MONTPELIER, Vt. (AP) - The Vermont Senate voted unanimously Thursday to pass a $5.8 billion budget - the third budget bill of the year - but it could face a veto because it does not include Republican Gov. Phil Scott’s plan to pay down nonresidential property taxes.
The bill passed 27-0 and will now move to the House, which is scheduled to meet Friday. Democratic leaders in both chambers are moving quickly in hopes of having a budget bill in place by the beginning of the new fiscal year on July 1 to avert a government shutdown.
The third budget bill did little to address Scott’s concern that property taxes could increase for the majority of state residents.
Senate President Tim Ashe, a Democrat and Progressive, said the governor has not sought compromise with the Democratically-controlled legislature.
“This is what compromise looks like,” Ashe said. “And if this compromise isn’t good enough I am sorry but we should go back to where we started, where we had the moral, fiscal high ground.”
Democratic leaders have agreed to use surplus state funds to hold residential property taxes at the previous year’s level, but Scott wants to use additional funds to pay down the nonresidential property tax rate, which applies to anything other than a primary residence.
Democratic leaders oppose using the use one-time funds to cover ongoing expenses, and instead proposed the state use the surplus money to pay down teacher pension obligations, which they said will save more money by avoiding future interest payments.
Scott has not officially indicated whether he would veto the third budget bill, but his administration expressed skepticism. Scott has made a point of reiterating his campaign promise to oppose any new taxes and fees.
Before the vote Senators said they heard concerns from constituents about the possible effects of a government shutdown. While many lawmakers expressed distaste for aspects of the bill, they ultimately voted in favor of it.
“Someone once said that the definition of a good bill is one that everyone is a little bit unhappy with, I think we’ve achieved that,” said Republican Sen. Randy Brock of Franklin County.
If no budget is in place by July 1, Vermont government will close for the first time in history - something Scott said he does not want. His administration has yet to issue guidelines about how specific agencies and services would be affected.
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