Statehouse Showdown Over Housing Program Funding Risks Education Budget
Vermont lawmakers are embroiled in a heated debate over the proposed Community and Housing Infrastructure Program (CHIP), which aims to stimulate home construction through a new form of tax increment financing (TIF). The controversy arises from concerns that CHIP could divert essential funds from the state education budget amidst ongoing discussions on education reform and property tax rates.
CHIP would introduce “mini-TIFs,” allowing private developers to access funding for infrastructure improvements such as utility installations and contaminated soil cleanup, all intended to facilitate new housing projects. Governor Phil Scott envisions this program as a means to create up to 7,000 homes within five years, arguing that it is crucial for Vermont’s housing crisis, which has resulted in economic losses of approximately $700 million annually.
Critics, including Rep. Charlie Kimbell, warn that the plan could lead to significant tax dollars being siphoned from the education fund, which was narrowly stabilized with a $77 million cash infusion to mitigate steep property tax increases. Kimbell, representing the House Ways and Means committee, cautions against broad implementation of the program without adequate safeguards to protect education funding.
Discussions have revealed that TIF districts, effective but complex, are used by only nine of Vermont’s 247 municipalities, raising questions about equitable access for smaller towns. Lawmakers seek to ensure that taxpayer funds are judiciously spent and targeted toward developments that truly necessitate infrastructure investment.
As tensions mount, the six-member conference committee aims to reconcile differences between House and Senate versions of the bill, with the looming challenge of securing a compromise that satisfies both the desire for expanded housing opportunities and the need to safeguard education funding. Governor Scott insists that bold action is necessary to address Vermont’s housing shortage, urging lawmakers to take the necessary risks for meaningful change.
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