 It's great to be here to sign the fiscal year 2020 budget and please have pressure Pierce members of the appropriations Committees and members of my cabinet as well as the team over here that actually who actually put the budget together So thank you all for your efforts and and a lot a lot of late nights. I'm sure in January I presented a balanced budget that proposed investments and reforms to expand the economy and state revenues By reversing Vermont's demographic trends increasing the number of Vermonters working Supporting growth in downtowns and villages across the state and investing in the things that make Vermont a great place to live Work and visit. I pledge to work together with the legislature on our ideas to help all 251 communities in Vermont grow as well as work with them to modernize state government and Manage our operational costs and financial obligations. So we're not adding to the tax burden The budget I'll sign today is a good Fiscaly responsible budget which funds many of the legislature's priorities as well as initiatives that I proposed And it does all this while keeping new spending to a level for a modern skin afford I want to take thank you in particular senator Kitchell Representative toll and her colleagues in the Senate and house for working with me and my team to build a budget that works for Vermonters As every household knows budgeting is about making choices We must balance our many needs with our ability to pay what we want with what we need the budget in front of you Finds that balance between investing and priorities and maintaining fiscal discipline For example general fund spending grows at about 3% Which is in line with the growth in the economy in Vermonters wages It tackles our demographic Crisis by building on my proposals to retain and retrain workers and attract new families to Vermont It moves us closer to a cradle to career education system by adding about six million dollars more for child care And about three million dollars more for higher education I'm particularly proud that in just two and a half years. We've increased our funding for child care by nearly 30% It also provides additional pay for frontline mental health providers The status is a dedicated funding source for clean water that fills in the final gap without raising new taxes and so much more There's a lot to be proud of in this budget and with treasurer Pierce here with us I thought I would highlight a few of the financial steps. We've taken With her assistance as well in her leadership to improve our fiscal fundamentals and put us on a more sustainable financial path We made an extra two point four million dollar base appropriation to the retired teachers health care fund and Any fiscal year 20 surplus over 20 million dollars will also be directed to that fund With changes made in budget adjustment We've devoted half the fiscal 19 surplus the retired state employees health care fund Another example of making extra payments now to avoid larger payments in the future This is good financial management for taxpayers and good for the future of Vermont Those who follow our budget closely Understand that funding our long-term liabilities is eating up larger and larger shares of any new revenue This year over 40% of general fund revenue growth went to these liabilities That's why the steps we took this year to address some of our debt is so valuable Together, we've also built our reserves to help weather an economic downturn that that's bound to happen Something representative toll has helped to draw attention to Reserves provide confidence that government services and programs will continue without destruction during tougher times So not only does this budget meet statutory reserve Requirements it also dedicates a substantial portion of the fiscal year 19 surplus into the rainy day reserves And knowing the time and energy treasure pierces is devoted to these issues Including the clean water funding I mentioned. I'm pleased to have her here with us today. So thank you very much Beth for your good work Looking ahead the hard work of closing annual budget gaps will continue This reality is exactly why I put an emphasis on growing our workforce and economy Because as a Burlington business owner told me we need more taxpayers not more taxes Together we must look for ways we rethink how we do the work of state government So we can continue to deliver the services for monitors need while investing in economic growth and other shared priorities To do so we must think outside the box Which is exactly why I've asked my cabinet to do as we begin looking at budgeting in fiscal year 21 and beyond So again, I'm pleased to be here to sign a budget that moves us in the right direction I thank you again to all the legislators here today and those who aren't who had a hand in crafting this bill I very much appreciate it. So now I'll invite treasure Pierce to say a few words as well So I always talk about a structurally balanced budget and a structurally balanced budget is one that takes your ongoing revenues and matches up to your ongoing expenditures and doesn't use One-time revenues for ongoing programs and uses those dollars and I also has a part a place for paying down your long-term liabilities This budget did that. It was a very responsible budget. It's it has increases in reserves Which is thank you. Thank you representative toll for your attention to that It also begins to pay down some of our long-term liabilities It takes a look at some of the some of the issues we have with teacher health care State health care as well as the pensions Putting more money into those now the governor's correct saves you more money in the long term. Think about a mortgage You know, if you if you push it off if you have a mortgage that's Backloaded you're gonna pay more interest the taxpayer doesn't need to pay interest We need to have a system in place when we lower the cost of interest for the taxpayer and be responsible And also manage it in terms of our cash flows, and I want to thank the governor I want to thank representative toll. I want to thank senator Kitchell I really want to thank Suzanne Young back here for her good work. We work together to get this done It's about collaboration and structurally sound budget was the result and I just want to thank everyone I'm also excited about clean water. I have to tell you I spent a little bit of time on that I think it was 23 different stakeholder meetings and we met about a thousand people It was a lot of work. We saw some increases last year I don't remember the act number but h777 last year provided us for some more passive clean water initiatives and delighted that that's taking place and S96 is just a great bill. It has a delivery system that we're looking for it has an allocation process And it has dollars associated with that and I really want to thank the legislature I want to thank senator Kitchell for your work on that and where are you Julie the fantastic work I'll give you a hand right now, but it's just fantastic the co-operation that we've had To get this done. That's what's special about Vermont That's what we're able to accomplish and