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Committee briefed on proposed purchase-and-use tax allocation changes and draft T‑bill language on speed limits and project cancellation
Summary
JFO staff described a proposal in the miscellaneous tax bill to shift about $10 million a year of purchase-and-use tax revenue to the Transportation Fund (changing allocation percentages), and the committee reviewed draft T‑bill language directing AOT and partners to study speed-limit statutes, project cancellation rules and municipal grant programs.
Members of the House Transportation Committee on March 17 received two interrelated briefings: (1) Joint Fiscal Office staff explained a proposed reallocation of purchase-and-use tax revenue that would increase the Transportation Fund's share by roughly $10 million annually; and (2) legislative counsel presented draft T-bill language directing study of project-cancellation procedures, municipal grant programs and statutory procedures for establishing speed limits.
Logan from the Joint Fiscal Office said the current proposal adjusts statutory allocation percentages for purchase-and-use taxes so the Transportation Fund would receive roughly 73% (up from two-thirds), with the education fund dropping to about 27%. "That would generate about $9.9 million" he told the committee; the change is paired with a meals-and-rooms allocation adjustment intended to backfill the education fund in FY27.
Why it matters: the change described would be a structural adjustment to revenue sharing rather than a one-time transfer, meaning the Transportation Fund's baseline receipts could be higher in future budgets absent later legislative changes. Committee members stressed that the proposal in its current form is an incremental step toward longer-term goals to restore additional purchase-and-use revenue to transportation.
On draft T-bill language, Damian Leonard of Legislative Council described two pages of proposed statutory direction: continue last year's work on 19 VSA 309C (project cancellation), re-evaluate municipal highway and grant programs for efficiencies, and "examine the provisions in the Vermont statutes related to the procedures for establishing speed limits and identify potential opportunities to simplify and clarify those provisions," with recommendations due January 15, 2027.
Agency representatives and regional planning commission contacts will be consulted; Michelle Boower (AOT) said the study would review speed-study analyses, potential right-of-way permitting needs for counts and the relationship between design interventions and speed limits. Committee members asked that the review explicitly consider multimodal and traffic-calming interventions rather than focusing solely on numeric speed limits.
Ending: Committee members asked staff and agencies for agreed legislative language ahead of a planned markup the next day and invited additional testimony from municipal groups and RPCs prior to finalizing the T-bill.
