State to Main: Week 14

STATE TO MAIN

April 14, 2023

Good Afternoon –

As the final month of the session approaches, the work of the finance and appropriations committees comes into greater focus as priorities and expenditures get whittled down. However, several expensive proposals are still on the table, including over $460 million of new taxes and legislators have even gone so far as to say, “We’re going to do it all” when passing in the hallways. The Vermont Chamber continues to ask legislators to consider the cumulative impacts of all the significant expenditures under consideration this year. We encourage you to contact your State Representatives and Senators today and urge them to strike a balance between spending on new programs and taxing Vermonters.

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

Sincerely,

Megan Sullivan, VP of Government Affairs

Your Voice Matters: Legislature Considering $461 Million of New Taxes and Fees

Right now, legislators are considering a sweeping influx of new taxes and increased fees without reflecting on the long-term impacts it will have on their constituents. We are deeply concerned that Vermonters will be unable to weather the nearly half a billion in increased costs over the next two years that the Legislature is poised to pass this session.

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Childcare Solutions Must Address Availability, Dependability, and Affordability

The Vermont Chamber testified before the House Human Services Committee on S.56 expressing the need for balanced solutions that will provide the existing workforce with relief from the issues of availability, dependability, and affordability. Legislators must pose critical questions about how, and if, the solutions proposed in the bill address those three areas and if money alone will solve the problem. The Vermont Chamber will continue to raise concerns that amid a severe workforce shortage in every industry, taxing workers and businesses to increase wages for one industry must come with a concrete plan for accountability to ensure more dependability and availability of childcare spots for working families.

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Conflict Between Policy and Politics Continues to Obstruct Meaningful Housing Legislation

Many legislators in the House appear committed to promises made on the campaign trail to prioritize meaningful action on housing. In particular, a group of legislators in the House General and Housing Committee stood up for their constituents in response to House leadership giving sole jurisdiction on land use, zoning, and Act 250 to the House Energy and Environment Committee. A heated debate on committee jurisdiction ensued, with several committee members concerned that politics is hindering good policy.

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CTE Report Confirms Need for Significant Reform

Several committees received a walkthrough of a lengthy report on the funding and governance of Vermont’s career technical education (CTE) system. Study findings suggest that to meet Vermont’s significant workforce needs, “simple changes in the system’s governance or funding will not be sufficient.” To make meaningful progress, the report outlines several recommendations.

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Program Championed by Vermont Chamber Successfully Deploys $18.5 Million to Vermont Businesses

The VEDA Short-Term Forgivable Loan Program issued business loans to 201 companies in all 14 counties, totaling $18.5 million of funding. This economic development program was successfully advocated for by the Vermont Chamber in the 2022 legislative session and was instrumental for businesses to recover from the pandemic, particularly those in the manufacturing and tourism industries.

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Bill Updates

H.121 Consumer Privacy – The House Commerce and Economic Development Committee heard testimony from Attorney General Charity Clark who has championed the bill. The legislation is expected to be tabled this session and left for further review. The Vermont Chamber will continue to encourage legislators to thoroughly study and understand this complex issue and consider legislation passed in other states in which data privacy laws balance the protection of consumer privacy with manageable regulation on businesses.
H.288 Liquor Liability – Senate Judiciary Committee took additional testimony on the issue from business owners who urged legislators to amend the statute by updating Vermont’s dram shop laws to be in line with neighboring control states to ensure businesses can continue to operate.
H.484 Workforce – The Senate Economic Development, Housing, and General Affairs began to review the significant workforce bill that was passed by the House to invest $40 million in recruitment and retention strategies. With the Senate Appropriations Committee looking to make major cuts to the House-approved budget, it is likely the committee will need to make tough cuts over the next week.
S.45 SALT – A bill on elective pass-through entity income tax and credit was discussed by the House Ways and Means Committee. The committee expressed its uncertainty about the bill and is expected to adjust the size of the tax and refund structure.
S.94 VEGI – Language on the Vermont Economic Growth Incentive (VEGI) program was added to a bill related to Vermont’s Tax Increment Financing (TIF) program and was initially passed out of the House Ways and Means Committee unanimously. However, on a required revote following improper procedures, the Chair of the Committee voted no, registering her opposition to both TIF and VEGI. The final vote was 11-1. This comes after stand-alone VEGI legislation was held from making the crossover deadline by the House Ways and Means Committee after weeks of significant work on the bill by the House Commerce and Economic Development Committee.
S.103 Severe and Pervasive Standard - The House General and Housing Committee concluded their walkthrough of employment law legislation that includes a proposal broadening the definition of harassment and removing the standard of severe or pervasive for discrimination or harassment to be determined as unlawful. The committee is poised to vote on the bill next week. However, no testimony has been taken at this point. It has been questioned why a bill so directly related to long-standing Vermont case law wouldn’t fall under the jurisdiction of the House Judiciary Committee and be reviewed there.

Vermont Chamber News

Vermont and Québec Leaders Celebrate a Decade of Collaboration on Trade Corridor

Over the past decade, the Vermont Chamber has championed the Vermont – Québec Aerospace Trade Corridor, which links Vermont’s $2 billion aerospace manufacturing and civil aviation industry with the $17.8 billion Québec aerospace cluster.

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