributed to FSD). McClain explained TANF claiming is tied to a random moment time study of staff activities. Other smaller federal grants identified include CAPTA (Child Abuse Prevention and Treatment Act), Children’s Justice Act funds, Juvenile Justice (JJBP), and various access/visitation and adoption incentive grants.

- Social Services Block Grant (SSBG): McClain said SSBG is a capped award used across the Agency of Human Services, and noted the next federal budget proposal had included SSBG elimination. She warned that if SSBG were eliminated the division would lose funding for subsidized transportation, evaluations and respite services used to stabilize placements.

- Medicaid/CHIP administrative dollars and Global Commitment: Officials said Medicaid administrative funds pay for staff whose work connects families to medical and treatment resources. CHIP was described as funding health care for eligible children in foster care (McClain cited about $42,000 in federal CHIP support captured on the chart). Global Commitment was described as a large blended federal/state fund that supports many direct services such as post‑permanency services, intensive family‑based services and youth development programs.

Planning and limits

- Contingency planning: Radke and McClain said the division has begun internal contingency planning and meeting regularly to examine options. McClain described efforts to “sharpen the pencils” and to consider reallocating federal revenue categories where permissible (for example, exploring additional Title IV‑E claiming where allowable), while noting many services are statutorily required and cannot be eliminated without replacing those funds with state dollars.

- Contract and legal limits: McClain emphasized that existing adoption subsidy agreements (about 2,000 active agreements) cannot be unilaterally changed under federal law without family consent; losing federal funding would require the state to decide how to meet those contractual commitments.

- Federal contacts and operations: Officials said the federal regional office consolidation (Region 1 staffing changes/centralized alias) may slow federal responses; the division expects longer turnaround times for consults and audits.

Quotes

- Erica Radke, Deputy Commissioner, Family Services Division, DCF: “We haven't received any notice that federal funds have been reduced. So we don't want to speculate at this time. But rather, we do want to provide you with a clear picture of the federal funding we rely on.”

- Heather McClain, Revenue Enhancement Director, Family Services Division, DCF: “38% of our budget is federal.”

- Heather McClain on Title IV‑E: “Title IV‑E is a huge funder of our subsidized adoption … our eligibility rate for adoptions is about 86%.”

Ending

Committee members requested follow‑up information and flagged the need for coordination with other divisions (for example, Child Development Division, Head Start) because cuts in other programs could increase demand for FSD services. Radke and McClain said they will continue contingency planning and share detailed tables and charts already placed on the committee page to help lawmakers evaluate program priorities and potential tradeoffs.","Officials from the Department for Children and Families’ Family Services Division told the House Appropriations Committee on April 25 that 38% of the division’s budget is federal. They outlined which federal programs support foster care, adoption, training and other services and described contingency planning in the event funds are reduced.","actionData","errors"]

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Joint Fiscal Office outlines rescission rules, emergency‑board options and draft Senate language to respond to federal funding cuts

House Appropriations hears Family Services officials warn federal funding underpins 38% of division budget; Title IV‑E cited as largest stream