Vermont State Colleges tell House Education committee system is ‘turning a corner,’ seek operating and capital funds

Chancellor Beth Mout told the House Education Committee on Feb. 7 that the Vermont State Colleges system has moved from a short-term cash crisis toward financial stability and presented operating and capital funding requests to sustain that progress.

Mout said the system — which includes Vermont State University and the Community College of Vermont — graduated about 2,000 students last year, serves roughly 10,000 degree-seeking students and 7,000 additional students in workforce programs, and that 80% of its students are Vermonters. She said Vermont State University enrollment increased 14% in new students beginning fall 2024.

Budget request and background

Chief Financial and Operating Officer Sharon Scott reviewed the system’s fiscal turnaround. She said the colleges had about eight days of cash on hand during the crisis and were asked by the legislature and a select committee to reduce a structural deficit through multi-year actions. Scott said base state support has increased since FY20 (from about $30.5 million) to the current level (about $50.9 million in FY25) and now represents a larger share of system revenues (from about 17% to roughly 26%).

The Vermont State Colleges requested the following in addition to the governor’s budget recommendation:

• A 3% base increase consistent with the governor’s proposal plus an additional $1.5 million to address the structural deficit from legislation (total noted as a 5.9% change when combined).

• $5 million in bridge funding for FY26 (continuing the multi-year support agreed under the restructuring plan).

• $21.5 million in capital funds for statewide major maintenance, renovation of Jeffords Hall and replacement of the central heating plant on the Johnson campus. The governor recommended $3 million for major maintenance and $5 million for the Johnson heating plant.

Why it matters: Mout and Scott said the funding would support statewide access to higher education, workforce-aligned programming and campus safety and maintenance after several years of structural adjustments.

Key operational points

• Workforce and student demographics: Scott said many students are part-time and older than traditional college-age students; the system has expanded online and hybrid course options and stackable credentials to meet those needs.

• Cost reductions and reserves: Scott said the system reduced salary and wage expenditures by roughly $11 million from FY20 to FY24 (a 9% decline including contractual increases) and used legislative bridge funding and restructuring actions to build reserves.

• Requested capital: The $21.5 million capital ask focuses on life-safety, property preservation and projects that support health-professions growth; the system also reported $12 million in congressional designated funds for nursing and dental-hygiene expansion.

Quotes

“We were in some very dark times. We had about eight days of cash on hand,” Sharon Scott said. “I can see the edge of the woods for the very first time.”

Ending

Committee members asked clarifying questions about the multi-year bridge funding schedule and structural-deficit targets. The system said the first pass of the FY26 budget would go to its board and that materials will continue to be shared with the Legislature as the appropriation and capital processes proceed.