 Madam Speaker Madam Sergeant at arms will the house please rise The Honorable Vermont State Senate Join assembly will please come to order may be seated For those who are here at the last joint assembly before we get started. I want to make a brief apology Or maybe you already know I did not quite as appropriately nor then Just make the call to allow you to sit and you know how to stand for quite a long time So I've made some direct apologies, but I wasn't unable to reach you all and so I would like to make that apology This joint assembly is convened pursuant to the provisions of JRS 5, which the clerk will now read JRS 5 Joint resolution to provide for a joint assembly to hear the mess budget message of the governor Resolved by the Senate and House of Representatives That the two houses meet in joint assembly on Friday, January 20 2023 at one o'clock in the afternoon to receive the budget message of the governor Chair likes to recognize the center from Chittenden Central District for the purpose of making a motion Thank You mr. President I move that a committee of six be appointed to wait upon his Excellency the governor and escort him to this chamber Now the senator from Chittenden Central District has moved that the committee of six be appointed by the chair To wait upon his Excellency the governor And escort him into the chamber for the purpose of receiving his budget message Are you ready for the question? If so all those in favor, please indicate by saying aye Those opposed indicate by saying nay The eyes have it and the motion is carried Chair will appoint the member from virgins Representative Landfuer The member from Brattleboro representative cornhizer The member from Colchester representative Brennan The member from excuse me the senator from caledonia district senator kitchell The senator from washington district senator Cummings And the senator from washington district senator perchwick Will the committee please assemble and perform the duties assigned to it You can go get them In the joint assembly maybe at ease Thank you Madam sergeant arms Mr. President Mr. President the governor of the state of vermont the honorable philip b scott This time you don't want to stay standing for a second because it is now My distinct honor to present to you The governor of the great state of vermont the honorable philip b scott, excuse me Thank you very much. Thank you very much. Mr. President Madam Speaker mr. Pro temp members of the general assembly and fellow vermonters Two weeks ago. I asked that we focus on the fundamentals In order to seize upon the once in a lifetime opportunity we have before us I ask you to consider the outcomes and costs of every decision we make On the families and places that need our help most And to prioritize communities Your communities That have been left behind for far too long We've seen incredible growth over the last two years Because the economy has been supercharged by the sheer volume of federal funds But we know that's only temporary So it's critical we act now to close the distance between regions and families We can give every town the chance to catch up Act on their vision And importantly help them follow through To restore their vitality Reclaim their character And renew their identity Because of the extraordinary moment we're in This is undoubtedly the most significant budget I've presented in my time as governor It's also the biggest and most complex So let's get right to it and talk numbers Across all funds, this is an 8.4 billion dollar budget With 2.3 billion in the general fund 2.1 billion in the education fund And 335 million in the transportation fund And as we do every year We fully funded our pension and right retirement obligations Which this year took 444 million dollars Then there's the capital bill Which funds state infrastructure totaling 108 million dollars of borrowed money over the next two years So at a time when interest rates are high When we have one time dollars It's important we're careful about what we put on the credit card Another thing to keep in mind We're still making our way through the billion dollars in ARPA funds Allocated over the last two years for broadband Water, sewer and storm water, climate change, housing And economic revitalization But we know these windfalls won't last forever Which is why we were thoughtful, deliberate and very disciplined when we put together this year's budget We've been over and over and over these decisions In fact, I made some changes as recently as yesterday Because I want to be sure we get the best return on every dollar As a result, the budget I present today Invests significant resources into our shared priorities It also reflects a firm commitment to using surplus funds And the majority of growth in the base budget For one time expenses One time initiatives In ceding new ideas Because if we allow the base budget to grow with temporary and unsustainable revenue We'd create a cliff when these stimulus dollars go away Putting us on a path that eventually leads to deep and painful cuts My friends, it's essential for all of us to recognize Every decision we make is one Vermonters will live with Long after all this one-time money is gone We've taken a lot of time to make sure this budget is investing Rather than just spending In areas that will put us in a much stronger economic and fiscal position To generate more dollars in the future Over my life, I've found that spending money is actually pretty easy But investing it to get the best return is much more difficult I also know there's no one big idea No quick fix to the challenges we face It's really about focusing on the fundamentals And following through on what we started This approach will be far more impactful Than any flashy new initiative to grab headlines So I'm asking each of you But especially those not on the appropriations committees To take the time to understand this budget And ask questions about what it does for the cities and towns you represent If we do this right We'll lift your communities up and give them a brighter future Where families aren't struggling to make ends meet And schools are once again full of healthy kids Where employers are creating and filling good jobs And where there are good homes people can afford In safe, healthy neighborhoods and vibrant downtowns This is too