Sunday, March 2, 2025

March 2, 2025 Legislative Update

This communication is about my work in and perspectives on the Vermont legislature, not the national or world scene, but this session, they could overlap in unprecedented ways. Because of the “small state minimum” in federal grants, fully one-third of Vermont’s budget revenues come from the federal budget, including more than half of our direct health care spending. If there are significant cuts in the pending federal budget, we will have holes far vaster than anything we could backfill.

For now, we carry on in developing the state budget based on the current status quo. The House is in the final weeks of work on its budget for the year ahead and at the end of last week, committees provided their perspectives on the governor’s proposed budget. In my Human Services Committee, we look at what the ideal would be to fully support our network of social supports, and then list the priority areas that, “to the extent funds allow,” we recommend that the Appropriations committee add.

Our biggest concern this year was that while the governor’s budget included basic inflation increases for government-run services so that they can maintain current functions, the government services that are contracted to be provided by community agencies were level-funded. If income stays level in the face of inflation, balancing the budget means cutting back, not maintaining the same services. So, a major disparity is created among different services.

One of the largest gaps – which I discussed in my previous update about the budget adjustment bill – is in addressing our crisis in providing temporary shelter to those who homeless in light of a crisis in available housing. People cannot move out of homelessness if there are no places to move to.

The week after town meeting, as we reach the half-way point of the session, is the deadline for bills to be voted out of committees in order to cross from House to Senate or vice-versa if they are to be passed this year. The major bill from my committee will be a proposal for restructuring the emergency housing program.

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The Big Five

The crossover deadline means that we will be getting the first look at concrete proposals to address our major pressures. Often, we start a session with a “headliner” top issue. This year, there are five that are competing in urgency: Education, Housing, Climate; Public Safety; Health Care. The Governor has presented proposals for the first four of those issues. They are getting a mixed reception. The proposals are summarized below.  

Education

The most attention thus far has been on the major restructuring proposal for K-12 education. The legislature is charting its course to revise some pieces and reject others, but the majority appears inclined to move more slowly than the governor’s two-year phase-in.

The Speaker’s Office has issued a public input site, which can be accessed at: https://bit.ly/VoiceVermontEducation. Much of it is free-form response to very open-ended questions, not check boxes. This avoids the inevitable bias of the wording of questions but will present a real challenge in compiling responses into an intelligible and accurate document of the opinion of Vermonters. Results will be shared with districts, so I will report on Northfield and Berlin responses.

The governor’s plan includes a base grant per child to each district, adjusted for particular types of student need, in order to ensure equal resources for all students regardless of town. The statewide tax rate will be uniform, but with income-based deductions for homesteads. Much larger districts (maybe as few as five) are proposed to achieve common standards, including state oversight of maximum class sizes and graduation standards. Vermont has the smallest classes sizes in the country while not performing as well, so significant costs might be saved there. Reinvestment would go into teacher salaries. There is also a school choice component that has produced some strong objections and is not likely to survive the legislative process.

The initial proposal sets the base grant at about the current average per-child spending in the state. For context, Northfield’s current district is below that spending level, though if this year’s budget passes, it will come closer to the average. Berlin’s current district is a bit higher than the average.

Housing

There is consensus about continuing to invest heavily in housing, though the amounts available to spend will be debated. There is no question that, despite major funding over the past several years, we are not on track to meet needs. The Governor’s proposal include targeted funds for local infrastructure to support housing growth. The governor wants to see more progress on easing red tape that increases construction costs, such as standards for local appeals, as well as adjustments to last year’s three “tiers” that revised Act 250 review.

Climate

The “Clean Heat Standard” from last year appears to have died an untimely death. Once firmer numbers were assessed, it turned out that the naysayers were right: the potential benefits were far outweighed by the clear drawbacks and high costs. But the Global Warming Solutions Act (passed in 2020) remains law, so achieving its targets in other ways remains ahead of us. The law was passed in 2020 and it includes binding greenhouse gas emission reduction targets.

Looking back a few years, the transportation sector goals of the Act rested heavily on our collaboration in the Northeast Regional Transportation Initiative, in which 12 states looked at reducing carbon emissions by addressing the fossil fuel market collaboratively. That failed because other states backed out, not Vermont. I don’t believe these types of initiatives are ever feasible by a single small state – it’s why the Clean Heat Standard never had a chance. As the Senate Pro-Tem Tim Ashe said about the transportation initiative in 2019, “banding together with the entire Northeast region all the way down to the mid-Atlantic protects us from a go-it-alone strategy."

So, we’ve had two well-intended, major efforts that have not met hopes or expectations. Meanwhile, the clock has kept ticking. Staying locked into targets on an unchanged timeline that is no longer achievable seems like making false assurances, particularly since we granted the right for anyone to sue the state for failure. I think we need to maintain the goals of the Act, but not at levels that we cannot now achieve. We need to also consider some of the governor’s proposals for better management of the process.

Public Safety

Public safety debates have focused on bail reform for repeat offenders and repealing the “Raise-the-Age” law that would add 19-year-olds to the definition of a child for juvenile court purposes. The House Judiciary Committee did vote Friday to defer that step for another two years. We have also passed a number of laws that fully erase criminal records after set periods of time. The governor is pushing back to have them in a “sealed” status instead, which would make them confidential but still allow access for law enforcement purposes.

In the category of, “NewSpeak,” a bill was introduced last week that sets out when a person who was convicted of a crime is “eligible to recidivate.” This is on top of inmates no longer being released from prison; an inmate “releases” from prison. It’s in line with another change that annoys me, in health care. You are no longer discharged from a hospital; you “discharge.” Maybe I’m getting too set in my ways.

Health Care

Speaking of health care, it seems to be the fifth wheel despite how it cuts across all sectors. Vermont has risen to having some of the highest costs in the nation. It isn’t just about an aging population, because an increasing need for care does not mean that each episode of care needs to cost more. The University of Vermont Health Network says they are being forced to cut services because the Green Mountain Care Board has required them to stay within their revenue cap. They assert that volume (the people needing care) is what is driving the increase in revenue, so to cut revenue they must cut volume by cutting services. But revenue is the combination of volume plus price. The Green Mountain Care Board is telling the Network that it must reign in prices, not cut services. There are no clear proposals emerging yet for alternatives on how to stem the trajectory of cost increases.

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A Note on Advocacy

Persistence pays. Northfield’s Mary Nadon Scott was back in the Human Services Committee lobbying for a Vermont Rare Disease Advisory Council last week, and was there to hear the committee chair say that we will be taking up the bill later this year.

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Words from the Governor

If you didn’t see it elsewhere, I’m pleased to share the comment that Governor Scott made on the third anniversary of the invasion of Ukraine:

“On February 24, 2022, Russian military forces crossed the eastern border of Ukraine. Russia’s unprovoked aggression escalated a years-long conflict into outright war, threatening the sovereignty of a free nation, and the hard-won peace of the European continent.

“These are facts, and it’s important to repeat them when the truth is threatened. Three years later Vermonters still stand with Ukraine. We still hope for peace and a just end to this senseless war. We still hold fast to the most American of ideals: liberty, self-determination and the restoration, preservation, and expansion of freedom around the world.”

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Thank you for the honor of representing you. Please stay in touch with me (adonahue@leg.state.vt.us) and with Rep. Ken Goslant (kgoslant@leg.state.vt.us). We welcome your input.