Public Assets Institute: many Vermonters fail to meet basic needs as housing, health care and food costs rise

Julie Lowell, economic security policy and outreach director at the Public Assets Institute, briefed the committee on the institute’s State of Working Vermont analysis and urged legislators to consider revenue and policy responses to rising costs in housing, health care and food.

"Our state revenue and spending policies should be addressing health, housing, dignified work, education, food, social security, and a healthy environment," Lowell said, summarizing the policy framework she used in the presentation.

Major findings and numbers presented - Basic needs benchmark: Lowell said a 2023/2024 benchmark shows a single‑parent family of four needs nearly $90,000 a year to meet basic needs. That figure was used as a yardstick to evaluate how many Vermont households meet a minimal standard of living. - Wage gap and minimum wage: Lowell said Vermont’s wages are generally below U.S. averages for the same jobs and that Vermont’s minimum wage was about $14.01 in 2025; she said the minimum wage leaves workers roughly $10,000 per year short of a calculated livable wage for a single worker in shared housing. - Health care: Lowell showed that medical inflation outpaced general inflation (medical costs above 6% in a 12‑month period ending October 2024) and said out‑of‑pocket costs for employees have roughly doubled over a 10‑year span. She noted about 140,000 Vermonters have Medicaid coverage and that pending federal changes to Medicaid funding could affect those beneficiaries. - Housing: Lowell said housing costs have risen faster than inflation and cited that more than 50% of households with incomes under $75,000 paid more than 30% of income on housing (data cited from 2023 statistics). She and a colleague emphasized interest rates as a main driver of rising monthly mortgage payments and said many lower‑priced rental units have disappeared from the stock. - Food and SNAP: Lowell said food prices spiked in 2022 and remain permanently higher; federal SNAP benefits that rose during the pandemic have been reduced and the institute estimates about 66,000 Vermonters receive SNAP ("3Squares") assistance. She warned ongoing federal funding uncertainty could reduce assistance and affect retailers. - Housing vouchers: Lowell noted Vermont has about 7,400 housing vouchers and said federal funding shifts nationally removed roughly 32,000 vouchers nation‑wide in a recent continuing resolution; she said it was unclear how many Vermont households would be affected.

Policy levers and local efforts Lowell highlighted the state earned income tax credit (EITC), expanded child tax credits and state investments in childcare (over $100 million annually committed) as tools that reduced poverty and improved family outcomes during the pandemic. She recommended targeted, refundable tax credits and investments that give families flexible cash assistance and that foster asset building.

Committee reaction and follow‑up Committee members asked for more granular breakdowns of housing cost drivers (property tax, mortgage principal vs. interest, utilities) and Lowell indicated the full report includes monthly‑payment breakdowns showing interest rate increases drive much of the higher payments for homeowners with new or adjustable‑rate loans. The committee scheduled further hearings on trade and tariffs and Lowell noted a joint hearing on Canada–U.S. trade and tariffs set for April 9; she asked for suggestions for witnesses.

Context Lowell framed the presentation as part of the broader budget and revenue conversation: expected federal funding changes and proposed tax cuts would shift more responsibility to state revenue decisions. She urged the committee to consider revenue options that preserve state commitments to basic needs.