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Legislature begins to tackle the big tax and spend items

Submitted by tim on

THE BIG BILL

Leonine Public Affairs On Tuesday, Governor Scott unveiled a proposed $6.83 billion budget for FY22 (July 1, 2021-June 30, 2022). The governor highlighted the challenges the state has faced since the pandemic reached Vermont almost a year ago, but emphasized that his budget does not increase taxes, raise fees or cut essential government services. As is the tradition, the budget address was delivered to a joint session of the House and Senate, albeit virtually on the part of all concerned, with the governor speaking from his office in Montpelier due to the pandemic.

The governor’s proposed budget includes $123 million in capital construction projects; $680 million in roads, bridges and other transportation projects; $1.99 billion in General Fund spending; and $1.89 billion for Pre-K-12 education.

The budget includes $210 million in one-time funding for a variety of initiatives such as $20 million for broadband expansion, $25 million for weatherization projects and $20 million for the state college system. The governor also said his proposal fully funds retirement obligations this year for $381 million. This comes on the heels of a controversial report from Vermont State Treasurer Beth Pearce recommending a reduction in pension benefits for teachers and state employees. A new analysis projects the system’s unfunded liability growing by about $600 million.

Beyond the budget a prominent story this week was a letter to the media, signed by over 50 prominent Vermonters calling on the Vermont press corps to examine gender bias and racism in reporting. The letter, which was signed by former governors Madeleine Kunin, Howard Dean and Peter Shumlin among many others highlights examples of gender bias in Vermont’s political reporting. The letter asks the press corps to engage in conversations about how they can do better.

BUDGET ADJUSTMENT

On Friday, the House passed the FY21 budget adjustment bill, H.138. The bill makes various adjustments to the state budget in the current fiscal year. Notably $3.6 million in general funds are appropriated to the Vermont State Colleges for COVID-19 costs. The bill also appropriates $1 million to the Agency of Natural Resources to get technical assistance to implement the Global Warming Solutions Act, which was enacted last year when lawmakers overrode the governor’s veto. Here is a summary of the bill.
BROADBAND

On Tuesday legislative counsel gave the members of the House Energy and Technology Committee an overview of a draft bill that is aimed at expanding broadband connectivity in Vermont. A central feature of the draft legislation is the creation of the “Vermont Community Broadband Authority.” In many ways the Authority would function similar to the former Vermont Telecommunications Authority (VTA), which the legislature “mothballed” several years ago. When it was shut down the VTA’s responsibilities concerning enhancing broadband connectivity were transferred to the Department of Public Service. There is some feeling now that a new stand alone entity is needed and the Department should not serve both as a regulator of broadband services and a promoter of broadband connectivity. The committee will be taking further testimony concerning the draft legislation next week.

"AUDIO ONLY" HEALTH CARE SERVICES

During the 2020 legislative session the General Assembly enacted legislation requiring the Department of Financial Regulation (DFR) to issue emergency rules requiring health insurers to provide coverage for health care services provided by telephone. This activity was in response to the COVID-19 emergency and the initial directive that health care providers cease providing in person health care for all but emergency health care services. Those rules will expire this summer.

The House Health Care committee is now considering the possibility of continuing the coverage mandate for audio only services after the COVID-19 emergency ends. The issue was teed up by a report from a working group of stakeholders convened by DFR that recommends making the coverage mandate permanent. While there was consensus amongst the stakeholders about continuing the coverage mandate, they did not agree on whether health care providers should be paid the same amount for audio only services as they get paid for in person service. The House Health Care Committee took testimony on the subject this week and will continue to do so next week.
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Source: Leonine Public Affairs, Montpelier, Legislative Report Week 4. January 29, 2021. leoninepublicaffairs.com.

Through a special arrangement with Leonine, Vermont Business Magazine republishes Leonine's legislative report on vermontbiz.com