Senate appropriations panel details budget-adjustment priorities, leaves $137.6M for FY26

The Senate Appropriations Committee on Tuesday reviewed its proposed fiscal year 2025 budget adjustment, outlining roughly $1.8 million in municipal flood grants, new positions for the attorney general and Human Rights Commission, a $220,000 refill for an emergency survivors fund and additional funding for housing, veterans care and other programs while leaving $137.6 million unallocated for the FY26 budget.

The committee’s overview — delivered by Senator Andy — also highlighted the two items cited in a letter from the governor: an extension of adverse-weather general assistance (the motel program) through June 30 (about $1.84 million) and additional funding to the Vermont Housing and Conservation Board (VHCB). "I feel like the Senate has the same priorities," Senator Andy said, listing affordability, housing, public safety and education as shared priorities with the administration.

Why it matters: the BAA (budget adjustment act) moves money and policy language that will affect flood recovery for towns, housing projects already in progress, nursing-home and veterans-home costs tied to traveling nurses, and childcare program reserves. Committee members said leaving a sizable unallocated balance preserves flexibility heading into the larger FY26 budget debate.

Key allocations and changes discussed

- Treasurer appropriation/reversion: The committee proposed reverting an additional $6 million of a prior $20 million appropriation to the treasurer (the House had taken $14 million). The committee used part of those funds for items below and left the remainder on the bottom line. Senator Andy said the treasurer had recommended not redeeming certain bonds because interest earnings exceeded the savings from bond buybacks.

- Flood-related municipal grants: The committee proposed $1.8 million for municipal grants to towns harmed by 2024 storms, largely targeting Central Vermont, Caledonia County and Washington County communities. The package includes a $150,000 correction for Addison County towns that were omitted from a prior distribution; committee members said the additional $150,000 should make those towns whole.

- VHCB and housing: The committee discussed several VHCB items. Senator Andy described a $2.8 million allotment to finish a specific Act 186 pilot project for housing adults with developmental disabilities and also referenced a larger VHCB funding line (discussed in committee as $8.6 million) intended to support shelters and permanently affordable housing projects. Committee members said VHCB has a pipeline of projects ready to move if funding is available and that VHCB agreed to move its board meeting earlier to expedite awards if the committee’s proposal advances.

- Adverse-weather general assistance (motel program): The governor’s letter objected to extending the program through June 30 at a cost the committee estimated at about $1.84 million. Committee staff said the extension would prevent immediate exits of roughly 466 children from the program if no alternative plan were in place.

- Attorney General and Human Rights Commission positions: The committee added funding (about $50,000 for the remainder of FY25) for a new attorney position in the Attorney General’s Office to support federal litigation, and roughly $62,000 to add two positions (an intake specialist and an attorney) at the Human Rights Commission. The committee said those additions were intended to address workload related to housing and other complaints.

- Emergency personnel survivors fund: The committee agreed to a roughly $220,000 transfer to replenish a fund that provides assistance to families of first responders who die in the line of duty.

- Judiciary and courthouse projects: The budget adjustment restores about $850,000 for judicial technology upgrades and accessibility improvements at the Essex County Courthouse, enabling better court operations and meeting access.

- Veterans home and health spending: The proposal includes roughly $5.9 million of additional funding tied to visiting nurses at the Vermont Veterans’ Home and a broader increase of about $9 million to reflect actual usage and rising costs of elder care.

- Medicaid/global commitment and provider stabilization: The BAA reflects large global-commitment (Medicaid) adjustments, including roughly $78 million tied to caseload and utilization changes and about $21 million for emergency relief related to nursing facilities; the committee also discussed a $10 million stabilization grant pool for participating providers.

Policy and technical language changes

- Pension/reserve language: The Senate removed a House provision that would have allowed broad end-of-year uses of unspent funds; committee members said the existing Act 114 pension statute remains controlling (under which unspent amounts would be distributed to specified reserves and pension-related accounts) and that the Senate simply struck the House’s broader language.

- Child-care financial assistance (CCFAP) caseload reserve: The committee retained language allowing the administration to use the state’s caseload reserve to backfill CCFAP if utilization rises, and it left authority for a dedicated CCFAP reserve to be created later.

- Hold-harmless for flood-related abatements: The committee added language to hold towns harmless for education-fund impacts arising from property-value abatements tied to flood damage; committee estimates to cover that liability are currently small (roughly $1 million estimated).

Questions and concerns raised in committee

Committee members raised technical and policy questions. Senator Hrdy asked why a CCFAP reserve was not created directly in the program’s fund; staff replied the committee retained language authorizing a reserve to be created later and in the interim allowed use of an existing caseload reserve. Senator Clarkson asked how reverting a portion of the treasurer’s appropriation affected housing allocations; Senator Andy explained the House had already used $14 million of a prior $20 million appropriation and the Senate proposal reverts an additional $6 million, of which some is being spent and some returned to the bottom line.

Several members expressed concern about the high cost of traveling nurses and other staffing pressures in nursing homes and hospitals; Senator Westman said traveling nurses have driven tens of millions in additional costs in prior years and committee members discussed workforce programs (loan-repayment and training supports) as longer-term responses.

Process and next steps

The committee provided this review as an overview of the Senate Appropriations Committee’s proposed changes to the House-passed budget adjustment. Senators and staff said some technical cleanups were still being finalized and that floor debate and votes remain to come; the committee did not record a final committee vote on the package during the meeting.

Ending note: Committee members emphasized that the package leaves about $137.6 million unallocated to preserve flexibility for the FY26 budget debate, while directing funding for immediate needs tied to flood recovery, housing projects, veterans care, and emergency personnel support.