“Opening Day For the Rest of Us”

“Opening Day at the Legislature for the Rest of Us”

This is a reflection by Chamber President Betsy Bishop.

Last week marked the opening day of the legislature as they convened for the new biennium. Legislators were sworn in along with statewide office holders, speeches were given, and families attended to see their loved ones take their seats for the first time. It’s a special day for all of those that worked hard to get elected. Then, there’s the rest of us that have been working to advance policy that’s good for Vermont for many years. While not elected, the staff, journalists, and advocates are part of the State House ecosystem, serving Vermont in a different way.  

As I walked into the State House, I reflected that I’ve been advancing policy that is good for Vermont and her people for decades. I’ve served in government and advocacy roles and understand the history of so many laws, regulations, and processes that allow me to provide valuable information to create the next steps forward. I am not alone. So many non-elected people aid in the legislative process, we feel part of it, too. 

So, I was taken aback when the room capacity numbers were posted, each seemed to allow for only the committee members, a few legislative staffers, and a witness. If the capacity is reached, the rest of us will be relegated to watch online, elsewhere. Sure, we can see it all unfold passively on YouTube, but the collective knowledge of advocates won’t be as readily accessible as the committee work progresses. Interns trying to gain their foothold in the policy world will instead be watching from their dorm rooms. Advocates for housing, childcare, the economy, and the environment will be listening and watching from their devices in the hallways, the coat room, and yes, in the lobby.  

After the last several years of COVID restrictions and the fear of spreading infection in a close environment, I understand the inclination to restrict access in this way, but as we move more into the digital space, our team will continue to seek face-to-face interactions with our elected officials, encouraging them to expand the sources of information beyond their peers and staff, to gain a broad perspective of knowledge as we all work together to create new policies for the state we love.  

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Vermont Wages Outpace Inflation Pace Amid Economic Uncertainty

Vermont Wages Outpace Inflation Pace Amid Economic Uncertainty

ADP, a payroll processing firm, reports an annual increase of 8.1%, with wages growing more than 14% for young workers and over 10% percent for workers in the leisure and hospitality sectors, Vermont’s largest industry. From 2019 to 2022 the Vermont Department of Labor reports an average wage increase of 21.8%. Employers are doing their part to invest in Vermonters.  

As businesses invest more in labor, they are also facing inflation, ongoing supply chain issues, interest rate hikes, and layoffs/hiring freezes are all contributing to unpredictable economic conditions. During a time of great uncertainty, we need to value the economy. Central to the Vermont Chamber’s work this session will be economic stewardship and advocating that an increased tax burden on Vermonters right now could overwhelm the Vermont economy.  

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Vermont’s Congressional Delegation Takes Office

Vermont’s Congressional Delegation Takes Office

Senator Peter Welch and Representative Becca Balint have officially been sworn in to their official offices. Both congressional delegation members have demonstrated their commitment to the business community at Vermont Chamber events in recent months.  

In November, Welch met with restaurant leaders for a roundtable discussion reaffirming his support for the industry amid ongoing pandemic recovery efforts. Balint was a featured speaker at the inaugural Wellspring Forum, an event dedicated to connecting top business and policy leaders. She expressed her commitment to addressing issues top of mind for Vermont businesses such as workforce and housing. She also articulated her support for the manufacturing industry, stating, “I believe we have an opportunity, and an obligation, to bring more manufacturing back to Vermont. When you have people building things in your community, it’s an economic benefit and it also fosters pride of place.” 

Additional information is available here: 
The Office of Senator Bernie Sanders 
The Office of Senator Peter Welch  
The Office of Representative Becca Balint 

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Proposed Paid Family and Medical Leave Bill Funded by Payroll Tax

Proposed Paid Family and Medical Leave Bill Funded by Payroll Tax

The highly anticipated paid family and medical leave (PFML) bill was presented to the Democratic Caucus, kicking off what will be one of the most high-profile policies debated this session. If enacted as introduced, the program would be funded by a payroll insurance premium. 

The bill in circulation would begin debate in the House General and Housing Committee. As drafted, it contains a 0.58% payroll tax split between employer and employee, an opt-in 58% payroll tax option for self-employed individuals and a significant $20 million in general funding to set up the administration of the program. A paid family leave bill that was passed but ultimately vetoed in 2019 would have implemented a 0.93% payroll tax.  

In addition to parental bonding leave and time spent caring for a family member or personal health issues, the bill covers various other types of leave including military deployment and trauma recovery from interpersonal violence. The proposed legislation would provide up to 12 weeks of complete wage replacement and job protection for all workers, including part-time, seasonal, and self-employed, and would allow employers to opt-out if they provide coverage of equal or more significant value.   

An alternative plan announced by the Governor’s Office in December would be administered by a private insurer with a cost to $2 million annually to cover state employees. This plan would allow businesses to opt-in, and would not require a statewide payroll tax. The plan would offer 60% wage replacement for up to six weeks.  

The Vermont Chamber will be advocating for legislative leaders to consider the cumulative tax impact of their proposals this session. In particular, the long-awaited childcare financing study is due to be released next week and is anticipated to include an additional payroll tax. In recent days legislative leaders have appeared hesitant at the prospect of both paid family and medical leave and childcare being passed this session. 

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Governor Proposes Greater Infrastructure Investments

Governor Proposes Greater Infrastructure Investments

One of the first orders of business every session is to adjust the budget based on additional available funding, changes in program costs, and needs. This year’s Budget Adjustment Act (BAA) recommendations from Governor Scott have emphasized a focus on advancing economic growth statewide, a theme championed by the Vermont Chamber. 

In his proposal, the Governor prioritized the needs of rural Vermont, and further communicated his economic development and workforce initiative priorities for this session. These proposals will now be negotiated in committees. 

$3M in one-time investments would establish a Rural Infrastructure Assistance Program to provide resources to towns that struggle with the staff capacity to apply for or administer time-sensitive American Rescue Plan Act (ARPA) grant funding. The program would allow small, rural, communities to take advantage of ARPA funding and make essential investments in housing, water, sewer, and broadband. These projects are foundational to the economic vitality of Vermont. New programs are not typically supported in the BAA, but the House Commerce committee will be asked to review this proposal and make a recommendation to House Appropriations.  

Other notable items included in the budget adjustment proposal: 

  • $30M of upfront investments required to secure a $114M federal broadband grant to install 1,663 miles of fiber-optic cable 
  • $11.2M to the Department of Mental Health to bolster the traveling nurse workforce 
  • $5M to the Agency of Commerce and Community Development (ACCD) for additional Vermont Housing Improvement Program 
  • $3M to the Department of Children and Families to continue the transitional housing program, previously funded by the federal CARES Act  
  • $542,640 of increased funding to ACCD for the Municipal and Regional Planning Fund 
  • $350,000 to the Agency of Human Services for grantmaking for refugee resettlement organizations  

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