Legislative Report: March 2010

March 9th, 2010

Education
During the past several years, the Education Committee has heard much testimony on what is driving the rising cost in education. Some of those drivers include declining student enrollment, duplication of services, transportation, special education services, health care, to name a few. Student enrollment will continue to decline and it will be 12-15 years before Vermont ‘s enrollment will be back to where we are even now! Consolidation of districts or supervisory unions has long been discussed, but has been a bone of contention due to many towns feeling that “local control” may be lost.

However, now is the time to re-think the issue. There are several bills that are being considered regarding consolidation– one that has started in the Senate and one in the House. The Senate bill (S.252) proposes to reduce the number of supervisory unions from the current 60 to no more than 16, similar to the current technical center districts.

The centralized authority would include one board based on at-large representation and one superintendent. All purchasing, special educa- tion, transportation, negotiations, school choice, technical center, preschool affiliation, and other transitional issues would be fully implemented by July 1, 2014. If the bill passes, the commissioner of education would have to finalize the new districts by July 1, 2012, and they would go into effect.

The House Education Committee is working on a proposal (no bill number yet) that would provide incentives for neighboring districts to voluntarily merge and form a unified supervisory district (USD). USDs must be a PreK-12 district of a minimum of 1250 students and the merging districts must be contiguous, and is a voluntary action; among other pre-requisites. Items being discussed as incentives are including multi-year budgets, a common level of appraisal, a combined property tax rate (with a 4 year transition plan). The incentives will go away after 2018. The new Unified Supervisory District would have a single governing board with representatives from each of the merging districts. Collective bargaining, transportation, delivery of business and special education services (the USD will be the LEA), curriculum, technical education, school choice within the USD, sharing of resources and teachers at schools within the USD will be decided at the USD level. What happens to those districts that do not choose to consolidate remains to be decided.

Teachers’ Retirement

Last fall, a commission that studied teachers’ retirement and health insurance benefits came up with recommendations for legislation. H. 764 –which passed the House last week – has no changes for those who are retired or have 5 years to retirement, but changes normal retirement eligibility for those with less than 25 years of service or who are less than 57 years old. The new eligibility follows the “rule of 90” suggesting a retirement age of 65 years or 30 years of service. Early retirement stays at age 55 but with a reduction. The average final compensation (AFC) maximum will be raised to 60% upon completion of 20 years of service. For those ages 57 or greater or with 25 or more years of service, the maximum benefit is increased to 53.34% of AFC for years of service after July 1, 2010. The contribution rate for all teachers increases to 5%.

Retiree health care premium subsidies for new hires and those with less than 10 years of service will be based on a tiered schedule based on years of service with spousal coverage at 80% after 25 years. Current teachers with more than 10 years of service maintain 80% single coverage and those with 25 years service will also have 80% spousal coverage. There is a schedule, based on years of service, for spousal coverage at 80% that can be found on the state treasurer’s website.

Changing the Date of the Primary Election

Vermont received notice this fall that the state is not in compliance with the Military and Overseas Voter Empowerment Act. Beginning with the November 2, 2010 general election, states must send absentee ballots to overseas voters at least 45 days before any federal election. In order to meet this obligation, the primary must move. Last week, the legislature approved moving the date for the primary election to the fourth Tuesday in August. This timing allows enough days after a primary for the primary to be certified, general election ballots printed, and then mailed.

Note: The state does not have the current technology (which would cost millions) to do electronic voting. If there were a year to change the primary election date to ensure deployed Vermonters get their ballots, this is it! We have over 1500 Vermont soldiers deployed to Afghanistan. They are fighting for democracy; let us make sure they can participate in it.

Property Tax & Income Sensitivity Proposals
The Governor’s position is that income sensitivity costs the state too much and that middle-income Vermonters should pay more. Income sensitivity allows working Vermont families to pay based on income without worrying they will be forced out of their homes by rising property values. His proposal is to reduce sensitivity by making families earning $60,000 to $75,000 pay up to 2.25% of their income. The current rate for those families is 1.8%. Also, the Governor would ask those making $75,000 to $90,000 to pay 3.5% of their income in property taxes. Finally, the Governor’s proposal would limit income sensitivity to a house value of $400,000 for Vermonters with household incomes below $90,000. Not too popular, needless to say.

The combined impact of the Governor’s plan would increase homestead education taxes on middle-income households by $24.5 million. Income sensitivity would be eliminated for 15,609 households and reduced for 17,285 households. It would shift taxes paid by those with the highest incomes by $24.5 million and place them on those with lower incomes. It would reduce school taxes paid by owners of non-residential property at the expense of property owners with incomes between $60K and $90K. These are household incomes, so families with two wage earners who make between $30K and $45K each would be negatively affected. Income sensitivity allows retired and elderly Vermonters to live in their homes without the fear of being taxed out of them. It is the right thing to do. The Governor’s proposal is the wrong way to go.

Ignition Interlock Devices
In an attempt to make Vermont’s roads safer and cut down on drinking and driving, the Judiciary Committee is considering requiring ignition interlock devices when someone has been convicted of driving under the influence (DUI). An ignition interlock device doesn’t allow a car to start if the driver is impaired due to alcohol. It would allow individuals with a DUI conviction to be able to drive to work, take their children to school or day care and not disrupt functions necessary to family life. Research shows that ignition interlocks reduce recidivism among both first-time and repeat DUI offenders, with reductions in subsequent arrest ranging from 50-90%. In 2008, 12 people were killed in drunk driving crashes in Vermont – 16% of all total traffic fatalities. Additionally, 6,069 people have three or more DUI convictions and 833 have 5 or more DUI convictions. To date, 47 states have some type of ignition interlock law – Vermont, Alabama and South Dakota are the only 3 states that do not. How do you think? Let me know at amook@leg.state.vt.us or call 802-442-5028 and leave a message.

e-Waste

Electronic waste, or “e-waste,” is the biggest solid waste problem in the U.S. and in Vermont. It represents the fastest-growing portion — and a very toxic portion — of the waste stream. E-waste is made up of computers, televisions, printers, and other electronic products that are very expensive for consumers to dispose of and toxic to humans and the environment when disposed of improperly. Thankfully, the Vermont Legislature has passed S. 77, a “producer responsibility” bill, to solve this statewide problem. Effective next January, the bill will ban the disposal in landfills of all electronic devices, such as computers, monitors, TVs, printers, and other such products which contain lead, mercury and other hazardous substances. Joining some 20 other states, S. 77 also requires the manufacturers of certain of these electronic devices to register in the state and pay a fee according to their market share to fund free, convenient collection sites for e-waste in every corner of Vermont. We expect this legislation to have a major, positive environmental impact.

