Appropriations committee advances budget adjustment items after review of DPS costs and lower-than-expected sports-wagering revenue

The House Appropriations Committee on Jan. 30 continued work on the Budget Adjustment Act, advancing several agency adjustments after staff briefings and closing multiple open line items as members prepared for a straw poll and final votes next week.

Committee members focused on a set of proposed changes affecting the Department of Public Safety (DPS), a reduction in expected revenue from sports wagering that affects the liquor enterprise fund, and flood-related costs noted by the Vermont State Recovery Office. The committee also addressed technical changes to Medicaid-related information‑technology planning documents.

The committee heard from DPS staff and its finance director about ‘‘cost pressures’’ tied to digital-services contracts, liability insurance and legacy record‑keeping systems, which prompted the proposed transfers and top‑ups in the Budget Adjustment Act. Representatives said the DPS explanation ‘‘made the comments make sense’’ and the committee reported a straw poll approving the DPS adjustments 11–0. The committee chair indicated the items would be closed out as part of the BAA process.

Members discussed sports‑wagering receipts as part of a review of the liquor enterprise fund. Committee members noted that the first‑year forecast for sports wagering had been $7 million but that realized state receipts were closer to $6–$7 million, with an identified reduction of about $800,000 from earlier expectations. Witnesses and members also cited a 2024 handle (total amount wagered) of about $196,000,000 and emphasized the seasonality of wagering revenue: early spikes related to football and March college tournaments were not sustained through the year. Lawmakers said the committee agreed that a one‑time transfer to eliminate a rolling deficit in the liquor enterprise fund was the appropriate immediate remedy and that the fund’s ongoing revenue expectation for FY2026 would be lower than previously estimated.

Committee members also noted a memo from the Vermont State Recovery Office describing increased costs tied to the 2023 and 2024 floods; staff said those costs were being considered for the FY2026 budget and would appear in section E100 planning. Members characterized that information as relevant to the committee’s emergency‑services jurisdiction and said the Recovery Office planned to request funding in the FY26 budget.

On information‑technology contracting, members discussed how certain IT projects that primarily benefit Medicaid had been reclassified into a smaller Advanced Planning Document (IAPD) that is 100% Medicaid‑funded to maximize federal matching funds. Committee staff described the change as technical but material to how project costs are charged across funds.

Committee leaders outlined the near‑term schedule for the Budget Adjustment Act: a straw poll will be held the next day as a temperature check, staff (JFO and committee staff) will consolidate language over the weekend, and the bill is expected through Ways and Means and onto the House floor next week. The chair said the committee would pilot remote testimony on some Mondays and asked members to keep phones available while staff finalize bill language.

Members closed a number of line items in the BAA during the hearing, including line item B306 (technology updates/ADS contracts) and several other lines the chair listed as closed. Committee staff said remaining open items were largely technical and that members were circulating language to resolve them before the final vote.

The committee did not take a final roll‑call vote on the full Budget Adjustment Act during the Jan. 30 session; members instead approved specific adjustments by straw poll or consensus and set a timeline for final consideration next week on the House floor.