State Treasurer Cautions Danger Of Budget Uncertainty, Even If Eleventh-Hour Deal Can Be Reached

Jun 13, 2018

State Treasurer Beth Pearce says Vermont will begin to experience serious fiscal setbacks if Gov. Phil Scott and Democratic lawmakers don’t resolve their budget impasse soon.

In a memo to lawmakers and the governor Tuesday, Pearce wrote, “As the prospect of a shutdown becomes more and more likely, so does the likelihood that the state will suffer real and permanent costs, even if it is averted at the last moment.”

Pearce said the Vermont Constitution prohibits government from drawing funds from the state treasury, without the legislative authority contained in a state budget bill.

If no budget is signed before the fiscal year expires June 30, Pearce wrote, “a shutdown would prevent state agencies from providing critical services to Vermonters.”

With fewer than three weeks until the end of the fiscal year, Pearce has also called on the Scott administration to “share its contingency plans with Vermonters,” in the event a shutdown occurs.

“It is time for the administration to provide guidance and direction to the public and state employees on what happens in the event of a shutdown,” Pearce wrote.

MORE: "As Budget Surplus Grows, So Does Dispute Between Scott And Legislative Leaders" (June 12, 2018)