important to let slip through our fingers So we must not squander this opportunity Perhaps the most valuable thing we could do with this year's surplus Is make sure we get every single penny of the federal funding available to us in the next few years Now, I know it's hard to keep up with all the federal programs Like ARPA, ESSER, GEAR, CRF, IIGAA, IRA, and many many more That's because this is the biggest infusion of federal dollars since the new deal of the 1930s And we have even more opportunities As a result of new money on the table through IIGAA and other federal programs From roads and bridges to clean water, wastewater, pollution control, and broadband We can fund infrastructure projects that are essential to revitalize communities To revitalize communities in every region But to draw down this money we must be able to pay our state share So my budget commits $150 million to take full advantage of these federal programs Now, I understand committing today's dollars to match future federal funding may not be appealing So let me explain why investing it now is the best strategy First, for every one of these state dollars, we get at least four federal dollars back I think our treasurer would agree that's a pretty good return on investment Second, if we can't fund it in the future We'll lose out on critical infrastructure funds Or have to cut state programs to find the match Third, this is an investment that will inject money and jobs in the economy for the next several years Which will need to sustain state revenue and continue to invest in our priorities Finally, and importantly, this is about real projects in your communities It means roads like Route 78 and Swanton Route 2 between Cabin and Danville Route 5 in Brattleboro And 22A through Benson They'll get rebuilt with wider shoulders for all users And improvements to address water quality And then there will be water projects that will move forward in Bethel, Northfield, Springfield, Crasbury, and Rutland The bottom line is there are many projects that have been on the books for decades And we've been handed the opportunity to move them forward right now So as you go through your process, keep in mind I feel very strongly about this strategy In order to strengthen communities for generations to come We need to make the commitment this year To help make sure the billions in federal money we've received is benefiting more regions We're using data to identify towns and villages that don't have the tools to go after state funding And invest out because of it Places like Halifax, Redding, West Fairley, Sutton, Rupert, Montgomery, Albert, and many more They all need our help to level the playing field With $3 million I've included in budget adjustment We can help these towns and many others Identify projects, apply for funds, and help see it through when funding is secure And we can do more in this budget to help smaller towns and more rural parts of the state With $3 million to put the final touches on the Lamora Valley Rail Trail And $3 million in one-time working lands And dedicate $10 million to strengthen agriculture by increasing processing capacity To drive more growth and vitality in every region Let's stay focused on attracting more employers and more sectors That's why we've worked to strengthen relationships across Canada Especially in Quebec, where we established a business office in Montreal last year We've already brought 13 new businesses here And have many more looking for locations to do the same But we sometimes lose out Because we don't have the facilities they need And with our permitting process, it would just take too long to build I propose we learn from a model that's worked in places like St. Albans And invest $10 million to help local partners Like regional development corporations Build facilities in the regions that need them most And we can treat RDCs and downtown organizations Like the real partners they are With an increase in their base budgets Because they're vital to our work to strengthen communities Three years ago, we worked together to dedicate millions in state funds To clean up old contaminated industrial sites Since then, we've funded dozens of projects that turn brownfields into valuable assets Like housing in Hartford and Rockingham A new small business in Weathersfield And a new dental office in Newbury So my budget puts another $12.5 million towards this work This is a win for the environment A win for the economy And a win for our state coffers in the future If you'll work with me on all these investments From basic infrastructure to new and revitalized buildings and stronger downtowns We can give more places an opportunity to restore their vitality And close the gap between regions This also means keeping our communities and families in mind as we address climate change The fact is, 70% of our monitors rely on the fossil fuels to heat their homes To change this, we need to help people through this transition Not punish them We must also answer some tough questions Which I get asked all the time Like, can our electrical grid handle the load needed for a cleaner, more affordable energy future? How will we make sure people stay warm or charge their vehicles when, not if, the power goes out? And most importantly, how do we make sure lower and moderate income families can afford the switch? Now, there are solutions to these questions And I share the sense of urgency here But we've got to get this right Doing this strategically with the understanding of the future With the understanding we can't hurt the very people we're trying to help Will ultimately get us where we all want to go Faster and with much less conflict So my budget dedicates funding to our climate office To develop a real plan Outlining exactly what work needs to be done On what timeline and at what cost And we'll bring this plan back to you so everyone can see the details Because, as is the case for any project Like roads, bridges and buildings The legislature has an obligation to debate and vote on these specifics In bill form And then send it to the governor for action Real plans get real results So let's join together to do what we've done with transportation projects Capital projects and clean water And do this work right It's important to know there's some meaningful steps we're taking right now While we