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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.  

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 

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. 

With substantial turnover in both the House and the Senate, many legislators find themselves on new committees, and some committees find themselves largely made up of new legislators. Some committee purview was also restructured, with the Committee on Natural Resources, Fish and Wildlife, being dissolved, and the Committee on Energy and Technology Committee expanding to undertake those policy areas. Additionally, military affairs have moved from the Committee on General and Housing to the Committee on Government Operations. In a biennium that also welcomes a new President Pro Tempore of the Senate and three new statewide elected officials, the shuffle seems to be the theme of the session so far. 

Key Senate Committee Assignments  

Appropriations 
Sen. Jane Kitchel, Chair, D-Caledonia 
Sen. Andrew Perchlik, Vice Chair, D/P-Washington* 
Sen. Richard Westman, R-Lamoille 
Sen. Robert Starr, D-Orleans 
Sen. Dick Sears Jr., D-Bennington 
Sen. Philip Baruth, D/P-Chittenden-Central 
Sen. Virginia “Ginny” Lyons, D-Chittenden-Southeast* 

Economic Development, Housing, and General Affairs 
Sen. Kesha Ram Hinsdale, Chair, D-Chittenden-Southeast 
Sen. Alison Clarkson, Vice Chair, D-Windsor 
Sen. Randy Brock, R-Franklin 
Sen. Ann Cummings, D-Washington* 
Sen. Wendy Harrison, D-Windham** 

Finance 
Sen. Ann Cummings, Chair, D-Washington 
Sen. Mark A. MacDonald, Vice Chair, D-Orange 
Sen. Christopher Bray, D-Addison 
Sen. Dick McCormack, D-Windsor 
Sen. Randy Brock, R-Franklin 
Sen. Kesha Ram Hinsdale, D-Chittenden-Southeast 
Sen. Thomas Chittenden, D-Chittenden-Southeast*  

Natural Resources and Energy 
Sen. Christopher Bray, Chair, D-Addison 
Sen. Anne Watson, Vice Chair, D/P-Washington** 
Sen. Dick McCormack, D-Windsor 
Sen. Mark A. MacDonald, D-Orange 
Sen. Rebecca White, D-Windsor  

Key House Committee Assignments

Appropriations 
Rep. Diane Lanpher, Chair, D-Vergennes* 
Rep. Robin Scheu, Vice Chair, D-Middlebury 
Rep. Patrick Brennan, Ranking Member, R-Colchester* 
Rep. Tiffany Bluemle, D-Burlington* 
Rep. Eileen Dickinson, R-St. Albans Town* 
Rep. Katherine “Kari” Dolan, D-Waitsfield* 
Rep. James Harrison, R-Chittenden 
Rep. Rebecca Holcombe, D-Norwich** 
Rep. Marc Mihaly, D-East Calais** 
Rep. Woodman Page, R-Newport* 
Rep. Trevor Squirrell, D-Underhill 
Rep. Tristan Toleno, D-Brattleboro 

Commerce & Economic Development 
Rep. Michael Marcotte, Chair, R-Newport 
Rep. Stephanie Jerome, Vice Chair, D-Brandon 
Rep. Logan Nicoll, Ranking Member, D-Ludlow 
Rep. Kirk White, D/P-Bethel 
Rep. Jim Carroll, D-Bennington 
Rep. Heather Chase, D-Chester** 
Rep. Edye Graning, D-Jericho** 
Rep. Emma Mulvaney-Stanak, P/D-Burlington 
Rep. Monique Priestley, D-Bradford** 
Rep. Jarrod Sammis, R-Castleton** 
Rep. Jonathan Williams, D-Barre City** 

Environment and Energy  
Rep. Amy Sheldon, Chair, D-East Middlebury 
Rep. Laura Sibilia, Vice Chair, I-West Dover* 
Rep. Seth Bongartz, Ranking Member, D-Manchester 
Rep. Paul Clifford, R-Rutland**  
Rep. Kate Logan, P/D-Burlington** 
Rep. Kristi Morris, D-Springfield 
Rep. Avram Patt, D-Worcester 
Rep. Larry Satcowitz, D-Randolph 
Rep. Gabrielle Stebbins, D-Burlington** 
Rep. Brian Smith, R-Derby* 
Rep. Dara Torre, D-Moretown** 

