Vermont
Vermont’s goals for a new residential center for justice-involved youth remain murky – VTDigger
For more than 35 years, on a forested road near the banks of the Winooski River, Woodside Juvenile Rehabilitation Center housed some of Vermont’s most troubled youths.
By the time Gov. Phil Scott’s administration shut it down in fall 2020, the 30-bed juvenile detention center in Essex had drawn multiple lawsuits, replete with horrific details describing inhumane conditions and treatment for the facility’s residents.
Few publicly lament the shuttering of Woodside, but since then, Vermont has had to make do without a dedicated facility to hold young people involved in the justice system. The state has struggled to comply with a tangle of ever more complex state and federal regulations, and over the past four years, dozens of people 18 and younger have wound up in adult prison, some for extended stays.
Now, after years of delays and scrapped plans, state officials are pushing forward with the creation of a new residential facility in Vergennes. This June, four years after Woodside’s closure, officials inked a $10 million-plus deal with a for-profit provider.
But even with a contract signed, the state has not yet decided what kind of facility it wants — not how big to build it, nor the legal profile of the youths who will be sent there. State agencies are debating, for example, whether the facility will have capacity to house older youths and those charged with serious crimes.
There are “complicating variables when it comes down to how many beds do you build, and for what population,” said Tyler Allen, the adolescent services director at the Department for Children and Families. “Because there’s a lot of pathways things can go.”
‘At the start of conversation’
Woodside held a population of youths who had been charged with crimes and “found to present a risk of injury to (themselves), others or property that (required) them to be treated in a secure setting,” according to a lengthy 2019 report on the facility.
Even before Woodside closed, officials were exploring plans to replace it with a smaller residential treatment center. In 2020, Sean Brown, then the commissioner of the Department for Children and Families, said the state was working with the Becket Family of Services, a network of New England nonprofits that serve youths, to open a new five-bed facility within a year.
But the proposed location — a 280-acre parcel in Newbury owned by the Vermont Permanency Initiative, which is linked to Becket organizations — drew backlash and litigation from neighbors.
Earlier this year, the state shelved plans for that center and announced that it would build a new facility, the Green Mountain Youth Campus, on state land in Vergennes. Officials hope it will open in 2026, six years after the closure of Woodside.
The campus’ original design called for a 14-bed complex for justice-involved youths aged 12 to 18 with two sections: a six-bed wing for longer-term treatment and an eight-bed wing for shorter-term crisis stabilization.
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But Allen, in a recent interview, said that officials were considering adding a third section to the campus, one designed to accommodate youths 18 and older — a population scheduled to have many criminal cases moved to family court in April under Vermont’s Raise the Age law.
That law, which passed in 2018, gradually increases the age of offenders who are referred to family court instead of criminal court for committing nonviolent offenses. While the first stage — raising the age to the offender’s 19th birthday — took effect in 2020, lawmakers have delayed further changes to statute. This April, barring further delays, the state is set to raise the age to an offender’s 20th birthday.
The new proposal would create a 22-bed center — just eight beds shy of Woodside’s capacity. It could also allow the facility to serve youths charged with more serious crimes who end up in adult prisons, Allen said.
“This is just at the start of conversation,” Allen said earlier this month. “So that’s actually going to be introduced to our facility planning stakeholders and other folks just in the coming weeks.”
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‘A long haul’
Last month, Vermont also opened a temporary four-bed site in Middlesex called the Red Clover Treatment Program. That facility provides short-term crisis stabilization to justice-involved youths aged 12 to 18 as an interim measure before the construction of the Green Mountain Youth Campus. As of Nov. 4, Red Clover had two youths placed there, according to Department for Children and Families.
Vermont has contracted with a newly created entity called Sentinel Group, LLC, to operate Red Clover and to help design — and potentially run — the Green Mountain Youth Campus. The contract, obtained by VTDigger through a public records request, calls for the state to pay Sentinel Group up to $10.7 million over two years, a sum that does not cover the cost of running the future Vergennes facility.
A state spokesperson declined to provide an estimate for the cost of running that center. Woodside cost roughly $6 million a year to run at the time of its closure.
Sentinel Group was the only vendor that contacted the state after a previous request for proposals came up empty, according to state officials.