do the more detailed planning We're currently investing nearly a quarter billion dollars of ARPA money To reduce emissions and increase resiliency On top of this, we're receiving new funding Through the Infrastructure Investment and Jobs Act And the Inflation and Reduction Act So we can weatherize more homes And provide more incentives to purchase electric vehicles Appliances and cleaner home heating options And my budget invests five million dollars Adding to the 8.5 million Senator Leahy secured For a clean heat homes initiative That combines the work to weatherize homes Install clean heat systems and make electrical upgrades This approach will be easier and reach more people than our current programs We can continue to take big steps forward to reduce emissions In a way that brings more of our monitors into this effort And make sure all our communities are benefiting This is the only way to achieve our goals and make a difference There's no question In order to have strong communities We have to stay focused on health and safety On top of our work during the pandemic More is needed to stabilize our healthcare system The workforce shortage and our demographics Means we see older, sicker patients With fewer providers to care for them So while we work on the underlying fundamentals I propose another 10 million in one-time stabilization We also mean to make sure those who can leave the hospital But still need care as they recover Have support from home health agencies To help them do that We should eliminate their provider tax Freeing up about six million dollars Which is especially important Due to recent federal cuts to Medicare rates Next Let's help more vulnerable Vermonters access critical dental services Today it's next to impossible for many Medicaid patients to get dental care Because Medicaid only pays 50% of the commercial rates This makes it very difficult to sustain a dental office In communities with a high percentage of these patients Access to dental services for both adults and kids Reduces chronic disease And has other positive impacts on physical and mental health Self-esteem And even on the ability to get a good job So let's help these families by increasing the Medicaid rate 75% of the commercial rate As we continue to address substance abuse and addiction We're falling through on last year's historic commitment to prevention work Putting more money toward life-saving measures like Narcan And funding work to bring treatment and residential beds back online And because we see a tremendous overlap between substance abuse and mental health I propose 9.2 million dollars to fund a two-year pilot That helps primary care doctors better address both In a way that supports kids and families in more areas of the state As I said two weeks ago We have a lot of ground to make up in our mental health system If you'll work with me in BAA we can add up to a dozen youth mental health beds Which will get kids in crisis the help they need And reduce pressure on emergency departments In this year's budget We can also expand mental health treatment in the northeast kingdom Which currently has no local option Except the emergency department So let's support the launch of psychiatric urgent care To help fill a gap in this region as we work to do the same across the state All of this intersects with public safety challenges Violent mentally ill adults need both treatment and a secure setting But if they don't meet specific federal criteria They can't stay in the state psychiatric hospital So my administration has identified beds to help fill the gap without impacting the budget In the capital bill we're funding work to plan for a new facility to do the same for violent youth We can also invest in law enforcement and victim services With almost two million to fund the criminal justice council's work to improve training curriculum And we'll add resources to train officers on fair and impartial policing And stabilize support for victims of violent crime I also propose 1.3 million To fill a perennial funding gap for E911 Due to fewer land lines in vermont But this may be part of a larger conversation we need to have about dispatch Because we find ourselves in the same intersection we've installed that for decades So we need to ask ourselves two basic questions before we're going much further Should we provide a statewide system that all communities use And if so, will we ask all communities to pay for their share Or do we fund it all with state funds? That's really the crux of the issue The sticking point has always been about who pays and who doesn't So only after we answer those basic questions can we develop a plan for the future To reduce violence and drug activity in a lasting way I've dedicated 10 million dollars to help communities unify the work of local public safety And human service teams on the ground We're developing this model in Bennington right now And we expect to see some good results So we need to be prepared to swiftly replicate it across the state If we get this right, this could be a powerful way to help all communities turn a critical corner Our public safety work always includes attention to root causes Which is why so many of our investments are focused on prevention and economic security And this includes housing That's why we'll continue with our comprehensive plan to address homelessness We've already dedicated more than 400 million for emergency housing Shelter beds Temporary rental assistance and paying down back rent My budget funds another 26 million in one-time funds this year And sustains general assistance housing But these programs are meant to be transitional and a bridge to housing security They weren't the long-term solution before the pandemic And won't be the solution after We need to step up our efforts To provide permanent homes for these families and others across the spectrum One way to do it is through VHIP The Vermont Housing Improvement Program Which on its own has already helped us move 300 families out of homelessness And because it improves existing buildings It revitalizes neighborhoods And has helped us increase the number of units at about one-tenth the cost of other investments So let's continue this work with 20 million dollars through BAA in this budget Our Healthy Homes Initiative Is another tool for improving the