Vermont Business Magazine Governor Phil Scott and legislative leaders have reached a compromise over the budget. Scott had vetoes the budget and property tax bills earlier this month, setting up today's veto session. The focus had been Scott's desire to institute a statewide teacher health insurance plan that would save state property taxpayers $26 million a year. While he will not get a statewide teacher contract, legislative leaders will set up a study committee on the issue and compel local school boards and teachers to find that $26 million in their negotiations over the next two years.
Governor Scott, Senate Pro Tempore Tim Ashe and House Speaker Mitzi Johnsonissued the following statement last night in anticipation of today's veto session:
“We are pleased to announce we have reached an agreement in principle on an education savings proposal that will take an important step to make Vermont more affordable. If passed by the full legislative body, this proposal will help the state achieve significant savings in the education fund and lower property tax rates.
“The agreement reached upholds the principles each of us committed to during the legislative session, building on areas of agreement and our shared goal to improve the lives of Vermonters. Importantly, it ensures that we will have a budget that does not raise taxes and fees, including property tax rates.
“As we finalize the proposal and work with the full legislature to move it forward, we are confident it will have cross-party support. We look forward to passing a balanced budget that does not raise taxes and fees, provides property tax relief, and makes critical investments in early care and learning, higher education, affordable housing, mental health, and economic development.”
Scott had vetoed H 509, a property tax bill, and H518, the Legislature’s proposed state budget June 6. The governor proposed in April to roll the many local teacher health insurance plans into one state plan. The teachers' union and Democratic leadership in the Legislature rejected Scott's plan because it disrupts the collective bargaining process and reduces local control. They also complained that such a sweeping proposal came too late in the legislative process to get a reasonable hearing and that, in any case, teachers are not state employees.
However, Scott said May 31 that he would not close down the government and would eventually sign both bills.
Scott had urged legislators during the session to roll the many local teacher insurance plans into one plan to save up to $26 million a year. He said the savings of about $75 million in premiums would be offset by $50 million put back into the plans to offset teacher out-of-pocket costs.
His mantra has been that this is “a once in a life-time opportunity” because of health insurance restructuring under the Affordable Care Act (Obamacare).
The governor said that while he would take the $26 million in sustained savings without changing the local collective bargaining process, he just didn’t see how it could get done.
Apparently, they have found a way to get it done.
Scott also had vetoed the bill that would partially legalize possession of marijuana. Despite efforts to find a compromise there, it appears the Legislature will put that issue off until it recovenes in January 2018. VBM vermontbiz.com
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