Finally, we are done! Veto Session Wrap Up

As I'm sure everyone knows the Governor vetoed the budget (H518), the state education tax rate bill (aka Yield Bill H509) and S22 the marijuana bill at the end of the regular session.  We returned to the statehouse Wednesday to attempt to override the vetoes (which were sustained) then moved on to pass new legislation.  Summaries of each are below.
 
Budget
The budget bill (H542) passed yesterday is identical to the version the House and Senate passed on May 18th and vetoed by the Governor, except for three technical amendments.  A few highlights of the budget:

• Balanced without new taxes or fees.
• Keeps the General Fund growth rate at 1.5% well below the projected 3% revenue growth rate and keeps the total growth rate of all funds at 1.3%.
• Protects and strengthens reserves bringing general fund reserves to $111m or 7% over prior year general fund savings.
• Mental Health Investments include $8.7m to increase salaries for mental health workers as part of a multiyear stabilization funding plan and funding to increase hours of operation of a peer-to-peer warm line.
• $35m housing bond that will leverage $100m in public/private development for housing.
• $2.5m in child care new funding to bring family eligibility levels up to the current year Federal Poverty Level and funding for infants and toddlers child care programs.
• $3m additional for Vermont State Colleges and an additional $880k one time funding for the Johnson/Lyndon merger.
• Additional funding for Guardian Ad Litum, Court Security and a Civil Rights Attorney and a Small Business Assistance employee.
• $1.25m public safety funding for body/car cameras.
• More flexibility with our cold weather exception policy and $600k one time investment to build 2 shelters in the Montpelier and Rutland areas.  
• And much more.

Yield Bill
Additionally the state education tax rate legislation (originally passed as H509) was added to the budget as an amendment rather than having a separate bill.  This bill sets the tax rates for the next fiscal year and has legislation regarding the savings achieved from school employees healthcare plans.  Below are the highlights of the passed legislation:

• Keeps the homestead tax rate the same as H509 which equates to a 2 cent decline from FY17.
• Lowers the non-homestead tax rate to the same rate as FY17 of $1.535.  This is a decrease from the originally passed H509 of 2 cents.
• This bill states school districts should be able to achieve savings from the new already agreed upon school employee healthcare plans and sets out how to return the savings to the taxpayers.  It also provides the benchmark on how to achieve the savings, but does not legislate how to achieve savings.
• Savings to be achieved from healthcare plans is $13m. 
• Requires school district contracts not already settled to expire between July 1, 2019 and September 1, 2019.  This ensures that any new legislation regarding school employee contracts can be implemented in the future.
• Creates the Vermont Educational Health Benefits Commission to determine whether and how to establish a single statewide health benefit pan for all school employees.
• In summary, this legislation sends savings back to property tax payers, preserves local decision making and establishes a commission that sets the stage for a thoughtful decision making process next session.  

Marijuana
This bill originally began in the Senate so they took up the bill first yesterday.  They added language agreed upon with the Governor and voted the bill out.  However, rules had to be suspended in the House for us to take up the bill.  That vote failed.  There is no marijuana legislation this year.  I suspect it will be discussed again next session.

So what did I think of the end of session and the veto session?  A colleague on the House floor said it well last night "politics got in the way of leadership".  I was dismayed at the closed door negotiations the past few weeks and hope that is not a sign of the future.  I'm also saddened that teachers were pitted against tax payers.  We should be uniting our communities not dividing them. But at the end of the day we have a fiscally responsible budget with tri-partisan support.  For that I am very proud of our small state!

If anyone has specific questions or wants to talk, please reach out.  373-0599 or lhoughton@leg.state.vt.us.  Rep Giambatista and I will be available to meet on June 28th at Nest Coffee & Bakery on Main St from 8:30am to 9:30am.  Hope you can join our conversation!

Thank you for allowing me to serve Essex Junction! Have a great summer!