Treasurer asks Senate Appropriations for BAA language fixes, $220,000 for survivors fund and partial Climate Superfund funding

State Treasurer Peter Picek told the Vermont Senate Appropriations Committee at a committee meeting that he is seeking language corrections in the Budget Adjustment Act (BAA), a one-time appropriation of $220,000 to the Emergency Personnel Survivors Benefit Trust Fund, and partial funding to begin the treasurer’s office work on the Climate Superfund cost assessment.

Picek said the BAA contains a "notwithstanding" language that could interfere with the pension-related funding waterfall established in 2022. “The teacher post retirement adjustment allowance account, that's the P‑triple‑A. The waterfall is the only funding source for that item,” Picek said, urging the committee to remove the notwithstanding language and address the item in the regular budget process when revenue and withholding details are firmer.

The pension-waterfall issue stems from the pension reform legislation enacted in 2022 and is intended to preserve the priority of specified funding streams for the Teacher Post Retirement Adjustment Allowance Account (PAAA). Picek said removing the notwithstanding clause from the BAA would leave the waterfall language intact for discussion during the main budget, when revenue figures are more precise.

Picek also asked for two drafting corrections related to the administration of economic empowerment programming and debt-service language. He asked that references to “Vermont Saves” be changed where appropriate to “Economic Empowerment Division” following Act 78 (2023), and requested a small textual fix in Section 76 so that the debt-service provision reads "underwriter fees and amounts for reserves" (adding the missing word "and").

On the Emergency Personnel Survivors Benefit Trust Fund, Picek said the fund — which pays benefits for volunteer firefighters and EMS personnel who die in the line of duty or from work-related causes — has been largely inactive for years but has seen recent claims. “I believe the last claim was in February 2016,” Picek said, adding that the office has received at least four claims in the past several months and a possible fifth that would deplete available balances. He requested a one-time infusion of $220,000 to cover pending and reasonably expected claims in the near term. Committee members clarified that interest earned on the account remains in the trust fund.

Picek noted the fund’s benefit cap had been raised in prior legislation from $50,000 to $80,000 to adjust for inflation, but said the current request does not expand the categories of workers eligible for the fund; it is intended only to cover claims for the occupations already included.

The treasurer described a separate request tied to the Climate Superfund work required by statute: the treasurer’s office and the Agency of Natural Resources (ANR) issued an RFI and received responses indicating that Vermont‑specific flood and climate modeling required for the work is specialized and will take additional time and resources. Picek said the office previously sought $300,000; the full ask in his office’s report is $700,000 plus a limited‑service position (estimated at about $125,000). For the BAA, Picek said the office requested $350,000 and authorization for the limited‑service position so a request for proposals (RFP) can be issued and the work can begin earlier than waiting for next year’s budget cycle. “The full ask is 700,000 and limited service position, FTE,” Picek said.

Committee members asked whether the FTE funding could be split across fiscal years; Picek said that is feasible and that the position would likely span part of fiscal year 2025 and all of fiscal year 2026. No formal votes or committee actions on these requests were recorded in the session.

The committee proceeded to the Joint Fiscal Office briefing and other agenda items after the treasurer’s presentation.