Legislative leaders, others, respond to Scott budget proposals

SPEAKER KROWINSKI, SENATE PRESIDENT PRO TEM BALINT JOINT STATEMENT FOLLOWING GOVERNOR SCOTT’S BUDGET ADDRESS

Vermont Business Magazine Today, House Speaker Jill Krowinski and Senate President Pro Tem Becca Balint issued the following statement on Governor Scott’s budget address:

“We are grateful to see that there are many areas of agreement between the Governor’s proposed budget and our vision for delivering for Vermont’s working families this session. Our vision for investing in Vermont’s future is a reflection of our values and a belief that we can create more equitable communities for all that live and visit our great state.

“Our vision is informed by the conversations we had with over 1,400 Vermonters this fall as part of the “Investing in Vermont’s Future” public engagement effort. Today, we are pleased to release the final report summarizing those conversations, and elevating the insights and priorities of Vermonters, which will help ensure our work is informed by a broad range of individuals and reflective of what they are experiencing in their day-to-day lives. You can explore these findings at https://protem.vermont.gov/investing-vermonts-future-final-report.”

“We heard from working Vermont families, young Vermonters, the refugee community, and others who are desperate for action to address the housing crisis. We look forward to building on last year’s historic investments in housing and continuing the effort to address the crisis at every level - from emergency transitional housing to affordable rentals, houses that first-time buyers can afford, and housing with support services for seniors and people in recovery. A key priority for us, and one we have worked on together before, is extending the deadline for emergency housing, and making sure that we are keeping people housed during the coldest days of the years.

“We know that the workforce crisis is impacting all sectors of the economy, but that it is particularly difficult among the professions that keep our families and communities running. In recognition of this, the House Appropriations Committee doubled the Governor’s proposal in the Budget Adjustment to $60M for staff retention related payments to shore up critical provider systems for assisted living residences, nursing homes, residential care homes, home health agencies, designated and specialized service agencies, substance use treatment providers, and recovery centers. We look forward to doing similar work to prioritize our frontline care workers in the FY23 budget. And we’re grateful to see the Governor is proposing further funding of some of the critical workforce investments that the legislature built into last year’s budget.”

“Throughout our listening tour, Vermonters clearly stated that one of the best ways we can invest is to get money directly into the hands of Vermonters facing incredible challenges at this moment. We applaud the Governor for considering progressive tax relief that would help do that. We need to dig into the details, but at face value, his proposal seems to offer a little relief here, and a little there. The legislature is interested in doing something more significant and focused that will help a broad swath of working families. We will be looking into how our state might build on the success of the federal Child Tax Credit to offer direct financial support to struggling families, as we know it is an incredibly impactful way to support households.

“Another way we can provide support to Vermont workers, and to all taxpayers, is by taking advantage of this moment to ensure the stability of our public pensions system. While the Governor’s budget does not reflect the recent framework agreement from the Pension Task Force, we’re glad his administration has signaled they are willing to work with us to build this plan into the budget. The legislature is ready to invest an additional $200 million to shore up the system this year and increase annual contributions to pension and other retirement benefits, such as health care, in the future. The agreement we’ve struck with our hardworking teachers and state employees will protect the public pension system and put it on a path of sustainability. Additionally, these changes are expected to result in reducing the state’s unfunded liabilities by $2 billion dollars, which is incredibly important for our long-term financial picture.

“The pandemic has taken a toll on all of us, and we know that so many Vermonters are exhausted and looking for support in their day to day lives. We have seen the tremendous demand for mental health services with hospital emergency rooms becoming crowded with individuals looking for support in a time of crisis. We will look at our continuum of care and find ways to not only invest in our current community health system but look at adding resources in services such as peer support counseling and housing. We have also seen the toll of the pandemic reflected in the staggering number of overdose deaths this past year. Isolation and the temporary pause in services available was incredibly difficult and too many Vermonters' lives have been lost. We will work with service providers and those with lived experience to help inform how we can best support Vermonters in crisis.

“We know that there are other investments that need to be made today, in order to secure a healthy, safer, more resilient future. We will also be looking to make major investments in fighting climate change and reducing our carbon footprint; advancing clean water initiatives, and continuing to invest in immediate response to the COVID-19 pandemic and our long-term recovery. We must be diligent to ensure the legislation we pass creates greater equity for all Vermonters, and communities that welcome and support each other as we grow into the 21st Century.

“The House and Senate look forward to working with the Governor and his administration to deliver a balanced budget that meets the needs of Vermont’s families. We are certain that we can find collaborative solutions to support our families and communities, and make investments that will have ripple effects for generations to come.”

"Vermont's greatest challenges are our demographic trends and stagnating workforce," said Representative McCoy. "Vermont House and Senate Republicans echo Governor Scott's focus in his budget address on making investments to both retain existing workers and recruit new workers to our state. These initiatives complement new efforts by Republicans in the Legislature to waive occupational licensing fees and expand licensing recognition for workers moving to Vermont."

