The House General and Housing Committee voted 9-3-0 in support of H.66, with the three Republican legislators all voting against the paid family and medical leave (PFML) legislation. As the policy committee of jurisdiction, the committee has tackled challenging and complicated conversations in recent weeks concerning how this extensive new mandated benefits program would work. However, many questions remain unanswered and the contrast between paid leave legislation crafted in 2019 is stark. 

Multiple aspects of the current bill were reviewed and altered at the suggestion of the Vermont Chamber, including a further definition of “personal bond” regarding familial relationships that require care to qualify for benefits. The removal of refund payments to employees making under $25,000 in wages was also addressed. However, the legislation still aims to create the most expansive PFML program in the nation and relies on the State Treasurer to create a new insurance program rather than working with the already established private insurer. This is opposite to the precedent set by other states that have created PFML programs. The cost and effort that this would take are largely guesswork and likely to be staggering. The legislation will now be reviewed by the House Ways and Means Committee. 

With only 30% of jobs requiring a four-year degree, the Vermont Chamber testified on the need for a targeted program to recruit in-demand workers like nurses, line workers, CDL drivers, and other trade professionals to live and work in Vermont. By elevating Vermont’s achievements, workers who want the security and quality of life Vermont has to offer will know the opportunities available to them, and be encouraged to move here.  

The Vermont Chamber is urging legislators to leverage their success with a sustained multi-year investment to expand the Vermont image beyond a travel destination and to also promote the state as an attractive place to move full-time. A strategic plan is required to accomplish this goal and communicate the qualities that make the state an attractive place to live and work, such as Vermont’s climate commitments, career advancement opportunities, social justice and equity leadership, and childcare and housing investments. This is a workforce shortage solution that the Vermont Chamber will continue to advocate for throughout the session.  

The Vermont Chamber is continuing to urge legislators to consider the collective impact of proposals on Vermont businesses when evaluating funding sources for new revenue streams. Testimony this week encouraged the Senate Finance Committee to consider the inability of employers to fund multiple major investments in new paid family and medical leave and childcare proposals without putting the success of their business, and their communities, at risk. 

In response, committee members acknowledged the substantial number of priorities in discussion this session. Sen. Ann Cummings, chair of the committee, assured they would take a realistic approach and “tack them all on the board and look at all possible ways to fund them” once bills reach their committee. Eli Lesser-Goldsmith of Healthy Living testified in support of prioritizing issues to ensure sustainable implementation and cautioned implementing multiple major investments requiring new revenue streams this session. As bills begin to move into money committees, the Vermont Chamber will continue to advocate for pragmatic decision-making.  

The Senate Finance Committee heard testimony from the Joint Fiscal Office (JFO) on employer payroll–based taxes, such as State and Federal income tax, Social Security, Medicare, unemployment insurance, and workers‘ compensation, and received a preview of proposals for new payroll taxes. The Vermont Chamber will testify next week on the total impact of millions in proposed taxes to ensure the committee has a thorough understanding of the cumulative impact of these measures on employers when considering implementing additional taxes and understand the need to value economic stewardship during a time of great uncertainty.