2012 Mid Term Report
Posted By Anne on March 6, 2012
Dear Friends and Constituents: As a result of Tropical Storm Irene last August, much of the Legislature’s work was impacted by that event. We automatically think of Transportation for the roads and bridges of Vermont, but also impacted were the committees on Human Services [Vermont State Hospital], Institutions [our state buildings], Fish & Wildlife & Water, Housing, Agriculture, Commerce, Ways & Means (taxes), Education, Appropriations, and Commerce. As a state, we have helped each other, rebounded well, faced enormous decisions, and entered into long-term planning and recovery. As I make my weekly trip to Montpelier, I am well aware of Irene’s destruction to the roads and bridges of routes 100 and 107, to the debris left along the rivers, to the destroyed homes in Pittsfield and empty building lots I pass along the way.
The House has been super busy. I share the following about some of the work we have done so far. Thank you all for your continued support so that I may continue the work I enjoy so much.
Rivers, Lakes and Flooding
Spring flooding of our rivers and lakes and August flooding from Tropical Storm Irene have not only changed our landscape but also caused a paradigm shift in how we address the management, resiliency and quality of our water resources, as well as our response to more frequent and extreme weather conditions. A broad bill considering the preservation of our water resources is being scrutinized and vetted in the House, while a bill addressing river inundation and erosion is being addressed in the Senate.
Addressing these issues has required input from our lake, river and storm water experts, our road and bridge builders, farmers and municipalities, many still in stages of recovery. From this, we are gathering a better picture of changes needed in law and in practice to prepare for and respond to weather events, erosion and pollution.
Vermont State Employees
With the record spring flooding, many state employees had been providing extraordinary service to Vermonters as they struggled to keep roads and parks open. Then Irene struck. Agency of Transportation employees again stepped up to repair roads and bridges all over the state in record time.
The state complex in Waterbury was significantly damaged, forcing the relocation 20% of the state’s work force. 1,500 employees moved to temporary work sites and were quickly back to work. The disruption to employees’ lives was significant; requiring many to increase travel time, find new childcare, and other modifications.
The efforts of Vermont State Hospital Employees have been heroic—first as they kept 54 patients safe during the flood and then as they followed their patients to Burlington and Brattleboro, Springfield and Rutland. They are working very long hours under conditions not designed to meet the needs of Vermont State Hospital patients. H.630 which reorganizes the mental health system of care recognized this extraordinary effort and the inability to reopen a state facility for more than two years. It provides additional employment and re-employment rights to state hospital employees. Expecting to have more news on the opening of a facility in Morrisville to care for a group of state hospital patients, the House deferred taking steps to assure the employment of some of the workers until later in the session.
Broadband
The state is on target to provide broadband service to 100% of Vermont by the end of 2013. In order to see what broadband service is available in your area the best place to start is by putting in your address at broadbandvt.org. The VTA is currently accepting proposals for broadband projects that would cover the final 1400 residences in the state that have no broadband service, and where there is no project currently planned. The VTA has funded two major cell tower projects. One of the projects involves small radios that will be installed on the top of telephone poles and will provide cell service on 1000 miles of state highways. The other would provide funds to expand VTel’s 4G LTE wireless broadband network to include cell coverage as well.
Commerce
Efforts to increase worker training opportunities for Vermonters are ongoing and are being taken very seriously by the Legislature. Training programs through the Vermont Department of Labor, the Office of Economic Development, and numerous other state programs provide training – to provide opportunities for individuals and provide the needed workforce for our employers.
Cleaning Products in Schools
The House passed S. 92, which protects students’ health by requiring manufacturers and distributors of cleaning products to sell only environmentally preferable cleaning products and air fresheners to schools. Such products include those that are already used by the state’s Department of Buildings and General Services under state contracts, or are certified as environmentally preferable by an independent third party. Individuals who provide cleaning services to schools also must use only environmentally preferable products. The bill does not regulate the sale, use, or distribution of disinfectants or other antimicrobial pesticides. Schools may continue to use conventional cleaning products purchased prior to July 1, 2012 until supplies are depleted. Independent schools may continue to use conventional cleaning products purchased prior to July 1, 2013 until supplies run out.
Hydraulic Fracturing (Fracking)
Over the past 10 years, the increase in the use of hydraulic fracturing or “fracking” has grown about 3000% and many questions remain unanswered as to its effect on air and water quality. Although Vermont does not appear to have a good source of recoverable natural gas, there are some shale deposits in the northwest corner of the state that could be of interest for extraction in the future. Neighboring Quebec has found some economically viable sources of natural gas. The House passed a bill that would place a 3-year moratorium on hydraulic fracturing or “fracking.” The moratorium will allow time for the State to develop rules to protect our air and water and time to review an EPA study due out in 2014.
Redistricting
After the US Census is taken every ten years, redistricting of the legislative House and Senate districts occur. Due to the results of the census, each state representative will now represent about 4,172 people in a one- member district or 8,344 people in a two-member district. No district perfectly matches these numbers; therefore deviations are allowed.
Some areas in the north gained population while southern portions of the state decreased in population. Four counties in the southern part of the state lost population: Rutland County, Windsor, Windham and Bennington. Bennington County lost none of their representatives, though districts may take on a strange configuration. As of this date, the Town of Bennington and North Bennington remain whole, or not divided.
The first draft of the map has been sent to the Boards of Civil Authorities (BCA) in towns around the state for their comment. They have until March 15th to return input to the House Government Operations Committee. At which time the final lines will be drawn, passed on to the Senate for approval and to the Governor for signing. It needs to be in Secretary of State’s office by mid April for election preparation.
Vermont’s Mental Health System
Vermonters who have mental health conditions deserve to have high quality services and care available to them in both community settings and, when needed, in inpatient hospital settings. Tropical Storm Irene did suddenly what the legislature has wanted to do for many years: it closed the Vermont State Hospital in Waterbury. The silver lining is this forced us to act and provided a capital funding opportunity that the State had never had.
To strengthen Vermont’s existing mental health care system a continuum of community and peer services, as well as a range of acute inpatient beds throughout the state would be offered. H. 630 has passed both the House and Senate but with different language from each body. A conference committee will meet to resolve the differences between the two versions of the bill.
