[G]ov.-elect Phil Scott’s team has started taking over the state budget development process and is predicted to face a significant gap between revenue and spending for the next fiscal year.
Members of the Republican’s transition team met with Shumlin administration budget staff the day after the election to begin the handoff, according to Department of Finance and Management Commissioner Andy Pallito.
The nonpartisan Joint Fiscal Office estimates there is likely to be a gap between state spending and state revenues of $50 million to $70 million in fiscal 2018.
Pallito said there are several factors that may make budgeting for next year easier. For example, caseloads for services offered through the Agency of Human Services are declining, which translates into some savings.
Members of Shumlin’s Cabinet put together memos about their agencies’ budgets. Pallito told legislators on the Joint Fiscal Committee on Monday that the information has been handed over to Scott’s team, along with work on the fee bill.
Neale Lunderville is heading Scott’s budget development advisory committee. Former state finance chief Jim Reardon is on the panel as well.
Jason Gibbs, who is overseeing the Scott administration transition, said the transition has begun but there is a long way to go before the governor-elect’s budget is complete.
He said the transition team hasn’t yet confirmed the budget gap calculations from the JFO, though they may be “in the ballpark.” The new administration will be creating a new budget growth rate calculation that is based on economic and wage growth in the past year, Gibbs said.
During the campaign, Scott said he wouldn’t support a budget that exceeded the rate of growth in Vermont’s economy.
It is too early to identify areas in the budget where the Scott administration may look for cuts, Gibbs said.
“Our goal in building a new budget will be to emphasize efficiency through modernization, at lower cost and higher value to taxpayers,” Gibbs said.