House General & Housing 
Rep. Thomas Stevens, Chair, D-Waterbury 
Rep. Robin Chesnut-Tangerman, Vice Chair, D-Middletown Springs* 
Rep. Kathleen James, Ranking Member, D-Manchester Center* 
Rep. Ashley Bartley, R-Fairfax**
Rep. Elizabeth Burrows, D/P-West Windsor* 
Rep. Caleb Elder, D-Starksboro* 
Rep. Mary E. Howard, D-Rutland 
Rep. Emilie Krasnow, D-South Burlington** 
Rep. Dennis LaBounty, D-Lyndon 
Rep. Larry Labor, R-Morgan 
Rep. Saudia LaMont, D-Morrisville** 
Rep. Joseph Parsons, R-Newbury 

Ways and Means 
Rep. Emilie Kornheiser, Chair, D-Brattleboro 
Rep. William Canfield, Vice Chair, R-Fair Haven 
Rep. Carl Demrow, Ranking Member, D-Corinth* 
Rep. Julia Andrews, D-Westford** 
Rep. Peter Anthony, D-Barre City 
Rep. Scott Beck, R-St. Johnsbury 
Rep. Carolyn Branagan, R-Georgia 
Rep. James Masland, D-Thetford 
Rep. Christopher Mattos, R-Milton 
Rep. Carol Ode, D-Burlington 
Rep. Katherine Sims, D-Craftsbury* 
Rep. Curt Taylor, D-Colchester*  

* New to the committee 
** New to the legislature

With 12 newly appointed committee chairs, some of whom will oversee policy that impacts the business community, there’s been a notable shift in the House and Senate leadership this session. In the Senate, Sen. Kesha Ram Hinsdale will be the new chair of the Senate Committee on Economic Development, Housing, & General Affairs. Sen. Ram Hinsdale recently joined a roundtable discussion with business leaders convened by the Vermont Chamber and has expressed her support for housing reform and a commitment to prioritizing policy action that addresses workforce shortages. The Senate Committee on Finance will once again be chaired by Sen. Ann Cummings, whom we recognized as an “All-Star Legislator” last year for her work to pass the manufacturing tax exemption as well as securing $17 million in savings for health insurance costs for small businesses and employees. 

The House Committee on Ways and Means, the committee with jurisdiction over tax policy, will be newly chaired by Rep. Emilie Kornheiser, who we also recognized for her work on the Manufacturing Tax Exemption. In recent weeks, Kornheiser has discussed increasing government spending, stating, “I think that the scale of budgets that we were able to see during the pandemic, and the impact of huge federal spending on our communities, I think and I hope shifted the scale of our thinking somewhat so that it takes a larger number for us to blink.” The House Committee on Commerce and Economic Development has a returning chair, Rep. Michael Marcotte. Marcotte also received “All-Star Legislator” recognition last session for his work to secure the VEDA forgivable loan program. 

Senate Committee Chairs 
Agriculture: Sen. Bobby Starr, D-Orleans 
Appropriations: Sen. Jane Kitchel, D-Caledonia 
Economic Development, Housing & General Affairs: Sen. Kesha Ram Hinsdale, D-Chittenden Southeast 
Education: Sen. Brian Campion, D-Bennington 
Finance: Sen. Ann Cummings, D-Washington 
Government Operations: Sen. Ruth Hardy, D-Addison 
Health and Welfare: Sen. Ginny Lyons, D-Chittenden Southeast 
Institutions: Sen. Russ Ingalls, R-Essex 
Judiciary: Sen. Dick Sears, D-Bennington 
Natural Resources: Sen. Chris Bray, D-Addison 
Transportation: Sen. Dick Mazza, D-Grand Isle 

House Committee Chairs 
Agriculture, Food Resiliency and Forestry: Rep. David Durfee, D-Shaftsbury 
Appropriations: Rep. Diane Lanpher, D-Vergennes 
Commerce and Economic Development: Rep. Michael Marcotte, R-Coventry 
Corrections and Institutions: Rep. Alice Emmons, D-Springfield 
Education: Rep. Peter Conlon, D-Cornwall 
Environment and Energy: Rep. Amy Sheldon, D-Middlebury 
General and Housing: Rep. Tom Stevens, D-Waterbury 
Government Operations and Military Affairs: Rep. Mike McCarthy, D-St. Albans City 
Health Care: Rep. Lori Houghton, D-Essex Junction 
Human Services: Rep. Theresa Wood, D-Waterbury 
Judiciary: Rep. Martin LaLonde, D-South Burlington 
Transportation: Rep. Sara Coffey, D-Guilford 
Ways and Means: Rep. Emilie Kornheiser, D/P-Brattleboro