Rep. GeorgeTill@gmail.com

Teacher’s Retirement, investing in our future

There is a keen awareness that the strengths of our communities are vastly dependent on the quality of our schools. Our teachers are an integral part of the direction in which our youth are heading. They are competing globally.   With collaboration between the administration, NEA and the legislature, teacher’s retirement was under keen scrutiny for savings with teachers’ interests in mind.  The bill will result in savings to the state General Fund in FYI 2011, more than that in each successive year, and an additional $85 million in taxpayer savings over the next three decades regarding health benefits for retired teachers. 

At the same time, the benefit structure of the system is enhanced.  Teachers will be able to accrue as much as 60% of their average final compensation rather than the current 50 % limit.  Teachers will be able, with extra teaching years, to retire with a health benefit for their spouses as well as for themselves, rather than a benefit just for themselves. There are several policies in play here.  First, there is no intrusion into the benefits of current retirees.  Secondly, the basic structure of the system remains a defined benefit pension and not a defined contribution system.   Thirdly, the Education Fund is left without any additional burden.  Fourth, there is a recommendation in the bill that the state meets its annual obligation to this system on an ongoing basis.  It does this without any imposition on the property tax payer.

Protecting Home Ownership

Like the rest of the country, Vermont has seen massive increases in the rate of home foreclosure during this recession.  While this is a natural symptom of the recession, it is not one that we have to accept.

Federal law requires that lenders consider modification of the terms of principal residence home mortgages when the borrowers are 60 days behind in their payments.  When the federal law is followed, more than half the homeowners going into foreclosure are able to remain in their homes.  Based on 2009 foreclosure filings, this would allow as many as 1,000 families to remain in their homes.

The foreclosure mediation bill (H-590) requires banks to set up mediation with those homeowners with whom they intend to file foreclosure.  Mediations will be conducted by Vermont attorneys who have been trained in foreclosure prevention and loss mitigation by the Vermont Bar Association.  Mediators will make sure that a variety of home foreclosure prevention tools are explored including application of the federal Home Affordable Modification Program (HAMP).

One of the biggest challenges to avoiding foreclosure is getting homeowners to answer the complaint and appear in court.  We heard that as many as 80 or 90% of foreclosure defendants fail to appear and lose their houses to the bank by default.  If you know anyone facing foreclosure please urge them to file an answer (show up in court) and request mediation with their lender; H-590 may allow them to keep their homes.

FIGHTING HUMAN TRAFFICKING

Trafficking is an epidemic of global proportions.  Experts estimate that there are more than 27 million people currently enslaved across the world.  As a border state positioned on heavily traveled interstate roads, we can be certain that human trafficking is happening within the borders of Vermont.  We are only one of five states that lack a human trafficking law. Due to the complicated nature of this crime and its consequences for victims, we need to address the issue carefully and thoughtfully.  We are intentionally choosing to begin with a task force and law enforcement study so that we can be sure that whatever laws we eventually pass are the right laws for our state.  We know that our laws are only as good as our ability to enforce them.  The issue is pervasive.   We need to lay the groundwork before we force any training onto local enforcement and before we pass laws that we are not prepared to enforce.  The best interest of Vermonters and their safety are tantamount.

Big trucks on the interstate

This bill passed quickly through both bodies and was signed by the governor within the first weeks of this session. Senate bill 93 is a one-year federal pilot program that allows large trucks to carry up to 90,000 pounds on Vermont’s interstate highways.  Previously, trucks were limited to 80,000 pounds on the highways and therefore those with heavier loads traveled on state roads, often through the center of our small towns.  The increase in weight will allow truckers to carry bigger loads and thus make fewer trips. And it will make our small towns safer by keeping the most heavily loaded trucks out of town centers. It also keeps the town roads in better shape. It is a win- win situation for Vermont. We hope the pilot will continue into permanent law.

Protecting bicycles riders

Vermont is well known for its wonderful landscapes and outdoor recreational opportunities but fell in national ranking for bicycle tourism because we didn’t have a law like this. This bill spells out some safety rules for bicycle riders and explains about passing animals using caution. The Senate passed a similar bill last year, but we did not have time for both houses to give it due consideration.  The bill is purely educational but will add tourism dollars to our state, as our beautiful landscape can now be enjoyed by more riders in a safer manner.  

