Enacted Budget – Fiscal Year 2027
Vermont Governor Phil Scott signed the state’s budget for fiscal 2027 into law on June 16. Based on a Committee of Conference report, the budget provides $9.38 billion in appropriations from all funds, including $2.57 billion in general funds (including $58 million in one-time appropriations), $2.53 billion in education funds, and $3.25 billion in federal funds. This represents a 2.1 percent increase in total spending from all funds, a 2.9 percent increase in general fund spending, a 4.0 percent increase in education fund spending, and a 1.4 percent increase in federal fund spending, compared with fiscal 2026 adjusted appropriations. General fund revenue in fiscal 2027 is estimated at $2.54 billion, based on the January 2026 consensus revenue forecast and incorporating anticipated changes in tax policy. The budget also relies on $131 million from other general fund revenue sources and $78 million in fiscal 2026 carryforward funds, bringing total general fund resources to $2.75 billion. The state is projected to hold combined general fund reserve balances of $345 million in fiscal 2027 in the Budget Stabilization Reserve, Human Services Caseload Reserve, Balance Reserve, and 27/53 Reserve. Additionally, the budget projects that $27 million will remain in a temporary reserve established to address potential federal funding reductions.
The enacted budget makes ongoing investments in health care and human services, housing, education, and other areas. Consistent with the governor’s priorities related to affordability and education transformation, the budget transfers general funds to the Education Fund for property tax relief, supports implementation of education transformation initiatives, and provides funding for the Read Vermont literacy program. For health care and human services, the budget addresses caseload and utilization pressures, increases provider rates (including for home- and community-based service providers), supports free and referral clinics for residents without health insurance, and funds primary care workforce initiatives. For housing, the budget makes funding for the Vermont Housing Improvement Program ongoing, fully allocates the statutory property transfer tax amount to the Vermont Housing and Conservation Board, funds ongoing homelessness response initiatives, and establishes a permanent disabilities housing coordinator position. The budget also funds employee compensation increases under the fiscal 2027 Pay Act, directs funds to the Agency of Digital Services to reform internal billing practices, and increases ongoing support for higher education. Additionally, the budget provides one-time funding for homelessness response programs, health care provider stabilization and enhanced primary care rates, Meals on Wheels and benefit-assistance services, the Manufactured Home Improvement and Repair Program, flood recovery, economic development, and higher education scholarships and projects.