Last week the Vermont House approved the second reading of H.953, the Supplemental Budget Adjustment Act. This bill will balance the Vermont 2020 budget. Money committee members in the Vermont Legislature have long been committed to balancing the budget each year before they adjourn, but this year with the serious damage done by the Covid 19crisis, that job has been particularly tough.
Using rainy day funds, federal CARES money, and additional savings from Medicaid and income from alcohol taxes the members were able to balance the FY2020 budget.
The plan includes using delayed FY 2020 taxes to replenish the rainy day fund.
The budget adjustment bill does three major things:
*makes changes in FY 2020 appropriations to accommodate revenue loss due to the Covid 19 crisis
*allows inter fund borrowing including from the Covid Relief Fund
*appropriates money from the Covid Relief Fund to the FY2020 budget
This bill creates no new taxes. Legislators have balanced the budget using federal CARES money, savings and borrowing from the rainy day funds.