Every year the legislature sets a yield amount that essentially identifies how much revenue the state expects to generate with a $1 statewide base tax rate. This number is used to calculate local tax rates by adjusting for local spending. According to the Joint Fiscal Office (JFO) projects a decrease for the average homeowner of about 9% from last year.
This year the property tax bill was particularly interesting for two reasons. First, the state went into budgeting for FY2023 with a $95M surplus from the current year (first time anyone can remember this happening) so legislators had some decisions to make about how to spend that money. The Governor wanted to spend half on property tax rebates and the other half on technical education investments.Read more
This bill creates a temporary program meant to address the perceived shortage of teachers in the state by allowing school districts to bring retirees back to work for one-year contracts without jeopardizing their retirement benefits. While clever, there are concerns from the Treasurer's office about the financial impacts of this program on the pension should it become widely used.Read more
Last minute Act 250 changes from S.234 were rolled into S.226 but the underlying bill was meant to address Vermont's housing crisis. Despite making steps towards assisting with housing development, the bill does contain a watered down version of a contractor registration provision that Governor Scott vetoed last year.Read more
S.11 started out life as three separate bills - S.11, H.159, and H.703. In the final weeks of the legislature they were merged into one omnibus economic and workforce development bill. The goals of the bill are:
- Expand opportunities for workforce education, training, and development for Vermonters and to make meaningful investments to support and expand the workforce across the State
- Ensure that all Vermonters, and particularly marginalized populations, have the opportunity to benefit from the financial and programmatic benefits being made available.
The major factors that this bill is trying to address is a shortage of 28K workers (largely resulting from 26K workers leaving the workforce since 2019) and a workforce participation rate that has fallen to just over 60%.Read more
The past few months have been filled with the hustle and bustle of the legislative session. Bills have been proposed, tanked, renewed, rewritten and debated over. Good work has been done and some have been left for another day. This week it all came to an end. The lead up to legislature adjournment on Thursday was filled with the typical last-minute deals, unforeseen circumstances, and passionate speeches on the floor that are to be expected.
In the end, the legislature passed the first statewide code of ethics for Vermont, took a step towards fixing our pension and housing crises, and invested nearly $100M into workforce development needs. In doing so, we also avoided tax increases on middle-class Vermonters and changes to Act 250 that would actually make our housing problem WORSE. There is a lot to be happy about.
We applaud legislators for their work and wish them all some much-deserved rest over the summer.Read more
This week the legislature overrode Governor Scott's veto of the pension bill unanimously. While only addressing less than half of the deficit, the legislature resoundingly chose incremental progress over sweeping reform. Other bills are following this trend, such as the Act 250 bill, shying away from bold reforms and towards minor tweaks to existing laws.
Other bills moving forward include housing and workforce development, economic development, student weighting (headed for the Governor's desk). Universal school meals were also approved by the Senate this week, setting up a likely slash to the $36M in property tax savings that were offered by the House.Read more
The pension bill is now in the Governor's hands after the Senate gave final approval on Friday. He will be faced with a choice to approve a bill he has criticized in recent weeks as not going far enough to address the pension deficit or accept the incremental progress that the bill offers.
We are also, by the way, waiting for the Governor to sign the ethics bill which passed over a week ago...
After the House more or less accepted Governor Scotts plan to return half of the $95M property tax surplus to taxpayers, the Senate may not be so quick to jump on the bandwagon. After testimony this week they seem inclined to reject the 20 cent decrease to property taxes in favor of providing funding for both PCB remediation and universal school meals.Read more
This week Campaign for Vermont introduced an extensive list of workforce development recommendations to the legislature covering a number of bills in motion, including H.703, H.159, S.226, and S.234. As a state we must recognize the issues before us and view them with clarity. Economic vitality is critically linked to workforce participation, recruitment, and housing. Our businesses are starving for workers and those that can move elsewhere will if the problems become worse – hampering the long-term prospects of our state. We cannot practically solve the housing crisis quickly enough to correct some of these issues, however, moves we make now will have profound impacts on that outcome and the equity of our housing system and even the broader economy in years to come.
The public pension reform bill is headed to the House Floor next week after the state treasurer poo-pooed a defined contribution plan for new hires. The current solution being offered only addresses less than half of the pension deficit and disproportionately impacts taxpayers. The legislature will need to come back for more in future years. At the same time, the legislature is considering pension divestment of fossil fuels, benefits for interim educators, new pension groups, and other measures that could actually have a negative impact on the deficit.
Two education initiatives - Student Weighting Factors and Universal School Meals - also passed key committee votes this week and are anticipated to hit the House Floor in short order.Read more
There was lots of action this week as the legislature heads into its final month of the session. The ethics bill passed the House unanimously this week and is now headed back to the Senate where we expect final approval before being sent to the Governor.
In a surprise turn of events, the House is now considering the pursuit of defined contribution plans for new hires. This has the potential to address the remaining $2.3B in unfunded liability that will remain in our public pension funds if S.286 passes (the bill currently only addresses about $2B of the $4.3B overall liability).
Workforce, housing, and economic development bills are all progressing towards final passage but there are concerns around "poison pills" added by environmental advocates that could draw a gubernatorial veto. All three of these bills are critical to addressing Vermont's short and long-term economic challenges.Read more