Vermont DOC requests $230.8 million for FY26; cites vacancies, overtime and new Medicaid reentry waiver

Kristen Calvert, deputy commissioner of the Vermont Department of Corrections, told the Senate Appropriations Committee on Feb. 27 that the agency’s FY26 budget request totals $230,800,000 and is roughly 95 percent general fund. She said the request is driven primarily by collective‑bargaining enhancements, annualization of salary and benefit costs, and negotiated increases in contracted health services.

Calvert said the department has roughly 1,125 position numbers and that facilities are carrying a 17.2 percent vacancy rate; vacancy‑related overtime has driven a 20 percent increase in overtime costs over five years. "This is a direct correlation to the vacancy rates that we've experienced," Calvert said.

Why it matters: The DOC budget request focuses on labor‑cost drivers and population management, including use of out‑of‑state contracts for some individuals, expansion of pretrial services pilots, and an 1115 Medicaid waiver the department said will allow Medicaid coverage 90 days before release and postrelease care management beginning Jan. 1, 2026.

Calvert outlined the department’s population, facilities and program context: Vermont operates six in‑state facilities (five for men, one for women), one contracted out‑of‑state facility in Mississippi and 12 probation and parole district offices. As of the hearing the DOC reported about 882 sentenced individuals and 551 detained (pretrial) individuals; the DOC described roughly 91 percent of its population as male. The department reported about 19 people housed out‑of‑state at the time of the hearing and said that figure is much lower than earlier pandemic peaks.

Calvert described grant programs and federal funding streams the DOC is managing, including a prison‑rape elimination act (PREA) grant, adult reentry education grants (ARRIS), a community college program offering courses to incarcerated individuals and staff, and an 1115 Medicaid reentry waiver that the department said will cover medically assisted treatment (MOUD), screening tools and postrelease care management. "This allows the folks to access Medicaid benefits 90 days pre release and then care management for post release services," Calvert said of the waiver.

On the use of out‑of‑state beds, the department said per‑diem rates differ by contract and bed type. Calvert stated an in‑state per‑diem of about $299 per day and said the out‑of‑state rate varies depending on bed type; committee discussion noted prior peaks when out‑of‑state placements were much higher.

Labor costs were a focus: the department said collective‑bargaining changes added security differentials and regular shift differentials; a new corrections pay chart and a codified 2‑3‑2 12‑hour schedule were part of the bargaining outcome. Calvert said the pay chart change and differentials are intended to reduce vacancies and mandatory overtime but acknowledged the current vacancy rate continues to drive overtime and travel‑staff use.

The DOC also requested $2.4 million for a negotiated contract increase in correctional health services and identified a $650,000 expansion for statewide pretrial services (to add staff and field operations in additional counties). Calvert said pretrial expansion has begun in Newport and St. Johnsbury (Caledonia County) and is being ramped up as staffing and electronic field‑reporting tools are implemented.

Community investments highlighted in the presentation included transitional housing, community justice centers and recovery supports, and the DOC listed grant funding for the women’s facility planning process; Calvert said site work is ongoing with sites being considered in Essex and that capital design funds remain in the capital bill but no operating money was included in the governor’s FY26 operating budget.

Calvert closed by noting trends in health care needs inside facilities: she said 96 percent of people in custody receive at least one medication, psychotropic medications account for about 59 percent of that prescribing, and the average number of medications per person is 5.5. Emergency department use has risen — the DOC reported about 650 ED visits in a recent year — and the department said some of that growth reflects untreated chronic conditions identified after intake.

Ending note: The DOC asked the committee to consider the budget in light of collective‑bargaining commitments, vacancy‑driven overtime, increased health contract costs and the near‑term rollout of the 1115 Medicaid reentry waiver. No committee votes were recorded on the DOC FY26 request at the hearing.

Votes at this hearing: no formal votes were taken on DOC budget items during the Feb. 27 hearing; witnesses presented budget details and answered committee questions.