Vermont Business Magazine Sometimes in sports, "a tie is as good as a win," but in the case of Governor Phil Scott's proposal to roll all local teacher health insurance contracts into one state plan, a tie vote in the House Wednesday night was a loss. An amendment to an existing bill to create a statewide teacher health insurance plan was defeated when Speaker Mitzi Johnson cast the tying vote on the amendment. A clear majority is required to add an amendment. The House then added an amendment supported by Democratic leadership that would take anticipated savings on school health care plans negotiated district-by-district across the state and put them against the statewide property tax. The governor called that plan a "hope and a prayer," in a VPR interview. At issue is what both sides agree is the prospect of $26 million in savings to property tax payers.
Democratic leaders Johnson and Senate President Pro Tem Tim Ashe earlier on Wednesday presented a plan that would take the sum of local health insurance savings to offset property taxes (SEE HERE). Scott is dubious that local school boards will be able to negotiate those new terms to that $26 million level. The Democrats, however, are also concerned, as is the teachers union (National Education Association) that it will undermine the local collective bargaining process, of which the insurance plans play a major role.
The back-and-forth of the Wednesday debate with both plans described can be found starting on page 1971 of the House Journal HERE.
The reason this comes up now is that virtually all teacher health insurance plans must be re-done because of the Affordable Care Act (ObamaCare). Scott calls this a "once-in-a-lifetime opportunity" to capture all the insurance plans at one time. The ACA premiums are significantly lower than the existing plans, while out-of-pocket costs are higher. The premiums alone are expected to be $75 million lower. Scott's plan would supplement the out-of-pocket costs to teachers by nearly $50 million, leaving a net of $26 million.
Underlying all of this is the prospect of a Scott veto of the budget, which he has not ruled out. The likelihood of that veto being sustained appears greater now with the closeness of the Wednesday night vote.
In a statement Wednesday, the Vermont Democratic party fired a full broadside at the governor: "Don’t be fooled: this is part of the national Republican assault on organized labor. The Republican Governor's Association paid millions of dollars to get Phil Scott elected, and they weren’t doing it just to be nice. They knew Phil Scott would work to undermine organized labor in Vermont just like Republican governors have done across the country. Stand up for your teachers and their right to good wages and good benefits. Strong unions means a strong middle class for everyone."
Governor Phil Scott’s Communications Director Rebecca Kelley issued the following statement late Wednesday night:
“Tonight, the House voted clearly to support Governor Phil Scott’s proposal for a statewide health benefit that would realize up to $26 million in savings, in a 74-73 vote. In addition, two supporters of the proposal were absent from the House tonight.
“Sadly, House Speaker Mitzi Johnson cast a final vote, creating tie that blocked the proposal from advancing.
“While the Speaker’s vote ensured this savings proposal was not adopted tonight, this vote is a clear indication that enough votes exist in the House to ensure that, one way or another, the Governor’s proposal can still become law, saving taxpayers up to $26 million each year, without asking teachers to pay more or cutting programs for kids.
“Governor Scott is unwilling to leave the estimated $26 million in savings a year on the table, and this vote demonstrates the legislature is willing to make commonsense policy changes on behalf of taxpayers.
“The Governor is grateful to all those who voted for the amendment to put Vermont's taxpayers and school districts first and will continue to work with the Legislature to enact this proposal.”
Bruce Lisman, who lost the Republican gubernatorial primary to Scott, is backing the governor and spending money on advertising to prove it.
He said in his own statement: “This is a seminal moment in the direction of our State. This is a one-time opportunity to move the burden of negotiating complex health benefit plans from overburdened school boards, and to save taxpayers up to $26 million each year by creating a statewide health benefit for teachers without cutting programs for our children or requiring employees to pay more.
“There is still time in the 2017 legislative session to address this issue and save taxpayers millions of dollars, but will the Vermont General Assembly take the necessary action to enact legislation?
“Providing Vermonters a growing economy and the ability to be economically secure and prosperous is the change they want. Retaining job creators, and attracting new businesses and young families to our state has been and continues to be a priority. I urge Vermonters to support Governor Scott’s proposal as a step in the right direction.”
Lisman is running print, radio and digital ads to support the governor's plan.
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