Chancellor Beth Mauck told the House Appropriations Committee Friday that the Vermont State Colleges (VSC) are seeking continued state support as they transition from recent financial instability to a more sustainable model. "For the record, I am Beth Mauck. I am the chancellor of the Vermont State Colleges System," Mauck said, and asked legislators to consider a FY26 budget that includes a 3 percent inflationary increase plus an additional $1.5 million added to the base appropriation.

The request is aimed at aligning the system with the structural-deficit reduction codified in Act 113. Sharon Scott, VSC chief financial and operating officer, outlined the system's multi-part request: a 3 percent base increase, an additional $1.5 million to the base in FY26 to complete a prior adjustment, $5 million in one-time final bridge funding, and targeted support for allied health programs. Scott said, "We're at a little more than 2 and a half months [of cash on hand] at the moment," up from a low point when the system had about eight days of cash on hand.

Why it matters: the state increases have materially changed VSC's revenue mix and capacity to invest in programs that serve rural communities. Scott noted that base appropriations rose from about $30.5 million in FY20 to about $50.9 million in FY24, moving state support from roughly 17 percent to about 26 percent of VSC revenues. The governor has recommended a $52.8 million base appropriation plus a $5 million bridge payment; Scott said the governor's recommendation also includes $1 million for the CCV Tuition Advantage program, which VSC officials noted was fully utilized last year.

VSC offered data to support the request: in academic year 2023-24 the system reported roughly 2,000 graduates, about 10,000 degree-seeking students and another 7,000 students enrolled in workforce programs; about 80 percent of students are Vermonters. The system highlighted nursing as a workforce priority: VSC reported roughly 415 nursing graduates in the most recent year, and told the committee about 90 percent of those graduates are Vermont residents.

VSC also asked for capital funding to address deferred maintenance and infrastructure needs. Scott said the system requested $21.6 million in capital projects, itemized as an estimated $8 million to replace the heating plant at the Johnson campus, $8 million for statewide major maintenance, and $5.6 million to renovate Jeffords Hall at Castleton. The governor recommended $8 million in capital for the system this biennium, with $3 million directed to major maintenance and $5 million toward the Johnson heating plant.

Officials described investments the system has made from its own funds while working toward stability: VSC said it directed $2.5 million of institutional funds to deferred maintenance in the past year and self-funded about $600,000 for an additional project. Scott told the committee the VSC expects the requested $5 million bridge payment to be the last one and said the system intends to present a balanced budget for FY27.

The presentation also covered financial-aid and enrollment policy: CCV remains free for students from households earning $75,000 or less, VSC officials said, and they asked the committee to consider support for a proposed "Freedom and Unity" scholarship concept being advanced by VSAC to replace the now-expired critical-occupations scholarships that VSC officials said boosted nursing and other workforce enrollments.

Next steps: the committee did not vote; the requests will be considered in the Appropriations process. VSC officials answered committee questions about enrollment, reserves and the timeline for phasing out bridge funding.