Jeff Caron, the company’s president, also leads the Vermont Permanency Initiative, which operates the Vermont School for Girls, the New England School for Girls, and Vermont Support and Stabilization, an in-home service provider.
In an interview Caron said that the Green Mountain Youth Campus would have to fit his specifications in order for Sentinel to run it. Without the right facility — one that would allow for appropriate rehabilitative treatment and career skills training — he might walk away, he said.
“They would like us to run it, but again, who knows what’s going to happen in a couple of years?” he said. “I would love to do that for the state of Vermont. But again, it’s a long haul, and if they don’t build a building that I want, then I’m not going to do it.”
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Woodside faced repeated criticism, legal repercussions and lost federal funding for lacking necessary therapeutic or rehabilitative programs.
At a September meeting of a state advisory panel, Allen, of DCF, said that Sentinel Group was a nonprofit, although the company is in fact a for-profit entity. Allen acknowledged that status in an interview earlier this month.
The state “made the decision that that wasn’t a barrier to contracting,” he said. “They were the only folks who came out and said, ‘We think we can do this thing.’”
Caron said that the company’s for-profit status reflected practical concerns, rather than a profit motive. He works with four other nonprofit boards, which eat up a significant amount of time and energy, he said, and another board is simply beyond his capacity.
“People are going to assume he’s just a money-grabbing guy, but that’s not the case,” he said, referring to himself. Caron said he is dedicated to helping treat and rehabilitate youths, rather than simply incarcerating them — a commitment he said was borne out by a long track record in the industry.
“I’ve been in the business for over 30 years, and I’ve been to numerous lockups and all the programs all over New England,” he said. “And secure detention centers for youths are not progressive and they don’t really work. They’re just an offshoot of adult incarceration — which we know doesn’t work a whole heck of a lot.”
And yet, Vermont youths have ended up in adult incarceration in recent years.
‘Sight and sound’
Vermont’s juvenile justice system is an intricate one, and young people involved in it may have very different experiences depending on their age and the severity of their alleged offense.
Most cases involving youths who commit lower-level offenses take place in family court. Currently, those youths are sometimes placed at crisis stabilization facilities, such as Red Clover or Bennington’s Seall programs, or at out-of-state residential centers — places that raise concerns of their own.
But for youths 14 and up accused of more serious crimes — from a list colloquially called the “Big 12 offenses” — cases must begin in criminal court, and young people may be housed or sentenced in adult prisons during or after their cases.
The Big 12 includes murder, manslaughter, sexual assault and other severe crimes. This past legislative session, lawmakers removed one crime from the list — burglary into an occupied dwelling — and added three new ones: using a firearm while committing a felony, trafficking a regulated drug, and aggravated stalking. (Those new Big 12 offenses only start in criminal court if the alleged perpetrator is 16 or older, however.)
Vermont Department of Corrections data from the three most recent years shows the state has held hundreds of people 21 and younger in adult prisons, several dozen of whom were 18 and younger.
The state incarcerated 178 individuals in 2022 who were under 22 years old. Twenty-two of those people were under 19, and eight were under 18.
The overall figure rose in 2023, when Vermont’s prisons held 260 people younger than 22. Thirty-two were 18 and under, and five were younger than 18.
The department also compiled data for 2024 through Sept. 12. By that time, Vermont had incarcerated 192 people under the age of 22, on pace to slightly exceed the 2023 figure. As of Sept. 12, 22 of the people held this year were 18 or younger, and four were under 18.
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When young people enter adult prisons, a slate of specific federal requirements comes into play. Federal law prohibits people under 18 from being housed within “sight and sound” of incarcerated adults, and requires supervision in situations when minors and adults are allowed to interact.
Vermont’s Raise the Age law adds further complications. Because the legislation increased the age of full criminal responsibility to 19, 18-year-olds who enter DOC custody must be granted a hearing during which a court decides whether to house the youth in an adult facility and allow sight and sound contact with incarcerated adults.
For 18-year-olds, courts often waive the sight and sound separation rule, according to Allen, the DCF official, usually at the request of the youth, who generally do not want to be held in isolation.
Over the past few years, federal officials have cited Vermont for violations of those regulations. In the 2021 fiscal year, the state reported five instances in which youths, all 18-year-olds charged as juveniles, were not separated by sight and sound from incarcerated adults. Because of Vermont’s Raise the Age law, the state is required to sequester those 18-year-olds from older incarcerated adults — unless waived by a judge — even though they are adults under federal law.
