State budget growth and pandemic-era spending
Governor Scott proposed a roughly $9.4 billion FY27 budget (~2–3% growth) explicitly aimed at weaning Vermont off one-time federal COVID/ARPA-style funds without broad-based tax increases. The final Big Bill (~$9.38 billion, 2.1% increase) was largely non-controversial on totals but was tied to fights over education and property-tax relief; leaders stress discipline as traditional federal support becomes uncertain.
What fiscal approach should Vermont take now that pandemic-era federal funds are ending?
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Sources
Vermont Public — https://www.vermontpublic.org/local-news/2026-01-20/gov-phil-scott-proposes-9-4-billion-budget-wean-off-pandemic-era-spending
Republican Gov. Phil Scott presented lawmakers Tuesday with a $9.4 billion state budget that weans the state off pandemic-era spending by tamping down on new government expenditures. The proposed budget represents an approximately 3% increase in total spending over the current fiscal year.
Vermont League of Cities and Towns — https://www.vlct.org/weeklylegislativereport/2026-legislative-wrap
On June 16, the governor signed the state budget, Act 144 / H.951, also known as “the Big Bill”, for fiscal year 2027... The approximately $9.38 billion budget reflects a 2.1% ($193 million) increase over the prior year and proved to be non-controversial.
VTDigger — https://vtdigger.org/2026/01/20/gov-phil-scott-unveils-9-4-billion-state-budget-proposal
even the traditional funding we’ve come to expect from Washington is uncertain... it’s more important than ever to focus on the issues we can control, stay disciplined and set clear priorities so we make sure Vermonters get the most out of the resources we do have.
Positions on this issue · liberal → conservative
- Expand state spending significantly with new progressive taxes to replace federal funds
- Maintain or grow key programs with targeted revenue rather than deep cuts
- Allow modest budget growth with priorities set and no broad new taxes
- Freeze most new spending and use reserves mainly for tax relief
- Cut overall state spending sharply to shrink government as federal dollars end