Vermont House fails to override budget bill veto

The Democratically controlled Vermont House Tuesday failed to override Gov. Phil Scott's veto of the second budget bill.

"Those voting yes, 90. Those voting no, 51. And you have failed to override the governor's veto," announced House Speaker Mitzi Johnson, D-South Hero, Tuesday afternoon.

Majority Democrats couldn't find the needed two-thirds vote to override Gov. Phil Scott's second budget veto of the year, so the standoff over property tax rates continues.

"Had Republicans stuck to their earlier votes on the budget then we could have made sure there was a budget in place for July 1," Johnson told reporters following the vote.

Without a budget, the state government shuts down in July. Republicans previously supported the budget en masse, but have since sided with the governor as he demands no property tax rate increase.

"We stood up today for Vermont property tax payers. We support the governor's veto. We don't see a need to increase property taxes at this point," said House Minority Leader Rep. Don Turner, R-Milton.

The governor wants to use surplus personal and corporate income tax revenue and other one-time funding sources to buy down property tax rates. Majority Democrats in the legislature say that's bad fiscal policy and accuse the governor of holding the budget hostage for political leverage. "I think the governor and the minority party have continually talked about the shutdown being their leverage, and I think the threat of a shutdown is far too important to use as leverage," Johnson said.

With the new fiscal year looming, some compromise is needed. Johnson says the Senate will now take the lead in crafting a budget, with the hope of finding some common ground.