Many of you have asked about the process of a bill.  Here is my best shot.  Much of what you may have heard or read about to date on most issues such as the budget, taxes, pull tickets, recycling, childcare, firearms, and end of life issues are only proposed. Any bill which proposes a change in law is introduced and assigned to the committee of jurisdiction.  That committee takes testimony on all sides of the issue.  The bill first must be voted out of that 11-member committee, then proceed to the floor of the House for debate.  Amendments can be added at this time which will change the meaning, the original intent or end effect of the bill – which a legislator may or may not support at that time.  The bill with all its amendments has 2 opportunities to pass or fail.  Once the bill has passed the House, it proceeds to the Senate and the whole process begins again.  [If a bill begins in the Senate, the process is the same and passed to the House.]  The bill that might pass the House, may be changed in the Senate; at this time, it is assigned to a “conference committee” which mediates the differences.  A successful bill then proceeds to the Governor to be signed into law or vetoed.

As you can see, there are many hurdles along the way.  In the last biennium, over 800 bills were introduced, less than 25% became law.

Education Property Tax

There are two parts to education financing:  First are the spending decisions made by communities across the state – the local voters who decide how much to spend based on the needs of their school children, the pressures on the budget such as salaries, health care, and fuel costs. Second is the responsibility of the legislature to determine how the taxes will be divided up among taxpayers.  We set base rates for homestead and income sensitized taxpayers, both of which are adjusted by local spending decisions.  And, we set a non-homestead rate, which is a flat rate, and is not adjusted by education spending.

As we began to set the education property tax rate for FY14, we were faced with education spending increases – 5.5% higher than FY13.  This translates into $64.4 million in increased education spending over last year, with total education fund spending increases (including transportation, tech ed, small schools etc.) of $72.6 million.

During the recession of the last five years, school boards have worked very hard to keep growth in education spending very low, and stimulus/ARRA money insulated us from some cost increases.  The education costs we face today are increasing as a result of rising health insurance, special education costs, contractual salary increases and a continued decline in our student population.  Over the last 12 years our school age population has declined by 22,000 students.  Vermont now has 82,000 enrolled in public school.  We have fewer children and we are spending more money.

As we recover from the recession we face additional challenges.  The first is that our statewide grand list continues to decline.  This year it is projected to decline 1.5%.  Lower values mean that last year’s rates on property will raise less money.  The second is that revenue from other sources that feed the Ed Fund (sales tax, lottery, Medicaid etc.) has also been slow to recover.

As a result of these financial pressures, our Education Property Tax is set to rise significantly.  We set the base education homestead tax rate at $.94 cents (up from $.89 cents) and the uniform non-homestead tax rate at $1.44 (up from $1.38) per $100 of assessed value.  Property tax adjustments for income-sensitized taxpayers (households earning $90,000 or less) will stay at 1.8%.  If no bill is passed, the tax rates revert to the much higher statutory amounts ($1.10, 1.59 and 2%).  In addition to setting the rates for FY14, the legislature has also made a commitment to continue our work on reforming education finance.  By March 2014, we expect to have proposals into the General Assembly which address financing, educational outcomes, and oversight of our current system.

Budget Realities

Each year, the Governor presents the legislature a budget proposal that is reviewed and adjusted first in the House, then in the Senate, before it returns to the Governor for signature.  For the seventh year in row, budget deliberations began with the need to fill a hole, this year, $67M, before decisions about future spending could be considered.

At this time, the House Appropriations Committee –working with other agencies and committees in the House – is evaluating every line item in that budget proposal.  This budget proposal presents dilemmas – many even tougher than we faced at the height of the recession.  In order to reduce spending in some categories, the most obvious option is to curtail benefits to others, the loss of which is likely to hurt our investments in economic growth; all the while we must look over our shoulder at the loss of Federal funding in many, many categories.

A balanced budget will be produced, though Vermont has no Constitutional requirement to do so: we will do our best to keep Vermont’s economic engine moving forward, maintain our roads, our parks, and our schools, our services to oversee our health, our environment, and our communities, even as we continue our recovery from Irene.

Transportation

The transportation budget makes critical investments in our aging roads and bridges, and supports economic recovery by providing funding for jobs in construction and engineering.

As the revenues into the transportation fund decline, and the costs and demand for fixing our infrastructure increase, Vermont faces a growing transportation funding gap.

• Cars are more efficient; people are driving less.
• 39 million fewer gallons sold in Vermont since 2005
• Gas tax is 25% of transportation fund revenues

The Governor’s proposed transportation budget addresses a $36.5 million budget gap. It provides the state funds necessary to match federal funds to sustain progress in rebuilding Vermont’s roads and bridges. Without this match, $56 million in federal funds are at risk to be sent back to Washington for potential redistribution to other states. If the additional state dollars are not raised, the result will be delays to approximately $110 million in projects ready to be built, including completing Tropical Storm Irene recovery.

Solving this funding gap will help continue the work that has improved road surface conditions by 30% in the last four years and repaired structurally deficient bridges.

The FY-14 budget proposal is not a spending increase but rather an $800,000 decrease from FY-13.  This revenue proposal is to maintain current levels of spending and does not contain new capacity projects not already under construction. The Legislature is considering a combination of an increase in the gas tax, prudent levels of Transportation Infrastructure Bonding, some tough budget cuts, and redirecting Transportation Fund transfers back to the transportation budget.  The gas tax will also be restructured to address inflation over time.

The Transportation Committee is working toward a phased multi-year proposal that includes all of the above elements and results in an estimated 6.7 cent increase in gas tax at the pump in the first year and inflationary increases thereafter.  The increase results from a new 2 percent assessment on gas sales.  An additional 2 percent assessment is planned for FY-15 but will be largely offset by a simultaneous decrease in the pennies per gallon tax.

In all, it will provide for continued transportation system improvements, preserve $56 million in federal funds, and make further progress on Tropical Storm Irene recovery.  It also resolves structural issues in the T-Fund and provides for more sustainable transportation revenues for the foreseeable future.  Not an easy task.

Education: Flexible Pathways

Research demonstrates high school juniors and seniors derive many benefits from taking college-level courses for dual-credit. In addition to enhancing their college and career readiness, such classes motivate first- generation students, who might not otherwise view college as an option, to pursue a higher education. Additional benefits students derive from taking dual enrollment classes include: a more rigorous high school education, a smoother transition from high school to college, and a reduction in college completion time.