If passed, this bill will provide for
- development of a clinical resource management system
- integration of the treatment for mental health, substance abuse, and physical health;
- contracting for new peer services and expanding existing programs
- enhancement of existing community services at the designated agencies by using mobile emergency support teams, allowing for case management for more individuals, increasing adult outpatient services, and establishing additional short-term crisis beds;
- development of a five-bed residence for individuals seeking treatment with minimal use of psychotropic medications;
- providing housing subsidies to individuals recovering from mental illness;
- development of new intensive residential recovery facilities (so-called “step-down” facilities)
- replacement of the services provided at the Vermont State Hospital
- a 14-bed unit within the Brattleboro Retreat
- a six-bed unit within Rutland Regional Medical Center
- Temporarily contracting for seven to twelve inpatient beds at Fletcher Allen Health Care
- Inpatient services at another temporary location if a viable setting is identified
- building a 25 or 16 bed hospital in central Vermont (the House passed the bill with 25 beds, the Senate with 16 beds)
- A secure five-bed residential facility
Meeting our Recycling Needs
In 1987, the State set a goal to reduce solid waste going to landfills by 50%. Unfortunately, this goal has fallen short, achieving only about 36%. In addition, waste generation per capita and by volume has increased significantly in the past 25 years. With only two operating landfills in the state and one near capacity, it is time to act. It is time to think of waste products not as trash, but as residual commodities with value for recycling.
H.485 is a major update of the Vermont’s solid waste law. This bill calls for an analysis by the Agency of Natural Resources (ANR) of waste composition, disposal rates, and current recycling efforts. This information will be used to develop a plan to minimize landfill disposal, build consumer education, develop private markets, and improve infrastructure. The bill would require separation and diversion of all recyclable materials in 2015, of leaf and yard waste in 2016, and of food waste (mostly for compost) in 2017.
As an incentive to people and businesses to recycle more and throw away less, municipalities will be required to offer weight-based pricing options for collection, often referred to as “pay as you throw.” Many details are yet to be worked out, but H.485 will move us further down the road to zero waste.
Education Property Tax Rate
Every year the Legislature is required by statute to set the Education Property Tax rates. The Tax Commissioner makes a recommendation in December and these are reviewed by the House Ways and Means Committee in January. After much testimony and discussion, the House set the residential education property tax rate at 88 cents and non-residential rate at $1.37, with the base education spending amount per pupil at $8,723.
Tax Relief in the Wake of Irene
Tax Abatements: The first piece of legislation dealing with the storms of 2011 made its way quickly through the House on January 5th. This bill helps cities and towns by having the State step in to absorb the costs of storm-related education property tax abatements that, under normal circumstances, would be borne by municipalities. It is estimated that the one-time cost of this measure would range between $2 and $4 million. Although there are a number of pieces still in play (Federal aid, insurance determinations, etc,), the Secretary of Administration, Jeb Spaulding, expressed that the State would likely be on the hook for no more than $100 million due to the ravages of Irene. That’s a big number, but a far cry from what was being bandied about in October.
Irene Education Payment Deferral - Just before the Governor’s budget message on January 19th, the House passed its second legislative effort thus far this year to assist cities and towns hard hit by the spring floods and Irene. The approved bill enables the State Treasurer to defer the due date for education taxes due the State from storm impacted municipalities to be moved from Dec 1, 2011, to February 28, 2012. By postponing this date and absolving affected municipalities from any delinquency penalties, cities and towns hammered by Irene will be given a much-needed cash flow breather. Eleven towns, all from southern Vermont, have chosen to take advantage of this deferment option, to the tune of $7.1 million.
Workers’ Compensation
Workers’ compensation insurance is an important protection to both employers and employees. It provides excellent medical payments in the case of an on-the-job injury, it has a provision to replace most of lost earnings during recovery, and it protects the employer from law suits over the injury.
Vermont law allows sole proprietors to opt out of this coverage for themselves, and when that person works alone as an ‘independent contractor’ the coverage is optional. The Department of Labor is working on clarifications to the independent contractor status to make it easier for these individuals to prove they are independent contractors so they can get work.
The commerce committee is also strengthening a very important provision of the workers compensation statue. With this revision, all fire fighters, EMTs, rescue personnel, and emergency volunteers will be covered by workers compensation insurance for any activity coming under the scope of their departments or services, including things like fixing the firehouse roof, working on department fundraisers, and participating in trainings and parades.
Working Landscapes
Vermont’s working landscape is key our identity. We are on the cusp of an agricultural renaissance, sparking new economic growth and shaping our legacy for future generations. Our working farms, bountiful forests, and value-added products hold tremendous opportunity for job creation and rural revitalization. The Vermont Council on Rural Development recently released a report entitled “Invest in our Farm and Forest Future.” It describes Vermont’s preeminence in the local foods movement, due in large part to our skilled and dedicated farmers, creative entrepreneurs, and strategic investments of private and public funds to strengthen our agricultural economy.
The House Agriculture Committee responded to the report by offering the Working Lands Enterprise Bill (H.496) to address technical, regulatory and financial challenges for new and expanding businesses. Specifically, the bill creates a fund to provide grants and loans to land-based and value-added businesses, wrap-around services for new and expanding working lands enterprises, and infrastructure to support cluster development and spur rural prosperity.
A new Working Lands Enterprise Board will oversee and administer the fund and will coordinate all economic development efforts related to working lands enterprises. Find more information here: http://vtworkinglands.org.
The Budget
For the last 5 years, the Legislature has wrestled with a budget gap between projected revenues and projected budget pressures brought on by the Great Recession. Although we face a $61 million gap, it is the smallest in 5 years. Although this gap is smaller, unanticipated challenges came forward as we face a state ravaged by spring floods and Tropical Storm Irene.
The upward pressures on the budget include increasing caseloads in human services; increased General Fund contribution to the Education Fund that will relieve pressure on the property tax; funding for more state troopers and public safety; responsible payments to retirement funds; and reduced federal contributions to Medicaid and long term care. Thanks to good fiscal management in the current year, we have set aside $11 million in reserves to address some of the upcoming challenges. Better management of Medicaid services is estimated to conservatively save $5 million while improving health outcomes.
