§ 701. General appropriation bill
When the budget has been submitted to the General Assembly, it shall be immediately
referred to the Committee on Appropriations, which shall at once proceed to consider
the same and as soon as possible thereafter prepare a bill that shall be known as
the “general appropriation bill” and introduce the same forthwith for action by the
General Assembly. Such bill shall provide appropriations for the maintenance and
operation of all departments of the State.
§ 701a. Capital construction bill
(a) When the capital budget has been submitted by the Governor to the General Assembly,
it shall immediately be referred to the House Committee on Corrections and Institutions,
which shall proceed to consider the budget request in the context of the 10-year capital
program plan also submitted by the Governor pursuant to sections 309 and 310 of this title. The Committee shall also propose to the General Assembly:
(1) a prudent amount of total general obligation bonding for the following fiscal year,
for support of the capital budget, in consideration of the recommendation of the Capital
Debt Affordability Advisory Committee pursuant to chapter 13, subchapter 8 of this
title; and
(2) recommendations for capital projects that may be paid for from the Cash Fund for Capital
and Essential Investments, established in section 1001b of this title.
(b) As soon as possible, the Committee shall prepare a bill to be known as the “capital
construction bill,” which shall be introduced for action by the General Assembly.
(c) The spending authority authorized by a capital construction act shall carry forward
until expended, unless otherwise provided.
(1) All unexpended funds remaining for projects authorized by capital construction acts
enacted in a legislative session that was two or more years prior to the current legislative
session shall be reported to the General Assembly and may be reallocated in future
capital construction acts.
(2) Notwithstanding subdivision (1) of this subsection, any amounts appropriated in a
previous capital construction act that are unexpended for at least five years shall
be reallocated to future capital construction acts.
(d)(1) On or before November 15 each year, the Commissioner of Finance and Management shall
require each entity to which spending authority has been authorized by a capital construction
act enacted in a legislative session that was two or more years prior to the current
legislative session to submit a report on the current fund balances of each authorized
project with unexpended funds. The report shall include plans for the unexpended funds,
any projects or contracts the funds are assigned to, and an anticipated timeline for
expending the funds.
(2) On or before the third Tuesday of every annual session, the Commissioner of Finance
and Management shall submit in a consolidated format the reports required by subdivision
(1) of this subsection to the House Committee on Corrections and Institutions and
the Senate Committee on Institutions.
(e) The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the reports to be made under
subsections (c) and (d) of this section. (Added 1989, No. 258 (Adj. Sess.), § 4; amended 2007, No. 200 (Adj. Sess.), § 36, eff. June 8, 2008; 2011, No. 104 (Adj. Sess.), § 33, eff. May 7, 2012; 2013, No. 51, § 36; 2013, No. 178 (Adj. Sess.), § 28 eff. June 9, 2014; 2017, No. 154 (Adj. Sess.), § 32, eff. May 21, 2018; 2023, No. 69, § 24, eff. June 14, 2023; 2023, No. 85 (Adj. Sess.), § 465, eff. July 1, 2024; 2025, No. 33, § 20, eff. May 22, 2025.)
§ 702. Exceeding budget
The head of a State department, who is not elected by the people, shall not exceed
the limits of the budget adopted by the General Assembly for his or her department,
and in the event that such limit is exceeded, the Governor shall remove him or her
after due notice and hearing. However, in case any unforeseen necessity arises whereby
the budget limits may be exceeded in the particular department affected, then the
payment of the same may be authorized from the contingent fund, on the approval of
the Governor and the State Treasurer.
§ 703. Unexpended appropriations
The unexpended and unencumbered balances of any sums appropriated by the General Assembly
shall, at the end of the fiscal year, unless otherwise specifically provided, revert
to the appropriate fund balance. Refunds of expenditures and reimbursements shall
be credited to the appropriate fund and to appropriation accounts in the current fiscal
year. (Amended 1983, No. 253 (Adj. Sess.), § 249; 1997, No. 66 (Adj. Sess.), § 66, eff. Feb. 20, 1998; 2007, No. 192 (Adj. Sess.), § 6.011.)
§ 704. Interim budget and appropriation adjustments
(a) The General Assembly recognizes that acts of appropriations and their sources of funding
reflect the priorities for expenditures of public funds enacted by the General Assembly
and that major reductions or transfers, when required by reduced State revenues or
other reasons, ought to be made whenever possible by an act of the General Assembly
reflecting its revisions of those priorities. Nevertheless, the General Assembly also
recognizes that when it is not in session, it may be necessary to reduce authorized
appropriations and their sources of funding, and funds may need to be transferred,
to maintain a balanced State budget. Under these limited circumstances, it is the
intent of the General Assembly that appropriations may be reduced and funds transferred
when the General Assembly is not in session pursuant to the provisions of this section.
