Senate Institutions hears state treasurer on bonding, CDAC’s $100 million biennial recommendation

The Senate Institutions Committee on Jan. 22 heard the state treasurer and treasury staff explain how Vermont decides when to use long-term bonds or cash for public buildings and other capital projects, and why the Capital Debt Affordability Committee recommended $100 million for the 2026–27 biennium.

Senate Institutions Committee Chair Wendy Harrison opened the session and introduced the treasurer’s office; State Treasurer (name not specified) and his staff described the state’s approach to capital bonding, recent bond sales and how pensions and demographics affect Vermont’s credit ratings.

The treasurer’s office emphasized that Vermont currently has about $600,000,000 in general obligation debt outstanding. “We have about $600,000,000 that’s outstanding from the state of Vermont,” the State Treasurer said, explaining the difference between bonding durable assets and paying cash for shorter-lived items. The Capital Debt Affordability Committee (CDAC), a multi‑member advisory body that issues a two‑year recommendation, advised a $100,000,000 total authorization for the 2026–27 biennium (presented as $50,000,000 per year). The treasurer’s office said the committee may revisit the second year of the biennium if circumstances change.

Why it matters: the treasury said rating agencies (S&P, Moody’s and Fitch) consider long‑term liabilities — chiefly pensions and other post‑employment benefits (OPEB) — and demographic trends when assigning credit. Treasury staff said Vermont’s AA+ ratings reflect “strong financial management” and other governance…