Vermont’s Transportation Program

This is the largest transportation bill in many years because of federal stimulus money, with a total budget of $595,000.   It will create many local jobs and improve our roads and bridges for residents and visitors.  We have provided extra money for our towns to repair municipal roads and bridges as well as the state and federal roads and structures.

We received a large federal grant for high speed rail and will be working toward getting our rail system on the western corridor lengthened for passenger rail. One of the upgrades on the west is a portion of rail from Whitehall NY to Rutland, to finally increase train speed through this section and add a new rail station for Castleton College. The station in Rutland is getting better signage and sprucing up by the local community.

Unified Approach to State Law Enforcement

The state is at a crossroad; increasing demands on law enforcement and the inability to increase policing budgets force the state to choose between either keeping pace with the demands of, or not providing, policing services that citizens are accustomed to receiving.   It became apparent while studying the issue that there needed to be coordination and consolidation of police services to maximize resources and streamline deployment more effectively. A memorandum of understanding was signed by the commissioners of public safety, motor vehicles, liquor control and fish and wildlife in January.  The MOU recognizes the need to maximize collective resources by improving efficiencies, reducing redundancies and implementing better coordination, communication and strategic planning. 

To protect Vermonters, there should be a unified approach to all law enforcement in Vermont.   The core mission of the individual agencies will be maintained.  A Vermont Task Force will be created to facilitate collaboration in day-to-day operations among the agencies by streamlining information involving various levels of statewide law enforcement.  The legislature codified the MOU into state law to ensure that long-term benefits would continue.

Moving the Primary Election date

Vermont received notice earlier this year that we were not in compliance with the federal election laws.  Federal law requires that states send out absentee ballots 45 days before an election to overseas voters.  Because we have a number of Vermont Guard soldiers serving overseas, the Primary date was changed to protect our soldiers’ ability to exercise their right to vote.  They are fighting for our freedom; we should protect their ability to participate in our democracy. With our largest deployment of soldiers since World War II the legislature felt it appropriate to move the primary election to the 4^th Tuesday in August.  This extra time will allow for receiving ballots from overseas in a timely manner so they are more likely to be counted.  With the increased use of absentee ballot, those voters who are away or on vacation at the end of August can still cast their vote absentee.  This bill is cost-neutral and definitely helps our overseas voters.    

Environmental interest, fishing and hunting

Caring for Our Lakes, Rivers, and Streams

This year, the legislature passed a combination bill designed to protect one of the state’s most important capital assets: our waterways.  This bill addresses pollution control measures for Lake Champlain and the other waters of the state. The problem is phosphorus which finds its way into our lakes and streams from runoff across our increasingly developed lands and from agricultural runoff.  High phosphorus feeds toxic algae blooms which earned Lake Champlain a place in the NY Times book, Don’t Go There.  Over the past 7 years, we have spent over $100 million to clean up Lake Champlain. Although we are no longer going backward, we are not really going forward either. 

This past summer, the Clean and Clear program held meetings with stakeholders to identify the next steps needed to clean up Lake Champlain.  Some of these steps were identified in this bill, including such simple things as keeping livestock out of streams, tightening rules for altering streams, maximizing funds for farms to implement conservation practices, and requiring the Better Back Roads program to develop better standards that affect problematic erosion and runoff. 

The second part of this bill addresses the increasingly expensive, taxpayer-funded, after-the-fact clean up of our rivers and streams due to erosion, runoff and resulting flood hazards.  One of the least expensive and most effective ways of managing this damage is to respect the natural flow of water and the lands around it.  The science around this has been demonstrated over and over and is good for fish, wildlife, our receiving lakes, and surrounding vital floodplain. This bill provides incentives to encourage municipalities to establish bylaws to protect our river corridors. 