Current Use

Current Use is the tax policy which taxes land on its “use value,” not on its market value. It is credited with keeping Vermont’s working landscape – its agricultural and forestry industries – viable.

The House passed the following measures to save money by: 1) establishing a one-year moratorium on the enrollment of land in the Use Value Appraisal Program. It is estimated that this will save $1.15 million; 2) changing the method of calculating the land use change tax, often referred to as the “penalty.” This change re-establishes the original “penalty” of 10% of the fair market value of the withdrawn parcel. The estimate is that this change will raise an additional $550,000 in education property tax for FY11; and 3) removing the preferential property transfer tax rate applied to enrolled land. The rate for enrolled land will now be increased from .5% to 1.25%, which is the same rate applied to all other property transfers. This will raise an additional $300,000 in FY11.

Unemployment insurance dilemma

The Unemployment Fund is nearly tapped out, due to this recession. There are essentially three basic parts to the program: 1) employer insurance premiums, 2) unemployed worker benefits, and 3) borrowing from the federal fund when times are tough.

The maximum benefit to unemployed workers is frozen until the fund is solvent, and last year a one-year change to the unemployment base wage rate was increased from $8,000 to $10,000. This rate increase will expire in January of 2011 unless the Governor signs additional legislation.

The UI premium is based on half of an average Vermont wage. This wage base has not been adjusted for inflation since 1983. When unemployment skyrocketed during the past few years, the UI fund was forced to borrow from the federal fund to support unemployed workers. A study committee recommended a careful approach that increases business cost gradually with fewer cuts to benefits so we can weather this economic storm before refilling the fund.

The legislature is moving carefully on this fix because we realize that any time money is removed from the economy, whether by increased employer costs or decreased unemployment benefits; it has the effect of slowing economic recovery. And both actions could make it harder for our Vermont businesses to survive and thrive.

Rail Update – Federal Rail Money

Vermont applied for over $100 million in three separate stimulus rail grants about a year ago. These awards were announced by President Obama the day after his State of the Union address. The New England Central Rail (NECR) was awarded $50 million, which must be spent within two years, for projects that upgrade the track upon which the Vermonter (Amtrak) runs. These upgrades will increase the train’s travel speed, resulting in more efficient and effective train travel. When you look regionally and nationally, the Vermonter connects with the defined high- speed rail network. Just as important, the upgrades will allow freight weight capacity to increase to industry standard, effectively allowing more goods to move by rail. NECR is a privately owned railroad and has a proven track record of excellent management and gets projects done on time.

The state-owned Western Corridor railway was denied its Tract Two grant. Vermont’s rail division will be challenged to spend the Jefford’s federal funds in a way that positions Vermont favorably for future federal rail investments.

A small but meaningful third grant was awarded to Vermont and New York for about $1 million for rail planning. The planning examines the NYC, Albany, Bennington and Rutland rail routes for future development. This is rail investment with an eye on the future.

Jobs and Transportation $$

Are you one of the citizens asking yourself how using transportation money is going to create jobs and improve our roads and bridges? Do you wonder if the legislature has a role in this process?

Vermont is actually one of the few states that received praise for its quick use of transportation stimulus funds. Doubling of paving funds would quickly create Vermont jobs and treat our roads with much needed paving. With almost half of our state’s roads in poor to very poor condition, the additional funding would be put to immediate good use. In 2009 Vermont spent $58 million on paving. In 2010 we spent $118 million, and in 2011, it is proposed that Vermont spend $93 million.

An average paving mile costs between $200,000 and $400,000. During the 2010 season, Vermonters can expect to see a 32% increase in paving from last season which will create 200-300 new jobs. This is the good news. However, it is sobering to realize that over a third of Vermont roads are rated very poor. The cost of getting that under 25% is estimated at $150 million over a two-to-three-year period.

Electricians
The House is working on legislation that would require that any substantial electrical work at any level of construction is to be done by licensed electricians. Up to now, unlicensed electricians could work on single family homes and duplexes – meaning any of the homes we live in may have been wired by someone who was not licensed and required to follow electrical code.

This pending bill would increase the safety of our homes by ensuring that licensed electricians will only be doing the work. If an owner wants to wire his or her own home, he or she may still do so.

School Consolidation or Merger

There are several bills that are proposed regarding merger and/or consolidation– one in the Senate and one in the House. The Senate bill (S.252) proposes to reduce the number of supervisory unions from the current 60 to no more than 16, similar to the current technical center districts. If the bill passes, by July 1, 2012 the commissioner of education would have finalized the new districts, and they would go into effect.

The centralized authority would include one board based on at-large representation and one superintendent. All purchasing, special education, transportation, negotiations, determination of common level of appraisal, school choice, technical center and preschool affiliation, and other transitional issues would be fully implemented by July 1, 2014.

The House Education Committee is working on a proposal that would provide incentives for neighboring districts to voluntarily merge and form a unified supervisory district (USD). USDs must be a K-12 district of a minimum of 1250 students and the merging districts must be contiguous, among other pre-requisites. Items being discussed as incentives would include setting education spending and a tax rate for four years. The new Unified Supervisory District would have a single governing board. No schools could be closed before 2018 unless voted otherwise. Collective bargaining, transportation, single management of business services, delivery of special education services, school choice, one tax rate, to name a few.

Catamount Health

The Governor has recommended raising the deductible from $250 to $1,200 as well as significantly raising the co-pays. But the legislature will do its utmost to keep the deductible under $500 and to keep co-pays as low as possible.

You are eligible for Catamount if you have been uninsured for the past 12 months. But the waiting period is waived if you are uninsured because you lost your job, graduated from college, or meet any number of other criteria.

FY 2011 Budget Impacts

Balancing the budget while respecting the needs of Vermonters is very difficult. The administration has proposed dramatic cuts that will have severe effects on Vermonters. Services that will have less funding include assistance that allows seniors to live at home longer instead of having to go into a nursing home; assistance that helps families with children move out of poverty by helping the parents become part of our workforce; assistance that allows individuals with disabilities to live with dignity and as much independence as possible; and assistance to families caring for a member who has a disability, whether it’s a child with a developmental disability or Grampa who has Alzheimer’s. There are many more proposed cuts, and some families may be affected by cuts in a number of areas, making the cumulative effect devastating for that family.