"Hand-in-hand with attracting workers to Vermont is ensuring they can afford to live here long-term. Legislative Republicans are encouraged by the Governor's proposals for new housing construction using federal dollars, robust tax relief measures, and targeted loan forgiveness in critical sectors of our economy," added Senator Brock. "We are eager to partner with the Governor in these areas, including with legislation to modernize housing regulations and ease the burden of Act 250."

"We cannot forget the fact that younger Vermonters have borne a great deal of the burden during the COVID-19 pandemic," noted Representative McCoy. "Governor Scott's focus on tuition relief, child care affordability, and after school programs will improve outcomes for our kids and help working families across our state."

"Governor Scott's budget address lays the framework for a fiscally-responsible path built upon a stronger workforce, safe and healthy communities, supporting our younger Vermonters, and improving good governance," said Senator Brock. "We look forward to working with the Governor and his team to advance our shared goals across the finish line this legislative session."

Statement of Vermont Chamber on Governor’s Budget Address

The following statement can be attributed to Vermont Chamber of Commerce President, Betsy Bishop:

“We are encouraged by the Governor’s significant emphasis on workforce development in today’s remarks, and the commitment to a number of shared priorities to address the biggest challenge facing Vermont. Of the 2022 Vermont Chamber priorities issued prior to the legislative session, each area of investment would play a key role to address Vermont’s demographic challenge.

"The strong economic future of our state, and the viability of our workforce, depends on our ability to invest in Vermonters and attract a diverse new population. Many initiatives presented today recognize this dual need.

"Investments in childcare and housing, particularly in the available stock for the ‘missing middle’ are vital for Vermont to grow and retain our workforce. Additionally, relocation initiatives and the strengthening of trade education are essential efforts to secure a strong future for Vermont.”

Jack Hoffman, Public Asset Institute Statement on Governor Phil Scott’s Budget Address

"Governor Phil Scott urged legislators Tuesday to make rebuilding Vermont’s labor force a top priority this session. The labor force was down by 24,000 since February 2020, the governor said before laying out a laundry list of investments—from both federal and state funds—to boost training, incentives, and job opportunities to attract more workers.

"Vermont’s labor force had been declining before the pandemic, so the governor is right to focus on the problem early in his Budget Address. But the solution to the current labor shortage is not all about workers. The governor could have reminded employers that they have a role, too.

"We now get monthly data on the number of job openings in Vermont, but we don’t know anything about where those jobs are or how much they pay. The state doesn’t collect and publish this data. But from national data and news reports, we have learned that workers are not only seeking higher wages, they’re tired of dead-end jobs. Workers can clearly benefit from more and better training, but they deserve quality jobs opportunities in return.

"We don’t think the governor exaggerated when he said: “There is absolutely no doubt that the economic future of our state will be defined by what we do today.” More than $10 billion in federal funding to fight COVID-19 and stimulate the state economy is at least a once-in-a-generation opportunity. But we would like to have heard more about the governor’s vision for Vermont and its residents that would result from investing all of this federal largesse. What are his goals—our goals—for racial, social, and economic equity? And how will be know if we’ve made progress?"

Aly Richards, CEO of Let’s Grow Kids

“Let’s Grow Kids is aligned with Governor Scott on the importance of prioritizing the recovery and growth of Vermont’s workforce and the essential role of a stable child care system to support our economy. Gov. Scott’s proposed investments and changes to the Child Care Financial Assistance Program, as well as his proposal for child care tax credits, are positive steps towards making child care more affordable and in supporting our early childhood educators.

“But let’s be clear, we have a lot of work left to solve the child care emergency we are facing as a state. Currently 71% of Vermont child care centers are experiencing staffing shortages, and even before the pandemic, 65% of Vermont's youngest children didn't have access to the care they needed.

“In addition to yesterday’s recommendations, we must do more to address the workforce crisis that is pushing our child care system to the edge of collapse. That will require both short-term workforce stabilization dollars to prevent sweeping program closures throughout the state, and long-term investments from a dedicated revenue source to create a child care system that works for all Vermonters.

“We appreciate the Governor’s focus on workforce and the need to reverse our demographic trend by retaining the workers we have and encouraging thousands more to come to Vermont. That vision is only possible with a stable child care workforce and a high-quality and affordable child care system.

“Let's Grow Kids and our 35,000 supporters throughout the state are ready to roll up our sleeves alongside state lawmakers and Gov. Scott’s administration to work towards a Vermont in which all children have equitable access to early childhood education, families are able to work and thrive, and early childhood educators receive wages and benefits that reflect their true value and expertise.”

VSAC Response to the Governor’s Budget Address

The Vermont Student Assistance Corp. (VSAC) thanks Governor Phil Scott for his leadership and support and for recognizing that making a strong commitment to expanding educational and training opportunities in Vermont is essential to addressing our state’s demographic challenge.

“Vermont’s workforce development, affordable higher education, more internships opportunities, and renewed emphasis on trades training for Vermonters are critical to build the Vermont economy of the future,” said Scott Giles, VSAC president & CEO. “Initiatives led by VSAC including 802 Opportunity and Advancements Grants have proven very successful. Investing wisely in these programs create huge dividends for Vermont families and for the Vermont economy.”

VSAC Highlights: