Gov. Philip B. Scott unveils $8.6 billion budget focused on housing, public safety and no new taxes

Gov. Philip B. Scott told a joint assembly on Jan. 23 that his proposed $8.6 billion budget centers on affordability, public safety and housing while avoiding new taxes and fees. "This work, especially when it comes to affordability, starts with the budget I'm presenting, which totals $8,600,000,000 across all funds," Scott said as he outlined specific funding priorities and policy proposals.

Scott said the plan holds general fund growth to 3.57% to match available revenue "without new or higher taxes and fees," and argued much of the state's added revenue must be used to sustain existing services after a period of elevated spending. He listed the major allotments: $353 million for transportation, $2.4 billion for education and $2.3 billion for the general fund.

On health care, Scott proposed a $4.2 million state increase to stabilize rates for nursing homes and rehabilitation centers and said that would secure an additional $4.7 million in federal funds. He also included $3.9 million to prepare for the Centers for Medicare and Medicaid Services' AHEAD payment model, which the governor described as a federal approach that builds on Vermont's all‑payer ACO model.

Addressing public safety and criminal justice, Scott said some recent reforms have produced unintended consequences. He called for adjustments including repeal of certain 2018 bail changes and increased accountability for violations of conditions of release. He also asked the legislature to "adjust, raise the age" only after ensuring systems and programs are in place, and to expand the list of violent crimes for juvenile prosecution while moving to "a system of universal sealing rather than expunging records." Scott cited local incidents he said show gaps in accountability.

Scott sought $4.9 million in opioid settlement funds to expand treatment and recovery services, open a hub in Bennington and extend hours at existing hubs, along with $1.4 million for school‑based prevention and $1 million one‑time for mental health. He emphasized multi‑agency coordination and local partnerships that place recovery coaches and social workers alongside public safety personnel.

Housing was a central theme. Scott endorsed bipartisan bills referenced in his remarks (transcript cites bill numbers 8719 and H719) and proposed targeted funding: $6 million for the Vermont Housing Improvement Program (VHIP) to speed affordable units online, $4 million for healthy homes, $2 million for a mobile home repair program, "nearly $24,000,000" for a program transcribed as BHCB, $7.1 million to grow shelter capacity and a new base budget initiative for permanent supportive housing.

On infrastructure and resilience, Scott proposed $36 million in a budget adjustment act for state and municipal match to secure FEMA funds and cited $12.5 million toward a $75 million match that would unlock an estimated $100 million in FEMA Hazard Mitigation Funds. He urged sustained investment in projects that reduce flood risk and support rural communities.

Scott closed by pressing for practical, bipartisan policy work from a "middle majority" to prioritize fundamentals, contain costs and retain and attract workers and families.

Procedure and immediate outcomes: earlier in the session the presiding officer approved a motion that a six‑member committee be appointed to escort the governor into the chamber; the committee members were named by the presiding officer and the motion was carried by voice vote. The joint assembly was later declared dissolved by the presiding officer.

What happens next: Scott's proposals will move to legislative committees for review and possible amendment; the speech itself did not include any legislative votes on the budget or the specific bills he referenced.

(Quotes and attributions are taken directly from the governor's address to the joint assembly.)