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Committee hears unexpected $3 million liability payment and VHFA appropriation adjustments
Summary
Finance staff told the committee about an unanticipated $3 million payment recorded to the state liability self-insurance fund tied to a multiyear federal settlement; members also discussed a returned VHFA appropriation originally intended for a weatherization program.
Finance staff alerted the committee to a $3,000,000 payment that posted to the state liability self-insurance fund in July as part of a multi-part federal settlement described in the hearing. The payment had not been included in the administration's Budget Adjustment Act assumptions and prompted staff to flag the need to replenish the liability fund with properly identified (non-federal) sources.
"We are very worried that we would be paying a federal fine with federal money," a finance official said, explaining that the liability fund is an internal service fund and departmental charges are paid in part with federal funds. The staff member said the administration moved to put replacement money into the liability fund where practicable and informed the House about the change.
Committee members also asked about Section 53, a $3,000,000 appropriation to the Vermont Housing Finance Agency (VHFA). Finance staff said VHFA notified the state it did not fully utilize the appropriation and that approximately $2,000,000 may be reverted; staff indicated they would check the original appropriation purpose but recalled it was likely for a weatherization program.
The committee asked staff to provide follow-up documentation on the settlement payment, the liability fund accounting implications and the original VHFA appropriation intent and utilization.