quality of older stock in the health of Vermonters So we'll dedicate an additional 10 million to make sure families primarily in mobile home parks Have clean drinking water and functional wastewater systems As we continue to focus the vast majority of these funds on affordable units for low-income families Including 21.5 million to BHCB this year We can't forget those with middle incomes are also struggling to find a home they can afford Last year we worked together on a new approach But it's far from enough especially in communities where housing quality has decreased Along with a decline in employers jobs workers and students So this year let's put another 20 million toward missing middle Decide a revolving loan fund to help bridge the gap Making it possible to create more middle-income rental units There's no doubt we need to invest more in this area But it's not just about the money Even with the hundreds of millions of dollars we've spent over the last several years We still need to add thousands of homes to meet the demand So the smallest housing investment in this budget $500,000 Maybe the most important Because it will help municipalities make updates to zoning laws That I hope we pass this year As I said two weeks ago If we want to see these investments turn into actual homes At the speed and quantity we need We must make regulatory reform a priority this year Since I came to office We've nearly doubled our state investment in child care subsidies And help sustain the system throughout the pandemic And it's clear we agree Investing in kids to give them a strong foundation is a priority But these investments haven't solved the problem when it comes to making sure all families can find child care That's why this budget makes an additional and ongoing commitment of 56 million dollars For a total of nearly 120 million a year To expand access to and affordability of child care Using existing sustainable revenue growth Not a new tax This funding would achieve three important goals First We can increase equity For families and regions with fewer providers available Currently Regardless of income a family gets less money if it's on a specific type of child care center in their area These subsidies should be About the needs of the family. So we need to fix this Second We've made huge progress to help expand access to after school And I want to thank senator sanders for his partnership on this But some of these programs aren't eligible for our subsidy Keeping them out of reach for many families So I once again propose to change this And this budget includes the funding to do just that Third We can expand our child care subsidy to cover families at 400 percent of the federal poverty level Giving thousands more kids the early care and learning they need now. I know This proposal may get resistant from some Because they want a new tax to pay for it But remember the debate we had around clean water funding I made the case we could pay for it with existing resources Instead Some suggested a whole host of taxes on gas soda coffee Haircuts auto repairs rental cars parking prescription drugs storage units and even snow making equipment And others said We should increase the rooms and meals tax The property treads for tax and motor vehicle fees And the list went on And after all that We actually found we could do it with existing resources And we can do the same here To help many more families with child care Open after school programs to kids in need And make sure families who need help get it Regardless of where they live importantly It puts us well on our way to the comprehensive system We agree should be built And achieves all this Without asking families with less To pay for families with more Similar to pay family and medical leave we can show it's possible to fund priorities without raising taxes With this approach We'll do so much more for our kids families and communities With greater impact now and for years to come This investment in child care Done in a way that makes Vermont more affordable not less Plays a role in growing our workforce But as I've said There's no single solution to our workforce shortage So my budget also dedicates new funding To help us educate train retain and recruit more workers When I came to office The state was investing $25 million a year to the Vermont state college system From the start I proposed increases And you've championed many as well Fast forward to today with the 2.5 million more I'm proposing Our annual investment could grow to 48 million dollars The state colleges are important to our regional economies So they need to be financially sound And to be candid Some of the decisions they've made and will need to make Will be tough to swallow But they're adjusting to the realities of today And are better positioned than ever to prepare our future workforce So to help them finish this transition I'll also dedicate an additional nine million dollars in one time bridge funding And 10 million for transitional infrastructure And with another 10 million dollars We can launch a two-year pilot that reduces ccv tuition by 50 percent Targeted to the fields we know are in demand Including child care and education accounting IT engineering and more To summon all up I'm proposing 78.2 million dollars across all funds to our state colleges We should also continue to support uvm's upscale Vermont scholarship And free tuition through vsax 802 opportunity program with a total of 6.4 million this year To give low-income vermonious free courses helping them gain new skills for good jobs Last year We worked together to create a scholarship program to help make trades education more affordable Opening new career opportunities for students and adults in every county It's been highly successful So we should make this one million dollar investment ongoing At this point I think most of us realize we need workers in every sector But I continue to believe we have to focus on the trades Without tradespeople We can't keep the lights on Or the water running We can't keep the roads or the vehicles on them safe We can't build the houses or businesses we need Maintain our hospitals or schools Or keep up with our climate mitigation projects Without them We really can't do much I remember being a kid at spalding As you might imagine I was a gearhead I loved working