This year we a confident that we will be able to avoid some of the painful decisions faced during the worst years of the recession. In that time we strove to make cuts to balance the budget while avoiding severe harm to core state services, these included: 600 position cuts, deferred replacement of safety equipment, salary reductions, grants elimination, and level funding state services even while caseloads were increasing due to the down economy.
Last year, in order to focus our limited state financial resources on top priorities, we began the process of asking agencies to describe the outcomes they are trying to achieve. This year many agencies presented their budgets in the context of data that indicate their effectiveness. In tying taxpayer investments to actual results we are making strides towards outcomes-based budgeting in which tax dollars are used to pay for specific, proven results, rather than spent to buy government activities. This is a crucial step in making the budget process more transparent and holding government accountable to all Vermonters.
Though we- along with the rest of the nation and much of the world- have been through very difficult economic times, we can be proud that Vermont has maintained an excellent AAA financial rating. This demonstrates the strong fiscal responsibility of past our budget choices and lowers interest rates for our long-term borrowing. This year alone, State Treasurer Beth Pearce was able to save the state nearly $5 million by renegotiating our debt service, which is essentially the state’s mortgage payment.
Consumer Protection
There has been considerable testimony and debate about a suite of consumer protection provisions in H.730. Topics under discussion are regulations that would govern charitable sales promotions, like when $1.00 of your purchase of a product goes to a charity; regulating lead content in children’s vitamins and supplements; insurance for portable electronic devices; and rules that make sure consumers can redeem gift certificates. The proposed legislation would also clamp down on unscrupulous lenders who abuse Vermonters with internet-lending scams.
Public Service Board and Public Service Department
- The deadline for coming into compliance with the new commercial energy standards was extended from three months to one year – with retroactive protection – to allow projects in progress to be completed under the old rules.
- Allows for the electronic filing of documents with the PSB which will improve transparency and access to information on the many decisions critical to our economic future.
- Ensures that information security is adequately addressed in state government and that state websites will be kept up to date.
- Updates the requirement of the PSD and others to prepare a comprehensive state energy plan.
- Addresses issues relating to the Universal Service Fund which benefits the delivery of affordable telecommunication service to Vermonters.
Department of Labor
Workers’ compensation insurance is an important protection to both employers and employees. It provides excellent medical payments in the case of an on-the-job injury, it has a provision to replace most of lost earnings during recovery, and it protects the employer from law suits over the injury.
Vermont law allows sole proprietors to opt out of this coverage for themselves, and when that person works alone as an ‘independent contractor’ the coverage is optional. The Department of Labor is working on clarifications to the independent contractor status to make it easier for these individuals to prove they are independent contractors so they can get work.
The commerce committee is also strengthening a very important provision of the workers compensation statue. With this revision, all fire fighters, EMTs, rescue personnel, and emergency volunteers will be covered by workers compensation insurance for any activity coming under the scope of their departments or services, including things like fixing the firehouse roof, working on department fundraisers, and participating in trainings and parades.
Dual Enrollment in Schools
Research demonstrates the many benefits high school juniors and seniors derive from taking college-level courses for dual-credit. Based on this, the House Education Committee has begun to draft legislation that will expand access to such courses for Vermont students. Dual enrollment courses are designed to help all students with college and career readiness and to reach out to students who might not otherwise see college as an option. Such courses help create a bridge between secondary and post secondary education, helping to guide students in continuing their learning at either a community college or four-year college or university.
The advantages high school students receive from taking dual or concurrent enrollment classes include: a more rigorous high school education; heightened aspirations to pursue a higher education, particularly among first generation college attendees; a smoother transition from high school to college; and a reduction in the time it takes to complete a college education.
Fiscal benefits of dual-enrollment programs can include savings for students, their parents, and the state. These programs may help create an important bridge between secondary and post secondary education, helping to guide students in continuing their learning at either a community college or four-year college or university.
Many aspects of the House Education Committee’s draft legislation are founded on recommendations made in a report by a Policy Research Team appointed by the House Education Committee that met to discuss the issue this past summer and fall. Team members included two members of the House Education Committee, two principals, a former superintendent, four members of the Department of Education, and a member of the Vermont Student Assistance Corporation, Vermont Adult Learning, and the New England Secondary School Consortium.
Prevention and Detection of Embezzlement
Every day we hear in the news of a new incident of embezzlement either in the public or private sector. The legislature is working with the state auditor, VT League of Cities and Towns, and School Boards Association to reduce the number of incidents of embezzlement in municipal and county government, supervisory unions, school districts, and non-profit organizations.
Legislation is being drafted that is designed to establish good working internal controls and to help organizations create an environment in which it is difficult to commit this crime. The state auditor would like to assist organizations and possibly monitor their financial internal controls. Thoughts being developed include a checklist for management making sure they understand the need for internal controls, a yearly education requirement, and a reporting requirement when money has been discovered missing.
A balance will need to be found between just creating another mandate and putting out a helping hand.
HEALTH CARE
Vermont is planning for the implementation of the health care exchange that is called for in the Affordable Care Act. Every state is setting up an exchange unless they prefer to let the federal government set one up for them. The exchange will make health coverage more affordable to middle class Vermonters by allowing them to access new federal tax credits and subsidies. The exchange will allow consumers to compare insurance products with a transparent, standardized web portal or with the help of trained navigators who can help Vermonters enroll.
Working Vermonters will have a new freedom to choose a benefit plan that best meets their needs.
- Small businesses will be freed from the burden of administrating health benefits so they can focus on doing what they do best: growing business.
- The exchange will offer a full range of health plans that are modeled on the most popular health plans in Vermont in 2012. We expect there to be at least 10 different plans, ranging from high deductible plans to robust platinum coverage.
- The work of the House this year advanced cost containment projects, including payment reform and continued emphasis on prevention and management of illness through healthy life style choices of Vermonters.
- Employers will able to have 100% choice over their health care costs.
- Working Vermonters will have portability when they purchase insurance in the exchange. Insurance coverage will be continuous whether you change jobs, reduce hours to stay home with a newborn or to start your own business. With premium assistance available through the exchange, it will be easier for Vermonters to maintain coverage during these big life changes.
