March 17th was the crossover deadline, when policy bills needed to be voted out of their committee of jurisdiction to be considered this session (though, of course, there are exceptions). This week, lawmakers have been working overtime to make the Friday deadline for economic bills. At this critical mid-point, where do things stand? Read on for status updates on bills impacting (or of interest to) the nonprofit sector:
- H. 55 – Unemployment Insurance
- Basic Needs, Paid Leave, Childcare & Housing Bills
- Labor, Employment & Business Bills
- Budget
- What Didn’t Make the Cut
But first…
Vermonters, and the nonprofits who serve them, are getting shortchanged!
Join the Vermont Nonprofit Government Grants & Contracting Working Group in calling on the State of Vermont to Fund the Full Cost of Nonprofit Services.
Read the letter and sign on.
H. 55 – Unemployment Insurance
CGVT has been highly engaged with this bill, and after testifying on multiple drafts, we are pleased to report that language we can support has passed out of the House.
As passed by the House, the bill would eliminate the small nonprofit unemployment insurance exemption, extending coverage to all nonprofit employees. To ensure organizations have time to understand and comply with this change, we have successfully advocated (so far) to extend the effective date to July 1, 2024. If passed, ALL Vermont nonprofits will need to provide unemployment insurance, including those with <4 employees.
To support nonprofits through this transition, and to ensure all nonprofit employers understand their options and associated liabilities for unemployment insurance, Common Good VT advocated to include language requiring outreach to and education for nonprofits around unemployment insurance. This replaced a section that would have created a bonding requirement for reimbursable employers, as the Committee agreed that helping employers understand liabilities associated with self-insuring was a less onerous means to similar ends. The Department of Labor is instructed to work with Common Good VT and others to create informational materials, host live trainings, and reach out to organizations.
Read more about H. 55 in our previous blog post and stay tuned as it moves through the Senate.
Basic Needs, Paid Leave, Childcare & Housing
While not issues specific to the nonprofit sector, workers and employers alike could be impacted by a couple key pieces of legislation around Paid Leave and Childcare that are still on the table.
- H.66 – An act relating to paid family and medical leave insurance
H. 66 has undergone some changes since our last update. The House Ways and Means Committee dropped the wage replacement rate from 100% to 90%, but a new Fiscal Note puts a much higher price tag on the bill, estimating almost $112M in start up costs and an annual operating cost of $117M. How will this be funded? Revenue will come from a .55% income tax (on wages up to 200% of the Social Security maximum), split between the employee and employer. For context, for an employee making $50K, the employee and the employer would be on the hook for $137.50 per year each. Most recently, the House Appropriations Committee amended the bill, striking all appropriations except $37M to establish the fund and establishing a new Division of Family and Medical Leave with nine new positions. - S.56 – An act relating to child care and early childhood education
Given the high price tag of H. 66, the Senate is considering a more moderate proposal (rough cost estimate of $15M per year) that would add a parental leave benefit to S. 56. As voted out of Senate Health & Welfare, this leave program would provide families at or below 600% of the federal poverty level with 12 weeks of paid leave for one parent with a maximum weekly benefit of $600. The universal pre-k provision of the bill has been downgraded to a study. - S.100 – An act relating to housing opportunities made for everyone
This bill seeks to address Vermont’s housing crisis by easing regulatory barriers to development. A summary of a bill as introduced by the Senate Economic Development Committee, which was widely supported, can be found here. Changes made by the Senate Natural Resources Committee pared back Act 250 reforms, prompting Governor Scott to come just short of threatening a veto at his Tuesday press conference. - H.157 – An act relating to the Vermont basic needs budget
This bill creates a technical advisory committee to update the methodology used in calculating the basic needs budget.
Labor, Employment & Business
- H.484 – An act relating to enhancing workforce and economic development opportunities
This House Commerce committee bill includes a range of workforce supports including scholarships, training programs, and loan forgiveness programs, with a focus on health, education and business. While nonprofits in some mission areas will benefit, there is a disappointing lack of sector-specific supports. Read the fiscal note and summary for details. - S.102 – An act relating to expanding employment protections and collective bargaining rights
After being introduced late in the game, the Senate Economic Development Committee voted out a version of the bill that expands protections for labor organizing and employees. It also prohibits employers from requiring employees to engage in meetings/communications with religious or political messages (such as union-busting activities). - S.103 – An act relating to amending the prohibitions against discrimination
The Senate Economic Development Committee also voted out this bill which seeks to expand the definition of workplace discrimination, including changing the currently burdensome requirement for discrimination lawsuits that harassment must be proved “severe or pervasive.” - S.36 – An act relating to permitting an arrest without a warrant for assaults and threats against health care workers and disorderly conduct at health care facilities
Additional protections for health care workers are included in this bill that was voted out of Senate Health & Welfare. - S.135 – An act relating to the establishment of VT Saves
This last minute committee bill seeks to create a retirement savings program for Vermonters who don’t have a savings plan. - S.9 – An act relating to the authority of the State Auditor to examine the books and records of State contractors
Despite concerns from many witnesses, S. 9 was voted out of the Senate and is now in House Government Operations.
Budget
- H.145 – An act relating to fiscal year 2023 budget adjustments
Written by CGVT Intern, John Harrington
On Monday March 20, 2023, H.145 Fiscal Year 2023 Budget Adjustment Bill (BAA) was allowed to become law without the signature of Governor Phil Scott. This act outlines mid-year adjustments in spending for the current fiscal year, and allocates a net General Fund (GF) increase of $68 million. Prominent issues addressed in the bill include healthcare stabilization, home heating, housing security, and broadband internet expansion. View a summary of the bill here.
Among the most pressing issues facing the Legislature in the development of this bill was the issue of funding emergency housing for unhoused individuals. Pandemic-era federal funding for a program that provided motel stays for people experiencing homelessness is set to expire on March 31, leaving lawmakers scrambling to address an emergency housing shortage. $13.8 million of the General Fund was allocated to continue this emergency shelter program for prioritized populations – including those experiencing domestic violence or those living with children under 20, for instance – until June 30 of this year.
The bill also designates a significant portion of the GF’s net increase to ameliorate the wider issue of homelessness and emergency shelter throughout the state. For example, $27.5 million was allocated to the nonprofit Vermont Housing and Conservation Board (VHCB) to create more affordable housing and develop emergency shelter alternatives.
The passage of this bill was far from certain. Governor Scott repeatedly expressed concern with the high expenditure of the bill, which exceeded his proposed amount by $50 million. In a March 20 letter to the General Assembly, he expresses satisfaction with the initiatives addressed in the budget adjustment, while also criticizing its potential to detract from spending in FY24. Despite his calls for more responsible spending in the future, Governor Scott allowed it to take effect without his signature. - FY24 Budget
House Appropriations is finishing up their work on the budget this week. See this draft summary the “Big Bill” as of 3/21 and a list of proposed provider rate increases.
What Didn’t Make the Cut
- H.140 – An act relating to requirements for State-funded grants
H. 140 was briefly recognized during walk-through in House Government Operations (followed up with a letter of support from CGVT to the Committee Chair), but didn’t make it any further this session. We hope this bill that seeks to simplify the state-funded grant process and increase indirect rates will have better luck next year. - S. 96 – An act relating to privatization contracts
We had flagged this as a potentially problematic bill so we are not disappointed that it didn’t get picked up.