Protecting clean water

The House passed two bills that were ultimately combined to protect one of the State’s most important capital asset, our waters.  One of these was H.509-An Act relating to pollution control measures for Lake Champlain and the other waters of the state.  A court case involving the State of Vermont, the EPA and the Conservation Law Foundation (CLF) has created considerable confusion about the future of the Total Maximum Daily Load (TMDL). Currently, the EPA has taken actions that could lead to the TMDL being sent back to Vermont to be reworked.  Since the Clean and Clear program and the Department of Environmental Conservation (DEC) have been operating under the current TMDL since its inception in 2002, over $100 Million has been spent and numerous rules and regulations have been enacted that affect much of Vermont.  Since it took over eight years to create that TMDL, going back to the starting point could leave all that has been done in legal limbo for years.   In the Senate this bill was combined with H.763, an act relating to riparian buffers.

River Corridors (or part two of protecting clean water)

H. 763 an act relating to river corridors, is a committee bill which emerged from H.323, an act related to riparian buffers.  H. 763 enables towns to prevent pollution and increasingly expensive, taxpayer funded, after-the-fact clean up of Vermont’s rivers, lakes and streams due to runoff and flood hazards.  One of the least expensive and most effective ways of managing this damage is to respect the natural flow of water and the lands around them.  The science around this has been demonstrated over and over.  H.763 is an “enabling act” that allows and encourages municipalities to establish buffer zones along its waters.  There are no buffer mandates in H. 763.  The combined bill was passed as H.763 on March 4th, 2010.

Protecting traditional Vermont sports

The House originated three bills that are designed to encourage fishing and hunting.  One of these was H.477, an act reauthorizing reciprocal fishing licenses on Lake Champlain.  In theory, without reciprocal fishing an angler would have to have a license from both New York and Vermont or know where the border was in the middle of the lake and only fish in one state.  This was, of course, ridiculous and the reciprocal fishing law allows New York licenses the fish in Vermont and vice versa.  This bill was signed into law by the Governor on January 19th, 2010. 

We realize how important hunting is to the State’s economy and the problem of the declining number of hunters. H. 243, an act related to mentored hunting, was passed on April 30th, 2010.   Designed to give prospective hunters an opportunity to try hunting before making the investment needed in equipment and hunter safety course, this act allows a licensed hunter to accompany a mentee on a hunt.  A great deal of responsibility is put on the mentor and considerable concern was voiced about safety.  However, the experience of other states was that no serious safety issues had arisen. Moreover, such legislation had increased the number of hunters creating more revenue.

Also an effort to increase the number of young hunters, H. 555 provides for a youth hunting weekend for deer and turkey.  This bill was designed to give younger hunters a “first shot” at the available game in order to encourage them to continue to enjoy the sport.  It passed on May 3rd, 2010.

Other misc. bills of interest to wildlife enthusiasts, hunters and farmers

H.614 will make it easier for farmers to use composting as an income stream, and will also help reduce the solid waste stream.  It does this while maintaining the regulatory process for large commercial composters while making it easier for small farmers to navigate this procedure. 

H. 488 bans felt-soled waders as of April 1, 2011, with an exception made for emergency personnel.   

H. 779 makes the land records process more transparent by including “well shadows” information.  Now notice is required if the location of a well or wastewater facilities will have an impact on a neighboring parcel and all permits must be filed in the town clerk’s office.  This bill was amended to allow outdoor picnic tables at small stores without adding septic capacity, for a six-month period.

Corrections changes

The Legislature looked at all areas of the state budget to identify potential savings while investing in the future and protecting our communities. There were several Corrections policy changes that passed this session hold offenders accountable while also creating opportunities for them to be productive members of society when they return home. We can prevent crime and reduce the rate of re-incarceration by ensuring that all offenders receive support and supervision when re-entering our communities. If we can reduce the number of incarcerated offenders in the state, we can reduce the number of prisoners that we pay to house out of state and thereby save money. But we will always work to ensure that communities are protected from violent offenders. The crime rate in Vermont is low and we want it to be lower.

