Public Assets Institute: Vermont wages, housing and benefits leave many residents short of basic needs

Julie Lowell, Economic Security Policy and Outreach Director at the Public Assets Institute, told the Vermont House Human Services Committee that many Vermonters’ earnings do not cover routine expenses and that targeted state investments can improve economic security.

Lowell summarized research showing a widening gap between what people earn and what it costs to meet basic needs, citing the 2012 People’s Budget Language as a statutory framework for state spending priorities. "We work on state fiscal policy with really the goal to improve the well-being of all Vermonters and to advance racial and economic equity," Lowell said.

Why it matters: Lowell told lawmakers the Joint Fiscal Office’s basic-needs thresholds show families need much higher incomes than the federal poverty line to make ends meet, and that Vermont’s minimum wage remains well below a livable-wage benchmark. "Vermont's minimum wage is nearly $5 lower in 2024 than what the livable wage is," she said, noting the livable-wage calculation for a single person in shared housing is about $19 per hour on the JFO scale.

Most important findings: Lowell laid out the two drivers of the affordability gap — relatively low wages and rising prices — and highlighted three cost categories pushing household budgets: housing, medical care and food. She said median household income in Vermont grew 7.8 percent from 2019 to 2023, but that growth has not closed the gap with costs.

Housing: Lowell presented Vermont-specific housing data from the Vermont Housing Finance Agency and a statewide housing-needs assessment. She said the median home price rose from about $260,000 in 2021 to about $315,000 in 2023, an increase of roughly $55,000, and that mortgage rates rose from under 3 percent in 2021 to about 6.5 percent in 2023. She said those rate changes made the first year of homeownership about $11,000 more expensive and reduced median first-year homeowner equity by about $1,800 compared with 2021. On rental markets, Lowell said more than half of households earning under $75,000 pay more than 30 percent of income on housing; she estimated 74,000 low- or median-income Vermont households were cost-burdened.

Homelessness: Lowell cited the state’s annual point-in-time count to show increases in unsheltered and housing-unstable populations since the pandemic and linked the rise to loss of lower-cost housing units. She also presented demand projections from the housing needs assessment, including a high-end estimate that the state could need as many as 36,000 units over five years when unmet demand and new demand are combined.

Healthcare and food: Lowell said medical-care prices climbed faster than overall inflation in recent years and that out-of-pocket costs for many with employer coverage have nearly doubled over two decades. She said food prices spiked in 2022 and remain at those higher levels. On nutrition assistance, Lowell said about 66,000 Vermonters — nearly 10 percent of state residents — rely on 3SquaresVT and that the program’s current average allotment is roughly $160 per person per month.

Safety-net programs and tax policy: Lowell described several state programs and tax credits that reduced child poverty in recent years. She credited the federal expanded Child Tax Credit and Vermont’s own Child Tax Credit (enacted in 2022) and the state earned-income tax credit (Vermont pays a percentage of the federal EITC) with reducing child poverty; she said nearly 20,000 Vermont families received the state child tax credit in 2024 and more than 32,000 received the state EITC. On Reach Up, the Department of Children and Families’ cash-assistance program, Lowell said the maximum monthly benefit for a family of four is $976 and that the program covers roughly 40–49.6 percent of a basic-needs budget depending on the reference year and calculation used.

Committee questions and follow-ups: Committee members and staff asked for clarifications about data sources and measures. Maria Elena Kagan asked what the supplemental poverty measure includes; Lowell offered to provide a chart explaining the supplemental measure. Rachelle Schumacher asked for specific supplemental materials; Lowell agreed to share the report pages and related charts. Lowell also encouraged committee members to consult the Public Assets Institute website for the full report and underlying charts.

Public comment: A resident identified as Claire spoke during public comment about personal experience with food and housing insecurity: "My food stamps are only $87 a month," Claire said, describing tight monthly budgets and reliance on local food programs and counselors.

What the hearing did not produce: The presentation and ensuing discussion were informational. Committee members requested reports and charts, and Lowell offered to provide them; there were no motions or formal votes recorded in the transcript.

Looking ahead: Lowell told the committee that targeted state revenue increases could fund programs that advance the state’s statutory goals for health, housing, dignified work, education, food and a healthy environment. She said some tax and spending adjustments could make the system more progressive and better aligned with the People’s Budget Language enacted in 2012.

Sources: Presentation and Q&A with Julie Lowell, Public Assets Institute, Human Services Committee hearing transcript; references cited by Lowell include the Joint Fiscal Office basic-needs and livable-wage work, Vermont Housing Finance Agency reports, Department of Children and Families Reach Up benefit schedules and 3SquaresVT program statistics.