Two-thirds of Vermonters may qualify for tax credits in the exchange. That means households making less than $92,200 (for a family of 4) will be eligible for help paying for their premium. Additionally, there will be greater support for households making $52,625 or less.
ACA = Affordable Care Act. The following is a useful chart. FPL=Federal Poverty level
Stopping drunk driving
Two years ago the House unanimously passed a DUI bill allowing certain offenders to opt for a program that would let them drive legally while ensuring that they were sober while doing so. The program allowed those eligible to have installed in their cars an “ignition interlock device” that keeps the car from starting if the driver’s breath contains alcohol.
The program was enacted last summer by the Dept. of Motor Vehicles and currently has 88 enrollees. Over 300 people have made inquiries about enrolling, and 25 have been denied. The Agency is very enthusiastic about this results-based program, and would like to expand it, which we hope to do in the next week or so.
Gold Star License Plates
The House unanimously passed a bill expanding the eligibility for Gold Star license plates. Currently, Gold Star license plates in Vermont are issued only to family members of the military killed in combat. H.51 extends this honor to eligible family members whose children died while honorably serving on active duty. This is the practice in 30 states and is consistent with the requirements for membership in the Gold Star Mothers of America and the criteria for issuing Gold Star pins currently used by the Department of Defense. The new plate would reflect the difference and would join ten other veteran type plates in Vermont.
“Vermont Strong” License Plate
When the going gets tough, Vermonters get going and that was clearly evident as Vermont struggled with the ravages of Tropical Storm Irene. State and local employees, the National Guard and private citizens from around the state rolled up their sleeves to show the world that we are strong, “Vermont Strong.”
The “Vermont Strong” decorative license plate bill, commemorating this strength, passed with overwhelming support from both bodies. The proceeds of the $25 plate go directly to help those affected by Irene; $18 goes to the Vermont Disaster Fund, $2.00 to the Vermont Food Bank, and $5 to cover the cost of manufacturing. Plates can be purchased by visiting http://www.vtstrong.vermont.gov/ and are available at many local businesses.
Roads and Bridges: Lessons Learned from Irene
The Agency of Transportation and Legislature are reviewing lessons learned from Irene. We have heard many forward-thinking presentations and recommendations are being explored and developed. A critical lesson was brought forward through the Accelerated Bridge Program. Started in response to ARRA stimulus funds, Irene brought new innovation and urgency to this program. Accelerated Bridge Construction using new construction techniques and materials aligned with short term road closures and other factors allowed for enormous time and cost savings. The agency produced goals and objectives for the program. A bill is currently in House Judiciary to review Right of Way (ROW) process improvements.
Funding Our Roads and Bridge
Vermont’s economic strength depends upon a 21st Century infrastructure. In the 2013 transportation budget, the House continues to leverage forward-thinking investments in the state’s enhance mobility, economic development, community vitality and environmental stewardship. With a record level of funding in the 2013 budget at $658 million, Vermonters can be assured construction season will be active.
• Building Bridges to the Future: Vermont’s high rate of structurally deficient bridges is largely due to interstate bridges reaching their critical time for rehabilitation along with deferred maintenance on our aging bridges, many built after the 1927 flood. This year’s record investment represents a commitment to bridges and rebuilding post Irene. Current plans involve expanding the bridge preventive maintenance program; developing new procedures and models to expedite bridge replacement projects; and continued funding for the town highway bridges and structures programs. The Bridge program has a record investment of over $123 million for 2013.
• Preserving our highways: Keeping our roads safe is a fundamental mission for VTrans; however, as of 2010, 28% of the state roads are listed in “very poor” condition. While this marks an improvement in past trends, down from 34% in 2009, continued improvement to our roadway is addressed in this year’s record investment of $104 million in 2013.
• Expanding our investment across modes: While the primary function continues to
be keeping our roads and bridges safe, there are also enhance investments in our railroads, public transit systems, and bicycle and pedestrian programs.
Statewide Collection of Education Property Tax
The question of whether local or state government should be collecting the education property tax has been an ongoing topic of discussion since the creation of Act 60 in 1998. In an effort to come to resolution on this matter, the Legislature is working on legislation to transfer education property tax collection to the state beginning in 2015. The goal of the transition is to implement a collection system that is more efficient, less costly, more transparent, and consistently applied statewide. The legislation, supported by the Vermont League of Cities and Towns, also contemplates additional analysis by the Tax Department and encourages the establishment of working groups by stakeholders to think through technical problems and more reliably assure that the end product is, indeed, a viable improvement over the status quo. The bill would also entail moving the annual listers’ appraisal date from April 1 to January 1 starting in 2014.
Once the transition is made to a state collection system, questions and concerns surrounding the handling of income information on the local level will be resolved, as it will no longer be funneled through local municipalities. Until that time, however, state law must provide for a workable protocol regarding income sensitivity-related property tax adjustments. To this end, Ways and Means is reviewing options to protect this sensitive information, while allowing certain professionals such as escrow agents, bankers, and auditors the access they need to conduct real estate transactions and other local functions. Under this scenario, anyone else seeking this information would need to obtain a written consent from the taxpayer.
Tax Relief in the Wake of Irene
Tax Abatements: The first piece of legislation dealing with the storms of 2011 made its way quickly through the House on January 5th. This bill helps cities and towns by having the State step in to absorb the costs of storm-related education property tax abatements that, under normal circumstances, would be borne by municipalities. It is estimated that the one-time cost of this measure would range between $2 and $4 million. Although there are a number of pieces still in play (Federal aid, insurance determinations, etc,), the Secretary of Administration, Jeb Spaulding, expressed that the State would likely be on the hook for no more than $100 million due to the ravages of Irene. That’s a big number, but a far cry from what was being bandied about in October.
Irene Education Payment Deferral - Just before the Governor’s budget message on January 19th, the House passed its second legislative effort thus far this year to assist cities and towns hard hit by the spring floods and Irene. The approved bill enables the State Treasurer to defer the due date for education taxes due the State from storm impacted municipalities to be moved from Dec 1, 2011, to February 28, 2012. By postponing this date and absolving affected municipalities from any delinquency penalties, cities and towns hammered by Irene will be given a much-needed cash flow breather. Eleven towns, all from southern Vermont, have chosen to take advantage of this deferment option, to the tune of $7.1 million.