Those five incidents all occurred over the span of five months directly following the implementation of the Raise the Age law, Joshua Marshall, a DCF spokesperson, wrote in an emailed statement, “and DOC immediately began implementing practice change and developing policy” to prevent any more infractions.
Still, those violations came with a cost. The federal government reduced the size of a state grant by 20%, or $120,000, for the next fiscal year. The feds also required the state to spend half of the roughly $480,000 in remaining grant money to address the issue.
More recently, Vermont was cited for running afoul of another section of the federal law, one that limits how long justice-involved juveniles can be held in adult facilities. Under those regulations, youths cannot be held in adult facilities for more than six hours “for the purposes of processing or release or while awaiting transfer to a juvenile facility,” according to federal guidelines. In rural areas, youths may be held for up to 48 hours.
But in the 2022 fiscal year, Vermont saw 13 instances in which youths were held in adult facilities for longer than allowed. Two youths were held for over 130 days each, according to DCF.
Because that requirement is relatively new, the federal government is not yet penalizing states for those violations, Marshall said.
‘A function it was never designed to serve’
Currently, the state uses a dedicated four-person unit at Marble Valley Regional Correctional Facility in Rutland to hold youths, Isaac Dayno, executive director of policy and strategic initiatives for the Department of Corrections, said in an interview.
The wing in Rutland allows for sight and sound separation, but sometimes the situation is more cumbersome. If multiple juveniles are arrested for the same crime, a judge could order them not to have contact, Dayno said, further complicating Vermont’s makeshift system.
Some corrections officials have expressed concern about housing young people in adult prisons.
“We’re trying to manipulate the correctional system to meet a function it was never designed to serve,” Dayno said. “We want juveniles to be housed with DCF. They have the training, they have the expertise.”
Joshua Rutherford, DOC’s facilities cooperation manager, recalled that more than 20 years ago, as a correctional officer, he witnessed a 16-year-old being housed in his unit for a nonviolent felony.
“We kept an eye on him. We tried to keep him safe,” Rutherford said, “but he was a 16-year-old living with adults in a correctional facility. I don’t know how much good that did him long term.”
Rutherford kept tabs on the youth after he left prison. Eventually, he died of an overdose, he said.
“It’s possible that he could have been diverted to a different system, and that result could have happened anyway. I don’t know,” Rutherford said. “I do know that adult prisons are adult prisons, and they serve a purpose in our society. We have a mission. But I think as a state, we always should be looking very carefully at who we put in incarceration.”
But it’s not clear how many youths the new treatment facility in Vergennes will be able to keep out of adult prison.
That’s because most of the youths housed in prisons are there because of serious, Big 12 charges. And the Green Mountain Youth Campus, as originally designed with 14 beds, would be more geared towards serving youths with lower-level offenses.
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Whether or not the Vergennes campus can serve youths accused of more serious crimes depends, to a large degree, on whether or not the state greenlights the expansion to 22 beds, according to Allen.
“In the event that we are going to build a three-program campus that has 22 beds, I think it’s much more likely that DCF will have the capacity to meet the needs of a population of DOC youth,” he said.
‘Another Woodside’
Since shuttering Woodside, Vermont officials have drawn criticism both for the timing and manner of its closure — and their plans to replace it.
Steve Howard, the executive of the Vermont State Employees’ Association, has been consistently critical of Gov. Phil Scott’s decision to close Woodside. In post-Woodside Vermont, state employees have often shouldered the task of supervising youth in crisis — some justice-involved — while they wait for a bed somewhere.
“You don’t close a facility until you have another one ready to open,” Howard said. “That’s a management failure.”
Rep. Theresa Wood, D-Waterbury, chair of the the House Human Services Committee, speaks at the Statehouse in Montpelier on Jan. 25. Photo by Glenn Russell/VTDiggerRep. Theresa Wood, D-Waterbury, the chair of the House Committee on Human Services, said this past legislative session that the facility was closed prematurely, leaving the state ill-equipped to safely treat the youth in its care.
“I just wanted to say that in public,” Wood said in a February committee meeting. “It wasn’t right to close Woodside.”
