STATE TO MAIN

March 24, 2023

Good Afternoon –

 

This session began with nearly $1 billion in new taxes proposed by the legislature. While we knew not all of these would come to fruition, it did signal that this session would costly. As we reach the midway point of the session, there are deepening concerns that Vermonters will face historically high tax increases this year. The Vermont Chamber has responded by working to communicate that the cumulative impact of several increased costs would be overwhelming on a fragile Vermont economy.


In response, legislators expressed that alongside likely tax increases, there was a willingness to make housing a top priority and work to find solutions to address the workforce shortage. However, housing legislation as it currently exists, paired with multiple significant tax increases that do not fund workforce-centered solutions, are not acceptable outcomes. The Vermont Chamber will work to address this in the weeks ahead as bills are picked up for further consideration in opposite chambers.


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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Chittenden Amendment To “HOME” Bill Would Help Legislation Live Up to Its Name Again

Key Senate committees have reached what is being touted as a grand bargain on S.100. However, even following tweaks to attempt to align the priorities of the Senate Economic Development, Housing, and General Affairs Committee with the Senate Natural Resources Committee, the changes made by the latter minimize the effects of measures that would increase workforce housing. The bill now perpetuates the idea that the Vermont quality of life is available, but only within certain parameters. At a time when Vermont’s workforce is dwindling, this is unacceptable. To address this, Senator Thomas Chittenden (Chittenden-Southeast) is offering a crucial amendment that will be considered when the bill comes to the Senate for a vote next week. It’s time for legislators who have committed to addressing housing as the top issue this session to step up and revive this crucial legislation. We encourage businesses to reach out to their Senators to support this critical amendment to build more housing for all and follow through on their commitment to voters.


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Vermont Chamber Helps to Repurpose ARPA Dollars From Embattled COVID Paid Leave Program to Workforce Development

A priority for the Vermont Chamber this session is to ensure unspent ARPA dollars that were promised for workforce solutions and businesses would remain used for that purpose. In recent weeks, the Vermont Chamber worked with the House Commerce and Economic Development Committee to identify over $10 million of such funds from the embattled FY23 COVID Worker Relief Program to help fund the important workforce development programs in H.484.


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How Will S.56 Achieve Legislative Intent of Addressing the Workforce Needs of Employers?

The cost and revenue of the Senate childcare bill, with a last-minute paid parental leave program amendment, were finally revealed. The expected cost exceeds $190 million. This would be in addition to the $125 million that the state already pays for childcare. The revenue is a combination of new base funding from state revenue growth, a repurposing of the child tax credit for childcare, and a .42% payroll tax. Testimony in the Senate Finance Committee this week was heated at times as tough questions were posed to the committee on how, and if, this policy would provide any of the workforce relief that employers have asked for. Specifically, more childcare availability for employees that are struggling to find and keep childcare spots. 


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House Passes Massive $120 Million Payroll Tax Increase to Create Largest Paid Family Leave Program in Nation

The House has passed a paid family leave bill that moves Vermont from a forthcoming voluntary paid family leave program to the largest state-run family leave program in the nation. According to estimates from the Joint Fiscal Office, the costs required just to stand up the program would be staggering: $111.5 million over the next three fiscal years, an ongoing annual administration cost of $13 million, and $94 million for anticipated benefit payments. With no carve-out for small businesses, all Vermont employers would provide 12 weeks of leave for a broad swath of conditions. Even after a lengthy floor debate that stretched far into the night, essential questions remain unanswered. 


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Rental Registry Relegated to a Study 

A bill that would have created a statewide rental registry was amended by the House Ways and Means Committee to fundamentally stall the bill and delay the intended progress toward equity in the lodging industry and data to aid housing solutions until next session. Before being amended, H.276 would have been a step forward to leveling the playing field for the lodging industry by ensuring a safe rental environment, moving towards equity in the lodging marketplace, and providing information for future pragmatic policy decisions.


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Tourism Day at the State House Centers the Visitor Economy and Destination Stewardship

Over 150 tourism and hospitality industry leaders engaged with legislators to raise awareness of the collective contributions of these industries to the Vermont economy. Business and policy leaders connected throughout the day during a coffee hour with Governor Scott, a joint hearing on the visitor economy, and an evening reception.


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Legislative Intern Spotlight: Maggie Talty

There’s a stellar team of interns elevating Vermont Chamber advocacy efforts this session and we’re introducing you to each of them throughout the session. The 2023 Legislative Monitoring Collaborative is made possible by the support of the National Life Group. 


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Bill Updates

  • H.145 Budget Adjustment – The Governor allowed the bill to become law without his signature. The legislation includes funding for several economic growth initiatives advocated for by the Vermont Chamber.
  • H.288 Liquor Liability – The bill was passed by the House without contest. This is a welcome development for business owners who are depending on immediate action to ensure they can continue to operate.
  • H.470 Miscellaneous Alcoholic Beverages – Legislation that included a repeal of the sunset on the sale of alcoholic beverages for off-premises consumption passed the House with unanimous support. The bill has now been referred to the Senate Economic Development, Housing, and General Affairs Committee.
  • S.102, S.103 Labor – The legislation continued to be rushed through the Senate, with S.103 passed this week and S.102 expected to pass early next week. The Vermont Chamber will continue to testify on the consequences of these bills as they make their way through the House.
  • H.10  VEGI – The House Ways and Means Committee did not move on the bill this week, signaling that the Chair of the committee, who was the lead sponsor of the bill as originally drafted, intends to block the reformed legislation from advancing, even following an 11-0 vote in favor of the bill from the policy committee. This comes after weeks of advocacy from the Vermont Chamber, partner organizations, and businesses that worked to evolve the legislation from its original intent to end Vermont’s only business incentive program, to one that would look to modernize it.
  • FY24 Budget – The House Appropriations Committee is making progress on the budget. Currently, it includes $1 million is included for regional relocation marketing grants, $5 million is allocated for the Regional Investment and Growth Fund, and $8 million of funding for brownfield redevelopment.
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