State to Main: Week 15

STATE TO MAIN

April 21, 2023

Good Afternoon –

As tax proposals continue to mount, the Vermont Chamber is deeply concerned that legislators are not considering the ability of Vermonters and businesses to pay for them. After years of spending hundreds of millions of federal dollars, the reality of working within the fiscal limits of the 640,000 Vermonters seems to have been forgotten. This concern is shared by Governor Phil Scott, who once again has been ranked as the most popular Governor in the country with a 78% approval rating. However, even with a shared constituency, the legislature and the Governor couldn’t be further apart on affordability concerns. With a veto session looming, it begs the question of how elected officials, the Governor and legislators alike, will center Vermonters in their work in the weeks ahead.

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

Sincerely,

Megan Sullivan, VP of Government Affairs

Housing Heroes: The Rural Caucus Fights to Address the Housing Crisis

The tri-partisan Rural Caucus of the House of Representatives has emerged as true leaders on housing. Members of the Rural Caucus reaffirmed their commitment to addressing the statewide crisis, as they promised their constituents they would when they ran for election only six months ago. A letter to the Speaker of the House, Jill Krowinski, was signed by 33 legislators from the Rural Caucus supporting regulatory changes to create more housing for Vermonters. They did this even after House Leadership instructed members of the House General and Housing Committee to stop discussing or voting on an amendment that would have addressed these same concerns. With 23 Democrats, 7 Republicans, and 3 Independents, this coalition suggests real power.

Learn More

Liquor Liability Legislation Needs Urgent Action

Bars and restaurants are depending on legislative action to ensure they can obtain liquor liability insurance. H.288 was previously passed by the House without contest but has stalled in the Senate. While inaction will put businesses at risk of closing, legislative leaders did not take up this important legislation this week. If legislative action is not taken, the industry will be left on the verge of not being able to secure liquor liability insurance. The Vermont Chamber and Vermont Independent Restaurants will continue to advocate for the Senate to take immediate action. Contact your Senator today and encourage them to act on H.288 to support Vermont’s restaurant and bar industry.

Learn More

Tax Hikes to Fund Childcare and Paid Family and Medical Leave Include Corporate Income, Personal Income, and Payroll

The House Ways and Means Committee unveiled a plan for doubling state funding for the childcare system by increasing the top corporate income tax bracket rate to 10% and increasing all personal income tax brackets by 0.5%. Testimony from the Joint Fiscal Office detailed how the corporate and personal income tax hikes would fund the $100 million expected annual cost. These increases would be in addition to the 0.55% payroll tax that the committee passed to pay for an expansive paid family and medical leave program.

Learn More

Health Care Legislation Championed by Vermont Chamber Becomes Law

Governor Scott signed legislation to keep the small group market separated from the individual market throughout 2025. S.54 is considered a rare “win-win” for small businesses, the state, and Vermonters and was advocated for by the Vermont Chamber. The successful passage of this bill ensures that small businesses, which represent only 6% of the health insurance landscape, will not have to shoulder the added weight of subsidizing premiums for the individual market.

Learn More

Legislators Engage with Rural Businesses

The House Commerce and Economic Development Committee traveled to the Northeast Kingdom for a series of field hearings. The agenda centered on workforce recruitment and retention and legislators engaged with several businesses. The Vermont Chamber was in attendance to bolster advocacy efforts on the need for economic stewardship.

Learn More

Legislative Intern Spotlight: Ashley Maynes

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.

Learn More

Bill Updates

H.255 Military Pension Tax Exemption – The Vermont Chamber submitted testimony on a bill exempting all military retirement and military survivor benefit income. The Vermont Chamber has been a champion on this issue, securing a partial exemption in the 2022 session.
H.494 State Budget- The Senate Appropriations Committee continued a line-by-line review and in some cases reworking of the proposed State Budget for FY24. As passed by the House, the budget included $500 million more in asks than in the Governor’s budget. The Senate Appropriations Committee is voting on the budget today and it is expected to come back with a lower ask than the House. The bill will head to the Senate floor before a conference committee of House and Senate appropriation members.
S.5 Affordable Heat – Following a lengthy floor debate, the bill was given preliminary approval in the House. The Clean Heat Standard is a significant government regulation of heating fuel. This act would provide credits to any fuel dealer that reduces greenhouse gas emissions and require fuel dealers to buy those credits if they don’t create their own. If the program is implemented, it is expected to add 70 cents to a gallon of heating oil, propane, and kerosene. The bill is now bound for a likely veto from Governor Phil Scott.
S.94 VEGI – The House Appropriations Committee took testimony this week on the bill that extends the sunset of the Vermont Employment Growth Incentive Program. Legislators had not earmarked money for the bill’s study and may need to take that out of the legislation.
S. 103 Severe and Pervasive Standard – The House General and Housing Committee took testimony throughout the week on the proposal to remove the standard of harassment and discrimination.
Workforce Development Bill – The Senate Economic Development, Housing, and General Affairs Committee deliberated cuts to the bill which allocates major funding for recruitment and retention efforts. Notable changes include the elimination of a workforce training program for unemployed or underemployed Vermonters that is run through the University of Vermont.