Saturday, May 23, 2020

May 23, 2020 Legislative Update

I stood on the House floor last week – correct that – I sat in front of my laptop on Zoom last week, and addressed my colleagues about the capital construction bill we were about to vote on.
“Last week, hundreds of my constituents from Berlin and Northfield waited in their cars in line for hours – not a couple of hours, but some for five, six hours – to get a box of food,” I told them. “How could I ever look them in the eye and say I voted for a bill today to spent $75,000 for new drapes and carpets in the statehouse?”
It was not a rhetorical question.
Every year we pass a capital bill, which authorizes bonding for major investments that are needed to keep our buildings safe and sound, and sometimes to replace them. This year’s bill was solid. It was well thought through and responsible. But all the work on the bill was completed before we left the House floor on March 13 as COVID-19 reached Vermont: before “stay at home”; before our businesses closed down and almost a quarter of Vermonters were left without jobs; before tax revenues plunged; before, in short, life as we knew it had completely changed.
The House Corrections and Institutions Committee had added an important clause to the bill. It noted the intent, and the importance of, investing these dollars as a part of rebuilding Vermont as we re-open. It went on to give authority to the Emergency Board, a group of Representatives and Senators who are chairs of the financial committees, to re-allocate any of the money from an approved project to a different capital project if a new COVID need emerges after the session adjourns next month.
I believed we needed to be more proactive as a legislative body. We are still very much in the dark about what the picture will look like in just a few months, enough so that for our operating budget, we are only planning to complete a first quarter bill in time for the new fiscal year that begins July 1. We will come back in late August to reassess and built the budget for the remaining three quarters.
I believed we needed that same process to occur for our capital budget – not to hold off on starting what is outlined in the bill, but to take stock of where we are and fully evaluate whether some priorities need to change, in August.
There is a difference between the bonding authorized in the capital bill for major expenditures, and the raising of taxes for the general fund. We can’t take some of that bonded money and shift it, for example, into buying food. But sometimes there is some wriggling that can be done to move some types of general fund expenses into the capital bill as longer-term investments, thereby giving some relief to the general fund.
As of right now, we are facing the need to cut every state program by eight percent or more. When you consider fixed costs and employee contracts, the impact could be massive, and could include major layoffs. There is also always the possibility that a necessary expense that we don’t even recognize right now will arise. If so, there could be a possibility of fitting it into a capital budget category.
We must take that deep look, in August, when we are building the rest of the budget and we know whether there are more federal support options and we know more about whether our re-opening of the economy is taking hold.
So, I introduced an amendment to require a report back from the administration in August that would identify all the impacts regarding the capital bill during these interim months, along with identifying any potential new needs that might be able to be shifted between budgets. In that way, we will have the opportunity, at the same time that we are building the general fund budget for the remaining three quarters of the year, to make changes that might help us get through this very difficult year ahead.
This, I told my colleagues, would enable me to stand behind the work done in the capital bill, and be able to assure my constituents that we are being appropriately cautious and responsible with the state’s resources in this crisis. I’m glad to say that when I presented the amendment to the Institutions Committee itself, the members worked with me to get the wording right, and then endorsed it. It was then accepted on the House floor.
It is a good capital bill. Even things like drapes in our historic statehouse do need to be maintained, and not left to crumble after years of damage by the sun. But we need to ensure that our capital investments do not in any way detract from our ability to respond to our more immediate crisis-level needs, and with my amendment, I believe we’ve done that. (And I received email notes of gratitude for the amendment from others on the House floor – the virtual floor – including Progressives, Democrats and Republicans alike. I think a lot of people were struggling with the idea of supporting a “business as usual” bill.)
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Last week we worked our way through several additional bills that waived ordinary requirements in the law to ensure folks are protected from the coronavirus. One of them waived the requirement for a physical visit to a property by members of a Board of Civil authority when they are hearing an appeal of a property appraisal.