Dual-credit courses may be offered at high schools and taught by high school teachers with the requisite training. They also may be offered at community and four-year colleges as well as universities.

The shortage of Vermonters with post-secondary degrees is currently one of the Green Mountain State’s primary economic challenges. No longer is a high school education enough for entrance into the job market. 60% of jobs in the near future will require a postsecondary degree. Moreover, 81% of the fastest growing high-wage jobs will require postsecondary education. While Vermont’s 83% high school graduation rate is commendable, only 64% of our state’s students graduate from college.

And, even more importantly, if all of Vermont’s high school students graduated ready for college, the state would save as much as $12 million in college remediation costs.  Roughly 1,200 Vermonters did not graduate from high school in 2011; for those individuals their loss in lifetime earnings alone totals $147 million.

Dual enrollment enables eligible high school students to enroll in selected college courses at significantly reduced tuition rates. Eligible students would be able to take up to two courses for high school and college credit through a postsecondary institution’s dual enrollment program at no cost before graduating. Districts would be reimbursed by the Agency of Education for FY 14 and FY 15. Tuition costs subsequently be split 50-50 by school districts and by the state using the Next Generation Initiative Fund.

Balancing Jail and Justice

When a person is arrested, sending them to jail until a court hearing can be costly and unnecessary. Vermont’s correction policies carefully balance public safety with our interest in deterring crime and saving critical dollars from prison operation expenses. The House Committee on Corrections and Institutions is reviewing various risk-assessment tools that will help correction officers evaluate offenders to determine their eligibility to remain at home, subject to electric monitoring, while they await arraignment. It’s unlikely that electronic monitoring would be appropriate for all detainees; but freeing up some of the 400 beds that are currently used to detain defendants would allow us to bring some of our approximately 500 out-of-state inmates back to Vermont.  This shift would create significant cost savings for the state and supports our aim to house offenders closer to their families.

The committee has also discussed the state’s use of work camps and other innovative ways to engage our inmate population to lower the rate of recidivism. State’s attorneys, public safety officials, members of the judiciary, the defender general, and other advocates have testified before the committee on this issue, as well as a bill that would change the calculation courts use to impose sentences.

Funding our State Infrastructure

The Capital Bill supports our communities and Vermonters with substantial investments in drinking water, wastewater and storm water treatment, construction and maintenance of our secondary and higher education infrastructure; and support of our forests, parks, recreation, agriculture, and fishing resources.  This year the Governor has proposed that we spend in excess of $43 million on these investments.

In addition, the Capital Bill provides the funding for construction and physical maintenance of the facilities from which state services are provided.  Even without the demands of the reconstruction of the Waterbury State Complex–which is estimated to be $124,655,000–there are enormous pressures on the capital bill.  The $43 million price tag on the facilities required for the reconfigured and reconstructed mental health system of care, the $30 million replacement of the 50+ year old Health Department Lab, the $5.5 million continuation of Public Safety barrack improvements and almost $8 million for substantial work on the courthouse in Lamoille County, are just part of the overall picture.

These needs are substantially in excess of the $153,160,000 recommended debt authorization for capital construction.  As a result the House Institutions and Corrections Committee is reviewing past funding decisions and pushing hard to reallocate funds that have not been expended. The committee is challenged to make funding decisions without final figures on either insurance proceeds or FEMA for the storm damage in the Waterbury Complex.  The only certainty is that we won’t get this information for a while and the funds will not be enough to cover the gap we are facing.

What are you hearing about Statewide Water Quality?

There has been a revitalized interest in water quality and related issues in Vermont, partially driven by the significant impacts of Tropical Storm Irene and the spring flooding of 2011. Moreover, the disapproval of the Lake Champlain TMDL and the impairment of other state surface waters have refocused legislative efforts on the outcomes delimited in Act 138 of the 2012 legislative session. FEMA, the State of Vermont, and our local communities have spent hundreds of millions of dollars restoring and rebuilding our infrastructure, our rivers and lakes, and our homes and businesses.

The initiatives of Act 138 are slowly being implemented, but like many legislative efforts, are somewhat stagnated due to a lack of implementation funding. There continues to be debate on the priorities not only in the area of water quality, but on statewide priorities in general. Currently there are several planning and zoning enhancements under consideration in the Fish Wildlife and Water Resources committee. These bills propose to expand the Regional Planning Commission’s goals to include planning for flood resilient communities, and municipalities with zoning will be required to carefully review development in flood plains and fluvial erosion areas.  Concurrently the need for statewide shoreline zoning for our lakes and ponds is being evaluated. This bill would potentially include protection standards to help minimize disturbances and other causes of pollutant runoff.

Working Parents Help Our Economy

Working outside the home is a financial necessity for most families; access to affordable, quality childcare is imperative. Studies show our local and state economies benefit. When parents know their children are well cared for and are safe, they are able to participate in the workforce;  unemployment subsidies decrease, and employers confirm a notable rise in worker productivity.

The Governor’s proposed budget recognizes the importance of quality childcare by adding $17 million into the childcare subsidy program to help low-income families. Wile I applaud that commitment, he proposes that money be reallocated from the state share of the Earned Income Tax credit (EITC). The EITC is widely believed to be one of the most successful programs existing to help move working people out of poverty. The House Human Services Committee is wrestling with the short- and long-term impacts of reducing support for one successful program in order to invest in another.

A Changing of the Guard

On February 21, the General Assembly elected Brigadier General Steven Cray of Essex, Adjutant General of the Vermont National Guard. Our statutes require that the Adjutant General be elected by a majority vote of the General Assembly and, after several weeks of interviews and campaigning, General Cray garnered 125 out of 178 votes. He will replace former Adjutant General Michael Dubie and interim Adjutant General Tom Drew.

The new adjutant general will lead our Guard through massive changes over the next 7-10 years. Between the Afghanistan war winding down, and the controversy over the F-35, he will be navigating through some choppy waters. General Cray showed the General Assembly that he had a thorough knowledge of Vermont’s strengths and weaknesses as we move forward, and we are confident he will keep our Guard trained and ready for any state disaster or federal need in the years ahead.