(b)(1) Except as otherwise provided in subsection (f) of this section, in each instance that
the official State revenue estimate for the General Fund, the Transportation Fund,
or federal funds has been reduced by one percent or more from the estimates determined
and assumed for purposes of the current fiscal year’s appropriations, the Secretary
of Administration shall prepare an expenditure reduction plan for consideration and
approval by the Joint Fiscal Committee pursuant to subsection (e) of this section,
provided that any total reductions in appropriations and transfers of funds are not
greater than the reductions in the official State revenue estimate.
(2) In each instance that the official State revenue estimate for the General Fund, the
Transportation Fund, or federal funds has been reduced by less than one percent from
the estimates determined and assumed for purposes of the current fiscal year’s appropriations,
the Secretary of Administration may prepare and implement an expenditure reduction
plan without the approval of the Joint Fiscal Committee, provided that any total reductions
in appropriations and transfers of funds are not greater than the reductions in the
official State revenue estimate. The Secretary may implement an expenditure reduction
plan under this subdivision if plan reductions to the total amount appropriated in
any section or subsection do not exceed five percent, the plan is designed to minimize
any negative effects on the delivery of services to the public, and the plan does
not have any unduly disproportionate effect on any single function, program, service,
benefit, or county. Plans not requiring the approval of the Joint Fiscal Committee
shall be filed with the Joint Fiscal Office prior to implementation. If the Secretary’s
plan consists of reductions greater than five percent to the total amount appropriated
in any section or subsection, such plan shall only be implemented in the manner provided
for in subdivision (1) of this subsection.
(c) An expenditure reduction plan prepared by the Secretary shall indicate:
(1) the amounts to be reduced in each appropriation by funding source and the amounts
to be transferred;
(2) in personal services, operating expenses, grants, and other categories, the effect
of each reduction in appropriations and their sources of funding, and each fund transfer,
on the primary purposes of the program;
(3) how it is designed to minimize any negative effects on the delivery of services to
the public; and
(4) any unduly disproportionate effect the plan may have on any single function, program,
service, benefit, or county.
(d) An expenditure reduction plan implemented under subdivision (b)(2) of this section
shall not include any reduction in:
(1) appropriations authorized and necessary to fulfill the State’s debt obligations;
(2) appropriations authorized for the Judicial or Legislative Branch, except that the
plan may recommend reductions for consideration by the Judicial or Legislative Branch;
or
(3) appropriations for the salaries of elected officers of the Executive Branch listed
in subsection 1003(a) of this title.
(e)(1) The Joint Fiscal Committee shall have 21 days from the date of submission of any expenditure
reduction plan under subdivision (b)(1) of this section to consider the plan and may
approve or disapprove the plan upon a vote of a majority of the members of the Committee.
If the Committee vote results in a tie, the plan shall be deemed disapproved, and
if the Committee fails for any other reason to take final action on such plan within
21 days of its submission to the Committee, it shall be deemed to be disapproved.
During the 21-day period for consideration of the plan, the Committee shall conduct
a public hearing and provide an opportunity for public comment on the plan.
(2) If the plan is disapproved, then in order to communicate the priorities of the General
Assembly, the Committee shall make recommendations to the Secretary for amendments
to the plan. Within seven days after the Committee notifies the Secretary of its disapproval
of a plan, the Secretary may submit a final plan to the Committee. The Committee shall
have 14 days from the date of submission of a final plan to consider that plan and
to vote by a majority of the members of the Committee to approve or disapprove the
plan, but if the Committee fails to approve or disapprove the plan by a majority vote,
the plan shall be deemed disapproved. If the Secretary’s final plan includes any changes
from the original plan other than those recommended by the Committee, then during
the 14-day period for consideration of the final plan, the Committee shall conduct
a public hearing and provide an opportunity for public comment, with the scope of
the hearing and the comments limited to the changes from the original plan.
(3) In determining whether to approve a plan submitted by the Secretary under this subsection,
the Committee shall consider whether the plan minimizes any negative effects on the
delivery of services to the public and whether the plan will have any unduly disproportionate
effect on any single function, program, service, benefit, or county.
(4) Any plan disapproved under subdivision (b)(1) of this section shall not be implemented.
(5) For purposes of this section, the Committee shall be convened at the call of the Chair
or at the request of at least three members of the Committee.
(f) In the event of a reduction in the official revenue estimate of one percent or more
and the Joint Fiscal Committee does not approve the Secretary’s final expenditure
reduction plan prepared under subdivision (b)(1) of this section, the Secretary may
implement an expenditure reduction plan in the manner provided for in subdivision
(b)(2) of this section, provided that the expenditure reduction plan is not greater
than one percent of the prior official revenue estimate. If the Secretary implements
an expenditure reduction plan under the authority of this subsection, any subsequent
expenditure reduction plan that is required to address the remaining imbalance under
the current official State revenue estimate may only be implemented in the manner
provided for in subdivision (b)(1) of this section.