Dear Friends and Constituents: As a result of Tropical Storm Irene last August, much of the Legislature’s work was impacted by that event. We automatically think of Transportation for the roads and bridges of Vermont, but also impacted were the committees on Human Services [Vermont State Hospital], Institutions [our state buildings], Fish & Wildlife & Water, Housing, Agriculture, Commerce, Ways & Means (taxes), Education, Appropriations, and Commerce. As a state, we have helped each other, rebounded well, faced enormous decisions, and entered into long-term planning and recovery. As I make my weekly trip to Montpelier, I am well aware of Irene’s destruction to the roads and bridges of routes 100 and 107, to the debris left along the rivers, to the destroyed homes in Pittsfield and empty building lots I pass along the way.
The House has been super busy. I share the following about some of the work we have done so far. Thank you all for your continued support so that I may continue the work I enjoy so much.
Rivers, Lakes and Flooding
Spring flooding of our rivers and lakes and August flooding from Tropical Storm Irene have not only changed our landscape but also caused a paradigm shift in how we address the management, resiliency and quality of our water resources, as well as our response to more frequent and extreme weather conditions. A broad bill considering the preservation of our water resources is being scrutinized and vetted in the House, while a bill addressing river inundation and erosion is being addressed in the Senate.
Addressing these issues has required input from our lake, river and storm water experts, our road and bridge builders, farmers and municipalities, many still in stages of recovery. From this, we are gathering a better picture of changes needed in law and in practice to prepare for and respond to weather events, erosion and pollution.
Vermont State Employees
With the record spring flooding, many state employees had been providing extraordinary service to Vermonters as they struggled to keep roads and parks open. Then Irene struck. Agency of Transportation employees again stepped up to repair roads and bridges all over the state in record time.
The state complex in Waterbury was significantly damaged, forcing the relocation 20% of the state’s work force. 1,500 employees moved to temporary work sites and were quickly back to work. The disruption to employees’ lives was significant; requiring many to increase travel time, find new childcare, and other modifications.
The efforts of Vermont State Hospital Employees have been heroic—first as they kept 54 patients safe during the flood and then as they followed their patients to Burlington and Brattleboro, Springfield and Rutland. They are working very long hours under conditions not designed to meet the needs of Vermont State Hospital patients. H.630 which reorganizes the mental health system of care recognized this extraordinary effort and the inability to reopen a state facility for more than two years. It provides additional employment and re-employment rights to state hospital employees. Expecting to have more news on the opening of a facility in Morrisville to care for a group of state hospital patients, the House deferred taking steps to assure the employment of some of the workers until later in the session.
Broadband
The state is on target to provide broadband service to 100% of Vermont by the end of 2013. In order to see what broadband service is available in your area the best place to start is by putting in your address at broadbandvt.org. The VTA is currently accepting proposals for broadband projects that would cover the final 1400 residences in the state that have no broadband service, and where there is no project currently planned. The VTA has funded two major cell tower projects. One of the projects involves small radios that will be installed on the top of telephone poles and will provide cell service on 1000 miles of state highways. The other would provide funds to expand VTel’s 4G LTE wireless broadband network to include cell coverage as well.
Commerce
Efforts to increase worker training opportunities for Vermonters are ongoing and are being taken very seriously by the Legislature. Training programs through the Vermont Department of Labor, the Office of Economic Development, and numerous other state programs provide training – to provide opportunities for individuals and provide the needed workforce for our employers.
Cleaning Products in Schools
The House passed S. 92, which protects students’ health by requiring manufacturers and distributors of cleaning products to sell only environmentally preferable cleaning products and air fresheners to schools. Such products include those that are already used by the state’s Department of Buildings and General Services under state contracts, or are certified as environmentally preferable by an independent third party. Individuals who provide cleaning services to schools also must use only environmentally preferable products. The bill does not regulate the sale, use, or distribution of disinfectants or other antimicrobial pesticides. Schools may continue to use conventional cleaning products purchased prior to July 1, 2012 until supplies are depleted. Independent schools may continue to use conventional cleaning products purchased prior to July 1, 2013 until supplies run out.
Hydraulic Fracturing (Fracking)
Over the past 10 years, the increase in the use of hydraulic fracturing or “fracking” has grown about 3000% and many questions remain unanswered as to its effect on air and water quality. Although Vermont does not appear to have a good source of recoverable natural gas, there are some shale deposits in the northwest corner of the state that could be of interest for extraction in the future. Neighboring Quebec has found some economically viable sources of natural gas. The House passed a bill that would place a 3-year moratorium on hydraulic fracturing or “fracking.” The moratorium will allow time for the State to develop rules to protect our air and water and time to review an EPA study due out in 2014.
Redistricting
After the US Census is taken every ten years, redistricting of the legislative House and Senate districts occur. Due to the results of the census, each state representative will now represent about 4,172 people in a one- member district or 8,344 people in a two-member district. No district perfectly matches these numbers; therefore deviations are allowed.
Some areas in the north gained population while southern portions of the state decreased in population. Four counties in the southern part of the state lost population: Rutland County, Windsor, Windham and Bennington. Bennington County lost none of their representatives, though districts may take on a strange configuration. As of this date, the Town of Bennington and North Bennington remain whole, or not divided.
The first draft of the map has been sent to the Boards of Civil Authorities (BCA) in towns around the state for their comment. They have until March 15th to return input to the House Government Operations Committee. At which time the final lines will be drawn, passed on to the Senate for approval and to the Governor for signing. It needs to be in Secretary of State’s office by mid April for election preparation.
Vermont’s Mental Health System
Vermonters who have mental health conditions deserve to have high quality services and care available to them in both community settings and, when needed, in inpatient hospital settings. Tropical Storm Irene did suddenly what the legislature has wanted to do for many years: it closed the Vermont State Hospital in Waterbury. The silver lining is this forced us to act and provided a capital funding opportunity that the State had never had.
To strengthen Vermont’s existing mental health care system a continuum of community and peer services, as well as a range of acute inpatient beds throughout the state would be offered. H. 630 has passed both the House and Senate but with different language from each body. A conference committee will meet to resolve the differences between the two versions of the bill.