Confronting Homelessness

Homelessness has been a persistent and growing problem in Vermont for over 30 years.  On the second day of the 2013 session, the House passed a resolution recognizing the severity of homelessness in Vermont.  Vermont’s homeless population, which includes people “couch surfing” or otherwise precariously housed, rose from 2,281 in 2008 to 2,819 in 2012 – a 24% increase.  A growing percentage of the homeless are families with children as this year’s “Emergency Shelter/Solutions Grants Vermont Annual Report” (ESG) documents. According to the report, 4,244 people sought shelter last year – 22% were homeless children. The average length of stay in the state’s shelters was 36.3 days in 2012, compared to 15.2 days in 2002.

The House Committees on Housing and Appropriations are deeply concerned about the continued heavy reliance on costly motel stays as a primary solution for housing homeless Vermonters.  Safety and habitability concerns surrounding motels are common throughout the state.  Efforts are underway to phase out this emphasis on motels through revisions in the General Assistance program, in collaboration with the Department of Children and Families.

Search and Rescue

There is already language in statute describing what must happen when a vulnerable person is reported missing.  There is presently nothing in statute as to what must happen when a person, any person, is reported missing or lost “in the backcountry, remote areas, or waters of the State.”  The House Government Operations Committee is working to rectify this.

The language is very much in flux, but the focus is a search and rescue response, which is organized, immediate, and characterized by cooperation Salient points being discussed:

• The Commissioner of Public Safety is designated as having jurisdiction over all search and rescue operations.
• The Commissioner must “cooperate with and support all public safety agencies and any nonpublic entities that specialize in protecting the safety of the public.”
• The Commissioner must “specifically coordinate with game wardens in the Department of Fish and Wildlife.”
• The Commissioner “shall ensure… the seamless integration of all responding search and rescue agencies and organizations.”
• The Search and Rescue Team within the Department of Public Safety “shall regularly conduct search and rescue training with collaborating agencies and organizations with the goal of continually refining search and rescue operations.”
• A search and rescue database, organized geographically and updated regularly, must “identify all agencies and organizations having specific search and rescue response capability.”  “Identification” is to include “points of contact.”

Pension Forfeiture

Public employees must not betray the trust placed in them by the public.  This trust is special and a privileged expectation of all public employees.  If the trust is broken, there is a mechanism that may be used to make taxpayers ‘whole’ and also to restore the public trust.

House Government Operations and House Judiciary worked on legislation defining the consequences for a public employee convicted of financially-related felonies, including “an attempt to commit, or aiding in the commission of” such felonies.  The consequence in addition to the sentence in the criminal proceedings is that the public employee’s retirement benefits may be subject to forfeiture, “in whole or in part,” in proceedings before the Civil Division of the Superior Court.  The Court has discretion in considering the extent of the forfeiture, and may consider the severity of the crime, the degree of public trust placed in the public employee, and whether or not there are innocent family members such as children or an unknowing spouse when determining the extent of the forfeiture.

The House passed this bill in February.  It is now in the Senate Government Operations committee for its consideration.

Puppy Mills, by Teo Zagar

After more than a decade of deliberation and frustration, the diverse array of stakeholders in the “puppy mill”/pet merchant/dog breeder story appear to have settled upon an agreement to regulate the humane breeding and sale of dogs in Vermont.  The result of these efforts can be found in H.50, a bill that will close loopholes and comprehensively define a licensing and inspection regime for the business of breeding and selling dogs.

Vermont Health Connect

Vermont’s individuals, families and small businesses will have access to a new insurance marketplace in 2014 that will allow them to make apples-to-apples comparisons of their health coverage options. Vermont Health Connect will serve as the place where Vermonters can access tax credits to help pay their health care premiums. For a family of four making up to $94,000 Vermont Health Connect will offer financial assistance paying for health insurance that has never been available before.

Many more Vermonters will receive reliable, comprehensive coverage through Vermont Health Connect in 2014. Currently, individuals in the private insurance market have an average deductible of $10,000 and the average out-of-pocket cost to Vermonters is $12,000 a year. Under the Affordable Care Act, Vermont Health Connect will offer insurance where the out-of-pocket maximum will be almost half that amount. Some Vermonters have an unlimited out-of-pocket maximum, which means they could potentially pay hundreds of thousands of dollars towards health care each year.

Health insurance plans in Vermont Health Connect will offer real value to Vermonters and will help them to stay healthy. Plans will cover primary care services without a deductible; in order to keep Vermonters healthy and preventive care will be covered without a deductible or co-pay. Additionally, Vermont is one of only two states (along with Massachusetts) that is considering a state supplement to federal premium and cost sharing assistance. Vermonters who are coming from VHAP or Catamount, along with 40,000 Vermonters of similar income will be offered an additional assistance premium and cost sharing.

In 2017 the federal government will allow states to apply for a waiver from the Affordable Care Act exchanges. Vermont is on a path to apply for a waiver in 2017 that would allow Vermont to create a universal health care system. Once this system is in place, Vermont could save $500 million compared to our current system. In order to embark on a new health system, Vermont needs to do more work to be sure our health care is affordable, offers high quality and contains growth. If we don’t change health care so that it is keeping people well, it won’t matter how we pay for it, we won’t be able to afford it. The Green Mountain Care Board is working on quality and cost containment projects to make Vermont’s health care delivery system the most efficient and highest quality in the nation.

The Value of Reach-Up

Vermont’s Reach Up program helps very low-income families with children by providing cash assistance for basic needs. It also provides recipients with services that promote employment and self-sufficiency. Most families receiving assistance are able to transition out of the Reach Up program in less than two years. The Governor has proposed limiting Reach Up assistance to an initial 36 consecutive months, followed by a 12-month period of ineligibility, with a 60-month cap on lifetime eligibility. In the state of Washington, a similar policy that was recently enacted led to increased homelessness, out-of-home placements of children, and increased poverty. So, the House Committee on Human Services is particularly concerned about the evidence-based link between poverty and poorer outcomes for children. The committee is reviewing the Governor’s proposal and providing important scrutiny of the short- and long-term effects.  Testimony has included other suggestions for improving outcomes for families on Reach Up like addressing the most common barrier to employment – reliable transportation.

Combating Prescription Drug Abuse

Opioids may be among the world’s oldest known drugs, but they have recently sparked one of Vermont’s biggest problems: prescription drug abuse. Opioid addicts are becoming more adept at “doctor shopping,” procuring, and selling these powerful drugs – putting our communities and themselves at great risk.