The legislature has heard repeated concerns about many of these proposals. Add to those possible cuts – the demands for those who are unemployed – the fiscal impact on Vermonters is huge. These factors pose a real dilemma for the legislature. We are working to find ways to minimize the reductions and their impacts, but it will be impossible to avoid them completely.

Closing the projected budget gap for next year is a daunting challenge, but we have made significant progress already. The legislature has worked with the Governor’s staff to develop a plan to save $38 million through reforms to increase both efficiency and outcomes of state government. Teachers have contributed another $15 million through an agreement on retirement changes. State employees (including legislators) have contributed about $10 million to the solution through reductions in pay. Prudent savings in this year will allow us also to have over $20 million available to use next year to further reduce the challenge we will face then. The steps taken by the legislature have gone a long way toward creating a balanced budget that meets our financial challenges while trying to respect the needs of Vermonters. Vermont will be changing the way we do business. Sometimes it will take longer, new locations, less staff, merged departments and things will just plain change! We are researching every option to close the remaining shortfall to create a budget that reflects our means as well as Vermont’s community values.

Challenges for Change

Vermont has a fiscal crisis, as defined by shrinking revenues, growing needs and demanding economic times. Vermont needs to make real changes to make sure the shortfall does not continue to plague us in future years.

The state’s present budget process annually builds on what has gone before and seeks to inject another round of money and personnel into essentially the same structure. This is a prescription for maintaining the status quo; thus the need for change.

The change needed is straightforward: to ask a different question. Instead of asking “What resources are needed to continue or improve the existing effort,” we now ask “What does the outcome look like and how is it measured?” We change from purchasing an effort to purchasing an outcome, one that citizens value at a price they are willing to pay.

These are the overall goals of the recently enacted Challenges for Change legislation that puts in place a beginning process for Vermont state government to adopt budgeting and administrative practices which several other states have adopted and which have been in place in the private sector for a long time.

This legislation is the result of a joint effort of the House and the Senate, partnered with the Administration, to specifically reduce the state’s general fund budget by $38M though the process of achieving eight specific “challenges” set out in the legislation. We hired Public Strategies Group to guide us in what is a difficult shift in mind-set, but so worth the effort when we realize that it will lead to better results for the use of our public dollars and more accountability for those results.

Corrections

The Committee played a role in developing the “outcomes” for Corrections that are incorporated in the Challenges for Change initiative. We plan to improve the effectiveness and productivity of state operations while also reducing costs. The corrections ‘Challenge for Change’ directs the human service agency, the education department and the court system to work together to stop the revolving door at the Department of Corrections. These departments will work together to decrease recidivism while ensuring community safety. $20 million will be saved in the next two years. Of these savings $3 million in 2011 and $2 million in 2012 will be reinvested in programs and services in the community which will reduce the number of people entering into the corrections system and help ensure people within the corrections system will not re-offend once they are released.

Statistics have shown that 51% of people in the corrections system will re-offend within 3 years of release from jail. The legislature is looking to its partners at the state and local level to break this cycle, such as reducing the number of nonviolent offenders incarcerated through diversion to community restorative justice and treatment programs and reducing the rate at which released offenders commit new crimes and return to prison.

School budgets are down
School boards across the state have done an exceptional job managing their budgets this year. It appears that 2011 statewide spending will be level or slightly below budgets from 2010. The projected base tax rate of .88 cents anticipated a 2% increase in spending. The legislature will set the final rate later in the session based on more current revenue forecasts as well as approved budgets.

The House Education Committee receives regular updates from the Vermont Department of Education regarding proposed budgets and it appears that boards and superintendents are managing staff to match declining enrollments, but special education costs continue to be a concern in some areas of the state. The Vermont Department of Education will be working with school districts over the next two years to help reduce special education costs.

Supporting Our National Guard

We, as legislators, commend the 1,500 Vermonters from across the Green Mountain State deploying to Afghanistan. On the first day of the legislative session, the House passed a resolution honoring the Vermont Guard and continues to make every attempt to ensure our servicemen and women do not have to worry about their families back home while they serve our nation overseas.
The House and Senate have passed the Military Parents’ Rights Act, which protects the parental rights of military members when they are absent from their children’s lives due to orders. Swift mobilization can be disruptive to custody arrangements, sometimes causing military parents to lose access to their children because of deployment. The bill expedites court processes and custody hearings, requires the non-deploying parent to facilitate contact between the child and deployed parent, and stipulates that a permanent loss of custody cannot be based solely on deployment.
It is important to the legislature that deployed Guard members be able to focus on completing their mission and returning safely to their families. If you have a loved one deployed overseas and need financial or resource assistance, please call the Vermont Veteran and Family Outreach 24-hour hotline: (888) 607-8773.

The Capital Bill

The Capital Bill is the legislation that allocates the state’s bonded dollars to construction of productive infrastructure for the state and for towns. In this way it can support government functions and invest in infrastructure for economic development while also creating jobs. Every year the state borrows money by issuing new bonds in order to finance such projects and we pay off bonds issued in earlier years. Issuing bonds means borrowing money and the amount of the bonded dollars this year is to be $71 million.

Some of the projects this year include the following. We will rebuild and renovate the Bennington State Office Building, which is expected to employ a geothermal system for heating and cooling, and do major maintenance on other state buildings throughout Vermont. We will improve our state park systems and fish hatcheries. We will support investments in agriculture that will help farmers and protect the water quality of our lakes and rivers. We may use some funds for information technology; investments in hardware and software for state agencies will help us to achieve our goal of improving the effectiveness of government.

The Capital Bill will also contain funding for towns applying for federal money to upgrade water and sewer facilities, which are an essential component of economic development. The Building Communities grants will continue to provide funds to municipalities and nonprofits for particular capital improvement projects. There will probably be some level of funding to continue to pay down the backlog of the state share of school construction still owed to the towns, rather than shifting this obligation onto the Education Fund as the governor recommended. The moratorium on making the commitment to pay the state share on new construction remains in place, except for emergency projects or consolidation.

Farm to School

Farm to School connects schools to local farms with the objective of serving healthy meals in school cafeterias, improving student nutrition, providing agriculture, health and nutrition education opportunities, and supporting regional farmers. The Vermont program, one of the most successful in the nation, is run by a collaborative called VT FEED, which has served over 100 schools with technical assistance by providing grants for planning and implementation.