That one worried me. We need to be cautious that in our efforts at protection, that we don’t harm people’s rights. I proposed an amendment, and once again it was members of the committee themselves who recognized that the change was needed, and helped with framing it. It now allows a property owner to request that there be a “virtual inspection” by video or still photo which is initiated by the board and physically created by the owner. It’s not perfect, but it helps.
We have also begun to take up our first non-COVID response bills, to the extent time permits between essential bills. A bill to clarify tree warden responsibilities, one of those that had been sitting on the House calendar since March 13, passed after a fair amount of debate over whether it encroached too much on the local municipal process. It eventually did pass, and I voted no, but not because I thought it was bad to protect our town shade trees. It was simply because the member presenting the bill couldn’t answer my questions about the current statute, and how it works.
Chalk it up to the challenges of legislating by Zoom; I couldn’t feel comfortable voting for a change I couldn’t quite follow.
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In my Health Care Committee, too, we have begun to take a small amount of time to try to finish a bill that was underway just before March 13. I’m particularly hoping that we can get a few key pieces through.
One is an effort to get insurers all on the same page to waive pre-authorization requirements in situations where they virtually always are approved, regardless. It’s a headache, and a big paperwork cost, for doctors to have to go through an approval process when approval will always be granted, and when among five different insurers there are five different sets of rules about when approval is required. We worked hard to get all the players on board with a process to jointly develop more streamlined approaches, so it would be a pity if we could not get this bill across the finish line.
Likewise with a part of the bill that requires some quality oversight components attached to the additional funding the state is giving to the Brattleboro Retreat to keep it afloat. We backed ourselves into a corner with the Retreat by creating greater and greater state dependence on one hospital to deliver so much of the inpatient psychiatric care in the state. Now they are too big to fail.
But the problems there are not just financial. In my regular job as the editor of Counterpoint, the state’s mental health newspaper, I see the firsthand accounts of patients who have suffered from poor quality of care there. The staff of my agency spend time there, and report about changes in policies that are demeaning and inappropriate, such as keeping bathrooms locked so that a patient must find a staff person to let them in.
So, one of the sections in our bill will require the Retreat to collaborate in clinical team meetings with the Department of Mental Health to foster quality improvements and improve patient experience of care.
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The first proposal for what to do with a really significant portion of the state’s $1.25 billion federal CARES Act coronavirus funds came from the governor last week. It suggests using about a third of it immediately to help bail out some of our businesses. If they fail, we all fail, since the jobs, taxes and economic base go with them. The legislature will need to dive in rapidly to assess the plan and make decisions, because it won’t do any good to help a business if it has already gone under.
It hasn’t been defined yet, but we know another major portion of money will be needed to shore up our health care system. This crisis has really underscored one of the things wrong with our current financing for health care. It is paid for as though it was any other sort of business, by the sale of goods: you get your cut stitched up and the doctor gets paid. But health care isn’t a commodity like shoes where the merchant is trying to entice you with the latest style. You’re never going to buy stitches unless you need them, but when you need them, you want the best ones, available right away.
We didn’t use care in March, April and May because we were preparing for a major health catastrophe. That was the public health priority. The result was that no one was paying for the system continuing to be there for us. We are going to need to pay that bill now. But if we believe that the system needs to exist for when we need it, then it needs a more reliable mechanism for maintaining its infrastructure. That’s one of the components of health care reform that we need to keep chipping away at.
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Please continue to stay in touch with me and with Rep. Ken Goslant. We’re both here to serve you, so contact us with questions or issues of concern. We were so glad to be able to intervene and help more than two dozen constituents from Berlin and Northfield who were jammed up in the unemployment system backlog. All but a few have finally been resolved. You can reach us anytime at adonahue@leg.state.vt.us or kgoslant@leg.state.vt.us 

Saturday, May 9, 2020

May 9, 2020 Legislative Update


We should have been in our final week, this current week – the final days of legislators rushing around to get agreement on bills so that they make the final deadline, which is marked by the completion of the state budget. It isn’t going to happen that way this year.
