Vermont State Colleges ask for continued bridge funding, capital repairs in FY26 budget hearing

CHANCELLORS AND CFO GIVE OVERVIEW, BUDGET REQUEST On Feb. 7 at a meeting of the Senate Committee on Appropriations, Vermont State Colleges Chancellor Beth Mauck and Chief Financial and Operating Officer Sharon Segosh presented the system's FY26 budget request and capital needs, asking the legislature to continue bridge support while the system completes a multi‑year financial turnaround.

Why it matters The Vermont State Colleges system includes the Community College of Vermont (CCV) and Vermont State University (VTSU) and operates campuses and centers across the state. Committee funding decisions will affect operating capacity, maintenance of campus buildings and tuition programs that several presenters said are driving enrollment and workforce outcomes in key fields such as nursing.

What presenters told the committee For the record, Chancellor Beth Mauck said the system has about 850 employees and described the colleges as “the heart and soul of these rural communities.” Mauck highlighted the system’s recent work to expand workforce programs, noting in her remarks that “this year alone, we graduated 500 nurses. Over 90% of them were Vermonters or took the exam in Vermont.”

CFO Sharon Segosh reviewed finances and the multi‑year recovery plan the system has followed since the pandemic. Segosh said the system had about eight days of cash on hand early in the pandemic and that the legislature created a select committee and a multi‑year plan to restore sustainability. She described the FY25 base appropriation as $50.9 million and said that amount represented about 26% of the system’s total revenues, up from roughly $30.5 million (about 17% of revenues) during FY20.

Specific budget requests and governor’s recommendation Segosh told the committee the Vermont State Colleges is requesting a 3% increase to base appropriations (consistent with the governor’s broad recommendation), plus an additional $1.5 million tied to a legislative change in the required structural deficit reduction under Act 113, and $5 million in bridge funding (a step down from the $10 million bridge provided in FY25). The administration’s recommended package shown to the committee included $52.5 million in general fund appropriations, $5 million in bridge funding and $1 million for CCV’s tuition‑advantage program.

Capital and maintenance request The system requested $21.5 million in capital funds to support statewide major maintenance, a renovation to Jeffords Hall at the Casper Moon campus (as presented), and a central heating plant replacement at the Johnson campus. The governor recommended $3 million for major maintenance and $5 million for the Johnson campus heating plant (a total of $8 million).

Segosh said the Johnson central plant is more than 60 years old and that the administration’s recommendation reflects a like‑for‑like replacement approach. She told the committee that converting the plant to a substantially different fuel or system would likely raise costs significantly; she gave a rough additional estimate of about $15 million to make a larger alternative‑fuel conversion possible because of site constraints and required building work. The system said planning and design work for the project would be scheduled in year one of the biennium with construction in year two if full funding is available.

Tuition programs and enrollment trends Mauck and Segosh described recent enrollment and student aid outcomes: the system reported about 2,000 graduates in the most recent year, roughly 10,000 degree‑seeking students and about 7,000 students in workforce programs; they said roughly 80% of enrolled students are Vermonters. VTSU showed a reported 14% increase in new students in the year referenced by presenters, and the system expects continued growth for fall 2025.

Mauck and Segosh highlighted the 802 Opportunity Grant, administered through the Vermont Student Assistance Corporation (VSAC), which provides free CCV tuition to Vermonters whose families earn $75,000 or less. They said the grant has driven enrollment and retention at CCV; the presenters said about 60% of CCV students benefit from the 802 Opportunity Grant. The system told the committee it would like to explore expanding comparable eligibility to VTSU, and offered an approximate annual cost figure of around $5 million to extend an 802‑style program into VTSU (presenters also cited an estimate of roughly $7 million for a $100,000 income cap across the system in one scenario).

Fiscal and structural context Segosh said the legislature reduced the system’s required structural deficit reduction from $25 million to $22 million under Act 113 and that the system’s FY26 request includes funding to align with that updated target. Segosh reiterated that while the system has reduced operating expenses and rebuilt reserves, continued state support during the multiyear transition remains necessary to meet commitments and complete capital work.

Questions from committee members Committee members questioned the presenters about the scope and sequencing of the Johnson campus heating plant project, potential alternative fuels and the timing of planning and design work. Presenters described options: proceed with a like‑for‑like replacement to lower upfront costs, include assessment of alternatives during planning if additional planning funds are provided, and return to the legislature for further funding if conversion to a different system is chosen.

What the committee will do next No formal committee action or vote on VSC funding occurred at the Feb. 7 hearing. Committee members said they will review the system’s written materials and the governor’s recommendation and will take further testimony and deliberations during the budget adjustment process.

Ending note Mauck closed by describing a strategic plan called “VSC Vision 2030,” which prioritizes online program growth, seamless transfer pathways, apprenticeship education and housing transformation to support older and part‑time students.