The House Committee on Human Services is crafting a multi-layered, systemic response to opioid addiction by requiring a more effective use of the Vermont Prescription Monitoring System (VPMS) and implementing other safeguards and supports throughout the state. One element of the bill requires medical professionals to search the prescription drug database before issuing each prescription. This allows doctors, pharmacists, and other registered users to take note of a patient’s prescription history before recommending or dispensing a controlled substance. Even with these changes, a patient’s medical history would still remain private. In short, the Committee is considering sensible legislation that allows Vermonters access to legal medical use of prescription drugs, but makes it more difficult for abusers to gain unlawful access.

In addition, Vermont has begun implementing a “Hub and Spoke” System to provide care for individuals with opioid addictions. A “hub” is a specialty treatment center responsible for coordinating the care of individuals with complex addictions and co-occurring substance abuse and mental health conditions. It is designed to provide comprehensive assessments and treatment protocols; provide methadone treatment if appropriate; initiate buprenorphine treatment; and coordinate referral to ongoing care. A “spoke” is the ongoing care system comprised of physicians and other addictions professionals, including counselors. They will monitor adherence to treatment and coordinate access to recovery supports. One “Hub and Spoke” system in Chittenden County is in operation and the other four will begin operation in the near future.

Good Samaritans and Drug Addiction

Vermonters value savings lives and we want to encourage witnesses to a drug or alcohol overdose to seek medical assistance for the person who has overdosed.  Every year, about 52 people die from drug overdoses in Vermont.  Many of these overdoses are a result of opiate addiction and because of the potential criminal sanctions, many witnesses are reluctant to call 911.  The Judiciary Committee is working on a bill that is proposing to offer limited immunity from criminal and civil liability if medical assistance is sought during a drug overdose.  Also known as the Good Samaritan law, it is savings lives in 11 other states and at nearly 100 universities across the country.

Energy and Environment

Most Vermonters heat their homes with oil and other fossil fuels. This leaves us vulnerable to constant price increases, worsens our greenhouse gas emissions, and makes our homes less and less affordable. In the Committee on Natural Resources and Energy, House bill 216 (H.216) aims to improve the thermal efficiency of our leaky housing stock. It bolsters low-income weatherization, takes steps to keep the price of oil as low as possible for people who receive heating assistance, and streamlines services for higher-income Vermonters who can more easily finance their retrofits. As the pace of home improvement picks up, we also anticipate local job growth for contractors, auditors, and other heating professionals. More to come.

Addressing the Governor’s Revenue Proposals

The Governor has laid out proposed budget priorities for the coming fiscal year that include increasing childcare subsidies, low-income heating assistance, and thermal efficiency funding. These priorities are laudable and in line with values of supporting Vermont families and protecting the environment. Deep concerns, however, have arisen because the Administration’s proposed funding sources for these priorities would negatively and solely affect low-income Vermonters and charitable organizations.

The first of the Administration’s proposals would cut $17 million from the Earned Income Tax Credit (EITC) to fund additional childcare subsidies. This would equate to an average loss of approximately $350, or 65% of the state EITC benefit, for almost 45,000 Vermonters to assist about 7,000 through expanded access to childcare. Research shows that the EITC is an effective anti-poverty measure that encourages work, provides a short-term safety net, and improves children’s school performance. The Ways and Means Committee is still looking into ways to support vital access to childcare with a more balanced funding approach.

The second major proposal from the Administration would tax break-open tickets at 10 percent of gross receipts to fund the low income heating assistance program (LIHEAP) and thermal efficiency. Break-open tickets are a pull-tab game that usually cost $1-2 each and serve as fundraisers for many local charitable organizations.  The Governor has argued that taxing each ticket sale at 10 percent would bring in approximately $17 million, but most estimates come in far lower.

While testimony has raised concerns about ensuring these ticket sales are effectively regulated, there is still skepticism that the proposed tax would bring in a significant amount as proposed in addition to growing belief that it would harm the fundraising efforts of important charitable organizations.

Are You Missing Money?

The State Treasurer’s Office has more than $57 million in unclaimed property.  Could some of this be yours?  Financial property becomes “unclaimed” after a business or non-profit entity loses contact with a customer for a period of years. Unclaimed property may include cash, checks, security deposits, refunds, stocks, bonds, bank accounts and estates. There is no charge to claim funds through the State Treasurer’s Office. Search at     www.MissingMoney.Vermont.gov or call (802) 828-2407

Commerce and Economic Development

The Commerce and Economic Development committee has had a most productive session to this point, passing out more bills than any other House committee. Steps have been taken to protect workers, to save trees, and promote economic development through self-employment assistance.

3a Captive Insurance:  Vermont is the clear leader among all states for the number of captive insurance businesses that are domiciled here, and the other states are anxious to chip away at our lead. One of the things that some states have done to try to reduce our lead is to intentionally misapply a portion of the Dodd-Frank act to force captive companies to re-locate to their home state or face double taxation. Our Congressional delegation is working to eliminate this practice, and we have now passed a resolution in favor of our captives to support their efforts.

3b Saving time and money while reducing paper:  Those who go before the Public Service Board find the amount of paper needed to file an incredible amount of information, nothing short of staggering.  In an effort to reduce that burden and to save trees, the Legislature is looking into allowing parties to file their information electronically.  In addition to ease, this step will allow citizens to follow the proceedings, adding a great deal of transparency and accessibility.

3c Injured Workers:  A current bill will help workers who have been injured collect their benefits through the use of electronic benefit cards. These cards will function like a debit card that insurance companies can “load” with weekly benefit amounts. This will be of great help to those workers who are “unbanked.”  Had this measure been in place in August of 2011, it would have been great help to the many Vermonters whose banks were closed by Tropical Storm Irene.

3d Helping the Unemployed Start a Business: Workers who are laid off from their jobs are able to collect unemployment insurance to help pay bills while they look for a new job. Some folks would like to take advantage of this involuntary “down time” to start their own businesses. The present system, however, does not allow for this.  The legislature has taken up a bill that would allow the Department of Labor to identify a small number of individuals to maintain benefits while working to start a new business and become self-employed.