If passed, this bill will provide for
- development of a clinical resource management system
- integration of the treatment for mental health, substance abuse, and physical health;
- contracting for new peer services and expanding existing programs
- enhancement of existing community services at the designated agencies by using mobile emergency support teams, allowing for case management for more individuals, increasing adult outpatient services, and establishing additional short-term crisis beds;
- development of a five-bed residence for individuals seeking treatment with minimal use of psychotropic medications;
- providing housing subsidies to individuals recovering from mental illness;
- development of new intensive residential recovery facilities (so-called “step-down” facilities)
- replacement of the services provided at the Vermont State Hospital
- a 14-bed unit within the Brattleboro Retreat
- a six-bed unit within Rutland Regional Medical Center
- Temporarily contracting for seven to twelve inpatient beds at Fletcher Allen Health Care
- Inpatient services at another temporary location if a viable setting is identified
- building a 25 or 16 bed hospital in central Vermont (the House passed the bill with 25 beds, the Senate with 16 beds)
- A secure five-bed residential facility
Meeting our Recycling Needs
In 1987, the State set a goal to reduce solid waste going to landfills by 50%. Unfortunately, this goal has fallen short, achieving only about 36%. In addition, waste generation per capita and by volume has increased significantly in the past 25 years. With only two operating landfills in the state and one near capacity, it is time to act. It is time to think of waste products not as trash, but as residual commodities with value for recycling.
H.485 is a major update of the Vermont’s solid waste law. This bill calls for an analysis by the Agency of Natural Resources (ANR) of waste composition, disposal rates, and current recycling efforts. This information will be used to develop a plan to minimize landfill disposal, build consumer education, develop private markets, and improve infrastructure. The bill would require separation and diversion of all recyclable materials in 2015, of leaf and yard waste in 2016, and of food waste (mostly for compost) in 2017.
As an incentive to people and businesses to recycle more and throw away less, municipalities will be required to offer weight-based pricing options for collection, often referred to as “pay as you throw.” Many details are yet to be worked out, but H.485 will move us further down the road to zero waste.
Education Property Tax Rate
Every year the Legislature is required by statute to set the Education Property Tax rates. The Tax Commissioner makes a recommendation in December and these are reviewed by the House Ways and Means Committee in January. After much testimony and discussion, the House set the residential education property tax rate at 88 cents and non-residential rate at $1.37, with the base education spending amount per pupil at $8,723.
Tax Relief in the Wake of Irene
Tax Abatements: The first piece of legislation dealing with the storms of 2011 made its way quickly through the House on January 5th. This bill helps cities and towns by having the State step in to absorb the costs of storm-related education property tax abatements that, under normal circumstances, would be borne by municipalities. It is estimated that the one-time cost of this measure would range between $2 and $4 million. Although there are a number of pieces still in play (Federal aid, insurance determinations, etc,), the Secretary of Administration, Jeb Spaulding, expressed that the State would likely be on the hook for no more than $100 million due to the ravages of Irene. That’s a big number, but a far cry from what was being bandied about in October.
Irene Education Payment Deferral - Just before the Governor’s budget message on January 19th, the House passed its second legislative effort thus far this year to assist cities and towns hard hit by the spring floods and Irene. The approved bill enables the State Treasurer to defer the due date for education taxes due the State from storm impacted municipalities to be moved from Dec 1, 2011, to February 28, 2012. By postponing this date and absolving affected municipalities from any delinquency penalties, cities and towns hammered by Irene will be given a much-needed cash flow breather. Eleven towns, all from southern Vermont, have chosen to take advantage of this deferment option, to the tune of $7.1 million.
Workers’ Compensation
Workers’ compensation insurance is an important protection to both employers and employees. It provides excellent medical payments in the case of an on-the-job injury, it has a provision to replace most of lost earnings during recovery, and it protects the employer from law suits over the injury.
Vermont law allows sole proprietors to opt out of this coverage for themselves, and when that person works alone as an ‘independent contractor’ the coverage is optional. The Department of Labor is working on clarifications to the independent contractor status to make it easier for these individuals to prove they are independent contractors so they can get work.
The commerce committee is also strengthening a very important provision of the workers compensation statue. With this revision, all fire fighters, EMTs, rescue personnel, and emergency volunteers will be covered by workers compensation insurance for any activity coming under the scope of their departments or services, including things like fixing the firehouse roof, working on department fundraisers, and participating in trainings and parades.
Working Landscapes
Vermont’s working landscape is key our identity. We are on the cusp of an agricultural renaissance, sparking new economic growth and shaping our legacy for future generations. Our working farms, bountiful forests, and value-added products hold tremendous opportunity for job creation and rural revitalization. The Vermont Council on Rural Development recently released a report entitled “Invest in our Farm and Forest Future.” It describes Vermont’s preeminence in the local foods movement, due in large part to our skilled and dedicated farmers, creative entrepreneurs, and strategic investments of private and public funds to strengthen our agricultural economy.
The House Agriculture Committee responded to the report by offering the Working Lands Enterprise Bill (H.496) to address technical, regulatory and financial challenges for new and expanding businesses. Specifically, the bill creates a fund to provide grants and loans to land-based and value-added businesses, wrap-around services for new and expanding working lands enterprises, and infrastructure to support cluster development and spur rural prosperity.
A new Working Lands Enterprise Board will oversee and administer the fund and will coordinate all economic development efforts related to working lands enterprises. Find more information here: http://vtworkinglands.org.
The Budget
For the last 5 years, the Legislature has wrestled with a budget gap between projected revenues and projected budget pressures brought on by the Great Recession. Although we face a $61 million gap, it is the smallest in 5 years. Although this gap is smaller, unanticipated challenges came forward as we face a state ravaged by spring floods and Tropical Storm Irene.
The upward pressures on the budget include increasing caseloads in human services; increased General Fund contribution to the Education Fund that will relieve pressure on the property tax; funding for more state troopers and public safety; responsible payments to retirement funds; and reduced federal contributions to Medicaid and long term care. Thanks to good fiscal management in the current year, we have set aside $11 million in reserves to address some of the upcoming challenges. Better management of Medicaid services is estimated to conservatively save $5 million while improving health outcomes.
