MONTPELIER, Vt. (AP) - The Democratic majority in the Vermont House on Tuesday failed to garner enough votes to override Republican Gov. Phil Scott’s veto of the second budget bill, leaving the state without a budget less than two weeks before the beginning of the new fiscal year.
The final 90-51 tally failed to reach the two-thirds majority needed. The Democratic majority needed some support from the Republican minority, but the caucus unanimously supported the veto.
“We do not want a government shutdown. We are willing to work with the majority, and work with the governor, to keep the government open,” said Republican Minority Leader Don Turner.
The second budget bill initially was introduced as a compromise that would leave a dispute over property taxes for a later date while ensuring state government remained open. Scott vetoed the bill last Thursday, saying it would increase the nonresidential property tax rate.
There was no tax increase written into the second budget bill, but it did not include any language that would have prevented a statutory nonresidential rate from taking effect, leading to a rate increase. The nonresidential rate applies to any property that is not a primary residence.
“It’s being called a budget bill. It’s a budget and tax bill, and that’s what we cannot support,” said Rep. Anne Donohue, a Republican from Washington County.
The House minority said it would not support an increase in taxes in a year where the state has a surplus.
Republican representatives placed blame on both Scott and Democratic leaders in the Legislature, but their proposal that the next budget bill leave out nonresidential rates aligned closely with Scott’s plan.
Scott thanked those who sustained his veto on Tuesday.
“With 11 days left in the fiscal year, I’m disappointed that House Republicans blocked the budget from becoming law,” said Democratic Speaker of the House Mitzi Johnson.
Democratic leaders argued that there was more than enough time to set property tax rates in a separate bill, but remain hesitant to give Scott what he asked for in the budget bill because it may remove leverage they want in negotiations over property tax rates.
Senate President Pro Tem Tim Ashe said that removing any mention of property taxes from the budget bill may also jeopardize school funding and turn a government shutdown into a school shutdown.
Ashe and Johnson expressed their frustration with Republicans who supported the first budget bill earlier this year but have since opposed subsequent bills. The first budget bill, which was largely similar to the second version, passed with support from Vermont’s three major parties.
“This is no longer a discussion unless people have consistent positions,” said Ashe.
More people are beginning to question whether state government will be open on July 1. Secretary of State Jim Condos and State Treasurer Beth Pearce, both Democrats, sent letters saying that a government shutdown could affect vital state services. They urged Scott and Democratic leaders to find a compromise solution.
Scott’s administration has not released a contingency plan for a government shutdown, and last week Scott seemed optimistic that government would remain open.
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