Accounting error brings Burlington budget gap to $14.1M

BURLINGTON, Vt. (WCAX) – The Burlington City Council Monday night will get a closer look at the 2025 budget, and a budget gap that has now grown to $14.1 million because of a recently found $1.1 million accounting error.

It’s a case of deja vu for Burlington Chief Administrative Officer Katherine Schad. “In a chaotic budget year, there were a lot of moving pieces. So, we’re thankful that we caught that before submitting the final budget. But it’s an unfortunate error to come in June,” she said.

After a shortfall from the previous administration led to taxpayers footing the bill, Schad says the city will not be doing the same for this $1.1 million. This time, the plan is to collect previously unpaid gross receipts taxes from businesses, cut down on other fees, and put a plan for a new ambulance on hold.

Schad says the city will work on the budget beginning in August to avoid mistakes like this. “How do we do more proactive budgeting and get on to more of a three-year cycle and not be finding things late in April, May, June, but really have much more of a fulsome budget to present in like January and February,” Schad said.

Overall, municipal taxes will be going up around $400 for a home valued at $500,000, which is close to the median home price. But in a year of a new school and soaring education costs — plus additional utility costs — the owner of a similarly valued property should expect to pay an additional $1,200.

“Being able to only take two of those three cents for the approved public safety increase is something that’s very important to the mayor and was guiding us as we tried to fill that $1.1 million,” Schad said. said.

The original $13.1 million gap was due to one-time funds no longer being available, plus increased expenses.

Budget woes have stood out in Burlington Mayor Emma Mulvaney-Stanak’s first few months, and she has repeatedly said that affordability is a top priority. “This has been an exceptionally challenging budget season, and I will be working with the Chief Administrative Officer to ensure they have the staff and resources needed as we prepare for Fiscal Year 2026,” Mulvaney-Stanak said in a statement.

The growth of city government continues; it’s around 7 percent larger than last year’s budget.

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