BACK AGAIN
Leonine Public Affairs On Tuesday the Vermont General Assembly reconvened for what is projected to be a three to five week session. The primary focus of the fall session is to finalize the FY2021 budget for the remaining three quarters of the fiscal year, October 1, 2020 through June 30, 2021. The legislature approved funding for the first three months of FY2021 before they recessed in June. The fall session will cap an unprecedented year in the Vermont Legislature, which usually finishes its work in May or June. But as a result of COVID-19, the legislature will have been in session for the vast majority of 2020 when all is said and done.
The beginning of the fall session was preceded by Governor Phil Scott’s budget “restatement” proposal which he issued on August 18. The restatement modifies the governor’s initial budget proposal from January and builds off the first quarter FY2021 budget that was approved in June. The restatement proposes to balance the budget without major cuts or tax increases and fills the projected $66 million general fund gap through a variety of reallocations, vacancy savings and continued increased reimbursement for Medicaid expenses from the federal government.
The restatement also includes proposals to spend $198 million in remaining coronavirus relief funding (CRF). The majority of the relief funding ($133 million) would be allocated to continue economic relief programs enacted in June. Another provision would provide $2 million in economic stimulus for undocumented workers who were denied federal stimulus checks. Other provisions include giving each Vermont household a $150 gift card and increasing funding for state infrastructure projects.
This week lawmakers went quickly to work on the restatement proposal and the House and Senate Appropriations Committees held joint hearings to expedite the process. The House Appropriations Committee hopes to be in a position to vote on the budget next week.
While the tone of the relationship between the governor and lawmakers continues to be collaborative, there are some disagreements that will need to be resolved before adjournment. The most prominent is probably funding to support the Vermont State College system (VSC). The governor included $30 million in CRF funds for VSC but only if the federal government changes current restrictions to allow it. If and when this will happen is uncertain, and legislative leaders and the House and Senate Appropriations committees have indicated their commitment to fund VSC regardless of whether the federal government acts.
Another strange dynamic in a strange year stems from lawmakers trying to finish up their work at a time they would normally be campaigning. This combined with the fact that COVID-19 has turned traditional campaigning on its head makes for an unprecedented and bizarre situation.
While the FY2021 budget is the focus, there are still some policy bills in play. These include a bill to allow for the retail sale of cannabis, a climate solutions bill and a bill addressing the needs of older Vermonters. Because the 2020 session is the second half of the biennium, all bills that do not pass both chambers before adjournment will die. Senate President Tim Ashe, D/P-Chittenden said this week that lawmakers will not remain in session after passage of the budget, so whatever has not reached the finish line by that point will have to be revisited next year.
Given this dynamic, permission has been granted to the committees to only work on a limited number of bills. Specifically, only those bills that have passed at least one chamber and are relatively close to the finish line in the other chamber.
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