The state’s proposal for a new facility has also drawn skepticism. In Vergennes, residents expressed concern about the impact to the local community and the fact that the city hosted the Weeks School, a now-shuttered youth detention and reform school, for decades.
Lawmakers have worried about the impact of potentially housing 12-year-olds alongside 18-year-olds. Other advocates fear that the Youth Campus will institutionalize a disproportionate number of youth of color — something that happened at Woodside, according to Deputy Defender General Marshall Pahl.
At the time of Woodside’s closure, Pahl said at a September meeting, “If I remember right, there (were) four non-white residents and one white resident, and that’s in an overwhelmingly white state.”
And multiple organizations and advocates have expressed fears that the Vergennes site will simply repeat the abuse and mistreatment that occurred at the facility it is slated to replace.
Lauren Higbee, deputy advocate in Vermont’s Office of the Child, Youth and Family Advocate, has argued that high-security residential facilities are generally more costly and less effective at rehabilitating youths than community-based resources.
“We’re building the most expensive intervention with the least effective outcomes,” she told lawmakers this summer, describing the state’s plans. “We are building another Woodside,”
But the Department for Children and Families has promised that the new facility will represent a new chapter in the state’s efforts to rehabilitate justice-involved youths.
Having an operator run the center while DCF conducts oversight will lead to more accountability, officials say. By contrast, the state both ran and regulated Woodside. And the state has stood up a network of advisory boards and advocacy groups to monitor its progress, providing an extra layer of oversight.
“We can do it right this time,” DCF Commissioner Chris Winters told Vergennes residents at a public meeting this spring.
Vermont
Jewish group files ethics complaints against Vermont legislators who took paid trip to Israel – VTDigger
MONTPELIER — A Jewish group that opposes Israel’s military campaign in Gaza has lodged ethics complaints against the five members of the Vermont House who traveled to Israel last September on a trip that was sponsored by the Israeli government.
The Vermont and New Hampshire chapter of Jewish Voice for Peace argued in filings last week that by accepting invitations to go on the trip, the Democratic and Republican legislators ran afoul of state laws limiting what gifts public officials should accept.
The lawmakers are Rep. Sarita Austin, D-Colchester; Rep. Matt Birong, D-Vergennes; Rep. Gina Galfetti, R-Barre Town; Rep. Will Greer, D-Bennington; and Rep. James Gregoire, R-Fairfield. In all, 250 legislators from all 50 states attended the trip, which was described as the largest-ever gathering of U.S. state legislators in Israel.
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According to an Instagram post from Israel’s government at the time, the lawmakers “witnessed the magnitude of the October 7 tragedy, experienced Israel’s innovation and cutting-edge technology, tasted our incredible cuisine, and met with Israel’s leaders — including the Prime Minister, the President, the Foreign Minister, and many others.”
At a press conference Tuesday in the Statehouse — the first day of the 2026 legislative session — members of Jewish Voice for Peace, and several other advocacy groups, lambasted the lawmakers’ decision to travel to Israel and demanded they resign.
Officials from the Israeli government valued the trip at $6,500 per person, according to records attached to the ethics complaints that Jewish Voice for Peace filed.
“As elected representatives of Vermont, they implicated our state in Israel’s atrocities,” said Ashley Smith, a member of the Vermont Coalition for Palestinian Liberation, one of the groups at the press conference, speaking to a crowd of dozens of people.
Israel’s ground and air campaign against Hamas militants in the Gaza Strip has killed more than 70,000 people, according to local health authorities. Israeli strikes have destroyed vast swaths of buildings and other infrastructure in the enclave. At the same time, the United Nations has declared a famine there, saying that more than half a million people face “starvation, destitution and death” as a result of Israel’s war.
An independent U.N. commission determined last year that Israel has committed four “genocidal acts” in Gaza since Oct. 7, 2023. The Hamas attacks on that day that prompted the campaign killed about 1,200 people and led to 250 being taken hostage.
Three other current state legislators were also at the press conference standing among the presenters, including Sen. Tanya Vyhovsky, P/D-Chittenden Central; Rep. Kate Logan, P/D-Burlington; and Rep. Esme Cole, D-Hartford. Vyhovsky called the trip “unconscionable.”
