The state of Vermont last year agreed to settle a civil case with victims of the EB-5 fraud in the Northeast Kingdom.
Vermont taxpayers will now be footing the bill for the $16.5 million settlement.
Gov. Phil Scott presented lawmakers with a mid-year budget plan on Friday that allocates $9.5 million in state funding for the first payout of the settlement.
Attorney General Charity Clark told Vermont Public last year that she would pursue coverage from the state’s insurance carrier to cover those costs. But she told House lawmakers earlier this week that the company, AIG Property Casualty, had denied the claim.
That means Vermont will have to cover the costs from its own general fund, which is supported by tax revenues generated in state.
More from Vermont Public: Attorneys for EB-5 investors could get $5.5M from state settlement
The state will have to make additional payments during the next two fiscal years as well.
Have questions, comments or tips? Send us a message or contact reporter Peter Hirschfeld:
_