In the next week or two we will wrap up a new bill making adjustments to the current fiscal year’s budget. The administration can only move small amounts of budgeted resources around without legislative approval, and there has been a need to move big amounts around. There is also a huge shortfall in the revenues to balance the current year’s existing budget. Because we have contingency reserves, we are going to be able to move money to offset those losses. A big chunk is due to the delay in the tax return deadline to after July 1. We will move those into the current fiscal year balance after they come in, and thus end the year in balance.
But the new budget year begins on July 1. A new budget must be passed by then, and the administration is scrambling to come up with a proposal for a three-month budget to carry us from July to September. Once the legislature gets that, it will be on a tight timeline to vet it and get it passed.
When we have a better financial picture of the real impact of the economic shutdown in late summer, we will need to be back at the statehouse to pass a budget for the remaining nine months. “Back at the statehouse” in corona-newspeak will likely still mean remotely, not physically. We’ve all converted to new meanings of language these days. In statehouse jargon, the budget has always been referred to as “the big bill,” presumably due to its length. The new jargon now references the contrasting “skinny bill” that will takes us through the first three months of the fiscal year.
For accounting reasons, the money that has been poured into COVID-19 emergency responses is not being included in the current budget adjustment. Those costs will show up in the skinny bill. At that point we should know which pot of federal money will cover them. This week, however, we received the first summary from the governor’s office on what those numbers look like.
Money already spent as of May 6: $48,702,376. Money not actually spent yet, but already committed and in the process of being spent through the end of the current fiscal year: $117,571,881, for a grand total of $166,274,257. Just as a reference point – since this would be small potatoes in some state’s budgets -- $48 million is roughly the amount in new budgets that is frequently fought over in a typical year when standard inflationary costs rise by that much above expected revenues. Even assuming we didn’t have major lost revenues, it would have been nearly inconceivable to pay this tab without federal relief. This does not include potential new uses for the federal CARES Act relief funds, such as the $60 million “hazard pay” bill passed by the Senate and under review in the House.
The chart released this past Friday divides the numbers up both between “already spent” and “already committed,” but also between those costs that the governor had the authority to spend and those that the legislature’s Joint Fiscal Committee will need to approve; I’m not going to do that breakout, but just where the totals end up. This is a long list of numbers, but I’m trying to present public accountability rather than just what gets caught by the news headlines.
The Department of Vermont Health Access (no surprise, the biggest piece of all): $33,022,266. Most of this is for health care provider relief to prevent medical practices and hospitals from collapse. It is only a small portion of their losses and what they will need for recovery; this is separate from the help they did receive directly from the federal relief bills.
The next mega-category, running a very close second, is the Department for Children and Families: a total of $31,911,329, but this is broken out among its many different departments. It includes $13,565,821 in the child development division, mostly in the “extraordinary relief” category for child care stabilization and essential persons payments and $13,503,862 in rental of motel rooms to help assure physical distancing for homeless folks who might have otherwise been in shelters. There is also $1,528,000 in the Office of Economic Opportunity for emergency shelter and response; $1,413,008 for increases in the Reach Up (aid to families) caseload; $1,256,000 for extraordinary relief for DCF residential provider agencies; plus overtime and remote workforce costs spread across those and other DCF administrative functions.
The Department of Health’s public health division is listed for $17,000,000; that’s primarily for the costs of COVID-19 testing and tracing. VDH also runs the state’s drug and alcohol division, and the costs there are $4,010,681, mostly in provider relief payments.
Other Agency of Human Services costs include $8,177,347 within the Department of Mental Health, listed as covering Vermont Psychiatric Care Hospital additional COVID-19 Costs, the fit up and operating costs for a special inpatient psychiatric unit for COVID-19 positive patients (beginning developed at Springfield Hospital) and financial relief for community mental health agencies, including enhanced pay for staff doing face to face contact work. I’m assuming the $7 million added support for the Brattleboro Retreat is listed under the statewide health provider ($33 million) figure.
