The Executive Finance Committee heard an update Monday on the commission’s fiscal position and concerns about grant carryover among regional planning commissions in Vermont.
The executive director said the commission expects to end the fiscal year in the black and is working through closeout tasks. She noted uncertainty over how a recently passed bill will affect budgets in October and raised specific questions about FEMA-funded emergency management and long-term recovery programming. “The biggest question right now is the FEMA stuff. Is FEMA going away?” the executive director said.
Committee members discussed fund-balance practices. Staff said the commission aims to maintain a fund balance equivalent to roughly six months of operating expenses, and that auditors commonly recommend such a cushion. “As our budget grows, that fund balance is supposed to grow as well,” the executive director said. She added the commission requested funds last year for office renovation and VAPTA work but ultimately did not spend that carryover request.
The executive director warned that some regional planning commissions are carrying forward significant unspent grant funds due to staffing shortages; she estimated carryover amounts “to the tune of some 50, some $100,000” at other RPCs. That carryover has prompted statewide conversation about whether RPCs are requesting more funds than they can feasibly spend. She said Vermont RPCs and grantors are focused on producing accurate, feasible budgets and spending grant dollars as intended.
The committee discussed how to respond if the commission reports a positive balance; staff said fund balances demonstrate sound fiscal policy but that the commission should not retain funds unnecessarily if the work does not exist to justify the expense.
No formal budget decisions were adopted at Monday’s meeting; staff will continue work on closeout and report back on final figures.