STATE TO MAIN

May 5, 2023

Good Afternoon –


The Vermont Chamber is urging the Legislature to strike a balance between spending on new programs and taxing capacity. Advocacy on the unreasonable expectation that Vermonters can support every major new tax increase proposed by the Legislature this year is working. The Legislature has recognized that passing both childcare and paid family and medical leave this year is not feasible and has decided to stop pursuing the latter and focus instead on advancing childcare alone. We look forward to seeing the rollout of the Governor’s Vermont Voluntary Paid Family and Medical Leave Insurance plan that will begin on July 1, 2023, for State of Vermont employees and be available to Vermont employers in 2024.

 

Adjournment is scheduled for next Friday, May 12. However, it remains unclear if the Legislature will meet its own deadline. Looming over the final days of the session is the pending veto session which is set for June 20. 

 

As always, the Vermont Chamber advocacy team can be reached at govaffairs@vtchamber.com.

 

Sincerely,

Megan Sullivan, VP of Government Affairs
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House Leadership Restores Essential Provisions in “HOME” Bill

Successful leadership on housing displayed by the Rural Caucus and Speaker Jill Krowinski culminated with the House Environment & Energy Committee passing an amendment to the HOME bill with a vote of 11-0-0. The amendment incorporates many aspects of the Rural Caucus amendment advocated for by the Vermont Chamber. This includes increasing the Act 250 jurisdictional threshold for housing units from 10 to 25 units in downtowns, neighborhood development areas, growth centers, and village centers. With paid family and medical leave off the table this session, the Vermont Chamber is now working to secure any newly available funds for the Revolving Loan Fund to allow employers to invest in housing solutions for their workers.


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Concerns Remain That Childcare Bill Will Not Meet Workforce Needs 

The House Ways and Means Committee continued to take testimony on childcare legislation that would raise $100 million in taxes to almost double spending for the childcare industry without any assured fixes for the availability, affordability, and dependability of childcare for Vermonter’s workers. While the bill offers relief to the highest and lowest-income Vermonters, the Vermont Chamber remains concerned that the needs of middle-income Vermonters will not be met. The Commissioner of Taxes, Craig Bolio, testified that Vermonters currently pay 13.6% of their income in state and local taxes, which is higher than any other state except New York, Connecticut, and Hawaii. The Commissioner also noted that this year, Vermont taxpayers are expected to pay over $80 million in property tax increases, and the Legislature is considering over $285 million in additional taxes. The combined $365 million tax increase is more than two times the projected General Fund revenue drop from FY23 to FY24.


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Bill Updates

  • H.288 Liquor Liability – The bill has been passed by both the House and the Senate and is expected to be met with support from the Governor.
  • H.305 Fee Increases – The legislature has passed a bill that would increase the required fees for occupational licensure across the board. This is yet another cost increase for Vermonters in addition to the nearly half a billion in increased costs already on the table.
  • H.494 Budget – A Committee of Conference continues to deliberate on the State Budget for FY24. The committee plans to come to an agreement by next Tuesday before passing the bill on to the Governor, who has repeatedly expressed concern that the budget does not reflect the needs of Vermont. Notably, the committee has delayed covering discussions regarding funding for housing initiatives until next week.
  • S.5 Affordable Heat – The Governor vetoed the bill, as expected, stating: “The risk to Vermonters and our economy throughout the state is too great; the confusion around the language and the unknowns are too numerous.” The legislature is expected to override the veto.
  • S.94 VEGI and TIF – The bill has been sent to the Senate, giving them little to no time in the final week to review, discuss, or take testimony on the proposed changes to the VEGI program.
  • S.102 Captive Audience – The House General and Housing Committee did a walk-through and took introductory testimony on legislation that contains broad language regarding what meetings an employer can mandate employees attend. The labor legislation is expected to be pursued next session.
  • Workforce Development – The House Commerce and Economic Development Committee did a walk-through of Senate changes to the bill. The $10 million of funding that the Vermont Chamber helped identify from the embattled FY23 COVID Worker Relief Program to help fund the bill remain essential to the success of the programs included in the legislation.

Bill Updates

You’re Invited: The Leahy Celebration

Join us in honoring Senator Patrick Leahy, Vermont's very own superhero and dedicated public servant. Senator Leahy and Marcelle have had an incalculable impact on Vermont’s businesses and communities supporting innovation, research, higher education, transportation, and manufacturing while supporting the environment and communities unique to Vermont.


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Vermont Chamber Joins 430+ Business Groups Calling for Action on Immigration

The Vermont Chamber signed a letter to members of Congress urging them to make immigration reform a top priority to address the workforce crisis. Vermont employers of all sizes and across all industries are facing chronic workforce shortages that significantly limit the ability of their businesses to grow. In an increasingly competitive marketplace, the vast shortcomings of our legal immigration system are a key contributing factor as to why employers are struggling to recruit and retain talent.


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