Appropriations committee reviews capital bill: cash vs. bonded funding, three housing projects and Veterans Home incubator farm

Committee members spent the bulk of the hearing reviewing the Senate capital bill spreadsheet and the committee’s proposed changes to the governor’s recommendations, emphasizing the committee’s intent to increase use of cash funding rather than bonded debt and flagging several projects the committee judged to be close to “shovel ready.”

Wendy Harrison, chair of Institutions, explained the committee’s focus on cash funds and the two‑year bonding cap: “So in 2023, the previous treasurer, and governor and, and the legislature, agreed on a system where we would have cash funding for a capital program so that we wouldn't be limited to bonded dollars which have an interest cost to them. … There’s a committee that decides before we embark on a on a 2 year capital bill that limits the amount of bonding … this 2 year period was a hundred million dollars over 2 years.”

Harrison highlighted three housing infill projects that the committee classified as at risk because they are underway but not fully funded. She described the projects as an administration list vetted by ACCD and summarized each: Bennington High School Redevelopment (a multiuse downtown project including affordable housing and senior services); the Berry project (an infill site with flooding and infrastructure needs and an access road issue); and a Brattleboro project led by Winston Prouty, a human services agency, that could produce up to 300 units and that the proponents are exploring non‑federal funding sources to avoid federal program restrictions.

On the Veterans Home, Harrison described renovation work and a late proposal for a 12‑acre “incubator farm” to provide food to the home and training for veterans; the committee provided seed funding to begin the project. She also noted the Constitution House restoration is included in major maintenance and that work will include mechanical systems, windows and floodplain mitigation ahead of an anniversary event in 2027.

Committee members raised energy and long‑term sustainability concerns around replacement of aging central heating plants at state institutions. One senator queried whether replacement boilers would be made more energy‑efficient or renewable; the committee discussed the tension between upfront cost and lifecycle environmental impacts. “It feels weird to be funding a thing … that burns a significant amount of fossil fuels,” a committee member said when discussing the life‑cycle implications of a new boiler purchase. Committee members asked staff to follow up and get more detail from institutions on alternative fuel or renewable options and whether procurement and design could require higher efficiency standards.

Other capital items discussed included dam safety assessments (funding for comprehensive assessment and design work on several small, state‑owned dams), courthouse projects including the White River Junction Courthouse, dry hydrant rural fire protection funding, and various historic preservation and multi‑use grants. The committee moved to adopt the Senate spreadsheet adjustments and will continue to reconcile cash vs. bonded priorities in the conference process.

What happens next: The committee will carry forward its capital bill numbers and highlighted projects into the larger budget/appropriations process and will request follow‑up information from agencies on energy options for major mechanical replacements and on costings for scaling projects statewide.