Unfortunately, at the same time that we are beginning to recognize the long-term benefits of eating healthy local foods, especially starting at an early age, the funding for this program has been cut completely from this year’s budget. However, Senate bill S.288 uses federal stimulus money specifically to help increase institutional purchases of fresh, locally grown foods. Passage of this bill would likely mean at least partial funding of this important program.

Texting and Highway Safety
The House is committed to a comprehensive approach to keeping our highways safe. While we are pleased the Senate passed a ban on texting, it is only part of the larger problem of distracted driving and public safety.

Data shows that cell phone use quadruples a driver’s risk of a crash. Youth are already more likely to be in crashes, yet are a much smaller portion of the driving population. The National Center for Disease Control considers youth highway fatalities a public health risk. Each year highway crashes cost Vermont $234 million in Medicaid, emergency services, law enforcement, and other programs and services. Therefore, a bill that restricts cell phones to hands-free only by adults, bans cell phones and hand-held electronic devices for junior operators (16-17 year olds), imposes a nighttime curfew for junior operators, bans texting and mandates seatbelt use would be a comprehensive, responsible approach to saving lives and keeping our communities safe.

Towns protecting their rivers PASSED

The river corridor bill allows towns to prevent pollution and increasingly expensive, taxpayer-funded, after-the-fact clean-up of Vermont’s rivers, lakes and streams, resulting from runoff and flood hazards. Respecting water courses, respecting a river’s natural need to swell and recede, while leaving vegetative buffers like shrubs, grasses, and trees next to rivers, lakes and ponds is an effective, scientifically proven and inexpensive way to prevent a lot of pollution from entering our waterways.

This river corridor bill is designed to build support and buy-in at the local level. If it is enacted into law, the Agency of Natural Resources will be asked to provide educational, technical and mapping services as well financial incentives to towns that are interested in adopting shore land and river corridor protection bylaws. This is voluntary, so if a town is not interested in this support, there is no requirement for it to participate.

Vermont’s Future in Broadband
Everyone needs to be connected to the information superhighway. We know that it’s not just about strengthening businesses’ access to the internet. The ordinary Vermonter is using broadband for some of the most innovative projects. The legislature is investing millions of dollars in new and faster connections for homes and business districts.


Workforce Training

By investing money in targeted skills-building programs, we help Vermonters get good jobs and we provide businesses with access to qualified and productive future employees.


Access to Capital

We are addressing one of the root causes of our current recession – tightening of the credit markets and lack of access to cash. For cities and towns, as well as large, medium, and small companies, Vermont provides bonds with especially low interest rates and tax deductions, as well as loans with below-market rates. For entrepreneurial low-income Vermonters, we offer help with critical business skills; we also provide small grants to help them found their own businesses that also keep them off public assistance.


Democracy: Changing the Date of the Primary Election

Vermont received notice this fall that we are not in compliance with the Military and Overseas Voter Empowerment Act. Beginning with the November 2, 2010 general election states must send absentee ballots to overseas voters at least 45 days before any federal election. Last month, the legislature approved moving the date for the primary election to the fourth Tuesday in August. The secretary of state’s office has requested moving the primary date forward since 2000 but the legislature never acted on it. Presently our laws are set up to send ballots out 30 days before an election.

Vermont law now allows town clerks to email a ballot to a voter overseas in a PDF file, which he or she prints out, completes, and mails back, along with a signed certificate. These ballots must arrive by 7 p.m. the night of the election.

Moving the date is the best solution for following the federal law. Proposals to create an electronic voting system would cost money in a year when we are trying to find $150 million in savings. Even if we invested in new technology to receive ballots back electronically we would still have to meet the requirement to send the ballot 45 days before the election.

If there was a year to change the primary election date to ensure deployed Vermonters get their ballots, this is it! We have over 1500 Vermont soldiers deployed to Afghanistan. We need to show our support for our troops so they can exercise their right to vote, too. They are fighting for democracy; let’s make sure they can participate in it.

Mobile Home Ownership

This past summer, a study committee met to make recommendations on mobile home rent-to-own agreements and mobile home transfers. The committee included mobile home advocates, park owners, municipal clerks, Legal Aid, and the attorney general’s office, among others. Upon receiving the recommendations, the House passed H. 542, a bill to help clarify the process for transferring ownership of a mobile home as well as ensure the rights and responsibilities of buyers and sellers. If passed by the Senate, the bill would clearly identify the requirements for the mobile home uniform bill of sale and define a rent-to-own transaction as a present-sale of property. Additionally, the bill consolidates the laws governing mobile home sales, including rent-to-own transactions, so that they are easier for all parties to understand.

Vermont Yankee Closing: passed Senate February 24, 2010.

Last week the Vermont Senate cast a vote that would effectively prohibit the continued operation of the Vermont Yankee nuclear power plant after its license expires in 2012. Legislative approval is one of three things that are required for the plant to continue operating after 2012. Along with Legislative approval for the Public Service Board to issue a certificate of public good, Entergy must also receive approval for re-licensure from the Nuclear Regulatory Commission. Barring a reversal of the Senate decision, the plant is poised to shut down on schedule.

Vital questions remain to be answered by Entergy. These include discovering and fixing the source of the ongoing tritium leak, which the Vermont Department of Public Health has been monitoring daily. Also, the Legislature will also want to ensure that all decommissioning costs are borne by the plant owners and are not passed on to Vermont taxpayers. Finally, the legislature will work to ensure that alternative energy sources are identified and actively pursued.

Vermont’s Farm to Plate Program: Economic Opportunity & Health

While Vermont is an agricultural state, we import 97% of the food we eat, and we send $2.5 billion out of state to buy in this food. This huge expense also represents a great opportunity: if we can grow and process just 10% more of our food, we can add approximately $500 million each year to the state’s economy. Further, this is growth we can achieve without spending new money, but simply by shifting the money we already spend on food from out-of-state to in-state sources.

Farm to Plate will help that happen. The program means more jobs—growing, processing, distributing, and selling Vermont food. In addition, these are sustainable, long-term jobs, as the demand for food is, of course, ongoing. This shift to growing more of our own food also means that Vermont agriculture, which is now very dependent on dairying, will become more diversified and stable. This is especially good news for our rural economy.

