Vermont Business Magazine Today, the Vermont House of Representatives gave preliminary approval to H.107, the Paid Family and Medical Leave Insurance bill, on a vote of 92-52. Governor Phil Scott opposes the mandatory aspect of the plan and along with Governor Sununu of New Hampshire has proposed a plan that's voluntary and presumably less expensive. The legislative plan did not receive the 100-vote veto proof majority, though Scott has not said whether he would veto the bill or not if it reaches his desk as is, which is probable. The legislative plan will cost at least $95 million and workers will pay a 0.55-percent payroll tax. It would provide 90 percent wage replacement on the first $27,000 of wages and 50 percent on rest up to $116,538.
The governor's Twin State plan will utilize the larger insurance pool offered by the two states and would not require companies to participate. A business could opt-in, and if it doesn't its individual workers could separately choose to do so, thus allowing for universal coverage. The Legislature so far, however, has opted for a mandatory plan to guarantee full coverage.
“A strong, universal family and medical leave insurance program is a key part of building a Vermont that works for all of us,” said lead sponsor Representative Robin Scheu (D-Middlebury). “Family leave ensures that our families and communities are healthy, and that Vermonters will have the ability to take time to care for themselves and their loved ones when they need it most. We know that lower wage workers are currently the least likely to have access to this type of benefit. When Vermonters are living paycheck-to-paycheck, they are unable to afford to take time away from work for parental leave or to care for an ill or injured loved one. If we want Vermont to work for all of us, we must support policies like this that ensure Vermonters should not have to choose between being able to pay their bills or being there for their child or loved one when they need it most.”
Tom Stevens (D-Waterbury), Chair of the House Committee on General, Housing, and Military Affairs added, “A universal paid family and medical leave insurance program will support Vermonters through all stages of life. Whether it’s bonding with a new child or caring for a family member, this bill will ensure current and future generations can thrive. This program allows qualified employees to receive up to twelve weeks per year for parental and bonding leave, and eight weeks for personal medical or family caregiving leave. Many Vermonters care for elderly parents or seriously ill or injured family members and they deserve to support their families the best they can during those times. We often cannot foresee a family member getting sick or injured. No Vermonter should be forced to choose between taking home a paycheck and caring for a loved one.”
“The paid family and medical leave insurance plan provides much needed economic security to Vermont workers and support to Vermont families,” said House Speaker Mitzi Johnson (D-South Hero). “It is no secret that Vermont competes with neighboring states for workers and economic development opportunities. This benefit levels the playing field for small businesses, who are least likely to be able to afford to offer this benefit on their own. Guaranteed family and medical leave will help Vermont remain competitive by retaining existing workers while making Vermont even more attractive for young professionals and families. Growing Vermont businesses and strengthening Vermont families are priorities of the House, and this bill puts Vermont on a path to ensure a healthy future and strong economy for generations to come.”
Meanwhile, the Republicans in the House were largely opposed to the plan.
Vermont House Minority Leader Pattie McCoy (R-Poultney) released the following statement Thursday:
“Vermont House Republicans last week stood united with many of our Independent and Democratic colleagues against a regressive increase in the fuel tax that would raise $4.6 million on working Vermonters. Today, we face a proposed payroll tax that would raise a stunning $76 million annually from workers and employers. For comparison, that’s more than 16 times larger than the fuel tax hike we voted on last week.
“We all agree that providing paid family and medical leave is an important goal--and there are real plans that can achieve this benefit, without raising taxes. But Vermonters can’t afford a $4.6 million fuel tax--as our constituents have made clear they cannot-- and they certainly can’t afford a $76 million payroll tax. This proposed tax would make our state less affordable for families and businesses, even as we work to provide an affordable benefit we all agree is valuable.
“Paid family and medical leave is an important policy--but details, like the way it’s paid for and how it is administered, are equally important. It is our hope that we can build a majority of legislators that will join us in standing up for taxpayers and working families by voting against an unnecessary and irresponsible tax increase, and instead supporting the more responsible paths for creating a universally accessible and affordable paid family leave program.”