The Vermont House Appropriations Committee convened Friday, Jan. 10, 2025, to begin the 2025 budget season, hear an overview from Joint Fiscal Office staff on process and timing for the budget adjustment and FY26 budget, and elect Representative Trevor Squirrel as committee clerk.

The meeting focused on the schedule that will drive the committee’s work through the spring: the emergency board’s consensus revenue forecast upgrade on Jan. 22, the governor’s budget address on Jan. 28, and testimony and committee action leading toward final budget votes in late March and conference committee work into May. Catherine Benner, chief fiscal officer at the Joint Fiscal Office, and Emily Burton of the Joint Fiscal Office described JFO’s role supporting the committee and the near-term sequence of presentations and hearings.

Why it matters: the Appropriations Act is the legislature’s must-pass funding bill. As Emily Burton of the Joint Fiscal Office told members, “this is the only must pass bill. Government effectively shuts down if there's no budget on June 30th.” That timetable means the committee must move from learning the facts to weighing trade-offs quickly after the administration’s budget and the revenue forecast are known.

Most important facts and schedule

- Emergency Board revenue forecast: The committee was told the emergency board will meet Jan. 22 to set the consensus revenue forecast that frames FY26 budget choices. Maria (JFO) and staff signaled the Jan. 22 forecast will define “the size of the sandbox” available for next year’s spending.

- Governor’s budget and next steps: Committee members were told the governor’s budget address is expected Jan. 28, after which Adam Gresham of the Department of Finance and Management will begin presenting the administration’s proposals and the JFO staff will begin detailed budget briefings. The committee chair said the committee will take testimony, work through department presentations and aim for a straw poll and final votes in late March (around March 31 was mentioned as a target).

- Budget adjustment today: Members were notified that a fiscal 2025 budget-adjustment bill would be presented that afternoon; committee staff and the administration will return with language and spreadsheets for detailed review.

Key budget concepts and pressures explained to members

JFO staff gave a sustained orientation on how the budget is organized and the constraints members should expect:

- Scale: JFO displayed the state’s total budget (~$8.7 billion across all funds) and summarized that the general fund is roughly $2.3 billion with sizable federal funds and education- and transportation-dedicated revenues. The K–12/education function was shown as a leading expenditure item (figures shown in the briefing included a K–12-related total of roughly $2.93 billion when combined with related items cited by staff).

- Base versus one-time funds: Staff emphasized that ongoing (base) spending should be funded from ongoing revenue, and that one-time revenues are for one-time investments — a frequent committee focus because using one-time funds for recurring costs creates future budget pressure.

- Reserves and contingencies: The briefing listed statutory reserve balances reported at close of fiscal 2024: a general fund reserve (about $306.6 million), an education fund reserve (about $47 million) and a transportation reserve (about $14.1 million). Staff reminded members those reserves are not discretionary; they are set by statute.

- Major program pressures: Staff highlighted Medicaid (the “global commitment” framework), education funding, workforce and demographic pressures, pay-act annualization, health-care costs, caseload pressures in human services, flood recovery, housing and homelessness, and inflation as recurring drivers of budget decisions.

- Maintenance-of-effort and federal match: Members were warned that certain federal programs carry maintenance-of-effort or match requirements that limit how much state funding can be reduced without risking federal dollars.

- Special funds and tax expenditures: JFO described roughly 400 special funds that appear across the budget, and the tax-expenditure “budget” of tax preferences and exemptions that represent foregone revenues the legislature may consider when weighing options.

Committee organization and staff roles

JFO staff introduced themselves, their roles and how they will support members through the process. Key staff named in the briefing included Catherine Benner (chief fiscal officer, Joint Fiscal Office), Emily Burton (Joint Fiscal Office), Maria (JFO budget point person for the committee), Erin (committee staff), Chris (associate fiscal officer, revenue lead), Jeremy (systems analyst who maintains the web budget report), and Logan Moberry (transportation analyst). Adam Gresham of Finance & Management was identified as the administration lead who will present the budget adjustment and the governor’s proposed budget.

Members were reminded that JFO provides nonpartisan analysis and that many technical terms (carryforwards, reversions, one-time versus base appropriations) can be clarified by staff. "JFO provides nonpartisan, fiscal analysis to the General Assembly," Emily Burton said during the briefing.

Vote and committee housekeeping

Members elected Representative Trevor Squirrel (Chittenden-3) as committee clerk by voice vote; the chair declared the selection unanimous. The chair also outlined the committee’s near-term meeting plan: detailed review of the budget-adjustment spreadsheets that afternoon and further meetings next week, including Adam Gresham’s return to review language and answer questions.

What the committee will see next

Members were told to expect spreadsheets and bill language from the administration and JFO that they should review before return hearings. The consensus revenue forecast on Jan. 22 and the governor’s budget on Jan. 28 were signaled as the pivot points that will determine how much base and one-time funding the committee can recommend. Staff said they will aim to provide fiscal notes for bills that reach Appropriations but that JFO resources are finite and priorities will be set.

Ending

The committee recessed for lunch and planned to reconvene for an afternoon session in which Adam Gresham will present the fiscal 2025 budget adjustment and provide the committee’s first formal bill language and spreadsheets for review.