Vermont’s Farm to Plate program, now its first year of operation, is developing a strategic plan for rebuilding Vermont’s food system over the next decade. Farm to Plate will bring more fresh local food to all Vermonters at a time when they are increasingly asking for such healthy foods.

End of 2009 Session Report

July 7th, 2009

Friends & Constituents: Next year I am going to try to save paper by sending both the mid-session and end of session reports via email to as many of you who are able & willing to receive it in that format. But I need your help to do that. Please send me your email to: amook@leg.state.vt.us saying yes, I want to receive this via email. If I do not hear from you, you will continue to receive it in hard copy. If you have specific subjects you would like to hear about, let me know.

Thank you for your support.

QUESTION??? What are your five priorities that you would like to see the legislature move forward during the second year of this biennium?

Send them to me at the above email. Thank you….

* * *

Decommissioning Vermont Yankee

An important bill was the Vermont Yankee decommissioning legislation, which states that upon sale or transfer of ownership of the plant, its decommissioning fund must be shown to be adequate to begin cleaning up the site. That means that the long-term “Safestor” form of decommissioning cannot be used as a financial instrument. Safestor would put the nuclear power plant in storage while money in the decommissioning fund grows in the stock market. The fund would not need to be made whole with cash – a parental guarantee, for example, may suffice. If the plant is NOT to operate beyond 2012, the fund must be adequate as of March 22, 2012, the day after the current license expires. [This bill has been vetoed by the Governor.]

Marriage equality

Civil marriage, S.115, captured the headlines and hearts of most Vermonters who view civil marriage as a right to be accorded to all persons. The House and Senate overwhelmingly supported marriage equality, in spite of a veto by the Governor. As of September 1st of this year, two persons of the same sex will be able to legally marry.

Renewable Energy

Legislation was passed this year to help the state develop its renewable energy sector. H.446 has the public service board set long-term, stable contract prices for small renewable energy producers, ranging from solar to small wind and methane projects. As proof of the number and kinds of jobs that will be created, 75 Vermont companies were involved in building just four of the most recent farm methane digesters. Contrary to critics’ assertions, this legislation protects ratepayers through strict caps on sizes of projects and total percentage that will be eligible statewide. Estimates are that at full build-out (which may take years) rates may rise from half a percent to one and a half percent (50 cents to $1.50 on a $100 bill). Larger consumers of electricity may be allotted special rates to protect them further. H.446 also directs federal stimulus funds intended for energy projects, aligns our building codes to make the state eligible for other federal funds, and offers programs for municipalities to build biomass projects, and offers low-interest loans for energy-saving projects to residents, if voters so choose.

Stewardship of our Fish, Wildlife and Water Resources

Hunting, fishing, farming and logging have contributed much to the economy and culture of Vermont. Stewardship of Vermont’s wild resources is the duty of the Fish, Wildlife, and Water Resources Committee.

Water: H.15 is an act relating to Aquatic Nuisance Control. A more rapid response is needed when a new invasive species is discovered in Vermont lakes or streams. The bill aligns permitting and allows our Agency of Natural Resources to respond quickly (within six months) to contain and eliminate invasive species. Water recreation is an important driver of Vermont’s economy and the agency needs to act efficiently to preserve our water quality.

Deer: Another area of economic concern was addressed by H.16, a bill relating to deer damage to forest resources. Our woodlands are the second most important industry in Vermont. Because Vermont’s forest industry depends on natural regeneration, there is a period of time when saplings are vulnerable to deer browsing. H. 16 would allow woodlands owners to keep the deer population at a level where they are not wiping out young trees. To get the number of deer down to sustainable levels we need to harvest more each year. The bill is in the Senate Natural Resources committee awaiting action in January 2010.

Fish: Vermont’s fish hatcheries contribute to the sterling reputation of Vermont’s sports fishery by assuring a plentiful supply of valued species and by maintaining special brood stocks of popular sports fish species. During the budget process, when we found Vermont’s financial resources stretched, much consideration was given to closing Vermont’s fish hatcheries. The House argued against closure because of the value our hatcheries have to sport fishing in Vermont.

Stimulating Vermont’s Economy

The Legislature took bold actions to create jobs and foster growth for Vermont’s employers. By investing wisely and creating strategic and innovative policies, Vermont’s employers stand to leverage small investments into $175 to $200 million worth of economic activity. The following are examples of some of the forward-thinking and strategic measures:

Green Jobs Vermont invested $37 million dollars of federal government ARRA assistance into a Clean Energy Fund. These funds will leverage close to $150 million in new jobs and economic activities that will create new markets and opportunities for employers in helping boost the green economy.

Seed Capital. We also invested $3.5 of state funds into a “seed capital” fund and other loan programs to promote small businesses and those ready for their next stage of growth.

Buy Local Movement. Vermont created a Farm-to-Plate Investment Program that will identify links between farmers and consumers, and providing matching grants and technical assistance to build the missing infrastructure. The end result will be more jobs and capacity for more storage capacity, slaughter facilities, marketing support, distribution networks, etc.

Stronger Co-ops. Co-ops are great for employee ownership, cooperation and sustaining jobs, and have a pro-social business mission. But it is often hard for them to raise money since they rely on members. With H.109, a new form of business called limited co-ops was created which will allow them to attract outside investors as a way to raise equity but still retain control for the non-investors.

Stronger Car Dealerships. Vermont’s car dealers have been at the mercy at the big auto makers for far too long. A new law will give them the ability to sell more than one brand of car, giving consumers more choices, and helping save many dealers from bankruptcy.

Bolstering Tourism. An additional $600,000 was invested in attracting tourism and conventions to Vermont. This bodes well for Vermont as we attract those who wish to stay closer to home to vacation, and for those who wish to enjoy our quality of life and offerings of our environment.

E-corporations creation. Vermont made national headlines last year when we passed a House-initiated program to allow for incorporation of businesses that exist without having physical locations. Our next step is to create clear regulations that enable companies to build software platforms that will enable future e-companies to take advantage of this new opportunity.

Protection = Commerce. It may not be exciting to the average Vermonter, but insurance is big business in Vermont. Vermont boasts the strongest insurance business nationally in many categories, including captive insurance. We strengthened their ability to attract even more business, and also protected senior citizens from fraud and shady dealings. Importantly, that helps not only them, but also the lawyers and insurance companies who will only work in safe environments. This will bolster these businesses in Vermont.

