The Vermont state legislature has returned to session, facing significant challenges in addressing the state’s affordability crisis. With revenues largely flat and some areas declining, lawmakers must reform systems driving up costs, including rising property taxes and soaring healthcare costs. The state’s financial outlook is bleak, with a potential 12% property tax increase forecast for 2026. To mitigate this, lawmakers will need to find nearly $200 million to offset the increase.
Education reform is a top priority, with a focus on consolidating school districts and implementing a new funding formula. However, a task force’s recommendations for creating cooperative education service regions and voluntary mergers of school districts have been met with skepticism by Governor Phil Scott, who is pushing for more sweeping reforms. Senate President Pro Tempore Phil Baruth plans to introduce legislation capping school budget growth for the next two fiscal years to control rising costs.
The state is also grappling with the loss of $65 million in federal health insurance subsidies, which will make insurance unaffordable for 30,000 Vermonters. Lawmakers will need to find ways to mitigate this loss, potentially by rearranging health insurance risk pools or using funds from the Rural Health Transformation Fund. The state will receive $195 million from this fund in 2026, which can be used to build out the primary care workforce, improve access to recovery housing, and invest in nursing homes.
Other priorities for the session include addressing backlogs in the criminal court system, particularly in Chittenden County, where a special docket has been created to quickly resolve cases involving repeat offenders. Lawmakers will also consider changes to Vermont’s voyeurism laws, including creating a new crime covering cases of sexual extortion and addressing the statute of limitations for certain crimes.
Additionally, a controversy surrounding a trip to Israel taken by five lawmakers has led to calls for greater transparency around legislators’ travel. A bill has been proposed that would require public servants to file a disclosure with the state ethics commission within 30 days of embarking on a trip, listing the purpose, destination, and associated costs.
Overall, the session is expected to be challenging, with lawmakers facing tough decisions on education reform, healthcare costs, and other pressing issues. As House Speaker Jill Krowinski said, “This session will be tough, but so will our resolve.”