Workers Caucus opposes Scott's $26 million plan

Vermont Business Magazine The Legislative Workers Caucus, a group of legislators that meets weekly during the legislative session, is opposing Governor Scott's proposal to take health insurance negotiations away from local school districts and have one teacher health insurance plan negotiated at the state level. The lawmakers say that doing so will interfere with the bargaining rights of teachers to negotiate their health insurance benefits. In a letter issued Wednesday, they say, "One of the core values of the caucus is to protect collective bargaining and workers’ rights. Another one of our core values is fiscal responsibility. Governor’s Scott's plan does not support either of our values."

Because of changes resulting from the Affordable Care Act, teacher health insurance plans must fall into one of the new ACA plans starting January 1, 2018. The new plans have lower premiums and higher out-of-pocket costs than current plans. The premium reduction alone is valued at $75.5 million. The administration would take about $50 million of that and apply it against the out-of-pocket costs, leaving a savings of $26 million that the governor says would be used to reduce the statewide (education) property tax. While the actual savings will depend much on what plans the teachers choose and how those insured actually utilize the benefits, both sides agree that substantial savings are likely.

Working Vermonters Caucus

Sen. Dick McCormack

Sen. Chris Pearson

Sen. Anthony Pollina

Rep. John Bartholomew

Rep. Sue Buckholz

Rep. Mollie Burke

Rep. Robin Chesnut-Tangerman

Rep. Kevin “Coach” Christie

Rep. Brian Cina

Rep. Selene Colburn

Rep. Dan Connor

Rep. Sarah Copeland-Hanzas

Rep. Joey Donovan, Co-Chair

Rep. Betsy Dunn

Rep. Rachael Fields

Rep. Diana Gonzalez

Rep. Sandy Haas

Rep. Matt Hill

Rep. Jay Hooper

Rep. Mary Hooper

Rep. Mary Howard

Rep. Kim Jessup

Rep. Ben Joseph

Rep. Terry Macaig

Rep. Jim Masland

Rep. Curt McCormack

Rep. Alice Miller

Rep. Jean O’Sullivan

Rep. Paul Poirier

Rep. Tom Stevens

Rep. Mary Sullivan

Rep. George Till

Rep. Tristan Toleno

Rep. “Chip” Troiano

Rep. Tommy Walz

Rep. Rep. Cindy Weed, Co-Chair

Rep. Mike Yantachka

"Furthermore," the Group says, "Governor Scott's proposal was not vetted by legislators through the normal committee process, eliminates bargaining rights, and claims unsubstantiated savings. His numbers have not been verified by our independent Joint Fiscal Office, which would normally happen with a policy change of this magnitude. Additionally, any potential savings that might be realized would not necessarily be applied toward property tax reduction. As a result of the lack of process, we neither know how accurate the numbers for this proposal are nor how those numbers may or may not impact property taxes."

The governor's suggestion came only in April, leaving lawmakers to scramble on how to respond. Scott could also veto the budget bill if the statewide teacher health insurance amendment is not included. The issue already has delayed adjournment from last weekend and a veto battle would extend it likely beyond this week.

"The Legislative Workers Caucus does not support a budget that goes against our core values of collective bargaining and fiscal responsibility. Sincerely, Rep. Johannah Leddy Donovan, co-chair; Rep. Cindy Weed co-chair"

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