I'm delighted to work with the governor with With the General Assembly to get this done and look forward to doing that in fiscal year 2020 21 so thank you and I'm going to introduce Representative toll who really worked hard on making sure that we had adequate reserves and then so so thank you I don't know if my husband would agree with the reserves. I don't know if I'm that good at home with our reserves That's private money and this is state money and it's very important I'm going to talk a little bit from our committee's perspective the governor did a wonderful job highlighting Priorities in the budget that were addressed to child care water quality mental health and I'm sure senator Kitchell Much of that was done in the Senate As you get closer to the end Knowing what there is for revenues is different and the Senate did a wonderful job with some additional Spending that the house did not have the dollars to do But our committee really uses the committees of jurisdiction to look at priorities and to fund priorities That really support all Vermonters and other priorities that that our committee Really keeps in focus are our liabilities that both the governor and secretary secretary treasurer Pierce Talked about and we're very pleased that we have a long-term plan to address Our pensions and the related health costs and they're very expensive We have a plan we're addressing them head-on and I do have to say it's been a pleasure working with the Administration and the treasurer to take that bull by the horns and and head in a good direction Reserves is also priority a large priority in house appropriations And if we only have two weeks left in the fiscal year and if we continue on the pathway that we're continuing on The construct in the budget should put our reserves at approximately 15% And the standards say that if to be prepared for the next recession We need 12 to 18 percent in reserves and so Vermont is really heading in the right direction 18 would be great. I'm really happy if we can get to 15 by July 1 The budget is balanced. I'm really excited to be here for a signing of the budget. It's sustainable the budget that is before us It's responsible. It addresses the needs of Vermonters, and it also addresses our liabilities and preparing for the future And I'm very pleased with the work of our committee and the interaction that we've had with the governor and with the Senate and With all of the committees of jurisdiction, and I think that we have a fine state budget for fiscal year 2020. Thank you Good morning, everyone. I'm Jane Kitchell. I chair the Senate appropriations committee I have to sort of give a historical perspective everybody's talking about, you know, this budget It is a wonderful budget. I've been in state government in some form or other for 50 years So I've got a good perspective in terms of is this a good budget or not, and I really think in the end we Have our fiscal house in order. We have good priorities I was being in the Senate can either be good or bad, but in this Year we actually had more money to work with and we use the money in I believe very Strategic ways for me the budget and you look around the room It's really where all state government comes together and it's not only the work of the appropriations committee And I want to thank the members who are here today, but it's every Committee of jurisdiction whether it's our gov ops who we're talking about the importance of our emergency medical services and need To increase funding to our mental health system to whatever So your budget is really the big bill people don't realize your transportation bill is only the plan There's no spending. There's no money for your transportation bill or the capital bill without the budget Everything is really done through the budget development process and this year. We did spend a lot of focus I think it was balanced in terms of showing up our basic safety net issues looking at workforce education Childcare climate and environmental issues. We are happy about the clean water finally coming to Some closure on that and everybody says, you know, Chittenden County gets everything and I look about where the head Water is of all the rivers that flow into Lake Champlain. So we're giving everything to Chittenden County in a very different way I just thought I would point that out We hear it all the time Chittenden County is Where everything but the budget does fund a number of initiatives and we're really happy with How it worked out? It was great working with the administration and coming to Where we are today as well as all the work of the house and we have the advantage of all the work That is done in the house on the budget before it comes over. So I'm very pleased to be here today and I say after 50 years, this is a good budget and I'm glad the governor is going to sign it today So it makes a good picture if you all come around I don't get to do this very often I know Guidance for 21 have you already given your cabinet and your department heads? At marching orders, are you going to wait for the emergency? Well, I wouldn't say they're marching orders. Good morning This is why we're doing the budget I wouldn't say marching orders. We just want to be very realistic about where we're heading When we look at the the growth and expenditures in the future in in every department and agency We've we've looked at the five-year outlook and you can see quite an alligator mouth there because the the revenues Are are not out piecing the expenditures. It's quite the opposite So we're looking at what I've charged my cabinet doing is is taking a look At the five-year plan and what can we do to close that gap in the future? Are there things that we can do a look at outside the box and and we'll be working, you know just to to bring those ideas to the table and across Different that we're not working in silos. We're working together as a cabinet to do that and When we come up with some ideas we want to engage the legislature as well because we think we all have to be in this together and Because again, what the path we're on is unsustainable Because we have all the all the surplus money we might see in the next Two or three or four years or whatever it is before a recession hits It's going to go to to our pension liabilities So are a good majority of that so we understand that and so we're just looking at the different approaches But there's no mandates at this point. No number. No number Any other questions? Why did you veto the medical amendment monitoring bill? You know, there was a lot of outreach from many many businesses from my standpoint This was concerning and many are fearful of job losses about the ability to find insurance So and there's approach that I believe that we can take we came very close And I would say that everyone was working very hard to come to a yes And there's still a path forward in order to do that. So I'm I'm looking forward in January Obviously the legislature will have the the prerogative of overriding that veto or if if not successful That we can get back to the table and find a pathway to yes Great. Thank you very much. Thanks everyone for coming in