The Senate has passed its version of the $8.5 billion state budget. A conference committee of House and Senate appropriation members will now be appointed to hash out an agreement on major spending proposals in H.494, including childcare and paid family and medical leave. The Senate’s budget does not include the money required to cover the paid family and medical leave plan passed by the House. Instead, the Senate earmarked enough funding for a parental leave benefit that they folded into their childcare bill to the tune of $7.6 million the first year and $15.7 million the next. In contrast, the House proposal for a comprehensive paid leave program would cost $37 million to start and $100 million annually.

Learn More

With nearly half a billion in increased costs already on the table, now is not the time for even further tax proposal increases. However, the House Ways and Means Committee continued conversations on a new childcare funding plan that would increase corporate and personal income taxes. Since last week, rate proposals have already increased. New numbers from JFO suggest progressive increases and another rate change in 2028. If passed, S.56 would establish Vermont as having the highest corporate tax in the nation, just one year after the legislature made comprehensive reforms to the corporate tax system, further contributing to an unpredictable business climate.

Learn More

The omnibus housing legislation is entitled the “HOME” bill, which stands for housing opportunities made for everyone. However, S.100 is currently in the House Environment and Energy Committee, where there are some efforts to do the opposite and restrict the ability to develop housing while others fight to keep their promises to constituents. The Vermont Chamber continues to advocate for an amendment put forward by the Rural Caucus, which would expand exemptions, an important compromise with those who are opposed to any change at all. Before the start of the session, the Speaker of the House Jill Krowinski stated that “housing, housing, housing” was at the top of her priority list. It remains to be seen if legislation coming out of the House will rise to meet the overwhelming demand for workforce housing.

Learn More

Following an outpouring of support from businesses, the Senate Judiciary Committee passed H.288, the liquor liability legislation, out of committee. While the committee did not address all concerns, including the need for removing all strict liability provisions, there is optimism that this is a step in the right direction to ensure licensees will have the ability to purchase liquor liability insurance.

Learn More

The House General and Housing Committee took testimony throughout the week on the bill that would remove the standard of severe or pervasive for unlawful harassment or discrimination. The only member of the committee with human resources experience raised concerns about how challenging implementation would be. Rep. Ashley Bartley (R-Franklin-1) asked the committee to consider codifying the standards of severe or pervasive with guidance around those standards like California’s law but ultimately the suggestion was not met with interest from other legislators. S.103 was voted out of committee and is now poised for passage in the House. If the bill becomes law, this will likely incur litigation to determine the guidelines for unlawful harassment and discrimination.

Learn More