THE UPSETTER

Leonine Public Affairs Governor Phil Scott delivered the fourth budget address of his tenure last Tuesday. He stuck to the core themes of his time in office - affordability, economic development and helping the most vulnerable - and largely avoided big ticket spending proposals. Instead the governor floated smaller investments that he proposed to fund via new revenue sources like expanding the state lottery while avoiding broad-based tax increases.

The governor proposed to put an additional $3 million toward child care assistance in part by expanding the lottery to include Keno machines. This proposal was met with skepticism by Democratic leaders in the legislature, who said it would take revenue away from the education fund and thus raise property taxes. For the most part, proposals to expand the lottery have been met with significant opposition over the past two decades in the Democratically-controlled legislature.

Governor Scott highlighted his proposed transportation program which would grow by four percent if approved by lawmakers. It would be the largest increase in the transportation budget since Tropical Storm Irene. This includes $100 million for paving. The governor also proposed to put $1.5 million toward improving downtown Newport and $2.8 million to improve the Lamoille Valley Rail Trail.

Scott highlighted the early successes of OneCare, the state’s accountable care organization, and proposed additional funding for suicide prevention and mental health services. This includes a proposed pilot program in Rutland County that would create a mobile crisis mental health unit that would be run by Rutland Mental Health. The governor said this model has been successful in other states.

The governor also highlighted $1.5 million in incentives and investments to grow the state’s workforce. This includes incentives for students who graduate with a nursing degree, expansion of the Vermont Relocation Assistance Program and increased investment in the Vermont Youth Employment Program. The governor drew cheers from the House chamber when he vowed that as long as he is governor, immigrants will be welcome to relocate to Vermont.

The proposed budget also includes housing incentives, funding to improve tourist attractions such as walking and biking trails, parks and public art and additional funding to bolster a state “One Stop” business registration portal.

The governor’s proposal to commit 25 percent of future end-of-year budget surpluses to investments to combat climate change drew criticism from Democratic leaders in the legislature who said the plan doesn’t go far enough. Combating climate change is expected to receive a lot of consideration during the 2020 legislative session.

Now that the budget has been proposed, lawmakers will get to work crafting their own version. The governor did not drop any bombshells, but areas of contention including how to fund paid family leave, how to combat climate change and whether or not to create a retail market for recreational cannabis will make for an interesting session.

On Thursday, a highly anticipated vote on the house floor advanced legislation to create a paid family leave insurance program. This legislationhas created highly unusual bedfellows among its opponents, including Republicans, moderate Democrats, Independents and Progressives. Republicans, moderate Democrats and some Independents believe this program is too expensive and would prefer a voluntary program such as the one proposed by the governor for state employees.

The majority of the Progressive Caucus and a few progressive Democrats oppose it because it fails to guarantee personal medical leave and creates a privately-run program. These progressive opponents believe that this legislationdoesn’t go far enough and will create a program that is inequitable and doomed to fail. While the vote to advance the bill was a strong 89-58, it remains to be seen whether House Democrats will find the 100 votes they need to override Governor Scott’s likely veto.

The next day, the House returned to approve legislation that would raise the state’s minimum wage to $12.55 by 2022. This legislation reflects a compromise between the House and Senate and stands in stark contrast to the original Senate proposal that would have raised the minimum wage to $15 per hour. While eight Democrats opposed the measure and have created uncertainty about the House’s ability to override a veto, there has been recent speculation that the governor will either sign the watered down version of this bill or let the bill become law without his signature.