Health Care

Marketing of Drugs: One of the great contributors to rising health care costs is the amount spent on prescription drugs. S. 48 bans most gifts which pharmaceutical companies give to doctors and increases transparency in the marketing of pharmaceuticals and other “prescribed products.” Almost a third of every dollar spent on prescription drugs goes to marketing. This marketing occurs for prescription drugs, biologics (a class of expensive, “large-molecule” drugs) and medical devices (pacemakers, artificial knees, etc.). The bill bans gifts—including free meals—from manufacturers to providers with some exceptions, and it requires disclosure of most of these exceptions. The manufacturer’s most important marketing tool is the ability to provide free samples. Free samples—of the newest drugs that tend to be more expensive—tend to affect physicians’ prescribing patterns, for obvious reasons. The House bill also required manufacturers to report free samples given to providers. But a last-minute compromise with the Senate resulted in exempting free samples from disclosure.

Palliative Care: A patient at any stage of life can benefit from palliative care. Palliative care relieves symptoms such as pain, nausea, anxiety, or shortness of breath, which may be caused by underlying disease or may be side effects of aggressive treatment toward a cure. It includes a variety of types of care given to improve a patient’s quality of life. It involves addressing physical, cognitive, emotional, psychological and spiritual needs and facilitating patient autonomy, access to information, and choice. Vermonters deserve to have appropriate palliative care available to them when they experience a serious illness or at the end of life. H.435 works toward expanding access to palliative care services for children and adults in Vermont and attempts to bring greater knowledge of palliative care to physicians, assuring that patients get the information they need to make informed choices about their care. In addition to giving Vermonters the kind of care they have said they want, the appropriate use of palliative care is very cost effective.

The legislature’s goals are to improve access to care, improve quality and to contain costs. Prevention and early detection of disease are sure ways to contain costs and keep Vermonters healthier through their lives. Insurance coverage that pays for screening is critical for early detection. H. 24 requires insurers to cover the costs of colorectal cancer screenings for people over age 50 or in high-risk categories and caps the co-pay at $100.

Rising costs are continually being addresses. S.129 is an example. First, it looks at how the availability of a service affects the use (and perceived need for) that service, thereby improving health care delivery and saving money. Second, it asks for a plan for how to integrate “shared decision-making” into the Blueprint for Health—a model that has been shown to both increase quality of care and decrease costs. Third, it sets up a work group in conjunction with Dartmouth Institute and Brookings Institution to create an “accountable care organization” (ACO) demonstration project. [An ACO is a network of providers who are accountable for costs and quality and who share the savings inherent in improving quality.] This is a significant initiative in payment reform.

H. 444 allows farmers and other self-employed people applying for Catamount Health Care to include depreciation as an allowable business expense for income purposes, and it exempts self-employed people who lose their insurance from the 12-month waiting period.

This omnibus health care bill (H. 444) also positions Vermont to receive federal stimulus money for health information technology. It allows providers to send a patient with chlamydia (a sexually transmitted disease) home with a prescription for his/her partner as well. It also asks providers to develop recommendations for how to coordinate stroke treatment around the state, and the bill sets up a pilot program, supported by a bulk purchasing pool, to provide vaccines for all adults and children in Vermont at no cost. Finally, the bill bans the flame retardant known as “deca” because, ironically, when it burns it’s highly toxic.

Transportation

Finally, Vermont’s roads and bridges will be getting some much-needed attention. While stimulus funds strengthen Vermont’s ability to respond to the enormous backlog of needed transportation projects, the assessment on fuels will see funding well beyond the quick flash of stimulus cash. The Legislature passed in the final week of session a Transportation Bill that maximizes the stimulus funds in the next few years, and establishes a fund that will be available for projects far beyond then.

Bonding was a part of the total package; however, the bill reserves the issuance of bonds until the need is proven. The bill imposes a 2% assessment on the retail price of gasoline, which is about 4 cents per gallon. Revenue from the assessment, along with a 3-cent-per-gallon assessment on diesel fuel, is segregated from all other transportation fund revenue in a special fund. The transportation infrastructure bond fund is dedicated to payment of the debt service on the bonds. Revenue in excess of debt service requirements may be expended on transportation capital projects.

Local municipalities had a roller coaster experience this session, as budget discussions went round and round on town program funding. In the end, most funding was restored and towns will – if not already – receive approximately 85% of their funding. Watch the roads; the paving and construction season has begun!

Protecting Our Community

Sexual Violence Prevention. (S. 13) Legislation was signed into law that enhances the comprehensive statewide approach to preventing child sexual abuse. Education is viewed as an important component of prevention. Programs will be developed which assist educators and those working with children to recognize and provide appropriate instruction about healthy and respectful relationships; develop and maintain effective communication with trusted adults; recognize sexually offending behaviors; and increase awareness of available school and community resources, therefore potentially prevent sexual abuse and sexual violence. Local school boards will provide opportunities for parents, guardians and other interested persons to receive the same information.

Concern for the welfare of victims of sexual violence will be addressed through the use of special investigative units (SIUs), which are comprised of specially trained persons to work with victims; depositions will not be taken unless absolutely necessary. And, if depositions are taken, measures will be put in place to assure the victim’s well being. The Bennington County SIU is a model for the state.

A new crime, aggravated sexual assault of a child, carries significant penalties. The offender could be imprisoned for not less than 25 years with a maximum term of life, and, in addition, may be fined not more than $50,000. The 25-year term of imprisonment required may not be suspended, deferred, or served, as a supervised sentence, and the defendant will not be eligible for probation, parole, furlough, or any other type of early release until the expiration of the 25-year term of imprisonment. The court may not defer a sentence for this crime.

The department of corrections will be carrying out a comprehensive systems approach to the management of sex offenders upon their release, which employs longer and more intensive community supervision of high-risk sex offenders.

Registry Requirements

S.125 was a response to the federal Adam Walsh Act, which calls for extensive additions to the Internet sex offender registry. Persons who have been released from incarceration may be placed on the sex registry that is accessible on the Internet. The offense and whether they have been deemed at high-risk of offending again or have committed crimes that require lifetime registry will determine whether they are placed on the Internet registry. Additionally, fingerprinting of suspects will be allowed at the charging stage and access to records of an inmate who has been released into the community that may be relevant to current investigation may be accessed by court order. Change of name to avoid being listed on the registry will not be possible and persons moving into Vermont who are already listed on other state registries will be listed on the Vermont registry.