This year we a confident that we will be able to avoid some of the painful decisions faced during the worst years of the recession. In that time we strove to make cuts to balance the budget while avoiding severe harm to core state services, these included: 600 position cuts, deferred replacement of safety equipment, salary reductions, grants elimination, and level funding state services even while caseloads were increasing due to the down economy.
Last year, in order to focus our limited state financial resources on top priorities, we began the process of asking agencies to describe the outcomes they are trying to achieve. This year many agencies presented their budgets in the context of data that indicate their effectiveness. In tying taxpayer investments to actual results we are making strides towards outcomes-based budgeting in which tax dollars are used to pay for specific, proven results, rather than spent to buy government activities. This is a crucial step in making the budget process more transparent and holding government accountable to all Vermonters.
Though we- along with the rest of the nation and much of the world- have been through very difficult economic times, we can be proud that Vermont has maintained an excellent AAA financial rating. This demonstrates the strong fiscal responsibility of past our budget choices and lowers interest rates for our long-term borrowing. This year alone, State Treasurer Beth Pearce was able to save the state nearly $5 million by renegotiating our debt service, which is essentially the state’s mortgage payment.
Consumer Protection
There has been considerable testimony and debate about a suite of consumer protection provisions in H.730. Topics under discussion are regulations that would govern charitable sales promotions, like when $1.00 of your purchase of a product goes to a charity; regulating lead content in children’s vitamins and supplements; insurance for portable electronic devices; and rules that make sure consumers can redeem gift certificates. The proposed legislation would also clamp down on unscrupulous lenders who abuse Vermonters with internet-lending scams.
Public Service Board and Public Service Department
- The deadline for coming into compliance with the new commercial energy standards was extended from three months to one year – with retroactive protection – to allow projects in progress to be completed under the old rules.
- Allows for the electronic filing of documents with the PSB which will improve transparency and access to information on the many decisions critical to our economic future.
- Ensures that information security is adequately addressed in state government and that state websites will be kept up to date.
- Updates the requirement of the PSD and others to prepare a comprehensive state energy plan.
- Addresses issues relating to the Universal Service Fund which benefits the delivery of affordable telecommunication service to Vermonters.
Department of Labor
Workers’ compensation insurance is an important protection to both employers and employees. It provides excellent medical payments in the case of an on-the-job injury, it has a provision to replace most of lost earnings during recovery, and it protects the employer from law suits over the injury.
Vermont law allows sole proprietors to opt out of this coverage for themselves, and when that person works alone as an ‘independent contractor’ the coverage is optional. The Department of Labor is working on clarifications to the independent contractor status to make it easier for these individuals to prove they are independent contractors so they can get work.
The commerce committee is also strengthening a very important provision of the workers compensation statue. With this revision, all fire fighters, EMTs, rescue personnel, and emergency volunteers will be covered by workers compensation insurance for any activity coming under the scope of their departments or services, including things like fixing the firehouse roof, working on department fundraisers, and participating in trainings and parades.
Dual Enrollment in Schools
Research demonstrates the many benefits high school juniors and seniors derive from taking college-level courses for dual-credit. Based on this, the House Education Committee has begun to draft legislation that will expand access to such courses for Vermont students. Dual enrollment courses are designed to help all students with college and career readiness and to reach out to students who might not otherwise see college as an option. Such courses help create a bridge between secondary and post secondary education, helping to guide students in continuing their learning at either a community college or four-year college or university.
The advantages high school students receive from taking dual or concurrent enrollment classes include: a more rigorous high school education; heightened aspirations to pursue a higher education, particularly among first generation college attendees; a smoother transition from high school to college; and a reduction in the time it takes to complete a college education.
Fiscal benefits of dual-enrollment programs can include savings for students, their parents, and the state. These programs may help create an important bridge between secondary and post secondary education, helping to guide students in continuing their learning at either a community college or four-year college or university.
Many aspects of the House Education Committee’s draft legislation are founded on recommendations made in a report by a Policy Research Team appointed by the House Education Committee that met to discuss the issue this past summer and fall. Team members included two members of the House Education Committee, two principals, a former superintendent, four members of the Department of Education, and a member of the Vermont Student Assistance Corporation, Vermont Adult Learning, and the New England Secondary School Consortium.
Prevention and Detection of Embezzlement
Every day we hear in the news of a new incident of embezzlement either in the public or private sector. The legislature is working with the state auditor, VT League of Cities and Towns, and School Boards Association to reduce the number of incidents of embezzlement in municipal and county government, supervisory unions, school districts, and non-profit organizations.
Legislation is being drafted that is designed to establish good working internal controls and to help organizations create an environment in which it is difficult to commit this crime. The state auditor would like to assist organizations and possibly monitor their financial internal controls. Thoughts being developed include a checklist for management making sure they understand the need for internal controls, a yearly education requirement, and a reporting requirement when money has been discovered missing.
A balance will need to be found between just creating another mandate and putting out a helping hand.
HEALTH CARE
Vermont is planning for the implementation of the health care exchange that is called for in the Affordable Care Act. Every state is setting up an exchange unless they prefer to let the federal government set one up for them. The exchange will make health coverage more affordable to middle class Vermonters by allowing them to access new federal tax credits and subsidies. The exchange will allow consumers to compare insurance products with a transparent, standardized web portal or with the help of trained navigators who can help Vermonters enroll.
Working Vermonters will have a new freedom to choose a benefit plan that best meets their needs.
- Small businesses will be freed from the burden of administrating health benefits so they can focus on doing what they do best: growing business.
- The exchange will offer a full range of health plans that are modeled on the most popular health plans in Vermont in 2012. We expect there to be at least 10 different plans, ranging from high deductible plans to robust platinum coverage.
- The work of the House this year advanced cost containment projects, including payment reform and continued emphasis on prevention and management of illness through healthy life style choices of Vermonters.
- Employers will able to have 100% choice over their health care costs.
- Working Vermonters will have portability when they purchase insurance in the exchange. Insurance coverage will be continuous whether you change jobs, reduce hours to stay home with a newborn or to start your own business. With premium assistance available through the exchange, it will be easier for Vermonters to maintain coverage during these big life changes.