Jewish Voice for Peace is asking Vermont’s State Ethics Commission to recommend that the Vermont House’s internal ethics panel “conduct a thorough investigation” of the group’s complaints. The State Ethics Commission has little authority to take substantive action on ethics complaints when those complaints are related to legislators’ conduct, but the body is generally required to refer such complaints when it receives them.
Christina Sivret, the commission’s executive director, said Tuesday she could not discuss publicly what actions were or were not being taken regarding the complaint.
According to Jewish Voice for Peace, most aspects of the legislators’ trip did not fall into one of the categories of gifts that state law allows public officials to accept. Moreover, the group contended in a press release, the trip amounted to a paid lobbying effort by Israel’s government “with the expectation” that the lawmakers “would support legislation in their home states favorable to Israel’s geopolitical and economic interests.” At the least, the group wrote in its complaints, that created the appearance of a quid pro quo.
The legislators did not file lobbying disclosures with the Vermont Secretary of State’s Office, as is required for some gifts, at the time of the trip. But Vermont legislators aren’t required to disclose gifted trips, anyway, Seven Days reported last year.
The group pointed to how four of the five sponsored a bill last year aimed at creating a new curriculum for Vermont students, and new training for Vermont teachers, focused on “the evolving nature of antisemitism” in the U.S. The legislation, H.310, would also create a new definition of “antisemitic harassment” in Vermont law that includes, among other pieces, “negative references to Jewish customs or the right to self-determination in the Jewish people’s ancestral and indigenous homeland,” which is Israel.
The group also noted how, during a stop in Jerusalem, Israeli Foreign Minister Gideon Sa’ar urged the assembled legislators to pass laws in their states that would hinder the Boycott, Divestment and Sanctions movement. That’s the international movement aimed at using economic pressure to force Israel’s government to change its policies.
All five of the legislators pushed back against the advocacy groups’ assertions and calls for resignation in written statements and interviews on Tuesday.
Birong chairs the House Government Operations and Military Affairs Committee and is the most powerful Vermont legislator who took the trip.
“In a world increasingly filled with siloed media and narrowed information streams, I wanted to take the opportunity to witness for myself and ask questions,” he said in a statement. “When accepting the invitation, I was under no illusion as to the perspective of our hosts.”
Gregoire is vice chair of the House Corrections and Institutions Committee and pushed back against the assertion that the trip was a lobbying effort by a foreign government.
“We went during the off session and there was no connection to our legislative work,” Gregoire said in a statement. “No one asked us to do anything beyond standing up against antisemitism and that was during casual conversations.”
Austin said she did not believe she or her colleagues had violated any ethics rules when traveling on the trip. Both Galfetti and Greer said they were eager to move forward with their legislative work for the year, and pointed to how they have been threatened and have feared for their safety since the details of their trip were made public last fall.
Galfetti said in a statement that the complainants and organizers of Tuesday’s press conference “have lied and continued to lie about this trip, pushing an incendiary false narrative designed to spread disinformation in these troubled times.”
In a statement, House Speaker Jill Krowinski, D-Burlington, said her office did not have purview over the legislators’ decision to go on the trip and that “our established, independent review process — the House Ethics Panel” — was where any issues from critics of the trip could be reviewed. The panel’s proceedings are highly secretive, with little information typically available to the public about a given complaint or how it gets resolved.
Meanwhile, Pattie McCoy, the House GOP leader, said in a statement Tuesday that she supported the legislators’ decision to go on the trip.
“We support State Representatives who reach out and travel to engage in, and build, international relations,” the Poultney Republican said. “Through these efforts Vermont has built business partners that continue to increase our economic presence globally, allowing Vermont businesses to grow and thrive.”
Vermont
Vermont lawmakers reconsider school funding law – Valley News
The future of Vermont’s education system again hangs in the balance as lawmakers return to Montpelier this week to reconsider a sweeping law that would change how the state funds and governs public schools.
Six months ago, Republican Gov. Phil Scott and Democratic leaders in the House and Senate stood together at a bill-signing ceremony in Montpelier to celebrate the passage of Act 73. The landmark law launched a multi-year plan to consolidate Vermont’s 119 school districts into five regional governance hubs and ultimately shift control over school spending from local boards to the state.
“While this session was long and difficult and uncomfortable for some, we were able to come together and chart a path towards a system that better serves our kids and one that taxpayers can afford,” Scott said in July.
