Rep. Stevens: Mid-year budget adjustment moves forward

February 9, 2025  |  By Rep. Tom Stevens

This week, H.141, the mid-fiscal year Budget Adjustment Act, passed through the Appropriations Committee and the full House of Representatives. Find a summary of the budget at this link. 

The mid-year budget adjustment is an attempt at truing up the budget passed last June with adjustments to the bottom line using funds that have been reverted to the General Fund and with revenue that came in higher than expected. 

Nearly $133 million was withheld by the administration in their proposal to keep in reserve for the fiscal year 2026 budget (“the Big Bill”) that will take effect on July 1, 2026. This withholding prevented investing in more affordable housing at this time, though those funds may be available to use for that purpose as we work through the FY26 budget. 

The primary reason for this withholding, which we ended up agreeing with, was to prepare for any changes that may be made to education funding. The governor has floated his intentions, and the committees of jurisdiction have been taking testimony on the administration’s plan since it was released. 

Another reason to withhold funds is the uncertainty with federal funding. The actions of the federal government with respect to the payment of federal funds to the states for necessary programs is deeply unsettling, and, if continued, will prove incredibly hurtful to Vermonters.

With some funds found within the budget, the House was able to allocate funds for affordable housing, a housing development for developmentally disabled adults, reparations to a number of courthouses, and for extending the hotel/motel housing program for three more months to June 30. 

The bulk of the budget adjustments proposed by the governor went to fixing financial and accounting errors, payments for increased Medicaid matches, technology services and providing emergency relief to nursing homes, including the Vermont Veterans Home in Bennington. 

There wasn't much controversy between the House and the administration in this budget adjustment, and because of the diminished amount of funds from COVID-19 relief programs, there wasn't much complication. 

The bill passed the full House primarily along partisan lines, with opposition due to the increased funding for keeping unhoused Vermonters sheltered for a longer period of time. The Senate takes up the bill this coming week. 

As always, please reach out with questions to tstevens@leg.state.vt.us.

Rep. Tom Stevens, D-Waterbury, is one of two representatives in the Washington-Chittenden House district representing Waterbury, Bolton, Huntington and Buels Gore. Stevens this year is serving on the House Appropriations Committee.