Vermont governor seeks to expand gambling

In a joint address to the Vermont House and Senate to deliver his 2020 budget proposal on Tuesday, Gov. Phil Scott said his $6.3 billion state budget plan would help grow Vermont’s stagnant population and revitalize its rural communities.

"Our demographic crisis is — without question — the greatest challenge we face as a state, "Scott said, repeating his oft-stated warning. “Addressing this reality is crucial to Vermont’s future."

As reported by Seven Days, the governor’s proposed budget would not raise any existing taxes or fees, but it would create two new ones: Scott pitched legalizing and taxing online sports betting, as neighboring New Hampshire recently did, and he called for the introduction of Keno lottery machines.

The two forms of gambling would generate at least $4 million in new revenue, according to Finance Commissioner Adam Greshin. Of that, $2 million would help boost childcare subsidies, rather than support the Education Fund, as lottery proceeds currently do.

Scott’s gaming proposals, which he barely mentioned in his 38-minute address, are likely to meet resistance from the Democratic legislature. At a press conference following the governor’s speech, House Speaker Mitzi Johnson (D-South Hero) and Senate President Pro Tempore Tim Ashe (D/P-Chittenden) threw cold water on the ideas, noting that the legislature had previously rejected them.

"We'll certainly wait and listen to the details," Johnson said. "Expanding the lottery and stealing money from the education fund haven't gone all that well in the House in the past."

Lt. Gov. David Zuckerman, a Progressive-Democrat who is challenging Scott for governor, said that such revenue schemes tend to be regressive. "I just don't think that hooking people in with gambling and taking lunch money and heating bill money and gas money … to pay for state services is the best way to help people who are struggling," Zuckerman said.

Scott’s budget proposal signals just the start of a four-month process during which the House and Senate must approve their own spending plans for the fiscal year that starts in July. They will then send a reconciled version to the governor for his signature or veto.