Vermont Gov. Phil Scott has vowed to veto the state legislature's $5.8 billion budget plan because of objections to new taxes.
A $5.8 billion 2019 fiscal year spending plan approved by the Democratic-controlled House of Representatives and State Senate over the weekend would increase total taxes by nearly $50 million including $33.4 million in property taxes, according to the Republican governor. Scott, who has called for holding the line on any new taxes or fees, said in a statement that recent revenue growth should negate the need for tax hikes.
“The budget passed by the Legislature today authorizes a level of spending that can only be met with new and higher taxes,” he said Sunday. “This is an unacceptable approach, particularly in a year in which we have had an additional $82 million dollars in organic revenue growth, $34 million in unanticipated funds from the Attorney General’s tobacco settlement and $44 million in revenue surpluses to build a budget.”
Scott, who was elected in 2016, has also objected to separate bills to hike the minimum wage to $15 and to increase paid family leave through a payroll tax. He proposed on May 7 putting $58 million of one-time funding sources into an
Scott said he plans to call a special legislative session next week to try and iron out budget disagreements. Lawmakers have until June 30 to pass a spending plan before the 2019 fiscal year commences on July 1.
Vermont has the highest credit rating of all New England states at triple-A by both Moody’s Investor Service and Fitch Ratings. The Green Mountain State’s general obligation bonds are rated AA-plus by S&P Global Ratings.