Coming soon:  a bill to offer some relief to employers facing crushing Unemployment Tax costs following Tropical Storm Irene.

http://www.vpirg.org/wp-content/uploads/2012/09/2012-Scorecard-Final.pdf

I will be submitting my petition in mid June to seek another term as your State Representative.  Mark your calendars… Primary Day is August 28 and the General Election is November 6.  As always, thank you for your continued support.    /s/  Anne 

The purchase of “Vermont Strong” license plates goes to the Vermont Disaster Relief Fund and Vermont Foodbank. Buy yours today at our DMV office!

“Listening Forums on Health Care” are being held around the state.  Bennington’s forum will be held on June 13^th from 6:00-8:00 pm at the Bennington Firehouse on River Street.  What benefits would you like to have available in a health care plan?  This is your opportunity to offer your suggestions.

Flood Recovery & Resiliency:  Tropical Irene brought many changes to our state, physically and structurally.  The extraordinary efforts and cooperative spirit of community volunteers, our National Guard, regional commissions, and municipal governments are to be applauded.  Our losses were great. The damages to our roads and bridges were most visible to the public. The Agency of Transportation performed Herculean tasks.  Two critical building structures were among the losses — the state office building in Waterbury, and the Vermont State Hospital.  In Waterbury, with no offices available to the employees, the employees needed to be placed in offices around the state to work so services to Vermonters could continue.  Secondly, our Vermont State Hospital was so severely damaged that a plan for the patients’ relocation was immediate, and discussions to rebuild and where, were critical.

[Note: The State Hospital condition allowed the state to look at the delivery of mental services on a whole in the state, for now and into the future.  You will read about some of the conclusions.]

In last fall’s “off session”, a number of lawmakers returned early to Montpelier to get a handle on the action that was going to be needed for those Vermonters without homes, or jobs or resources.  Because of the lawmakers’ diligent work, legislation was ready for the start of the session in January.  For instance, the House Ways and Means Committee started by voting out legislation to abate the property taxes in affected flooded communities. In addition, the Governor appointed a Long Term Disaster Recovery Group to raise private money to assist homeowners who sustained damage. There were also early efforts to help coordinate public and private resources to help mobile home owners dispose of their destroyed property so they did not have to continue paying rent on their destroyed homes. As the legislative session progresses, bipartisan efforts continued to maximize support for affected towns. These included:

• Delaying the local payment to the Education Fund by 90 days for cash-strapped Irene-affected towns to maintain their cash flow.
• Authorizing reimbursement to towns to abate education property taxes for properties that were partially or fully destroyed and uninhabitable after Irene.
• Putting $15 Million into the Emergency Relief Assistance Fund to hold harmless town tax rate increases over three cents for flood recovery work.
• Creating 11 new transportation positions through FEMA funds assigned to help municipalities navigate accessing federal resources.
• Passing a “Rivers Bill” that would bring Vermont communities into voluntary compliance with the National Flood Insurance Program standards and address issues that surfaced during Irene such as removal of debris, securing propane tanks, training for those working in our streams, and continued river assessment in flood prone areas.
• Modest increases in DMV fees in order to assist the Agency of Transportation with the ongoing charge of rebuilding flood-damaged roads and bridges.
• Increased lending capacity of the Vermont Economic Development Authority in order to help meet the needs of businesses as they recover.
• Regulating activities in flood plains that are currently exempt from municipal review, such as agriculture, utilities, and transportation.
• Authorization of $500,000 in refundable tax credits for properties in designated downtowns and village centers damaged by flooding this year.

FY 13 Budget

Developing a state budget is much more than numbers.  Putting a dollar sign in front of a number brings to life the policy we make in this Legislature.  Our budget affects peoples’ lives, provides the backbone of our civic life, and points us to a brighter future for all Vermonters.  The money and policy committees depend on each other for guidance as programs link with money to implement our goals.  Growing revenues from the slowly improving economy, past investments that saved us money, declining growth in Medicaid, and prudent use of disaster relief funds allowed us to make import investments.

Rebuilding Vermont after the 2011 weather events, accounted for nearly half of the budget increase.  These funds will be used to repair our roads and bridges; help rebuild infrastructure in flood-ravaged communities; revise Vermont’s mental health system following the closure of the Vermont State Hospital; and help Vermont mobile homeowners replace their flood-damaged homes.

Funds have also been allocated to improve community safety and law enforcement.  The budget funds an additional prosecutor and two forensic investigators to address the increasing evidence that people are trafficking in Internet-based child pornography in Vermont.  Local law enforcement will see additional funds to address the growing gang presence.  The full contingent of the Vermont State Police ranks is funded, and our courts will be open five days per week, once again.

Investments we have made in community:

Agencies – like VNAs and Area Agencies on Aging which will improve service to our elderly neighbors who choose their care in community settings.

Services for graduating students with developmental disabilities.

Funding for model addiction recovery will help do away with waiting lists for opiate addiction and better coordinate addiction services.

This year’s budget invests in substantial improvement to the State’s technology infrastructure, some of which is over thirty years old.  This long overdue modernization of our computer systems is critical for effective and timely delivery of services, transparency of how Vermont’s money is spent, and collecting valid data with which to make informed decisions.

As good stewards of taxpayer money, it was determined that any surplus money at the end of the year  will be divided as:  half will be sent to the Education Fund to relieve property taxes,  one-quarter will go to a true “rainy day fund;” and the last quarter will cover federal cuts to the state.

Vermonters will see a balanced budget that provides for the essential services of state government while saving money to address an uncertain future.

The Capital Bill reflects investment in state buildings

Recently the Bennington state office building opened.  It is the Institutions Committee (through investments in previous Capital Bills) that made the commitment to renovate, and re-build this structure.  Thank you to the House and Senate Institutions Committees – for your investment in keeping a state office building in southwestern Vermont. 

This year’s Capital Bill was designed to invest in our recovery from Irene.  Funds were allocated to the creation of a new system of mental health care to replace the Vermont State Hospital, which I previously mentioned was destroyed due to flooding. Funds were dedicated to the restoration and re-use of part of the Waterbury State Office Complex. These investments will improve the future delivery of services to Vermonters and the effective fulfillment of government functions on their behalf.  Together we will be able to use these facilities to care for Vermonters who need help, to keep our communities safe, and to ensure the efficient operation of state government.

Mental Health System of Care.   Capital Bill funds were allocated to the relocation or replacement of services previously provided at Vermont State Hospital. This will include the establishment of a 14-bed unit for acute care at the Brattleboro Retreat and 6 beds at the Rutland Regional Medical Center. A new 25 bed facility in Central Vermont will also be funded for planning and construction. All of these projects are part of the recently adopted Mental Health System plan for statewide care in facilities and in our communities.

