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Governor and lawmakers reach deal on budget and taxes - WCAX.COM Local Vermont News, Weather and Sports-

Governor and lawmakers reach deal on budget and taxes

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MONTPELIER, Vt. -

Taxes are going up, and there will be fewer state services. It's all part of package aimed balancing the Vermont budget.

That's the deal reached Saturday between the Governor and legislative leaders as they prepare to adjourn.

After a week of veiled veto threats and private meetings with House and Senate leaders and Governor Peter Shumlin emerged Saturday to announce a tax deal was in place.

“I'm really pleased to announce that we've reached an agreement on the budget that allows us to balance in a way that allows us, raise the revenue for the budget in a way that's fiscally responsible but ensures we can continue to grow this economy for every single Vermonter,” said Governor Shumlin.

The 30 million dollar tax package was one both Senate and House leaders were confident could pass.

“I am confident the bills will pass,” said House Speaker Smith. Sen. John Campbell agreed, “I think we can rally the vote, rally the troops.”

The governor agreed with lawmakers to cap income tax deductions at around 31 million instead of 25 for a couple filing jointly. That couple can still fully deduct medical or charitable expenses.

The tax package coupled with the proposed budget would close a 113 million dollar shortfall.

“This is lower spending by 3.5 million dollars than what passed out of the House,” said Rep. Mitzi Johnson, D-South Hero

Republican lawmakers got their wish Saturday afternoon when an economic development package -- aimed at helping young workers and startup companies -- passed.

“I think you're going to find significant capital for those startup companies and those early growth stage companies that aren't bankable yet,” said Rep. Heidi Scheuermann, R-Stowe.

The bill funds workforce development programs and repeals a tax on the cloud.

“There were a few areas in the Senate bill that came over and we accepted them,” said Rep. Bill Botzow, D-Pownal.

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