Vermont

Vermont

Budget Links

FY2027 (proposed)
FY2026 (enacted)
FY2025 (enacted)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)

Proposed Budget - Fiscal Year 2027

On January 20, Vermont Governor Phil Scott released a proposed budget for fiscal 2027, calling for total spending from all funds of $9.4 billion, a 1.2 percent increase compared to budget adjustment recommended levels for fiscal 2026. General fund appropriations are recommended at $2.53 billion for fiscal 2027 (a 0.6 percent decrease from adjusted fiscal 2026 levels). The state’s Education Fund appropriations (supported primarily by statewide property taxes as well as sales and use taxes and other sources) are recommended at $2.56 billion (a 5.5 percent increase). Transportation Fund appropriations are recommended at $342 million. The general fund budget is based on forecasted base available general fund revenue of $2.53 billion (a 2.5 percent annual increase) or $2.64 billion after direct applications, reversions, and transfers. Total general fund revenue, including one-time resources such as the prior-year carryforward and unreserved revenue for property tax relief, is $2.76 billion for fiscal 2027. Total general fund reserves, including the Budget Stabilization Reserve, Human Services Caseload Reserve, 27/53 Reserve, and GF Balance Reserve, are projected at $375 million in fiscal 2027, or about 14.8 percent as a percentage of recommended general fund appropriations.

Proposed Budget Highlights 

The governor’s fiscal 2027 budget is guided by three priorities: growing the economy, improving affordability, and protecting the most vulnerable. The budget provides property tax relief while aiming to transform the education system. In the budget, the governor calls for addressing structural issues in education and transportation funding, and recommends fiscal discipline in response to tighter budget conditions and less expected federal support. The budget also recommends continuing state investments in housing and community revitalization and increasing base funding in substance use and mental health resources.

Education Transformation

• Proposes to use one-time general funds to provide property tax relief to homeowners and businesses, while the state works to transform how it delivers and pays for K-12 education.
• Directs general funds to the education agency to create five positions dedicated to education transformation. 
• Provides one-time general funds for Read Vermont, a statewide literacy initiative. 

Housing and Community Revitalization

• Makes funding for the one-time Vermont Housing Improvement Program permanent by adding it to base appropriations.
• Provides one-time funds for the Manufactured Home Improvement and Repair Program.

Assisting Vulnerable and Public Safety

• Provides one-time funds for the hotel-motel program and funds to develop new shelters while working to develop a more permanent sheltering model.
• Increases base funding for medically vulnerable shelters, substance use recovery shelters, enhanced case management, and other support services.
• Directs funds to Hireability Vermont, an opioid recovery employment program.
• Increases funds to bring pre-trial supervision services statewide, building on the Newport pilot.
• Expands a Community Accountability Court pilot to additional counties with one-time funds.

Good Government

• Reduces the diversion of transportation fund revenues to the Education Fund for non-transportation uses and recommends restructuring the education system so it is not reliant on transportation revenue.
• Directs general funds to replace fees paid by farmers to cover water quality staff and programming costs.
• Provides one-time general funds for the Vermont Outdoor Recreation Economic Collaborative (VOREC) grant program.
• Provides one-time funds to the Office of Racial Equity to continue efforts of the IDEAL Vermont coalition dedicated to advancing racial and other forms of equity across the state.

Proposed Budget Information
Fiscal Year 2027 Proposed Budget 

Budget Summary 

Governor’s Press Release & Budget Address 

Revenue Forecast - January 2026