Waterbury State Office Complex.  Large sections of the Waterbury State Office Complex will be renovated and re-used. Some of the buildings that were most heavily damaged and closest to the river will have to be torn down, and some buildings close to the street may be transferred into private or municipal ownership. The line of the oldest buildings across the front of the complex will be flood proofed, and renovated for state use. Flood mitigation measures will be undertaken for all structures and in the floodplain areas near the river. Eventually, approximately 700 employees will come back, so that together with the Department of Public Safety and Forensic Lab employees there will be about 900 state workers at Waterbury.

Health Care Exchange

The Legislature took an important step forward in moving toward a health care system that provides the best care possible for all Vermonters. The combination of the Federal Affordable Care Act and the new state law passed will give many of us access to better insurance plans at more affordable prices. The Health Benefit Exchange is due to be in full operation starting in 2014.

This new marketplace will be good for our families because we will be able to compare health insurance products and define the type of health care coverage that best fits our family’s health care and financial needs. The Federal Affordable Care Act also provides for significant tax breaks for most Vermonters who purchase insurance here. These tax breaks will make good coverage more affordable.

“Listening Forums on Health Care” are being held around the state.  Bennington’s forum will be held on June 13^th from 6:00-8:00 pm at the Bennington Firehouse on River Street.  What benefits would you like to have available in a health care plan?  This is your opportunity to offer your suggestion .

Redistricting: It happens every 10 years!  This process began with six public hearings conducted across the different regions of the state followed up by extensive testimony within the State House.  The Legislature set goals to honor the overwhelming sentiment from the public: to make as few changes to districts as were necessary, avoid splitting towns and villages, and make the process as transparent as possible.  By constitutional mandate and state statute, reapportionment must maintain equality of representation as nearly as is practicable based on the 2010 U.S.  census numbers.  Difficult decisions were made to balance these goals.  Because population in Vermont has shifted northward, Burlington’s population warranted an additional seat, and thusly, the elimination of a seat from an area of the state with population decline.  Fifty districts had absolutely no change, except perhaps for district name.

Why is redistricting so important?  It affects where you vote and who represents you in Montpelier, as each state representative represents approximately 4,172 individuals (+/- deviation).  It is not a change in school districts or town borders.  Bennington did not see a drop in population and therefore, there are no changes in the lines of districts Bennington #2-1 or #2-2.  In the past, sections of Bennington had been sliced off to add population to an adjacent town that was low on population.  It did not happen this year, so this format will remain as is for the next 10 years.

S. 106 Miscellaneous Bill - became the host bill for several bills at the end of session.  It included the Search & Rescue (H. 794) bill, the Embezzlement bill (S. 152) and an EMS bill.

The Search and Rescue section establishes interim protocols for search and rescue which will stay in place until further legislative action.  Under the interim protocols, local search and rescue operations will:

• Use the incident command system;
• Respond immediately to every call, in consultation with the state police search and rescue team;
• Attempt the earliest possible rescue or recovery of every person in need of help;
• Call upon the individuals and organizations capable of helping listed in the search and rescue database
• Receive more training from the Criminal Justice Training Council.

In addition, a search and rescue strategic plan committee will convene leaders from all participating agencies to further examine our current approach, suggest improvements, and report back to the Legislature by Dec. 15, 2012.  [Note:  this bill is in response to a tragedy that occurred in 2011 in the Ripton/Lincoln area, and the lack of uniformity of search/rescue procedures throughout the state.]

The Embezzlement section of S. 106 is in response to the increase number of embezzlements throughout Vermont.  As passed it authorizes the State Auditor to create an internal controls checklist and provide education to county, municipalities and school district personnel who receive or disburse funds. [The same procedures can be installed for non-profits and businesses as well.   For example – the person who signs the checks should not be the same individual who rectifies the bank statement.] The document is designed to determine that financial controls are in place to assure proper use of all public funds.  The legislative bodies of these organizations must receive and review the checklist and insure sound systems of internal financial controls are in place.  Treasurers must file quarterly reports with the select board or school board regarding his or her actions.   Good working internal controls can be very effective in creating an atmosphere in which it is difficult to create this crime.

EMS (Emergency Medical Services): This section addressed licensing and the credentialing of EMS workers, to be established by rule.  Establish response time standards for urban and rural areas – also recognizing there are volunteer and career EMS personnel.

Miscellaneous Municipal items: additions or deletions in some of the following subjects:  damage caused by dogs, abatements, enforcements of civil ordinance violations, filing of land plats, unused clean energy development fund money available for Vermont village green renewable energy projects.

Vermont’s Working Landscapes:  Recognizing that Vermont’s most reliable assets are our people, our natural resources and our brand, the Working Lands bill will stimulate economic development; encourage entrepreneurism and job creation in agriculture and the forest products industry.   A new group, the Working Landscapes Enterprise Board, will implement policy, make determinations on funding and resources for those who want to start up, expand, or branch out in agriculture and forestry.  The board will consider enterprise grants, infrastructure investments, capital for a business’ growth phase, and business planning and startup help, as well as provide wraparound services, technical assistance and financial packaging. Available funds may be leveraged through private funders and foundations. This is a transformational piece of legislation.  If Vermont still has vibrant agricultural and forest activity in 20 years, it will have been because of the work started this year.

GMO labeling:  Vermonters care about food and care about choice.  Today 80% of all packaged foods sold in this country are products of genetic engineering, yet it is extremely difficult for Vermonters to make informed choices about these products because they are not labeled, or are mislabeled as “natural.”  This is a concern to many Vermonters and the impetus for the Vermont Right to Know Genetically Engineered Food Labeling bill.

Although no bill moved forward this year, action and testimony taken lays out a legally defensible case for a statewide labeling requirement of foods produced through genetic engineering. Most importantly, a record is being established and reviewed this summer to prove Vermont’s “legitimate state interest” for future enactment of these requirements. Based on testimony from dozens of expert witnesses, there is genuine cause for concern regarding the public health and environmental consequences of genetic engineering. Furthermore, reputable polling conducted by UVM indicates that nearly 97% of Vermonters favor labeling. There is increasing public concern and pressure around this issue nationwide, with numerous other states pursuing similar legislation. Expect to see a bill taken up for reconsideration in the next biennium.