Also under AHS is the Department of Aging and Independent Living, with $6,260,281 in the community mental health center relief category for their work with developmental disability clients and for flexible family crisis payments, and $5,573,500 in relief payments to nursing homes and adult day programs. The Department of Corrections has $2,970,714 in costs for remote workforce; enhanced hazard pay levels for facility and nursing staff; and room and board for staff. The AHS Secretary’s Office has an additional $6,177,458 in food assistance, isolation housing and recovery, and expanded 2-1-1 coverage. I have not broken out various AHS departments that have lesser costs attributed to remote workforce or overtime needs.
The Public Safety Division, including state police, is at $15,344,874. The bulk of it is for establishment and the running of the state emergency operations center. The Department of Buildings and General Services has $5,888,974 in added costs for COVID-19 related pay and operating costs and COVID-19 related lease agreements.
There are two other large categories on the list that are more indirect.
One is a contingency fund to account for the possibility that the federal government will not reimburse the state for the advance payments it sent when unemployment applicants were not getting any payments due to the massive backlog. That’s $10,661,205.
Finally, there are supplemental operating costs that are specifically listed as probably not eligible for federal relief funding, the largest of them in transportation at $6,112,016, but other miscellaneous departments, including the Agency of Natural Resources and the Agency of Commerce and Economic Development, at a total of $4,078,359.
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Elections
COVID-19 will have all sorts of impacts on this year’s election cycle. State candidates don’t need signatures on petitions to run for office (too much face-to-face contact required). Incumbents will be filing petitions before the end of the current session, and since they can’t accept money from lobbyists while still in session, that will impact fundraising for those who receive such contributions. Door-to-door campaigning will be off the table. The impact of that is speculative right now. More money raised and spent on advertising in lieu of direct voter contact? Will it increase the imbalance in the advantage incumbents have?
Primary elections will not be changed, because there isn’t the time to set up an all-mail system, but voters will be encouraged to vote by absentee ballot. Unless there is a random hot local primary for a state office, there aren’t likely to be problems with big crowds at ballot boxes.
November is a different question. Vermont already has one of the most open absentee voting processes in the country, and in the last presidential cycle, 2016, almost 30% of votes came through early absentee ballot. No change would be needed to simply increase encouragement for more people to vote by mail-in ballot, and there doesn’t appear to be much concern over aspects of the bill we passed in March that permits safety measures such as drive-by ballot collection.
What is under debate is implementing the provision that would require town clerks to send ballots by mail to all registered voters, in other words, not based on a request. I think it that’s a tougher issue, philosophically, but I’m not very clear on why it is being perceived as partisan. I think the question is whether or not that encourages voting by people who are not invested enough to show up at a poll or ask for an advance ballot – and if not invested enough to do that, have not educated themselves at all regarding who they believe represents them best. If those folks do vote, I don’t know that it favors one party over another.
Yet I do have a gut feeling that although we want people to be involved and vote – I’ve supported our initiatives for expansive automatic voter registration – they ought to want to be involved enough to take some initiative on their own to exercise this fundamental civil right and duty. The legislature played its role in authorizing the Secretary of State and Governor to make what changes might be needed for safety, so I’ll be watching from the sidelines to see how it plays out.
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Unemployment
The nightmare continues, but the system is inching forward in the catch-up on the onslaught of applicants – including for the new program for self-employed folks and others not eligible for regular UI because of issues such as an insufficient work history. With some of the new business re-openings, weekly claim numbers have also begun to drop.
As of the weekend, there were 7,576 unemployment claims still being processed out of the 61,835 eligible claims; 54,277 are receiving benefits. For PUA (Pandemic Unemployment Assistance), there are 3,334 who are eligible but still being processed; 8,623 are receiving benefits. An additional 8,808 applicants are still awaiting determination, and some of these will end up being determined ineligible.
If you are someone who has still not heard anything from DOL, let Rep. Goslant or me know, and we can put you on the legislative volunteer assistance team list for individual follow up.
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Feel free to get in touch any time during the session with Rep. Goslant and me. It is an honor to serve you. (kgoslant@leg.state.vt.us; adonahue@leg.state.vt.us)