State News

Off the rails

By Jim Harrison

At the start of the State House March Madness competition a few weeks ago a group of members in the House Transportation Committee collaborated to put in an entry, which they named “Off the rails.” And to their own surprise, their committee effort is doing quite well in the standings.

The slogan may also be how the governor views the recent actions in the legislature as being “off the rails” from his perspective on taxes, fees, spending and a few policy issues. And with new supermajorities in the House and Senate, legislative leaders could choose to enact their way even if bills are vetoed by overriding the veto.

Last week started off with the governor allowing the annual budget adjustment bill to be enacted without his signature. His chief concern was that it spent $50 million more than his administration originally proposed without being in the context of other spending priorities for the FY24 budget. However, he stopped short of vetoing the bill.

Some of the legislative initiatives that are causing the Administration concern right now include:

Last week, the House passed the family leave bill that will provide up to 12 weeks of paid leave to every employee for a new child, illness, or other qualified event. It is alleged to be the most generous state program of its kind (up to 90% wage replacement) and will be funded by a new payroll tax. Startup costs, including a necessary reserve are estimated to be over $100 million and will require the addition of 45-50 new state employees and a new IT system.

The Senate continues to work on a childcare bill with a parental leave component that would also be funded by a new payroll tax and elimination of last year’s $1,000 child tax credit for families.

The House Ways & Means Committee added an amendment to the annual Transportation bill that increases motor vehicle fees by approximately $22 million annually. The same committee, working with the Secretary of State’s office also amended another bill with increases in most professional licensing and corporation fees to raise approximately $3.5 million annually.

The House passed universal school meals paid for by the Education Fund, which could increase property taxes by $30 million.

The House passed a new firearm bill, H.230, with restrictions that some attorneys believe may be unconstitutional. Vermont AG Charity Clark has vowed to defend the bill in court if challenged.

The House passed the conservation bill, H.126, which requires conserving 30% of land and water by 2030 and 50% by 2050. A similar bill was vetoed by the governor last year. The conservation requirements are applauded by most environmental groups and exceed the vision proposed by President Biden.

The Clean Heat bill, S.5, has been sent over to the House from the Senate. It’s no secret that Scott opposes the Senate version of the bill due to concern over impact on heating fuel prices and transition costs to homeowners.

And finally, the House Appropriations Committee has drafted a budget for FY24, which begins July 1 that is almost certain to cause consternation with the governor. A final version of the bill will be completed on Monday, March 27, and sent to the full House for action. It will likely be a split vote from the committee.

Scott had messaged early on that it was important to him to retain the reserve he had proposed for the state share of federal infrastructure grants. Those funds have been spent for other purposes by the committee (without my support). The budget also nixes the governors proposed tax reductions on social security benefits, military pensions and increasing the earned income credit for lower income households.

Concern over some of these issues were highlighted in a rare commentary sent to papers by the governor recently. It’s likely a good bet that unless changes are made, some of these proposals will see vetoes. It will then be up to the Legislature to consider whether it wants to enact them despite his concerns with override votes.

Perhaps if he does another op-ed, he will title it “Off the rails?”

Rep. Jim Harrison is the state house representative for Mendon, Killington, Chittenden and Pittsfield. He can be reached at JHarrison@leg.state.vt.us or harrisonforvermont.com.

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