(g) No expenditure reduction plan may be approved or implemented under this section that:
(1) would result in total reductions in appropriations from any fund, or transfers to
that fund, by more than four percent of the estimate originally determined and assumed
for purposes of the current fiscal year’s appropriations; or
(2) would reduce expenditures or transfer revenues of the Education Fund as prescribed
by law.
(h) An expenditure reduction plan may only be implemented under subsection (b) of this
section subsequent to an official State revenue estimate and when the General Assembly
is not in session.
(i) [Repealed.]
(j) In each instance that cumulative revenue collections during the month of September
or October are four percent or more below the respective cumulative monthly revenue
targets, the Emergency Board shall convene in the manner provided for in subsection 305a(b) of this title to determine whether to revise the official State revenue estimate.
(k) As used in this section:
(1) “Cumulative monthly revenue targets” means monthly revenue targets adopted based on
the most current official State revenue estimates, as agreed upon by the Legislative
Joint Fiscal Office and the Secretary.
(2) “Expenditure reduction plan” means a rescission plan that includes reducing and adjusting
appropriations and their sources of funding, and transferring and adjusting funds,
from the amounts authorized in the current fiscal year’s appropriations.
(3) “Official State revenue estimates” means a revenue estimate determined by the Emergency
Board, as provided in section 305a of this title. An official State revenue estimate does not mean cumulative monthly revenue targets. (Added 1995, No. 178 (Adj. Sess.), § 280; amended 1997, No. 61, § 262a; 2009, No. 52, § 1; 2013, No. 142 (Adj. Sess.), § 63; 2015, No. 58, § C.103, eff. June 11, 2015; 2015, No. 131 (Adj. Sess.), § 33; 2021, No. 105 (Adj. Sess.), § 462, eff. July 1, 2022; 2025, No. 27, § E.127, eff. July 1, 2025.)
§ 704a. Execution of the laws relating to appropriations
(a) The Governor and every other officer or employee of the Executive Branch shall faithfully
execute the laws relating to appropriations so as to effectuate the intent of the
General Assembly in enacting such laws, including the provisions of this chapter,
the annual appropriations act, and any budget adjustment act.
(b) The Executive Branch is authorized and encouraged to take such actions as are necessary
and desirable to manage and administer State programs and agencies in an efficient,
effective, and fiscally prudent manner, and to such ends may accomplish savings and
reduce spending in such programs and agencies, provided that the legislative purposes
for which the sums are appropriated are substantially accomplished. (Added 1995, No. 178 (Adj. Sess.), § 281; amended 1999, No. 1, § 99, eff. March 31, 1999; 2021, No. 105 (Adj. Sess.), § 463, eff. July 1, 2022.)
§ 705. Allotment of appropriations
(a) With the approval of the Governor, the Secretary of Administration, through the Commissioner
of Finance and Management or such divisions of the Agency of Administration as the
Commissioner may designate, shall have the following powers, duties, and functions:
(1) The authority to allot from time to time to each department, institution, and State
agency the appropriation made by the General Assembly for the department, institution,
or State agency. The allotment may be made on a monthly basis or as the work of the
department, institution, and agency may progress.
(2) The keeping of such controlling accounts as may be necessary in order to determine
the accuracy and limit of the expenditures made under the allotments.
(b) The departments, institutions, and agencies shall be governed by the allotments made
as provided in this section and shall not at any time exceed the sums thus allotted.
(c) The authority conferred by this section is granted solely for the ministerial purpose
of managing the State’s financial accounts. Nothing contained in this section shall
authorize any decrease in any such appropriation. If allotments have been made, the
Secretary shall report to the Joint Fiscal Committee on or before the 15th day of
each quarter, identifying and describing the allotments made pursuant to the authority
granted by this section during the preceding quarter. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this
subsection. (Added 1959, No. 328 (Adj. Sess.), § 5; amended 1987, No. 243 (Adj. Sess.), § 62, eff. June 13, 1988; 1995, No. 178 (Adj. Sess.), § 283; 2011, No. 3, § 89, eff. Feb. 17, 2011; 2013, No. 142 (Adj. Sess.), § 64.)
§ 706. Transfer of appropriations
Notwithstanding any authority granted elsewhere, all transfers of appropriations shall
be made pursuant to this section upon the initiative of the Governor or upon the request
of a secretary or commissioner.
(1) With the approval of the Governor, the Commissioner of Finance and Management may
transfer balances of appropriations not to exceed $100,000.00 made under any appropriation
act for the support of the government from one component of an agency, department,
or other unit of State government to any component of the same agency, department,
or unit.
