MONTPELIER, Vt. (AP) - Lawmakers in the Vermont House have once again approved a state budget, but it doesn’t appear the logjam with Republican Gov. Phil Scott caused by a dispute over property taxes has been cleared.
The House Friday gave preliminary approval to the budget by a vote of 86-44.
Democratic House Speaker Mitzi Johnson said the bill raised no property taxes, reduced income taxes by $30 million and takes the threat of a government shutdown off the table while ensuring Vermonters continue to receive vital public services. It will give lawmakers time to work with Scott on the remaining areas of disagreement that led to his original budget veto.
“Preventing government shutdown is the right thing to do,” Johnson said. “D.C.-style politics that put Vermont families and the state’s livelihood at risk are not the Vermont way.”
But Scott spokeswoman Rebecca Kelley says House Democrats rejected amendments, including one that appears to remove the one remaining point of dispute. She says the Democratic-led House is poised to submit yet another budget that increases nonresidential property tax rates by $23 million.
“There is simply no reason to raise statewide property tax rates this year, and despite this latest maneuver, the governor remains committed to preventing it while fully funding school budgets,” she said.
Scott vetoed the original budget last week.
Scott and the Legislature have been locked in a disagreement over how the state can best use $34.5 million in one-time funds, a combination of unexpected tax revenue and a settlement with the tobacco industry.
Scott wants that money to pay down property tax rates to the previous year’s level to prevent an increase, but Democratic leaders want to fund future teacher pension obligations.
Lawmakers have proposed several compromises, but Scott has refused to consider them, saying they would raise property taxes.
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