House Appropriations hears Corrections and Institutions capital bill, committee advances measure unanimously

Representative Alice Evans, chair of the Corrections and Institutions Committee, briefed the House Appropriations Committee on Wednesday, March 26, 2025, on the committee's proposed capital bill, outlining funding levels, reallocations and language changes across state building, water, corrections and cultural projects.

Evans said the bill's spreadsheet "is going to be the easiest piece. So let's start with a spreadsheet," and walked members through the back-page summary showing the committee's two-year funding box, distinctions between bonded and cash funds, and line-item changes from the governor's recommendation.

The nut graf: The bill packages major maintenance and new planning dollars for the Buildings and General Services (BGS) portfolio, corrections facilities, drinking- and clean-water programs, historic preservation and other local infrastructure needs. Provisions include transfers and language intended to increase project flexibility, an extension of the time allowed for unencumbered cash funds, and a continuing special committee role for capital complex flood recovery work.

Most important numbers and scope were presented by Evans: she said the committee is working in a box that includes roughly $61.6 million of bonded dollars in FY 2026 and about $50.3 million in FY 2027, and a cash fund balance of about $11.3 million for the two-year period. Evans described the committee's two-year bonded total in the spreadsheet and said adding cash brings the two-year total to "almost a hundred and 23,300,000" (figures reported to the committee by Evans during the hearing).

Key policy and project highlights discussed

- BGS major maintenance and State House design: The committee reduced a proposed FY 2026 small-cash maintenance item in favor of bonded dollars to preserve tracking and oversight. Evans said the State House faces major exterior moisture and stone work; the committee placed a planning-design allocation (approximately $500,000 in Evans's presentation) for initial work on the building.

- Corrections facilities (DOC): The bill continues a multi-year effort to install HVAC/air-conditioning systems at priority correctional facilities, with Evans noting more than $4.7 million already appropriated in prior bills and work prioritized for Springfield and Newport. The committee allowed some reductions in FY 2026 to preserve project momentum while recognizing supply-chain and scheduling uncertainties.

- St. Albans booking area and roof: Evans said prior appropriations included roughly $2.6 million for booking plus about $1.2 million for related work; the committee added language allowing BGS to transfer funds between roofing and booking-area projects to preserve flexibility when bids and schedules vary.

- "Three B's" private-development infrastructure: The governor had recommended about $3.1 million to support three private development housing projects with infrastructure upgrades (water/sewer/roads). The Corrections & Institutions committee expressed concern about using capital dollars for private construction without clear eligibility guardrails, reduced the committee's allocation to about $2.0 million, and removed administration-proposed grant-program language in favor of cash already allocated elsewhere in the housing package.

- Historic sites and Bennington Battle Monument: The committee reinstated an annual roadside historic marker appropriation (~$25,000) that the governor omitted and allocated $525,000 for next design/RFP steps and fence repairs at the Bennington Battle Monument (Evans said about $400,000 remained from last year's appropriation and the committee added $125,000).

- Building community small grants: The committee increased funding for small municipal/nonprofit building grants (capped at $25,000 per grant, 1:1 match) to $300,000 to support boilers, ADA upgrades, roofing and similar projects in small towns.

- Drinking Water and Clean Water programs: Evans reiterated that the Drinking Water Revolving Loan Fund and the Clean Water Revolving Loan Fund are primarily state-match vehicles that draw down federal funds at roughly a 1:5 state-to-federal ratio. She said prior capital appropriations left enough FY 2026 capacity that the governor did not propose an FY 2026 state match for the drinking water fund, while the committee added modest amounts for dam safety and continued the annual $10 million clean-water lump-sum approach targeted to meet TMDL obligations for Lake Champlain and Lake Memphremagog.

- VHCB and agricultural water-quality work: The bill includes funding to enable the Vermont Housing & Conservation Board (VHCB) and other partners to accelerate water-quality projects that can leverage federal dollars, Evans said.

- Military/readiness centers and The Big E: The committee maintained the governor's recommendations for armory/readiness center planning and design and continued investments at the state's exhibit building at The Big E fairgrounds to address exterior and interior upgrades and ADA improvements.

- BTC/VTC lab and boiler partnership: The committee kept prior and new funding to replace and modernize heating systems that serve a laboratory rebuilt after Tropical Storm Irene. Evans described a partnership with Vermont Technical College (VTC) to upgrade burners and move from #4 to #2 fuel, noting the committee added about $3.5 million to the project on top of $1.8 million previously appropriated.

- Public Safety and Judiciary facility planning: The bill includes planning dollars for a new State Police readiness center and Rutland field station; Evans said planning funds were also identified for county courthouses with state functions (Woodstock, Essex, Lamoille) for power backup and security/connectivity improvements.

Language changes, reallocations and process changes

Evans described multiple reallocation actions and language clarifications intended to move funds that are not being spent into projects that can proceed. The committee increased its proposed reallocations above the administration's submission (Evans contrasted a governor figure of about $3.1 million with a committee recapture of about $5.0 million in bonded dollars) and described specific transfers (for example, reallocating unused FY 2024 cash for Betts Home wing work and allowing transfers between the Betts and veterans' home boiler appropriations).

The bill also extends the time window for unencumbered cash funds before automatic transfer: the committee lengthened the period from 2 years (as previously applied) to 3 years and clarified that the clock starts at the end of the legislative session, not at initial passage.

Evans described statutory language authorizing a continuing special committee for capital complex flood recovery that was created after the 2023 floods; the bill continues that authority and requires notice to the city of Montpelier and the Montpelier Commission for Recovery and Resilience on alterations to recovery plans.

Questions and concerns raised

Committee members pressed on several items, including whether capital dollars should fund private developers' infrastructure, the pace at which ANR sends clean-water and dam-safety monies out the door, status of specific dam projects (Evans flagged Wrightsville Dam and projects listed as on hold), and uncertainty in project schedules tied to permitting and supply-chain constraints. Evans repeatedly emphasized that some allocations are for planning/design now and construction may follow in later years.

Outcome and next steps

Evans told the committee that the Corrections and Institutions Committee had voted the bill out the previous day by an 11-0 margin. She said Appropriations does not yet have possession and will coordinate timing with legislative management; when the bill comes to Appropriations the committee plans to consider chair's technical amendments and at least one member amendment (extending certain limited-service positions funded within vacancy savings for one year).

Quotes

"The spreadsheet is going to be the easiest piece. So let's start with a spreadsheet," Representative Alice Evans said as she opened her presentation.

"We voted out yesterday, this is the bill and the vote was 11 zeros," Evans said, referring to the Corrections and Institutions Committee's unanimous report.

Ending

Appropriations members were given time to review the highlight sheet and a one-page budget summary before floor action; Evans said committee staff would circulate technical edits and any member amendments before the bill reaches the floor. The bill preserves planning and maintenance dollars across multiple state agencies while adding language to speed use of prior appropriations and to clarify fund expiration timelines.