Budget and Spending

Budget and spending issues.

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Discord lingers over teacher health care

MONTPELIER — Gov. Phil Scott and lawmakers came up short once again Thursday in their quest to find common ground on a major fiscal issue that, once resolved, will allow the legislative session to come to a close. Democratic House and Senate leaders Wednesday evening tweaked a proposal put forth by Senate President Pro Tem Tim Ashe and offered it up as a compromise to the Republican governor. But Scott said it wasn’t something he was prepared to accept and planned to offer a counter proposal. Lawmakers have been engaged in a standoff with Scott for the past several weeks over how to save up to $26 million annually in the state’s Education Fund. Democratic leaders in the Legislature and the governor agree that savings can be achieved from changes to the health insurance plans offered to teachers by the Vermont Education Health Initiative. Continue Reading →

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Deal on teacher health care remains elusive

MONTPELIER — Lawmakers returned to the State House Wednesday after adjourning for a long weekend Friday but were still unable to find common ground with Gov. Phil Scott on the main issue holding up the end of the legislative session. Democratic leaders in the House and Senate met with the Republican governor Wednesday, along with representatives of the Vermont School Boards Association and the Vermont National Education Association, but no accord was reached on how to achieve up to $26 million in projected savings from changes in the health insurance plans offered to teachers that will take effect in January. The potential savings comes from changes to the health insurance plans offered to teachers by the Vermont Education Health Initiative. The federal Affordable Care Act, passed in 2010, includes a tax on high-end insurance plans. To avoid the tax, VEHI is offering a new slate of plans to Vermont teachers that have lower premium costs but higher out-of-pocket expenses. Continue Reading →

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Dems fend off push to alter teacher health care negotiations

MONTPELIER — The House and Senate are continuing to wrangle with crucial money bills as they aim to adjourn the first half of the legislative biennium Saturday. They have plenty of work left to do, however, and a showdown with Republican Gov. Phil Scott looms large at the end of this legislative session over his main priority for this year. Late Wednesday night, Democratic House Speaker Mitzi Johnson cast a rare vote to fend off a Republican-led amendment to fundamentally change the way teachers in the state negotiate their health care benefits. Johnson, D-South Hero, cast her vote after the House voted 74-73 to embrace a plan pushed by Scott to move negotiating for teachers’ health care benefits from the local school district level to one statewide contract. With her vote against the measure, the House was knotted at 74-74 — close, but not enough for the GOP and 16 Democrats who bucked their own leadership to secure a majority. Continue Reading →

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GOP pushes governor’s teacher health care savings

MONTPELIER — The House postponed action on an education financing bill Monday as Democrats and Republicans continued to posture over Gov. Phil Scott’s plan to save $26 million in the Education Fund by changing how teachers negotiate their health care benefits. Scott is looking to capitalize on a unique situation this year that has all teachers in Vermont negotiating new health care benefits. That’s because the Vermont Education Health Initiative, which provides health care plans to teachers, is changing its offerings in response to the federal Affordable Care Act. Scott’s plan seeks to save $26 million by removing negotiations for health care from the local level and having them take place on a statewide level with his administration. If teachers agree to pay for at least 20 percent of their health care premiums the savings are attainable, according to the governor. Continue Reading →

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Senate advances budget and tax bills unanimously

MONTPELIER — The Senate advanced its version of the 2018 fiscal year state budget and a corresponding tax bill Wednesday on unanimous votes. The Senate’s spending plan, passed on a 30 to 0 vote, includes a $1.56 billion General Fund, which is 1.7 percent higher than the current 2017 fiscal year budget. It is slightly lower than the House-passed version, however, which grew 1.8 percent over the current year. Overall, the Senate’s total state budget including all state and federal funds totals $5.83 billion — slight more than the House’s $5.815 billion in total spending. The Senate version spends more than $13 million in ways that differ from the House proposal, which cleared the House on a 143 to 1 vote. Continue Reading →

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Watch: Capital Beat with Sen. Jane Kitchel and Rep. Kitty Toll

Sen. Jane Kitchel, D-Caledonia, the chairwoman of the Senate Appropriations Committee, and Rep. Kitty Toll, D-Danville, chairwoman of the House Appropriations Committee, are on the program this week to discuss the 2018 fiscal year state budget. The two sisters are charged with ushering a nearly $6 billion budget through the Legislature. Capital Beat airs on Vermont PBS Plus Mondays at 8:30 p.m. Continue Reading →

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House passes budget plan with just one no vote

MONTPELIER — Tax and spending bills in the Vermont House received broad, tri-partisan support on the floor for the first time in many years as the body agreed to balance a projected state budget gap without raising taxes and fees. Majority Democrats secured the support of Republicans and managed to hold onto left-leaning Progressives as they crafted a budget bill that cuts into existing services. The House gave preliminary approval to the annual tax bill on a 138 to 0 vote Thursday morning, followed by preliminary approval of a 2018 fiscal year state budget on a 143 to 1 vote later in the afternoon. The House’s tax bill does not create any new taxes or fees, nor does it raise existing ones. It does raise about $5 million in revenue, however, by counting on better compliance from Vermonters, which was enough to gain the support of the entire GOP caucus. Continue Reading →

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Scott praises House budget work, seeks some concessions

MONTPELIER — Republican Gov. Phil Scott heaped praise on a budget plan crafted by House Democrats Wednesday, noting they followed his directive to forego raising taxes and fees. Still, the governor said he is hoping the House budget plan will still be amended Thursday and Friday as the full House debates the proposal to incorporate more of his ideas. “I mean this sincerely — I think they’ve done a lot of work and I appreciate their efforts. They could have gone in a different direction. They could have tried to raise taxes and fees and continued down this path that we’ve been going for the last decade or so, but they didn’t. Continue Reading →

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House Appropriations sends state budget to the floor

MONTPELIER — The House Appropriations Committee gave unanimous approval Monday to a state budget plan that closes a $72 million projected gap between revenue and expenses without raising taxes and fees, a demand from Republican Gov. Phil Scott that has loomed over the Democratic majority for months. Overall, the Appropriations Committee, chaired by Rep. Kitty Toll, D-Danville, opted to cut general fund spending by about $67 million. Another $5 million in revenue is expected to be generated through enhanced compliance of existing taxes. The plan was approved by the committee on a 11 to 0 vote Monday afternoon, and won the support of four Republican members. The House’s 2018 fiscal year spending plan does not raise taxes or fees, as Scott demanded. Continue Reading →

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