But that path may no longer be politically viable in 2026.
The critical first phase of Act 73 — mandatory school district mergers — has ignited fierce opposition in communities across Vermont. That resistance got amplified last month when a task force appointed by the Legislature to draw new district maps rejected the premise of forced consolidation altogether.
In its final report, the group cited “strong concerns about student wellbeing, loss of local control, transportation burdens, rural equity, and a process perceived as rushed or unclear.”
Cornwall Rep. Peter Conlon, the Democratic chair of the House Education Committee, said lawmakers now have to confront the possibility that Act 73 no longer has the political support needed to move forward as originally envisioned.
“Whether state-imposed larger districts would pass the General Assembly I’d say is questionable,” Conlon said. “To be very honest, we’re still wrestling with the question of what the best way forward is.”
A new plan to rein in school spending
The seeds of Act 73 were planted on Nov. 5, 2024, when Vermont voters punished House and Senate Democrats at the ballot box following an average 14% property tax increase driven by education spending.
Republicans made historic gains in both chambers, shifting the balance of power and forcing Democratic leaders to negotiate an education reform compromise with Scott, despite significant resistance within their ranks.
Senate President Pro Tem Phil Baruth said he remains hopeful lawmakers can still move forward with district consolidation. But the Chittenden County Democrat acknowledged that the task force’s refusal to produce new maps has delayed implementation by at least six months to a year.
That delay also pushes back the rollout of Act 73’s centerpiece: a new “foundation formula” that would give the state the authority to set per-pupil spending levels for every public school in Vermont. Lawmakers view the formula as the primary mechanism for curbing education spending, which has increased by $850 million over the past decade.
With property taxes projected to rise another 12% on average this year, Baruth said taxpayers can’t afford to wait. He plans to introduce legislation this week that would impose hard caps on school budget increases ahead of Town Meeting votes in March.
“Now that we have this delay, I think it’s very hard to say that anything is going to produce savings within the next three or four years,” Baruth said. “So I started thinking about, ‘How could we reduce the rate of growth in the education system quickly?’”
Baruth said he has not yet settled on a specific allowable growth rate. He said the growth caps would be in effect for the next two fiscal years.
The proposal has drawn swift pushback from school officials. Sue Ceglowski, executive director of the Vermont School Boards Association, said budget increases are largely driven by rising health insurance costs that boards can’t control.
Imposing hard caps, she warned, would force districts to cut core student services. And she said the proposal comes as school boards put the finishing touches on spending plans they’ve been carefully crafting for months.
“Imposing hard caps on those same school budgets would inject chaos and confusion into the budget process, possibly postponing budget votes until later in the spring,” Ceglowski said.
House Speaker Jill Krowinski echoed those concerns. While she acknowledged the need to address what she called “unsustainable” property tax increases, the Burlington Democrat warned against a last-minute mandate.
“I am concerned that a last-minute pivot to new (a) school budget construct will upend communities and lead to rash decisions that will have a negative impact on our Vermont kids,” Krowinski said in a written statement.
Redistricting or bust?
It’s now up to the Legislature’s education committees to redraw school district maps, though neither has a clear plan for how to proceed.
“The task force, whether you agree with them, don’t agree with them … it set the process back,” said Bennington County Sen. Seth Bongartz, the Democratic chair of the Senate Education Committee. “And so we’re going to have to regroup and figure out the path forward.”
Bongartz said he remains supportive of redistricting but warned lawmakers not to let opposition derail broader funding reforms.
“The funding formula that we have right now is not working, is not going to work, and is putting Vermonters in a position where they can’t afford to pay their bills, so we must fix the funding formula,” he said.
The governor, however, insists that no aspect of Act 73 can fall into place until and unless the Legislature votes to approve new district maps.
Jason Maulucci, the governor’s director of policy development, said the foundation formula depends on economies of scale that only larger governance structures can provide. Act 73 also envisions major reforms to special education, pre-kindergarten, and career and technical education, all of which, he said, require larger administrative units.
“We don’t see a scenario where the foundation formula that we established last year would work well at all with 119 districts of significantly different sizes,” Maulucci said. “They need the protection of scale in order to make the best budget decisions given the funding that will be provided them.”