Two-thirds of Vermonters may qualify for tax credits in the exchange. That means households making less than $92,200 (for a family of 4) will be eligible for help paying for their premium. Additionally, there will be greater support for households making $52,625 or less.
ACA = Affordable Care Act. The following is a useful chart. FPL=Federal Poverty level
Stopping drunk driving
Two years ago the House unanimously passed a DUI bill allowing certain offenders to opt for a program that would let them drive legally while ensuring that they were sober while doing so. The program allowed those eligible to have installed in their cars an “ignition interlock device” that keeps the car from starting if the driver’s breath contains alcohol.
The program was enacted last summer by the Dept. of Motor Vehicles and currently has 88 enrollees. Over 300 people have made inquiries about enrolling, and 25 have been denied. The Agency is very enthusiastic about this results-based program, and would like to expand it, which we hope to do in the next week or so.
Gold Star License Plates
The House unanimously passed a bill expanding the eligibility for Gold Star license plates. Currently, Gold Star license plates in Vermont are issued only to family members of the military killed in combat. H.51 extends this honor to eligible family members whose children died while honorably serving on active duty. This is the practice in 30 states and is consistent with the requirements for membership in the Gold Star Mothers of America and the criteria for issuing Gold Star pins currently used by the Department of Defense. The new plate would reflect the difference and would join ten other veteran type plates in Vermont.
“Vermont Strong” License Plate
When the going gets tough, Vermonters get going and that was clearly evident as Vermont struggled with the ravages of Tropical Storm Irene. State and local employees, the National Guard and private citizens from around the state rolled up their sleeves to show the world that we are strong, “Vermont Strong.”
The “Vermont Strong” decorative license plate bill, commemorating this strength, passed with overwhelming support from both bodies. The proceeds of the $25 plate go directly to help those affected by Irene; $18 goes to the Vermont Disaster Fund, $2.00 to the Vermont Food Bank, and $5 to cover the cost of manufacturing. Plates can be purchased by visiting http://www.vtstrong.vermont.gov/ and are available at many local businesses.
Roads and Bridges: Lessons Learned from Irene
The Agency of Transportation and Legislature are reviewing lessons learned from Irene. We have heard many forward-thinking presentations and recommendations are being explored and developed. A critical lesson was brought forward through the Accelerated Bridge Program. Started in response to ARRA stimulus funds, Irene brought new innovation and urgency to this program. Accelerated Bridge Construction using new construction techniques and materials aligned with short term road closures and other factors allowed for enormous time and cost savings. The agency produced goals and objectives for the program. A bill is currently in House Judiciary to review Right of Way (ROW) process improvements.
Funding Our Roads and Bridge
Vermont’s economic strength depends upon a 21st Century infrastructure. In the 2013 transportation budget, the House continues to leverage forward-thinking investments in the state’s enhance mobility, economic development, community vitality and environmental stewardship. With a record level of funding in the 2013 budget at $658 million, Vermonters can be assured construction season will be active.
• Building Bridges to the Future: Vermont’s high rate of structurally deficient bridges is largely due to interstate bridges reaching their critical time for rehabilitation along with deferred maintenance on our aging bridges, many built after the 1927 flood. This year’s record investment represents a commitment to bridges and rebuilding post Irene. Current plans involve expanding the bridge preventive maintenance program; developing new procedures and models to expedite bridge replacement projects; and continued funding for the town highway bridges and structures programs. The Bridge program has a record investment of over $123 million for 2013.
• Preserving our highways: Keeping our roads safe is a fundamental mission for VTrans; however, as of 2010, 28% of the state roads are listed in “very poor” condition. While this marks an improvement in past trends, down from 34% in 2009, continued improvement to our roadway is addressed in this year’s record investment of $104 million in 2013.
• Expanding our investment across modes: While the primary function continues to
be keeping our roads and bridges safe, there are also enhance investments in our railroads, public transit systems, and bicycle and pedestrian programs.
Statewide Collection of Education Property Tax
The question of whether local or state government should be collecting the education property tax has been an ongoing topic of discussion since the creation of Act 60 in 1998. In an effort to come to resolution on this matter, the Legislature is working on legislation to transfer education property tax collection to the state beginning in 2015. The goal of the transition is to implement a collection system that is more efficient, less costly, more transparent, and consistently applied statewide. The legislation, supported by the Vermont League of Cities and Towns, also contemplates additional analysis by the Tax Department and encourages the establishment of working groups by stakeholders to think through technical problems and more reliably assure that the end product is, indeed, a viable improvement over the status quo. The bill would also entail moving the annual listers’ appraisal date from April 1 to January 1 starting in 2014.
Once the transition is made to a state collection system, questions and concerns surrounding the handling of income information on the local level will be resolved, as it will no longer be funneled through local municipalities. Until that time, however, state law must provide for a workable protocol regarding income sensitivity-related property tax adjustments. To this end, Ways and Means is reviewing options to protect this sensitive information, while allowing certain professionals such as escrow agents, bankers, and auditors the access they need to conduct real estate transactions and other local functions. Under this scenario, anyone else seeking this information would need to obtain a written consent from the taxpayer.
Tax Relief in the Wake of Irene
Tax Abatements: The first piece of legislation dealing with the storms of 2011 made its way quickly through the House on January 5th. This bill helps cities and towns by having the State step in to absorb the costs of storm-related education property tax abatements that, under normal circumstances, would be borne by municipalities. It is estimated that the one-time cost of this measure would range between $2 and $4 million. Although there are a number of pieces still in play (Federal aid, insurance determinations, etc,), the Secretary of Administration, Jeb Spaulding, expressed that the State would likely be on the hook for no more than $100 million due to the ravages of Irene. That’s a big number, but a far cry from what was being bandied about in October.
Irene Education Payment Deferral - Just before the Governor’s budget message on January 19th, the House passed its second legislative effort thus far this year to assist cities and towns hard hit by the spring floods and Irene. The approved bill enables the State Treasurer to defer the due date for education taxes due the State from storm impacted municipalities to be moved from Dec 1, 2011, to February 28, 2012. By postponing this date and absolving affected municipalities from any delinquency penalties, cities and towns hammered by Irene will be given a much-needed cash flow breather. Eleven towns, all from southern Vermont, have chosen to take advantage of this deferment option, to the tune of $7.1 million.
