Gov. Phil Scott announced he will move forward with his voluntary paid family and medical leave program, and vetoed H.107, a bill which levied a $29 million payroll tax on Vermont workers to fund a mandatory paid leave program.
“I share the goal to provide a program that allows workers time to take care of family and personal health needs, and to bond with new children,” said Scott. “That’s why my administration has advocated for, and acted on, a voluntary paid family and medical leave plan.”
The governor’s veto message outlined his objection to raising a $29 million payroll tax on all Vermont workers. He also outlined concerns that the bill didn’t account for all costs to establish and administer a new state benefit and bureaucracy.
Scott believes the state can work towards the same goal by starting with a voluntary program that doesn’t rely on a payroll tax. His voluntary plan is already moving forward, having reached an agreement with the Vermont State Employees Union to provide a paid family and medical leave benefit to state employees and using this 8,500-member pool to create an affordable family and medical leave insurance option.
The state is currently seeking insurance providers through a competitive bidding process. The selected insurer will not only provide paid family and medical leave coverage to state employees, it will also be required to make the coverage available for purchase by Vermont employers and individuals at a rate comparable to the state rate.
“My administration’s approach is voluntary for employers and employees. It can be accomplished more efficiently, affordably and quickly, without a $29 million payroll tax that Vermont workers simply should not be burdened with, and without putting the risk of underfunding on taxpayers,” he added.
