24 V.S.A. App. ch. 107, § 7.5: Lapse of appropriation

Every appropriation, except for a capital expenditure, shall lapse at the close of the fiscal year following the appropriation to the extent it has not been expended or encumbered. An appropriation for a capital expenditure shall not lapse until its purpose has been accomplished or abandoned, or until three years pass without any substantial disbursement or encumbrance. Duly approved sinking funds are exempt from this provision.