Legislative Report: 2023 Town Meeting Report – Key legislation has been passed

By STEPHANIE JEROME

We’re halfway through the 2023 legislative session! Our work officially began on January 4, when we returned for the first in-person opening week ceremonies in a few years. We’ve passed some significant legislation in these first two months, and this report provides highlights.

Meanwhile, work on our key priorities will continue, across the House and in collaboration with the Senate, as we debate bills and consider investments prior to our anticipated May adjournment.

2023 LEGISLATIVE PRIORITIES

The legislature will tackle a wide range of issues in 2023. Including passing and maintaining a balanced state budget that reflects our values and priorities and supports Vermonters in all 14 counties.

Tackling the complex and interconnected challenges of housing, workforce, and child care. Enacting strategies to combat climate change and transition to a sustainable way of life, as we implement a plan to achieve requirements as outlined in the Global Warming Solutions Act.

Creating affordable housing stock for working families and combatting homelessness by modernizing zoning laws and increasing funding for construction.

Supporting business stability and growth, increasing the capacity of our rural communities to access resources and plan for a vibrant future.

This is far from a comprehensive list. With 150 members and 13 standing committees, the House can accomplish a lot during our five months in Montpelier. In all of this work we will work to enact legislation that protects the most vulnerable, boosts vitality in all 14 counties, and leaves no Vermonter behind.

BUDGET FOR FY24

The House is working on the next Fiscal Year (FY) 2024 budget, which covers state government and its community partner organizations from 7/1/2023 to 6/30/2024. We are seeing substantial revenue growth this year, due to the impact of federal pandemic stimulus and recovery dollars. Our challenge is to make strategic use of one-time funds to meet state priorities. Those priorities include leveraging federal funds to support improvements in roads, bridges and other infrastructure needs under Congress’ Infrastructure Investment and Jobs Act.

Other statewide priorities are those that will deliver long-term dividends including investments in housing, broadband expansion, workforce training, clean energy and childcare. As is our Vermont tradition, it will be a balanced budget, even though Vermont does not have a statutory requirement to do so.

BUILDING WORKFORCE

Workforce development continues to be a high priority for the legislature. With historic low unemployment in Vermont there is a desperate need for more trained, skilled workers in every sector, but especially those essential sectors including healthcare, construction and education. Developing and improving incentives and workforce training pipelines for these essential workers will prove critical.

IMPROVING UNEMPLOYMENT INSURANCE

Coming out of the pandemic and historic draws upon the state’s un- employment insurance trust fund, it will take about 10 years for the fund to regain the level of solvency it held prior to the outbreak of COVID-19. We are working on several bills to help correct issues that were found in the UI system during the pandemic.

UNIVERSAL SCHOOL MEALS

During the pandemic, the federal government provided free school meals to all K-12 students. Last session, the legislature provided funding to continue offering universal school meals in Vermont for the current school year. The legislature must now determine the best path forward.

BOOSTING BUSINESS IN- CENTIVES

My Commerce and Economic Development committee continues to work amend and extend the VEGI program, Vermont’s Employment Growth Incentive program. VEGI is a funding vehicle for Vermont employers that incentiv- izes the creation of good jobs. This bill would extend the program’s lifespan, as it is currently scheduled to sunset at the end of 2023.

CHILDCARE AND EARLY CHILDHOOD EDUCATION

The lack of affordable, high-quality early childhood education profoundly impacts Vermont and its economy. As introduced, H. 208, an act relating to child care and early childhood education, develops a blueprint for a significant investment in our children, families, and communities. The bill would significantly increase state-funded finan- cial assistance for children in child care; expand the current funding for part-time pre-K to a full-time pro- gram for all 4-year-olds in Vermont; increase compensation for early childhood educators and financial support for community and home-based child care programs by reimbursing centers for enrollment; and elevate and streamline state-level oversight of early childhood education.

BOTTLE BILL 2.0

A bill is working its way through the legislature to update and expand Vermont’s bottle bill — first enacted in 1972. It will help reduce landfill waste, litter, and greenhouse gas emissions by increasing the amount and quality of plastic, aluminum and glass recycling.
HOUSING

The Vermont Housing Improvement Program (VHIP) offers grants of up to $50,000 that allow property owners to invest 20% of their own money to make necessary repairs and upgrades to vacant apartments, as well as accessory dwelling units, to return them to the rental housing market. These units are then reserved for low-income renters or those exiting homelessness at a rate below fair market rental rates for a period of five years. Money was also provided for the addition of secondary units. These can be detached accessory dwelling units (ADUs) or attached apartment units added to previously existing rentals. In each of these circumstances, the dwellings must be ancillary; completed units may be rented to anyone qualifying for the lowered rental rates. More innovations will likely be added to the VHIP program in the future.

PAID FAMILY LEAVE AND MEDICAL LEAVE INSURANCE

This year’s version of Paid Family and Medical Leave Insurance, H.66, as recently passed out of the General & Housing Committee, is very different from the bill passed in the House three years ago. H.66 contains three main provisions: total job protection, 100% pay for those earning the state average wage, and leave time. This year’s proposed benefit is portable; it follows the employee rather than remaining with the employer.

Paid leave covers leave time for an employee or family member’s serious health conditions, or recovery from serious health conditions. Residential treatment for substance use disorder; childbirth and child bonding; military exigency, which allows a service member or their family to prepare for active duty; and bereavement. The bill also covers “safe leave” for medical care, counseling, or social or legal services, when an employee or family member is a victim of domestic violence, sexual assault, or stalking.

Under the bill, employers and employees would share the insurance premium costs to provide paid leave benefits equally through small payroll contributions, ensuring a valuable benefit at a low predictable cost to employers.

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