Educational Leadership:  A most controversial bill this year was the decision of changing the governance of the Department of Education.  Vermont spends $1.5 billion each year on education. We have successful outcomes but many feel we can do better.  With a Secretary of Education (Vermont now has a Commissioner of Education) in the governor’s cabinet, he or she can convey a unified vision to deliver effective outcomes that improve the quality of education in our state. Every two years, the electorate can hold the governor accountable for Vermont students’ education metrics and the cost of delivering them. Furthermore, it is believed that our new education governance model will help us reduce the achievement gap, which costs our state in so many ways.

The Legislature passed a law this session enabling the governor to appoint a Secretary of Education beginning January 1, 2013. This bill elevates the Commissioner of Education to a cabinet level position and gives the governor authority to select a secretary from a pool of three candidates advanced by the Vermont Board of Education.  Permitting the state board to select candidates also provides a buffer against the politicization of education at the state level, and recommends to the governor candidates that have a background with strengths in educational management, policy and programs.

This legislation significantly increases transparency and accountability at the state level.  It will help Vermont administer statewide education policies more efficiently and allow decisions related to education to be made in the context of broader state priorities. It is the hope that with greater transparency and accountability, the importance of education policy will be elevated and put on par with other vital services administered by state and local government.

Treatment for Opioid Addiction:  Opioid addiction is a serious, growing problem within all communities;  ask any law enforcement official. It is a problem for both the individual who is addicted and for society at-large and is present in all age groups and all socio-economic levels of society. Providing adequate and appropriate treatment is imperative. H. 627 authorizes the Department of Health to establish a regional system of opioid addiction treatment sometimes referred to as the Hub and Spoke Initiative. In this initiative, an individual will receive appropriate, comprehensive assessment to determine whether pharmacological treatment, which may include methadone, buprenorphine, and other federally approved medications, is medically appropriate. If it is available, then the individual will receive that treatment, if that person agrees to abide by certain rules of conduct. Helping a person overcome or legally manage an addiction is in the best interest of all of us.

Protecting Adults from Abuse, Neglect and Exploitation :  Older Vermonters and Vermonters who have disabilities are sometimes vulnerable to abuse, neglect and exploitation. Adult Protective Services (APS), in the Department of Disabilities, Aging and Independent Living (DAIL), investigates complaints about these issues. Advocates have been concerned that APS has not been adequately protecting these Vermonters.  To address this, the Legislature passed a bill to ensure these problems are thoroughly addressed.  H.290 required DAIL to collect and provide some very specific data to the Legislature to see how Vermonters are truly being protected. It also called for an independent evaluation of Adult Protective Services.  This bill was vetoed by the Governor.

Prohibition on Fracking:  Enhanced extraction of natural gas, called hydraulic fracturing or “fracking,” is one of the issues to watch in 2012.  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.  Hydraulic fracturing (differentiated from benign hydro-fracturing for well water) involves horizontal drilling at considerable depths and injecting millions of gallons of water mixed with sand and chemicals.  Over the past 10 years, the use of fracking has grown about 3000% and many questions remain unanswered as to the effect on air and water quality and seismic activity.

During this session, the Legislature passed a bill making Vermont the first state in the nation to place a prohibition on fracking.  Over the next three years, the Agency of Natural Resources will be reviewing upcoming studies and putting rules in place to make sure Vermont’s  air and water are protected should the prohibition ever be lifted.

Affordable Housing:  Irene devastated mobile homes across Vermont. Since September, state agents have been working to find a way to increase affordable housing and access to new mobile homes. S.99 addresses these needs and provides the governor’s administration with the tools it needs to aid in the redevelopment of mobile home parks and alternative housing. S.99 also gives municipalities a new option in disposing of abandoned mobile homes and provides landlords with a definitive timeframe when disposing of unclaimed property after an eviction. Additionally, legislation was also passed this session that prohibits discrimination against affordable housing units in land use decisions, ensures homeowner safety in licensing of electricians, and creates a specialty license for renewable energy installers.

Vaccinations:  The tension between parental rights and public health came to a head in the form of the bill S. 199 which would have eliminated a parent’s right to opt out of a required vaccine for school on philosophical grounds. Our vaccine schedule is in place to protect the public from the threat of diseases like polio, measles and pertussis (whooping cough).  The philosophical exemption is in place to protect an individual’s freedom to decline a medical procedure for one’s child. The House Health Care Committee took a great deal of time understanding the actual immunization rates and concluded that there is currently no crisis that rises to the level of calling for the elimination of this basic parental right. Instead, the Legislature has passed a bill that calls for outreach and continued communication between parents and their school nurses with a goal to increase vaccination rates around Vermont. The Legislature was particularly concerned with making sure adequate protections are in place both for children who cannot be vaccinated and also for children with special health needs. Parents wishing to exempt their child from a vaccine will now need to sign off annually with their school nurse. The Department of Health will increase outreach into communities with lower vaccination rates and will collect more complete data about the use of exemptions.

Mutual Benefit Enterprise:  What is a mutual benefit enterprise?  When a group of producers who operate cooperatively such as farmers, artisans, crafters, or cheese makers want to build a production facility — so they can add value to their products — they will need capital.  If the producers do not have enough of their own capital, they can now seek investors who are not producers themselves.

Vermont’s new Mutual Benefit Enterprise structure allows producers, value-adders, and investors to come together for their mutual benefit in an enterprise that is protected from provisions of antitrust legislation.  This business form will allow Vermonters to capture more of the value from their farm and forest land, and will help these enterprises get the resources they need to grow their sales and their employment.

 Rivers:  Flooding events of 2011 not only changed Vermont’s physical landscape, the floods also brought a paradigm shift in how the state manages its water resources, which may help or hurt floodway resiliency.  Legislation passed this year will help us co-exist with our rivers and better coordinate with FEMA and federal assistance in the following ways:

• Expand state assistance to communities and governmental units to comply with National Flood Insurance Program (NFIP) requirements.
• Support communities by providing model bylaws and ordinances to regulate development in waterways and floodways.
• Assist municipalities with mapping to help identify flood hazard areas, river protection zones and areas sensitive to erosion.
• Clarify authority and activity in rivers and streams under emergency conditions.
• Create education and outreach to help emergency workers prepare and recover from flooding.  Simple changes in the type of activity in a river can have a profound affect on a river’s ability to stabilize, decrease future flooding and protect water quality and habitat.