(2) Except as specified in subdivision (1) of this section, the transfer of balances of
appropriations may be made only with the approval of the Emergency Board.
(3) For the specific purpose of balancing and closing out fund accounts at the end of
a fiscal year, the Commissioner of Finance and Management may adjust a balance within
an account of an agency or department in an amount not to exceed $200.00.
(4) [Repealed.] (Added 1959, No. 328 (Adj. Sess.), § 6; amended 1971, No. 92, § 16, eff. June 1, 1971; 1977, No. 247 (Adj. Sess.), § 188, eff. April 17, 1978; 1979, No. 74, § 321; 1983, No. 195 (Adj. Sess.), § 5(b); 1999, No. 11, § 1; 1999, No. 66 (Adj. Sess.), § 53, eff. Feb. 8, 2000; 2003, No. 80 (Adj. Sess.), § 79, eff. March 8, 2004; 2005, No. 80, § 52; 2007, No. 65, § 395, eff. June 4, 2007; 2011, No. 3, § 90, eff. Feb. 17, 2011; 2011, No. 153 (Adj. Sess.), § 29; 2025, No. 27, § F.167, eff. May 21, 2025.)
§§ 707-709. Repealed. 1995, No. 178 (Adj. Sess.), § 283a.
§ 710. Payment of State agency fees
(a) Notwithstanding any other provision of law, the Agency of Transportation, any cooperating
municipalities, and their contractors or agents shall be exempt from the payment of
fee charges for reviews, inspections, or nonoperating permits issued by the Department
of Public Safety, a District Environmental Commission, and the Agency of Natural Resources
for any projects undertaken by or for the Agency and any cooperating municipalities
for which all or a portion of the funds are authorized by a legislatively approved
transportation construction, rehabilitation, or paving program within a general appropriation
act introduced pursuant to section 701 of this title except for those fees established under 3 V.S.A. § 2822(j)(2)(A)(iii), (j)(10), (j)(11), and (j)(26).
(b) Notwithstanding any other provision of law, no fees shall be charged for reviews,
inspections, or nonoperating permits issued by the Department of Public Safety, a
District Environmental Commission, and the Agency of Natural Resources for:
(1) Any project undertaken by the Department of Buildings and General Services, the Agency
of Natural Resources, or the Agency of Transportation that is authorized or funded
in whole or in part by the capital construction act introduced pursuant to section 701a of this title except for those fees established under 3 V.S.A. § 2822(j)(2)(A)(iii), (j)(10), (j)(11), and (j)(26).
(2) Any project undertaken by a municipality, which is funded in whole or in part by a
grant or loan from the Agency of Natural Resources or the Agency of Transportation
financed by an appropriation of a capital construction act introduced pursuant to
section 701a of this title except for those fees established under 3 V.S.A. § 2822(j)(2)(A)(iii), (j)(7)(A) and (B), (j)(10), (j)(11), and (j)(26). However, all such fees shall be
paid for reviews, inspections, or permits required by municipal solid waste facilities
developed by a solid waste district that serves, or is expected to serve, in whole
or in part, parties located outside its own district boundaries pursuant to 10 V.S.A. chapter 159. (Added 1993, No. 59, § 20, eff. June 3, 1993; amended 1993, No. 233 (Adj. Sess.), § 57, eff. June 21, 1994; 1995, No. 148 (Adj. Sess.), § 4(c)(1); 1999, No. 148 (Adj. Sess.), § 86, eff. May 24, 2000; 2003, No. 115 (Adj. Sess.), § 115, eff. Jan. 31, 2005; 2005, No. 103 (Adj. Sess.), § 2, eff. April 5, 2006; 2015, No. 64, § 45.)
§ 711. Approval of debt
If a person as defined in 1 V.S.A. § 128, except a municipality as defined in 1 V.S.A. § 126, pays a majority of its operating expenses, as determined in accordance with Generally
Accepted Accounting Principles, in any fiscal year with amounts appropriated by the
State, either directly or indirectly as a pass-through from a State agency or department,
and the person intends to incur any debt in that fiscal year in the cumulative principal
amount greater than $1,000,000.00, including debt incurred through the issuance of
bonds, notes, bank loans, mortgages, lease-purchase contracts, and capital leases,
then the person shall notify and obtain the approval of the State Treasurer and the
Governor prior to incurring the debt. For the purposes of this section, amounts appropriated
by the State shall not include nondiscretionary federal funds known as special revenue
funds as presented in the State’s Annual Comprehensive Financial Report (ACFR). (Added 2001, No. 61, § 67, eff. June 16, 2001; amended 2001, No. 142 (Adj. Sess.), § 320, eff. June 21, 2002; 2025, No. 18, § 55, eff. May 13, 2025.)