Vermont State Colleges tell Commerce & Economic Development committee they have stabilized finances, seek $5M bridge funding and 5.9% budget increase

Beth Mauch, chancellor of the Vermont State Colleges System, told the Vermont House Committee on Commerce & Economic Development on Jan. 15, 2025, that the system has "turned a corner" financially but is requesting a 5.9% operating increase and $5 million in bridge funding to finish its recovery and support workforce programs.

The request follows a period of severe short-term liquidity in 2020, when the system had "8 days of cash on hand," Sharon Scott, the Vermont State Colleges' chief financial and operating officer, said during the committee meeting. Scott said the legislature's earlier actions, including Act 77 of 2021 and select committee recommendations, provided bridge funding and structural changes that have helped stabilize the system.

Mauch and Scott summarized enrollment and workforce outcomes they said support continued state investment: the system graduated about 2,000 students last year across certificate, associate, bachelor’s and master’s programs; it enrolls more than 10,000 degree-seeking students and about 7,000 people in workforce development programming; and about 80% of students are Vermonters. Vermont State University (VTSU) recorded a 14% increase in new student enrollment last fall, Mauch said.

Despite improving financial indicators, Scott said the system still expects a deficit for the current and next fiscal year and is pursuing four strategies to reach long-term sustainability: stabilizing VTSU enrollment, addressing total compensation to be competitive with market pay, "rightsizing" campus footprints with community partnerships, and replacing the enterprise resource planning (ERP) system. Scott described the Composite Financial Index — a sector metric — as showing significant improvement since 2020, but she cautioned the recovery will take several years.

Budget details presented to the committee include a 5.9% overall request composed of a 3% increase to the standard base plus a $1.5 million request tied to a change in the structural deficit reduction amount (reduced from $25 million to $22 million under prior statute). Scott said the system will also request $5 million in bridge funding consistent with earlier select-committee planning.

Mauch highlighted several workforce and program priorities that the state funding would support. The Community College of Vermont (CCV) and Vermont State University have expanded nursing and allied-health pathways, including stackable credentials that let students progress from CCV to VTSU. "We have made a commitment to increase the nursing numbers year over year," Mauch said, noting a roughly 50% enrollment increase in nursing seats over recent years. Dr. Rosemary Williams, speaking about nursing programs, said the system's biggest constraint is faculty: "Our biggest stumbling block when it comes to nursing is being able to recruit enough nursing educators so that we can have enough seats." The presenters said the system produces roughly 500 nurses today while state need estimates discussed in the meeting suggest on the order of 1,000 new nurses per year will be required over coming years.

The colleges also described growth in apprenticeship and trades training: roughly 870 apprentices are currently enrolled in plumbing and electrical programs, the presenters said, and online course offerings have reduced geographic barriers for part-time, older students. The Career Pathways Entry Program (CPEP), a six-week job-shadowing and early-apprenticeship pipeline, is supported by external funding; presenters cited a $1,200,000 grant connected to the Northern Borders regional initiative. Presenters credited the 802 Opportunity scholarship for CCV (income-limited tuition support for Vermonters) and philanthropic partnerships — including the McClure Foundation — with helping stabilize CCV enrollment.

Committee members asked about enrollment trends, recruitment of out-of-state students, rightsizing campus facilities, outreach to master plumbers and electricians to host apprentices, use of artificial intelligence in instruction, and regional program sites (including clinical mental-health counseling cohorts that include locations outside Vermont). Scott and Mauch said the system is expanding out-of-state recruitment for VTSU while CCV remains focused on Vermont and nearby border communities. They described collaboration with the Vermont Department of Labor and employers on apprenticeship sponsorship and said they plan a "one-stop" outreach approach for employers seeking apprentices.

Mauch and Scott said they expect to return to the committee with fuller budget details and to answer technical questions as hearings continue. Committee members in the session voiced support for the colleges' workforce role and encouraged continued partnership on nursing simulation labs and regulatory flexibility to enlarge instructor pools.

The presentation concluded with the colleges thanking the committee for prior support and asking for continued legislative help to complete the transformation to financial sustainability.