Message delivered

Late last week, House Republicans banded together to vote against the annual midyear Budget Adjustment Act. The BAA, often a noncontroversial shifting of state funds between various accounts to address changes in budget actuals, included several policy issues that proved problematic for Republicans. Extending the winter rules for Vermont’s hotel assistance program to June 30 (currently March 31) and adding $14 million in spending by using funds previously earmarked to buy down state bonds highlight the disagreements.

With 51 No votes, even with five caucus members absent, House Republicans proved they had more than enough votes to sustain a potential gubernatorial veto if the House-passed version of the BAA were to make it to Scott’s desk. The message was clear and delivered that for bills to get enacted this year, they will need bipartisan support.

The governor has already expressed concern over yet another extension of the hotel voucher program, preferring to invest in more shelter capacity instead. A quick look at New Hampshire, Maine, and Massachusetts, neighboring states, suggests they rely on shelters to house the homeless, when necessary, not hotel rooms.

Although he ended up voting for the BAA, Rep. Will Greer D-Bennington expressed his concern on the Hotel voucher program: “The State cannot continue to allocate the money, or resources, to the continuation of the program…that offers no systemic change and only enables the perpetrators of the drug and opioid crisis to destroy lives by using this program as a means of mass drug distribution, and centers of criminal activity, which jeopardizes the safety and well-being of children and families. Simultaneously, by amending this prior agreement, we continue to erode the principles of personal responsibility over one’s own choices. We cannot continue to help people that will not help themselves.”

Other issues of interest:

Additional details of the administration’s education reform plans are being reviewed by the pertinent committees. Virtually every change is garnering pushback from various stakeholders and interested parties. Some don’t like the idea of returning to need-based school meals; others object to going from 119 school districts to just five, while other groups fear the per-pupil funding from the state will require school closings and layoffs. Also on the table is a move to a lottery-based school choice system, where 

all students are assigned to a public school, but via a lottery, some could choose another option. Public comments on education reform efforts can be sent to the Agency of Education at: aoe.ed.policy@vermont.gov.

In a statement over the weekend, the governor’s office pushed back. For more details on the plan, visit governor.vermont.gov/strongerschools.

The House Energy & Digital Infrastructure Committee listened to several climate and energy-related bill introductions, including repealing the Clean Heat Standard and removing the lawsuit provision of the state’s Global Warming Solutions Act. As the lead sponsor of both bills, the committee challenged me with sharp questions in a cordial exchange. It was not clear whether they were going to pursue any changes or bills related to previously enacted laws where the governor’s vetoes were overridden. The committee has not scheduled any further testimony on either bill as of this writing.

Both the Senate and House Health Care Committees have been looking into the unsustainable rise in healthcare costs and access in rural areas of the state. It is not clear what changes, if any, will be proposed. A new coalition of business and union leaders and a tri-partisan group (including former Governor Jim Douglas) says VT Healthcare 911 (VHC911) is sounding the alarm. The group said Vermont’s premiums are the most expensive in the country, creating a healthcare emergency for our businesses, public institutions, private and public-sector employees, farmers, taxpayers, and anyone living in Vermont.

VHC911 says Hospital costs are the primary driver of premium increases. VHC911, therefore, has analyzed public data to help policymakers focus on hospital budgets. Since 2021, our hospital costs have grown from 35% to 44.5% of our healthcare spending (reaching $3.8 billion). Almost half of all healthcare spending in Vermont is in hospitals, more than regional and national averages.

With the legislature’s self-imposed deadline of March 14 to get bills advanced from their initial policy committees, the next few weeks could be an indication if the rest of the session will advance in a way that suggests the message on the need for bipartisanship was received. Actions speak louder than words.

Other news

The House Environment Committee took some testimony on the controversial 3-acre Rule for stormwater control. Commercial, non-profit and private residential developments will likely face significant costs in the next few years to comply with the regulations. Some of the testimony indicates it is the least cost-effective tool for lake cleanup efforts.

Vermont Health Commissioner Dr. Mark Levine is set to retire after serving in that post since 2017 when Phil Scott became governor.

According to the Office of Finance and Management, 14% of Vermont’s General Fund expenditures are committed to pension obligations for the state employees and teachers’ pension funds. A share of the state contributions is to pay down the unfunded liability that each fund has incurred.

Public hearing on the governor’s recommended FY 2026 budget

The Vermont House and Senate Committees on Appropriations will hold two joint public hearings on Thursday, Feb. 13, at 1:45 p.m. and Thursday, Feb. 20, at 5 p.m. via in-person or videoconference. The Committee will take testimony to the governor’s recommended budget adjustments at the above date and time.

The public hearings afford Vermonters the opportunity to request increases (or decreases) in funding in areas of state government, like payments to certain providers. Any increase in spending could result in the reduction of the $77 million the governor put aside to lower property taxes.

Jim Harrison is the state representative for the Rutland-11 district, which includes Chittenden, Killington, Mendon & Pittsfield. He can be reached at JHarrison@leg.state.vt.us or my cell at 802-236-3001.