Sexting: Addressed in this legislation is the practice of “sexting,” the transmission of indecent pictures on cell phones by teens. Those participating in “sexting” will be held accountable and educated as to the consequences of their actions, but will not be placed on the sex registry.

General, Housing, & Military Affairs Committee:

Affordable Housing: The House is concerned about the future of the Vermont Housing and Conservation Board (VHCB) and the impact cuts will have on programs VHCB supports. The survival of VHCB is important to much of the housing work Vermont hopes to accomplish in the future. The budget bill preserves much of the funding and also contains language to reconfigure the VHCB board and clarifies the importance of VHCB in the handling of ARRA (federal stimulus) funds moving forward.

A bill relating to mobile home parks was an early focus of the Housing Committee. Testimony led the committee to conclude that it needed to gather more information before we moved forward with the bulk of the bill, so a committee will report back to us in January. Legislative Council will also work to compile the statutes relating to mobile home parks; language relating to mobile homes and parks is scattered across our books and in order to effect further change we will have to try to bring it all under one section. A fuller version of H. 92 is expected to be passed next spring.

The House also heard testimony with respect to Vermont Housing and Finance Administration (VHFA)’s request for added use of their “moral obligation” ability. Given the crisis with the secondary mortgage market, VHFA is being asked to pledge more funds for each large loan they make and if they are going to continue to make the best use of their funds, they need to use moral obligation bonds to secure loans. Given the size of VHFA and the continued room under our bonding capacity, permission to expand the use of bonding in this manner should not be a problem for VHFA or Vermont’s credit rating.

Military:

The legislature held a public hearing on the upcoming deployment of our National Guard to Afghanistan. Approximately 1,800 Vermont Army Guard men and women will be deployed starting in November or December. This is the largest call-up of our Guard since World War II. The hearing, as well as further communication with the Adjutant General, emphasized supporting state partnerships with the military to provide social services to the families of our Guard. Federal support for social service programs has been generous, and we will be monitoring the Guard and the state to make sure both active-duty soldiers and veterans receive the help to which they are entitled.

Civil War Site: The Wilderness battlefield in Virginia, site of an important Civil War battle involving Vermont troops, is being threatened by large commercial development. In a joint resolution that passed the House on Lincoln’s birthday, Vermont called on Virginia county officials and commercial developers to honor the Civil War site and protect it from encroaching development. The resolution has since been followed with correspondence from U.S. Rep. Peter Welch. While it remains unclear as to the affect this resolution will have, we felt honoring our Civil War dead by the purchase of parkland and the erecting of a monument deserved our effort.

General: Wine and Alcopops

The General, Housing and Military Affairs Committee heard hours of testimony on the effects of “alcopops” (flavored malt beverages) on underage drinkers. Needless to say, manufacturers and sellers strongly opposed an outright ban or a change of tax category from malt beverage to spirits. There was much discussion of underage drinking and the pros and cons of lowering the drinking age, and the issue will be taken up again in January.

Just in time for the summer festival season, winemakers may make and sell fortified wines (over 16%), and they and distillers may now sell their own products on their own premises without hiring a caterer with the correct liquor license.

Casino Nights

Under current law, non-profit establishments are allowed to host three gaming events a year (besides bingo etc.); H. 249 allows them to host nine more, which particularly benefits rural communities where there may be fewer halls capable of hosting such events.

Agriculture in Vermont

Vermont is the Green Mountain State, literally, because we are 78% forestland and another 14% farmland. Keeping those rural resources productive and profitable remains a deep challenge. Both sectors are going through a punishing downturn. Dairy farmers will lose, on average, approximately 40 cents on every gallon of milk they produce in 2009; lumber demand is down approximately 70% since last fall with mill layoffs approaching 50%.

The House Agriculture Committee has continued last session’s overall strategy – support the diversification of Vermont agriculture, i.e. dairy base, and expand opportunities for the forest and wood products sector. Here are a few bills that were passed to support that diversification.

H.58, Dairy Goat Milk This bill defined new standards for goat’s milk to help this growing sector develop further. Goat’s milk currently brings farmers five times as much as cow’s milk, and Vermont cheese producers are looking for more supply.

H.125, Raw Milk There is consumer demand for fresh, local raw (unpasteurized) milk. While small-scale sales have always been allowed under Vermont law, there were no defined standards until this bill, which creates 20 plus rules to help promote sanitation, safe handling, animal health, and consumer education. This milk also currently sells for six to ten times as much as store-bought milk, a definite financial plus for farmers

H.152, Biomass Energy This bill establishes a biomass energy development working group to develop the environmentally safe and sustainable harvesting of more low-grade forest wood for use in generating both heat and electricity. A modest increase in this activity will add $200 million dollars to the Vermont economy.

H.192, EBT (Electronic Benefit Transfer) Vermonter’s spend approximately $7M each month purchasing food with food stamps (now called 3 Squares). Local farmers have been largely unable to sell to these customers for the lack of Electronic Benefit Transfer (credit card) machines at farmer’s markets. This bill provides machines for another 7 markets this year.

H.231/H.313, Farm to Plate This bill addresses the greatest opportunity in Vermont agriculture today. We grow 3% of the food we eat, and we send out-of-state a whopping $2.6 billion dollars a year to purchase our food. A 10% shift in our consumption from out-of-state sources to in-state sources generates $500 million in economic activity, which exceeds the total gross receipts.

This bill will inventory and map our fragmented food system to find the opportunities to increase in-state growing, processing, distribution, and consumption of Vermont-grown food.

JRS.26, Industrial Hemp This resolution calls on the federal government to re-recognize and legalize hemp (the non-psychoactive cousin of marijuana). Hemp was once widely grown and has many, many profitable uses from food, fiber, and fuel. Last year we created an in-state program to support hemp; now we must get a change in federal law before crops can be grown.

S.94/H.93, Maple Sugaring on State Lands This bill supports further expansion of a small program that allows licensing of state-owned forests for maple sugaring. There is a good opportunity here, as maple sugar is at an all-time high on world markets, and Vermont maple sugar is perceived as a premium product.

Emergency Loans for Spring Planting The House and Senate Agriculture Committees, working with the Agency of Agriculture and the Administration, developed an $8 million dollar loan program with VEDA to enable farmers to buy the seed and fertilizer required for spring planting.