with my hands to create and build things It helped me understand how things work Or why they don't I had an act for it and really enjoyed it and still do But I also remember how it felt being caught between two worlds One taking me on the traditional path to college And the other was literally building that path instead of just envisioning it I take my college prep classes in the morning And then head off to the vocational center in the afternoon At that time the vocational program was typically for those kids who weren't going to make it On what was considered the normal path It was a deafening stigma attached And I was stuck right between those two worlds With neither group of kids understanding why I was with them That may have been the start of me being a centrist by the way We knew then and we know today That looking at these students as just shop kids Couldn't be further from the truth And if you don't believe me I can introduce you to lots of electricians plumbers and contractors Who'd be happy to talk to you about how rewarding And lucrative it is I think most of us have probably already recognized just how smart they are When we've needed them on a weekend to bail us out of a jam With an electrical problem, a water heater leak, or a sewer pipe failure I believe everyone is born with a gift Sometimes you just need to explore long enough to find it And who knows maybe someday in the future another one of those shop kids Will become governor Everyone from teachers and guidance counselors to parents and policy makers Needs to make a real effort to end the stigma around CTE and trade straining Because these are great careers That present endless possibilities for smart talented and hardworking kids We can also do more outside our education system to increase the number of workers We should continue helping employers train future workers With another one million through our internship program Let's also invest five million in the vermont training program To meet the increased demand from companies across the state And to bring more federal chips and science act dollars to vermont Supporting president biden's goal to to grow our semiconductor jobs And I propose we continue investing in recruitment tools to help attract more people Like our relocated worker program But if we really want to keep and attract workers We need to make it more affordable to live work and retire here That's why I propose a 17 million dollar tax relief package That starts by asking you once again To fully eliminate the tax on military pensions Veterans are some of the best trained and motivated workers available It's long past time to make it possible for them to start second careers here And not in one of the 38 other states who don't tax military pensions like we do We can also expand our social security tax exemption for seniors And they earn income tax credit A highly effective anti-poverty tool to put more money in the pockets of hard-working low-income families And we should join the 29 other states that offer their business owners a federal tax cut Without reducing state revenue by a single dime Here's the bottom line If we want to make a bigger dent in our workforce shortage We need to keep and attract more people to our state Part of this effort Also includes making Vermont more welcoming and inclusive So my budget commits over four million dollars to help refugees Immigrants and new americans settle into our communities Now I want to take a minute To talk about the importance of immigration From the scottish the settled farms in the kingdom For the french canadians who came south into st. Albans to work on the railroad From the italians and berry who helped build the granite industry And the polish and west ruttland that filled the quarries and factories To the bosnians Somalis and congolese Who fled war violence and oppression in search of a new life in burlington and winewski A city whose name reminds us of our indigenous population We are a state And a nation of immigrants President Reagan said Other countries may seek to compete with us But in one vital area As a beacon of freedom and opportunity That draws the people of the world No country on earth comes close This I believe is one of the most important sources of american greatness Today That source of greatness Has broken With real challenges on both sides of the argument And that's part of the problem It's an argument It's not a conversation It's just two sides talking over one another With nobody listening And no compromise in sight In both sides setting themselves up for the next election So once more Vermont can lead the way With compassion and courage We can do our part to welcome those bold or desperate enough to lead their lives and all they've ever known behind To travel thousands of miles Just to live the american dream There's nothing more american than this And the fact is We need them We need their diversity and culture Their ingenuity and labor Their hope and optimism So let's do our part here in this brave little state To fulfill our nation's promise And once more light the way to that shining city on a hill This budget is thoughtful deliberate Disciplined and carefully built to make the most of the historic resources available to us It's focused on investing not just spending to get the best result and grow revenue So we can move families and communities ahead It prioritizes the regions and people who need our help most To deliver an increasingly healthy and vibrant economy in each of your communities It funds work to lift Vermonters up With the dignity of a good job and stable housing And letting them take more of what they earn The choices we make this session right or wrong Will have tremendous consequences on our state long into the future So let's make the right decisions Not just the easy ones Because there are moments in history Rare opportunities to have a truly historic impact for those we serve My fellow Vermonters That moment is here That moment is real And it's our duty To meet it together So thank you You may be seated Will the committee please reassemble and escort the governor from the chamber of the committee The joint assembly will please come to order There being no further business I do hereby declare this joint assembly dissolved and ask the senate to join in returning to our chambers