A different path
Jericho Rep. Edye Graning, the Democratic co-chair of the School District Redistricting Task Force, was one of several lawmakers who drew the governor’s ire for failing to deliver new district maps.
She said lawmakers’ response to the group’s work has been far more positive.
“We have had more often than not an incredibly positive response to what we did, which feels much better than some of the other responses we got from the administration,” Graning said.
Instead of forced mergers, the task force recommended voluntary consolidation and the creation of “Cooperative Education Service Areas,” which would allow districts to share services such as special education, transportation, and IT.
Graning said the task force heard from thousands of Vermonters and received a clear message.
“Don’t try to jam through massive redistricting without public input and without creating trusted bonds within our communities,” she said. “It was almost a unanimous voice across the state saying, ‘Please do not close our schools, but also we know that there is some reform that is needed, but please do so slowly and deliberately and thoughtfully.’”
Vermont
Nursing home bailouts: Why Vermont has given millions to keep care centers afloat – The Boston Globe
For their part, state health officials say Vermont’s nursing homes are a vital piece of the eldercare landscape. Without extraordinary financial relief, they say, the state would have lost even more critical bedspace.
Efforts to address the upstream causes of the nursing homes’ financial crises, like the state’s reliance on traveling nurses, have received far less financial support.
Around half of the extraordinary financial requests from 2020 onward mention concerns with increased costs of staffing, particularly contract staffing. Staff and contract staff make up about 50 percent of total costs in nursing homes’ budgets, according to the state.
Vermont’s nursing homes depend on traveling staff more than those in any other state, according to federal data from the Centers for Medicare and Medicaid Services.
There are many reasons extraordinary financial relief is not a sustainable means to “plug the gap” for nursing homes, “but we needed something,” said Helen Labun, the Vermont Health Care Association’s executive director.
“We don’t want EFR to be a standard option,” Labun said. “It really is meant to be an extraordinary measure.”
An old program meets an urgent need
Despite existing for more than 20 years, Vermont’s extraordinary financial relief program started playing a recurring and sustaining role for the state’s nursing homes only since the COVID-19 pandemic.
The bureaucratic program routes through multiple departments nested within Vermont’s Agency of Human Services.
The Department of Vermont Health Access’ rate-setting division, which sets Medicaid reimbursement rates for nursing homes, reviews requests submitted by facilities. But the funds for extraordinary financial relief come from Medicaid dollars allocated through the Vermont Department of Disability, Aging, and Independent Living, according to the department’s commissioner, Jill Bowen.
Nursing homes, which receive extraordinary financial relief, provide the most intense level of care, serving people who wouldn’t have their needs met in an assisted living or residential care home, according to Labun. These facilities must serve patients on Medicaid to qualify for financial relief, she said.
There are 33 nursing homes in the state, with a total of about 2,847 beds as of July, a decline of nearly 900 beds in the last 20 years, according to the DAIL.
Bowen said the loss of beds in long-term care facilities is worrying given Vermont’s aging demographic, though she said the trend may partially stem from people seeking at-home care instead.
Angela Smith-Dieng, director of DAIL’s Adult Services Division, said the state does not want to lose options for its large elderly population, so extraordinary financial relief is “incredibly important as a tool to prevent nursing home closures.”
One factor leading to increased emergency funding requests, according to state leaders, is the “rebasing” of Medicaid reimbursements. Rebasing, which most recently occurred in 2025 and 2023, according to state leaders, changes Medicaid reimbursement rates based on cost data from earlier years. In 2023, the state altered reimbursement rates based on 2020 costs, which didn’t yet capture the new financial pressures brought on by the pandemic.
In July, the state again balanced reimbursement rates, this time using 2023 costs, which Bowen hopes will limit the need for extraordinary financial relief.
Working with the Legislature, the DAIL advocated for changing how much facilities are paid based on their occupancy, reducing penalties for not meeting high thresholds, according to Bowen.
In some instances, the state has advanced nursing facilities money through the bailout process or provided more money than a facility requested. The state may advance facilities funds if they will not be able to meet payroll for staff, Bowen said, but she added that the state was more likely to provide less — not more — than a company requested.
The state has recouped every advance or was in the process of recouping them, according to the department’s rate setting division.
As part of an extraordinary funding review, Jaime Mooney, the director of the rate setting division, said the state examines a company’s finances and whether facilities are in compliance with state and federal requirements.
