The Vermont Legislature is on its way to adjournment now two weeks past its scheduled end in May. The delay is due to three legislative priorities and negotiations to get to a “yes” from the Governor. The states housing crisis, education reform and attempts to energize legislators to override a veto of a program funding homeless staying in Vermont hotels.

As of June 13th, a deal has been reached to start repairing Vermont’s expanding school funding issues. The deal reached set targets with contingencies for consolidating schools, changing the funding formulas and changes to exemptions to the property tax for income earners under $115k/year. The full assembly still needs to vote on the bill, but if it passes the Governor has signaled that he will sign it. Of course, floor votes are riddled with amendment proposals and there will be dissent on the package itself which could ultimately kill the bill.

A housing bill has crossed the finish line and has become law with the Governors’ signature. The bill itself leaves many hoping that next year more changes will come that will significantly impact/limit the challenges from Act 250 Vermont’s development law cited as the number one reason for the housing shortage. The bill that passed expands significantly on the Community Housing Improvement Program (CHIP) which is one of the ways the state is trying to soften the cost of housing developments like permitting, engineering, and infrastructure by providing grants for different types of projects. While the grants will soften the blow of the cost, it does not directly change the causation of the high costs. Additionally, the bill would allow developers with approval from municipalities to use Tax Increment Financing (TIF) to fund infrastructure for projects by reducing the property tax on the development. These and a few other small policy changes are part of a larger effort to make housing more affordable in Vermont, while not addressing the giant elephant in the room: Act 250.

Another priority of the Democrats and Progressives in the legislature is the extension of a previously Federally funded program under COVID to place homeless families in hotels. Once the Federal funding ended legislators redirected some remaining CRF funds to the program which have since run out. Governor Scott is unwilling to extend the program citing, “Rather than continuing to fund a program that isn’t good for those in it, I believe we should focus on real solutions like building additional shelter capacity and requirements to engage in work, training, and treatment for those who need it,”. It is unlikely that the legislature will have the votes to override the veto as its unpopular with Republicans who would be needed to support it.