The House Ways & Means Committee reviewed income tax analysis and the potential for a “wealth tax” on Tuesday with the Joint Fiscal Office (JFO). Chairwoman Kornheiser started the meeting by pointing out the Governor has not proffered a “revenue package” which, according to her, required by statute. When asked, she added that she has never seen one in his time in office.

On Wednesday the House Ways & Means Committee dug into education finance with the Joint Fiscal Office (JFO) with some hypothetical situations facing school districts. Chairwoman Kornheiser cast the topics for the day as surrounding property valuation and the Common Level of Appraisal (CLA) and understanding what the impacts of those actually look like for taxpayers. This is meant to be a bit of a prelude for Thursday’s joint hearing on education finance.

Legislative Counsel presented an overview of a new strikeout to H.707 to the House Commerce Committee on Wednesday. The bill overhauls the governance of the states workforce development system. The primary change in the system is that the Commissioner of Labor will no longer be the leader of workforce development. The newly created Executive Director of Workforce Expansion and Development will now be the leader of workforce education and training in the state.

The first person to testify on the draft ethics bills in front of the House Government Operations Committee was Ted Brady (Executive Director, Vermont League of Cities and Towns).

NOTE: Brady had submitted a letter to the Committee which we had read when preparing our last newsletter. In my mind, the letter did not clearly present the League’s position on a statewide ethics bill. In listening to this week's presentation, it became very clear what his position is.

Chairwoman Lyons opened Wednesday's meeting of the Senate Health & Welfare Committee by introducing Dr. Elliott Fisher (Professor of Medicine and Health Policy, Dartmouth Institute). He introduced some Framing Questions. The first being that Vermont had established an aspirational set of goals for health system reform (Act 48) and created an independent agency (the Green Mountain Care Board) with the responsibility to evaluate and improve health system performance. He claimed that the Green Mountain Care Board (GMCB) is effective, transparent and accountable, “the envy of many states.” He questioned whether the Legislature wants to build on this foundation. 

On Wednesday the Senate Government Operations Committee did a walk-through of a new bill, S.224, that would increase legislative pay to 110% of the statewide median wage and add a benefits package.

The latest version of the bill would create a new Flexible Spending Account (FSA) for healthcare expenses that would mirror what is available to state employees.

Governor Scott presented his FY2025 budget to state legislators on Tuesday in the annual budget address. They will, of course, toss it out and write their own, but it’s still a purportedly important ritual.

Scott led with a more admonishing tone than normal, telling legislators that Vermonters “want to do their part, but they are being crushed by the burden of property taxes or the higher rents that come with it as well as by increased fees just to renew a license or register a vehicle, or the looming payroll tax, or the unknown in higher fuel and electricity costs, not to mention inflation.” He is of course referring to the 13% budget increase from last year that the legislature overrode his veto to pass. He continued on to tell them that “when we spend beyond our means, it catches up to us… When we fail to address the fundamentals of decades-old problems, they get worse.”

Two different Committees covered a new Housing Designations Report from the Department of Housing & Community Development (DHCD) this week. The report focuses on creating vibrant places for Vermonters to live and work.

In the House Environment & Energy Committee on Thursday, Chairwoman Sheldon asked about public engagement and Chris Cochran (Director of Community Planning & Revitalization, Department of Housing & Community Development) stressed the input was largely municipalities and staff at planning and regional agencies, the public also was engaged but they were asked to respond to questions like “what is working and what is not?”

The House Education Committee reviewed H.820 on Thursday with Legislative Counsel.

The Senate Health and Welfare Committee met on Friday to hear testimonies regarding S.211, which intends to look at the health care reform and regulatory duties of the Green Mountain Care Board (GMCB). The initial testimony was presented by Devon Green (VP of Government Relations, Vermont Association Hospitals and Health Systems). She initially addressed the Vermont Landscape of the Rural and Aging Population. There has been a population increase in the 65 to 79 age group during the last decade, with an increase of about 40,000 from 2010 to 2021. That increase is the largest of any age group and more than double the rate of the overall population. This has impacted hospital stays. In 2021 70 people were waiting for post-hospital placement and now 142 are awaiting placement.