Budget adjustment presents $197 million for spending, leaves $87 million temporary reserve
January 18, 2025 | Appropriations, SENATE, Committees, Legislative , Vermont
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Senate appropriators heard on Thursday that changes to revenue forecasts and year-end reversions have generated roughly $197 million to support a budget adjustment act and related actions.
Adam Gresham, Commissioner of Finance and Management, told the committee the emergency board “upgraded the fiscal 2025 forecast by about $184.5 million,” and that rounding together with roughly $19 million in reversions from the prior year produced the approximately $197 million available for reallocation.
The $197 million is not all being spent in the current adjustment. Gresham said about $110 million of that sum is being put to use in the proposal before the committee, and the balance — roughly $87 million — is being placed in a temporary reserve to carry forward into fiscal 2026. He described the reserve as a deliberate decision “we’re leaving in the general fund in a temporary reserve…to fence it off and carry it forward into fiscal 26.”
Committee members also heard an overview of other major transfers and adjustments that the administration included in the proposed bill. Those include transfers tied to disaster relief following July floods, technical moves among appropriations established in prior acts, and a number of reversions — appropriations left unspent at the close of FY24 and returned to the bottom line for reappropriation.
Gresham and staff described the reversions as routine close-out mechanics. He said reversions are detailed in the bill language and supporting materials; the administration told the committee those reversions include amounts left in both base and one-time appropriations. The administration indicated Joint Fiscal Office staff have the line-item reversions list in the BAA packet.
The hearing included discussion of longer-running liabilities the adjustment is intended to correct. Notably, the administration proposed a sizable one-time transfer to reduce a projected shortfall in the state employee health benefits internal service fund; Gresham said the transfer is intended to limit next year’s premium increase for state employees and the state share of premiums.
Committee members asked staff to provide additional line-item detail and asked the administration to supply answers after the hearing for a few open technical questions (for example, a date for final hospital participation under an “AHEAD” model was requested for follow-up). Gresham said agency staff would be available to provide further detail in subsequent briefings.
The committee did not vote during this presentation; the administration said it will present final language and additional detail in upcoming sessions with appropriations and the Joint Fiscal Office.
Looking ahead, Gresham said the administration will return with the governor’s FY26 proposals and with more detailed breakdowns for items that require additional implementation steps.
Adam Gresham, Commissioner of Finance and Management, told the committee the emergency board “upgraded the fiscal 2025 forecast by about $184.5 million,” and that rounding together with roughly $19 million in reversions from the prior year produced the approximately $197 million available for reallocation.
The $197 million is not all being spent in the current adjustment. Gresham said about $110 million of that sum is being put to use in the proposal before the committee, and the balance — roughly $87 million — is being placed in a temporary reserve to carry forward into fiscal 2026. He described the reserve as a deliberate decision “we’re leaving in the general fund in a temporary reserve…to fence it off and carry it forward into fiscal 26.”
Committee members also heard an overview of other major transfers and adjustments that the administration included in the proposed bill. Those include transfers tied to disaster relief following July floods, technical moves among appropriations established in prior acts, and a number of reversions — appropriations left unspent at the close of FY24 and returned to the bottom line for reappropriation.
Gresham and staff described the reversions as routine close-out mechanics. He said reversions are detailed in the bill language and supporting materials; the administration told the committee those reversions include amounts left in both base and one-time appropriations. The administration indicated Joint Fiscal Office staff have the line-item reversions list in the BAA packet.
The hearing included discussion of longer-running liabilities the adjustment is intended to correct. Notably, the administration proposed a sizable one-time transfer to reduce a projected shortfall in the state employee health benefits internal service fund; Gresham said the transfer is intended to limit next year’s premium increase for state employees and the state share of premiums.
Committee members asked staff to provide additional line-item detail and asked the administration to supply answers after the hearing for a few open technical questions (for example, a date for final hospital participation under an “AHEAD” model was requested for follow-up). Gresham said agency staff would be available to provide further detail in subsequent briefings.
The committee did not vote during this presentation; the administration said it will present final language and additional detail in upcoming sessions with appropriations and the Joint Fiscal Office.
Looking ahead, Gresham said the administration will return with the governor’s FY26 proposals and with more detailed breakdowns for items that require additional implementation steps.
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