After the rate setting division reviews the request, combing through the provided financial information such as past-due invoices and the amount of cash on hand, the division makes a recommendation to the DAIL.
The rate setting division also consults with DAIL regarding possible issues with the care provided by the requesting facility. But Mooney said she couldn’t recall ever denying a facility’s request due to the quality of care.
The state restricts grant use, and facilities cannot pay penalties or exorbitant owner-administrator fees with the funds, according to Mooney.
The facility must also meet reporting requirements, including providing updated financial information, she said.
According to Labun, nursing home owners need to demonstrate they don’t have money from other sources. That prevents companies that own many facilities from shifting their investments to out-of-state homes and then requesting bailouts from Vermont.
In the past, nursing homes had savings they could rely on when reimbursement rates weren’t covering expenses, Labun said. But, during the pandemic, nursing homes’ coffers ran dry, and extraordinary financial relief was retrofitted to respond to the emergency, Labun said.
Nursing homes typically used extraordinary financial relief in one-off cash flow emergencies to “fight financial storms that they might not otherwise have been able to weather,” according to Labun.
That’s now changed, and the cost of nursing is driving the crunch.
Contract staff tend to cost facilities at least twice as much as permanent staff, contributing to nursing homes’ financial distress, Labun said. The use of contract staff in Vermont has fallen slightly, according to Centers for Medicare and Medicaid Services data. But the state’s rate is still exceedingly high compared with the national average, Labun said.
While the nation saw heightened rates of contract staff at the onset of the pandemic, the rates have generally returned to the pre-pandemic norm, said Richard Mollot, executive director of the Long Term Care Community Coalition, a national nonprofit organization.
Vermont nursing homes had the highest rate of contract staff employment compared with those in other states in 2024, peaking at 31 percent in the first quarter of 2024, according to analysis of Medicaid data by the Long Term Care Community Coalition. The national average in the same period was 8 percent.
Mollot said nursing homes often use a larger number of contract staff when there is high attrition among permanent staff.
Staffing tends to be the highest expenditure for nursing homes, and oftentimes nursing homes that work with temporary staffing agencies are contractually obligated to pay contract staff more than permanent staff, said Kaili Kuiper, Vermont Legal Aid’s long-term care ombudsman. That means nursing homes spend much of their budget on filling the staffing gap.
This is a “difficult cycle to break, because there’s only so much money to go around,” Kuiper said. The cycle can also cause poor care, and Kuiper said her office has seen “a lot of issues that are related to there not being enough staffing to provide the care that’s needed,” including problems with response times and hygiene.
Vermont’s demographic challenges are driving the underlying problem of nursing homes’ high use of contract staff, Labun said.
So, in recent years, the Legislature has allocated some funds to rebuild the nursing workforce.
The state put half a million dollars toward attracting and keeping licensed nursing assistants in the current fiscal year budget. That investment was an attempt at addressing the upstream causes of nursing homes’ financial woes, according to state Senator Richard Westman, Republican of Lamoille, who sits on the Senate Appropriations Committee and serves on the board of a rural hospital.
The state plans to draw down federal funds for workforce development from the Civil Monetary Penalty Reinvestment Program that had previously been held up in between the President Joe Biden’s and President Trump’s administrations and during the federal shutdown, Labun said.
The legislative investment was far less than the money spent on extraordinary relief, but Westman argued that prioritization makes sense, given the financial weakness of some facilities. In the last two years, about two-thirds of nursing homes have requested extraordinary relief, he said in a May interview.
“I think one could make an argument that without that help, they probably would have gone out of business,” Westman said.
Staffing underlies the financial challenges, Westman said, echoing others. Investing in nurse recruitment and retention, as well as increasing reimbursement rates nursing homes receive, could prevent the facilities’ reliance on bailout money, he suggested.
Kuiper said that using temporary emergency staff is an important tool. As the state’s advocate for nursing home residents, Kuiper said employing contract staff is a better alternative than allowing a facility to be understaffed.
But in the long run, Kuiper said she would like to see “a stronger movement away from temporary staff,” and for the care community to prioritize strategies to curb the high use of contract staff as the “status quo.”
Former VTDigger reporter Peter D’Auria contributed reporting.
This story was originally published by VTDigger and distributed through a partnership with The Associated Press.
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