Liquor and Catering:  Vermont’s beer, wine, and liquor manufactures are part of an exciting, burgeoning new industry. To support them, while also maintaining important protections, the Legislature made a number of small though valuable adjustments to state liquor laws. Restaurants that cater events will no longer need to seek out a separate catering license to serve alcohol; caterers who do not have a restaurant can apply for a license to sell wine and beer at their events. These changes simplify the regulations for businesses and those planning events alike. The Legislature also enabled vintners to deliver more of their own product to retailers and restaurants. Finally, this year’s legislation expands the Liquor Control Board from three to five members in response to a growing desire to have wider representation of regions and interests on the board.

Housing:  Mobile Homes Financing and Weatherization:  Housing that is affordable for modest income households consists mainly of older, non energy-efficient homes, and mobile homes.  The financing of mobile homes has been especially difficult and made more difficult by the 2011 flooding in Vermont.   The Legislature stepped in to help.  As a result, homeowners across our state will have access to new funding for weatherization, and mobile home owners will be eligible for tax incentives and financing help totaling $1.1 million, and will be able to form cooperative mobile home parks.

Military Affairs Issues: 

 Property Tax Exemption:  This year the Legislature was able to correct a longstanding wrong.  The property tax exemption benefit has only applied to those veterans disabled while serving in a war or while overseas.  Soldiers who are 50% disabled as a result of service incurred stateside or during peacetime will now be eligible for the property tax exemption benefit.

Clarification of health care coverage:  Health care became an issue for several Guard members.  This resulted when a Guard member was called up for less than thirty days.  They now can keep their pre-existing insurance coverage.  Once thirty days has passed, the State can start paying the employers’ share of healthcare costs, thus keeping seamless coverage for the entire family.

Housing allowances: The Guard’s deployment during Irene was a great success; however, this was the time soldiers had been deployed for more than 30 days and some glitches emerged.  National Guard members from out-of-state that helped the state recover, received housing allowances while our Vermont National Guard members did not.  Legislation passed this year will ensure that the next time our soldiers are called up under state service, they will receive the same housing allowance that they receive when they are called up for federal service.  The housing allowance recognized that the soldier is foregoing civilian pay and needed to pay rent or mortgage back home.

“Next of Kin” license plates:  Until recently, a Vermont family was not eligible for a Gold Star license plate unless the Vermont soldier was killed in combat. The Legislature sought to bestow similar dignity and respect upon  families who have lost family members in non-combat situations. This year, we passed legislation issuing a special “Next of Kin” license plate to family members who have lost soldiers serving honorably in non-combat active duty.  Vermont joins 30 other states in honoring these “Next of Kin” families.

Sixteen Year Olds May Donate Blood:  Getting a blood transfusion can literally save an individual’s life. We often hear that the blood supply is dangerously low. By increasing the pool of possible donors, the needed supply of blood will be maintained. This bill allows sixteen year olds to donate blood if they meet the criteria of the organization conducting the blood drive. High schools often host blood drives and by allowing more high school students to start giving blood during those years, it not only increases the blood supply then, but may also increase the likelihood that those students form a life-long habit of giving blood.

Judiciary: 

Criminal records – What if you did something incredibly stupid and irresponsible as a youth, or just had a low-level drug possession charge, and now have a criminal record as a result?  What if you have lived a stellar life ever since, but because of your record, have difficulty obtaining a job or professional licensure?  We believe people deserve a second chance.  As of July 1, 2012, if you were convicted of a non-violent misdemeanor years ago, have gone at least 10 years without new charges and paid any restitution owed, you can apply to have your record expunged or sealed.  If the court agrees to expunge or seal your record, you may lawfully claim not to have a criminal record.  We believe this will help those people who have turned their lives around since a youthful indiscretion.

The most common non-violent misdemeanor charge in Vermont is driving without a license .  Nearly 38,000 licenses are suspended and about 60% (23,000) of these suspensions (DLS) are for failure to pay fines and for accumulation of points, resulting in situations hard for many people to extricate themselves from. After July 1, the department of motor vehicles, diversion boards and the judicial bureau will begin notifying people of their eligibility to enter in to a diversion contract in order to clear their driving records.  This should take some pressure off the courts and save tax dollars.  The diversion program for DLS will also get people back on track with our legal system.

Universal Recycling and Solid Waste:  Vermont has only two landfills, and soon will have only one in the very near future. It is imperative to reduce the quantity of waste currently going to landfills. H. 485 takes the first step to achieving universal recycling in Vermont, which not only diverts waste from our limited landfill space, but also provides significant economic development opportunities. Specifically, H.485 sets a schedule to ban recyclable material from landfills statewide, and then phases in recycling of yard waste and other organic materials such as food scraps. There are tiered implementation dates from July 2014 to July 2020. Solid waste facilities, trash haulers, and individuals have compliance target dates that allow for education and smooth transition.

Transportation:  Our State Infrastructure:  Vermont’s transportation budget invests in restoring and providing a safe transportation system.  The administration has proposed one of the largest transportation budgets in history – $658 million in 2013 – that seriously addresses neglected infrastructure needs as well as challenges presented by Irene.

Some highlights from this year’s transportation budget:

• For the first time in nearly a decade, the number of miles of highway rated ‘very poor’ condition has decreased to 25%.
• The $104 million proposed for paving in 2012 will continue to increase the better condition rating of our roads.
• The 2012/13 budget for bridges is at record high of $123 million with the Champlain Bridge already completed. From 2010 to now, the number of ‘structurally deficient‘ bridges has come down from 16% to 9% – moving Vermont up from 42^nd place ranking to 29th among other states.

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 15^th 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 5^th. 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 19^th, 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 5^th. 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 19^th, 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 15^th 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 5^th. 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 19^th, 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 5^th. 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 19^th, 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.

S.92 requires that distributors and manufacturers sell only environmentally preferable cleaning products and air fresheners to schools, school districts, supervisory unions, or procurement consortiums. It does not limit the sale, use or distribution of “antimicrobial pesticides” (e.g. disinfectants and sanitizers). The bill is sensitive to the burdens schools face on a daily basis and carefully balances our interest in protecting kids and the efficient operation of school buildings.  By supporting the use of green cleaning products in schools, we demonstrate our commitment to protecting our natural resources and keeping Vermonters safe.