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Leonine: No more smooth sailing

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Through a special arrangement with VBM,Leonine Public Affairsprovides a summary of legislative activity in Montpelier for the week ending April 28. 2017.

Leonine Public AffairsDespite the first year of divided power after six years of Democratic control, elected leaders avoided partisan differences for most of the session. There have been disagreements along the way but with near unanimous votes on the budget and the least controversial tax bill in recent memory, those differences have been minor. That all changed this week.

Governor Phil Scott developed a plan to save an additional $26 million annually (more on the specific plan below). The Republicans in the House and Senate went to work immediately to implement his plan. Democrats pushed back and the differences between the parties were on full display during the debate. As it stands now, it is unclear where this ends. It is unlikely the House or Senate will adopt the Governor’s proposal. With the announcement by House Republicans today that they will not support the budget without that $26 million in savings, the showdown is on.

This debate may not delay the scheduledMay 6adjournment but it does increase the chance of a budget or tax veto by Governor Scott. If a veto does occur it will set the tone for how future budget and revenue packages are negotiated between the General Assembly and the Administration throughout Governor Scott’s tenure.

GOVERNOR PROPOSES STATEWIDE TEACHER'S HEALTHCARE CONTRACT
On Monday, Governor Scott, flanked by representatives from the Vermont School Boards Association and the Vermont Superintendents Association, held a press conference in the ceremonial office of the statehouse to announce his support for a plan that would create a statewide health insurance contract for Vermont teachers and school employees. The Governor’s plan would save an estimated $26 million per year, which could be used to reduce property taxes and reinvest in other areas of the state budget.

On Friday afternoon, the Senate considered and rejected the Governor's proposal in the form of an amendment to H.509, a bill the sets the statewide education tax rates. Instead, the Senate passed an amendment that directs the Vermont NEA, the Vermont School Boards Association and the Secretary of Education to come to an agreement on what should be done about the cost of teacher and other school employee health insurance.

The Governor has expressed reservations about the Senate-passed budget, which relies on a roughly eight-million dollar transfer from the general fund to the education fund, paid for by an increase in the non-residential property tax rate. The transfer would free up general fund dollars to make investments in the Vermont State Colleges and early education, among other programs.

The House and Senate conferees will need to find a compromise between the two budget proposals while balancing the Governor’s clearly identified mandate of no new taxes or fees.
PAID FAMILY LEAVE ADVANCES
This week the House Appropriations Committee took up H.196, an act relating to paid family leave. The bill was referred from the House Ways and Means Committee. The committee heard testimony from Rep. George Till, D-Jericho, of the House Ways and Means Committee, legislative council, and the Joint Fiscal Office regarding the bill. The version of the bill that the House Appropriations Committee approved by a 6-5 vote does the following:
  • Expands the family members an employee could take leave to care for to include grandchildren, grandparents, and siblings.
  • Establish the Family Leave Insurance Program, which would provide employees with six weeks of paid family leave
  • Impose a payroll tax equal to 0.141 percent of each employee’s covered wages, which an employer shall deduct and withhold from each of its employee’s wages.
  • This leave would apply to all employers with ten or more employees who work an average of at least thirty hours per week.

The House is expected to take up the bill early next week. If the House approves the bill, the Senate is expected to take it up during the 2018 legislative session.
PAY PARITY
The Senate Finance Committee held two hearings this week to consider changing how physicians are reimbursed. The discussion centered around how the acquisition of private practices by health centers and hospitals affect reimbursement for services. There was extensive discussion both in and outside the committee between Senate Finance members, hospital representatives, insurers, private doctors, and the Green Mountain Care Board. The Green Mountain Care Board decided to conduct a summer study on pay parity between the private and hospital-based doctors. It remains to be seen what will happen in the Senate Finance Committee, which may consider the issue again next week.
SENATE FINANCE PASSES INTERNET PRIVACY STUDY
The Senate Finance Committee amended S.72with languageproviding for a study of individual privacy in connection with using the Internet. The language was prompted by recent Congressional action repealing a rule approved by the Federal Communication Commission in November 2016, and scheduled to take effect in 2018. That rule would have imposed new privacy rules on Internet Service Providers (but not on so called “edge” applications such as search engines and social media platforms). As a result of the action taken by Congress bills were introduced in both the Vermont Senate (S.147) and House (H.535) directing the Attorney General’s office to issue rules modeled on the FCC rules Congress blocked. However, after hearing testimony from industry and the Attorney General’s office the committee decided that due to the complexity of the issue and the strong possibility of further federal action, a study by the Attorney General’s office, in consultation with the Department of Public Service, and consumer and industry stakeholders, would be the more appropriate course of action.
AGREEMENT REACHED ON T-BILL
The Conference Committee on H.494, the transportation bill, reached agreement this week. The House and Senate conferees unanimously agreed to adopt the Senate version of the bill except for Sec. 7, related to the Transportation Alternative Grant program. Sec.15. requires the Secretary of Transportation to convene a meeting of public and private stakeholders to discuss autonomous vehicles (AVs). The purpose of the meeting is to gather information related to AVs and identify policy areas requiring further research or possible legislation. ByJanuary 15, 2018, the Secretary must report back to lawmakers regarding any recommendations related to AVs, including any proposed legislation.The full Senate and House is expected to adopt the Conference Committee report next week.
SENATE CONFIRMS ROBIN LUNGE
Last week, the Scott administration raised concerns that the Shumlin administration had not properly submitted paperwork approving the appointment of Robin Lunge to the Green Mountain Care Board. Lunge previously served as the Director of Health Care Reform in the Shumlin administration.On Thursday, the Senate took upS.R.9, a resolution relating to the appointment of Robin Lunge to the Green Mountain Care Board, which passed unanimously. The Senate action avoids what could have become a difficult political battle between Democrats in the Senate and the Republican Governor.
TOP #VTPOLI TWEETS

Leonine Public Affairs4.28.2017