Legislative update from Jim Harrison

Legislative Update from State Representative Jim Harrison June 22, 2017

Education Funding Deal Reached After a long one-day session on Wednesday, June 21, the legislature passed a new budget, H.542 that includes the education funding amendment that had been negotiated by Governor Phil Scott, House Speaker Mitzi Johnson and Senate leader Tim Ashe. It includes anticipated health care savings for school employees but does not change collective bargaining at the local level. This came after the House sustained the earlier vetoes by Scott of the budget and education funding bills. What’s in the agreement? Residential rates are lowered 2.2 cents from fy17 (as passed in H509) Non-residential rates stay flat from fy17 (2 cents lower than H509) Savings from health care are recaptured in FY18 under the following formula: Define the “benchmark plan” as 80/20 with $400 out-of-pocket Determine what a district’s health care spending would be in FY18 if employees were at the benchmark plan plus 5% Over 2 years, withhold education payments to districts in the amount of their FY17 actual health care costs minus 105% of their FY18 estimated costs. (65% in FY18, 35% in FY19, estimated to be $13M). These savings are what fund the property tax reductions. All contracts will expire July 1 2019, creating a “twice in a lifetime” opportunity.Districts that have contracts or agreements are exempt from this provision. For districts already at impasse when the bill is enacted, either side may pull out of impasse to bring parties back to the negotiating table Establish a 9 member Commission to look at issues around the advantages and disadvantages of statewide health care benefits for school employees to report back to the legislature in Nov 2017 Marijuana Legislation Falls Short On Wednesday afternoon, the Vermont Senate passed a new marijuana agreement with the Governor and sent it over to the House for action. The House failed to suspend its rules on a bipartisan vote that was not close to the three quarters necessary in order to take up the measure and the new bill was not considered. As the legislation didn’t legalize marijuana in Vermont until July 1, 2018, it is not likely to matter from a practical standpoint whether it passed this week or in January when the legislature returns. The bill had also called for a commission to recommend ways to tax and regulate marijuana, however Governor Scott could do that by executive order if he chooses to. What’s up for next? The legislature adjourned Wednesday evening, June 21, after the business of the veto session was complete. However, we could see a special session on October 23 if there is a significant federal fund shortfall for Vermont that would cause the state's budget to be adjusted. Otherwise, we will reconvene in January. Thank you for your help, guidance and well wishes as I complete the first half of the legislative term begun by Job Tate. Job is in training currently in Mississippi ahead of his overseas deployment with the Navy Seabees. I look forward to meeting many of you in the coming months and representing the district at the State House going forward.