Senate-House conference trims bond requests, shifts some capital projects to cash funding

Sen. Wendy Harrison, chair of the Senate Institutions Committee, told House representatives at the committee-of-conference that the Senate is generally supportive of using cash funds rather than additional bonding to reduce borrowing and long-term debt service costs.

Harrison said the committee used a reconciliation spreadsheet showing the governor’s recommendation, the House response and the Senate response, and shaded where either body differed from the governor. "In general, speaking to the bonding versus the cash dollars, our committee is generally supportive of the concept," she said.

The committee described a set of targeted changes and reductions to move money into cash funds and trim bond requests so other items could be preserved. On a bundle of Department of Buildings and General Services (BGS) projects, the Senate reduced the allocation for a three-acre partial stormwater compliance project in fiscal year 2027 (FY27) to free up funds for items listed in Section 4 of the reconciliation package. Harrison said the reduction is expected to be restored to an appropriate level in FY27 if additional funding is required after FY26 work is complete.

Committee members discussed several other project adjustments. A planned upgrade to the Pittsburgh Academy firing range, listed in FY27, was reduced with the expectation BGS would not need the full $200,000 next year. The Burlington Cherry Street parking garage allocation was cut from $500,000 to $250,000 to help fund Section 4 priorities.

Alice Dillon, identified in the transcript as chair of Corrections and Institutions, asked for clarification about shifting bonded dollars to cash. "So that's $700,000 total in bonding. And you were looking for bonded money for what?" she asked. Harrison replied that the change would move bond dollars into cash funds for three housing-related infrastructure projects that the committee views as needing immediate, non-borrowed funding.

The reconciliation package also included several targeted cash grants and smaller capital adjustments: a $250,000 grant for a recovery residence purchase tied to a Department of Health and Community Development item, $25,000 added to support a Walleye Association project, and a $35,000 increase for a dry-hydrant program (the committee said the program had requested an additional $70,000 but the committee could only provide the smaller increase). The committee added $45,000 to an incubator farm proposal on property associated with a veterans home after a later request for roughly $127,000; committee members described the incubator as a multipurpose project to grow food for the veterans home and to provide training for new farmers.

Members raised logistical and ownership questions about several projects. Committee members asked whether insurance had covered storm damage to the Bennington Monument fencing and whether the previously appropriated $419,000 would be sufficient if insurance did not pay. Harrison said staff would follow up to confirm insurance coverage and ensure enough funding for any resulting request for proposals. On the recovery residence in St. Albans, members asked whether the state would take title; Harrison said the committee would obtain answers and clarify ownership and the remaining funding gap.

The committee noted the White River Junction courthouse project is effectively an $8 million budgetary need and discussed why the amount was split between cash and other funding lines. No formal votes or final conference report were recorded in the transcript; members repeatedly said staff would check outstanding details and that the reconciliation package would be refined before the next session.

Discussion vs. decisions: the transcript records committee decisions to reduce or reallocate specific line items (for example, Burlington parking and the firing-range allocation) and to move certain projects from bonding to cash funding as an intent of the Senate response. Several items were described as contingent on follow-up (insurance for the Bennington Monument, property ownership for the recovery residence, and FY26 spending that could affect FY27 allocations). Committee members instructed staff to obtain missing details and expected to revisit the package.

The committee framed the cash-vs.-bonding approach as intended to "reduce the amount of borrowing so that we reduce the amount of debt service," a rationale Harrison attributed to both the current and previous state treasurers. No statutes, ordinances or final votes were cited during the recorded discussion.

The committee agreed to continue work on the package and to circulate additional information to members; Harrison said she hoped the Senate and House would continue this conversation when the legislature reconvenes.