Vermont Legislative Joint Fiscal Office

Capital Bill

Related Links: House Corrections & Institutions Committee Senate Institutions Committee State Treasurer: Debt Management

The state uses the capital bill to pay for construction projects. These projects are generally construction of buildings or related projects (not transportation) and usually have a projected life of 20 years or more.

 Where does the money for these projects come from?

The funding for these projects comes from state issued bonds – bondholders buy the bonds and the state pays those bondholders back over time and with interest.  The state has a committee* chaired by the Treasurer that annually reviews and recommends the maximum amount of bonding debt that would be prudent for the state to take on. 

 What is the money spent on?

These projects generally have a life of 20 years or more and are typically

  • state-owned buildings (construction, renovations)
  • clean water projects
    • municipal drinking water and sewage treatment plants
    • agriculture: implementation of best practices
    • mitigate storm water runoff
  • grants to municipalities and other entities

  What is the typical process?

The governor submits a recommendation.  The House reviews the governor’s recommendations, and then develops and introduces a capital bill.  The Senate debates and proposes changes to the House bill. 

 For more information on the bill process, see How a Bill becomes law: https://legislature.vermont.gov/assets/All-State-House-Docs/State-House-PDFs/How-a-bill-becomes-law-4.pdf

  *The Capital Debt Affordability Advisory Committee


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