FY 2010 budget

During the past several months, it has been said many times that the Legislature was not responsive, nor sensitive to Vermonters’ needs. I strongly disagree. The budget bill went through a lengthy process including public hearings and taking testimony from those who would be most effected by any budget cuts.

Yes, there has been controversy surrounding the budget bill and it is due largely to the dramatic differences in philosophy, priorities and values of the role of government in how to best serve Vermonters in this difficult economic time. A major issue included whether to move the State Teacher’s Retirement Fund from the General Fund to the Education Fund. That alone would have substantially increased property taxes. Also included: stability in the number of devastating cuts to state worker positions and how it would impact delivery of services, how to protect the most vulnerable, keep VPharm for Seniors, Reach Up, raise child care subsidy rates to providers, increased PILOT funding (payment in lieu of taxes for those communities that have state buildings in them-like Bennington), and at the same time financial relief for the middle income Vermonters.

The budget is responsible, reasonable and holds those values important to the majority of members of this legislature. The budget was passed by the House of Representatives, and the Senate in May, and later was vetoed by the Governor. On June 2, both the Senate and the House returned to Montpelier and voted to over-ride the Governor’s veto. On June 2, there was a “Companion Bill” added to the budget bill – adding the following to the bill: a temporary fix to the Unemployment Insurance Fund, added money to Vermont Telecommunications Authority which is addressing access to broadband in the state, added bridging funds for tobacco cessation programs; creation of a state employee retirement incentive package; income tax change on capital gains, and Next Generation funding for scholarships, to name a few.

Education

H. 427, the miscellaneous education bill, addressed an array of issues that increase access to education for students and parents, clarifies language for school administrators and school boards, and establishes the ground work for an initiative that addresses high school drop out rate.

School boards that do not operate a high school can designate a public school or an approved independent school as the sole public high school for the district. Schools who receive students must announce tuition by January 15, so that sending districts can plan their budgets.

The bill permits parents of children in a district that does not maintain an elementary school to give early notice of intent to send their child to a non-designated but approved school in the coming year. The district will pay the lesser of three amounts but never greater than its average per-pupil tuition.

For those students who are state placed students – those in legal or temporary custody of the department of children and families – the bill recognizes that children learn best when learning is not interrupted. Therefore, if a student is being educated in one school/district, and is returned to their home district, the student will remain in the educating school/district until the end of the year. DCF will assume responsibility for the transportation of that student.

The ‘divided vote’ has created much discussion over the past year. The miscellaneous education bill states that the following items are not to be included in the divided vote question: (1) school construction that was approved prior to the moratorium, as well as interest paid on the debt,

(2) tuition for districts that do not have a school, (3) planning costs to merge small schools, (4) district’s share of 21st century after school programs, and (5) spending attributable to the costs of providing alternative education opportunities designed to encourage at-risk high school students to stay enrolled and graduate from high school whether contracted or within district.

It is becoming more clear that not all students learn the same way – some learn better with hands on, some better in independent study, and some need a more individualized approach. The miscellaneous education bill encourages innovative approaches to learning, and creates flexible pathways to graduation. Existing programs such as the Teen Parent Education program (Bennington’s Sunrise’s Opportunities Program) – long in need of an established funding mechanism – received permanency, and students in the High School Completion Program (presently carried out at the Tutorial Center) do not have to drop out of school in order to enroll in the program. A student develops a personalized graduation education plan, which includes career planning, workforce training, and transitioning assistance in addition to his/her course curriculum.

Working within existing educational support teams, this bill emphasizes the early intervention for those who are most at risk of not completing high school. Recognition and establishing early assistance for students as early as third grade, again at 5th grade, and upon entrance into a high school environment, hopefully will not allow any student to fall behind in school. Some help can be on a temporary, transitional, or long-term basis. The object is to get the help a student needs in order for the student to feel successful in school.

As high school drop out rates across the state and country rise, many professionals indicate that truancy rates are also on the rise. If students are not getting to school, they get further behind. A section of the Miscellaneous Education Bill requires the department of education, state attorney’s offices, and judges to develop model uniform truancy protocols for districts.

Another bill, H.405, requires the state colleges, UVM, Vermont’s independent colleges, and the department of education to come together to look at the issue of barriers to success. Jointly, the colleges and DOE will develop and report on strategies to expand educational opportunities for students in order that they might succeed in elementary and secondary schools and post-secondary education.

The Capital Bill: Investing in Vermont

This year Vermont will invest in state and municipal infrastructure, provide jobs, and strengthen the economic development of the state through its annual Capital Bill. The legislation incorporates federal stimulus money (ARRA) with the annual bond so that the total infrastructure spending will be over $109,000,000.

Vermont will construct an urgently needed forensics lab in Waterbury, will complete the renovations of the Vermont Veterans Home here in Bennington, and will complete another phase of the construction of the archives facility in Middlesex. In addition to these specific building projects, major maintenance projects to state buildings will be undertaken across the state that employ many Vermonters.

The federal stimulus money has allowed us to allocate over $19 million to wastewater treatment projects, and another $19 million to drinking water projects. Having access to this financing is critical as we will be able to assist many towns with these improvements. Towns will be in a better position to undertake significant economic development with water and sewer infrastructure in place.

The Vermont Investment Package outlined in the Capital Bill targets infrastructure investment and job creation in an even more specific way. About $6 million will go to Forest & Parks for maintenance and expansion of facilities; a portion of the work will likely include summer jobs for young people – like a Vermont Civilian Conservation Corps. There will also be $1 million for the standard Building Communities Grants and $1 million to create transitional and affordable housing.

The backlog of school construction funding owed to towns for past projects will continue to be paid down. This year we were able to make a total of $10 million in payments. The list of schools to receive payments and the amounts of those payments were entirely based on recommendations by the Department of Education using criteria related to the date of the project, the portion of payment already received, and other such considerations. Over the next three years we will continue to work our way down the list of the schools that are still owed $32 million. There is still a moratorium on new school construction project financing until the $32 million has been paid and a plan for a sustainable method of school construction funding is in place.

The signed version of the Capital Bill includes resolution of the Bennington State Office Building. The 1970s section of the building will be demolished; the 1990 section will be retrofitted. In the interim, the Agency of Human Services will relocate to 210 South Street until facilities are ready; the judiciary will remain in the “trailers”. There was a survey completed by state workers that had a large impact on this decision.

What a session!