The legislature has made some changes to corrections policies in order to make more effective use of resources in achieving our goals. Nonviolent offenders who have completed required programming for rehabilitation may be released from incarceration earlier when appropriate. The commissioner will request that some offenders who have succeeded on probation will be released from supervision by the judiciary. This will make room in the caseload of probation officers to assist the other offenders who are re-entering the community. At the discretion of law enforcement and the judiciary, nonviolent offenders will be diverted from prison to community justice centers and reparative boards, or to drug treatment. Individuals who have been arrested and charged, but not convicted, and for whom bail has been set, may be released on home detention or other form of electronic monitoring should they be unable to post bail. The commissioner of corrections has been given greater flexibility in sanctioning technical violations by those on probation with consequences other than a return to incarceration.

We have provided for investments in community justice centers and other community services and facilities to create the capacity to support and supervise offenders. Significant investments in substance abuse treatment and in housing for re-entering offenders and for public inebriates who are often housed in corrections will also be undertaken. In making such investments the Department of Corrections will take into consideration the need for services in communities with significant populations of offenders under supervision.  (348 words)

The Capital Bill

The capital bill invests the state’s bonded dollars in state and municipal infrastructure. This year the $71 million to be invested will create jobs while improving government functions and facilitating future economic development. This legislation allocates funds to the construction or renovation of state buildings and parks, municipal water supply and wastewater treatment projects, rural fire protection, fish hatcheries, and environmental protection projects.

This year we will complete the construction of the new forensics lab in Waterbury and the Bennington state office complex will be renovated and rebuilt with a geothermal system for heating and cooling. Planning for a new state health lab in Colchester will move forward. Other major maintenance projects will be undertaken at state buildings and parks throughout the state.

This year we allocated funding to the Vermont Housing and Conservation Board for affordable and supportive housing projects. And the legislature continues to provide grants which enable municipalities and non-profit organizations to make investments in community infrastructure to support education, recreation, and cultural activities. And we will provide funding for the Vermont Telecommunications Authority to continue to extend high speed internet service throughout the state.

In terms of school construction, funding is provided for emergency school projects or school consolidation. We continue to pay down the backlog of prior commitments to past school construction projects, but the moratorium on state support for new school construction continues. The legislature rejected the governor’s recommendation to shift the burden of this cost onto the education fund and the town property tax.

Unemployment Insurance (the policy)

We have known since January, 2009 that our Unemployment Insurance Trust Fund would run out of money by early in 2010. We have been working since then to find a workable solution.

The primary cause of the imbalance is that the premiums paid by employers has not changed since 1983, while our benefits to unemployed workers has slowly risen along with our average wage. In good times with low unemployment, this was not a problem, but when the current recession hit with full force, the fund was rapidly depleted.

Business interests said they could not afford to pay the full cost of bringing the fund back, and labor interests said that it is unfair to ask laid-off workers to suffer cuts to benefits that scarcely cover basic needs. Unable to agree in 2009, we made a slight upward adjustment to the “taxable wage base” on which premiums are paid, moving from $8,000 to $10,000. This helped to stanch the bleeding, but it was only a temporary relief.

This winter, after long negotiations between competing interests, a compromise was reluctantly agreed to by all sides. The deal called for some reductions in benefits (a one-week waiting period, some exclusions for serious misconduct, some recalculations of eligibility and duration of benefits), though the greater burden will be carried by employers. We raised the taxable wage base to $13,000 in 2011 and to $16,000 in 2012.

Many measures in the compromise will be favorably adjusted when the trust fund regains solvency and full adequacy, but we will not get there for at least five years.  

Unemployment Insurance (the facts in detail)

After much negotiation, the administration and the legislature came to an agreement on unemployment insurance (UI).  If we had done nothing, Vermont would have continued to borrow about $4 million dollars every week from the federal government to meet our unemployment insurance benefits obligation.  In eight years, we’d have borrowed $312 million and spent $103 million in interest.  An additional piece of good news is that Vermont’s unemployment rate is currently down to 6.5% and is projected to continue to decline further.

The problem was this: during the last major effort to reform UI in 1983, Vermont chose to index the benefits but not the taxable wage base.  So, for the past 27 years, benefits have grown but the money going into the trust fund hasn’t.  This imbalance was exacerbated by the deep recession we are still in.  As a result, in February, Vermont’s UI Trust Fund ran out of money.  We needed a long term solution for Vermont’s unemployment insurance. 

Workers in Vermont go back to work faster than they do in any other state in the country.  The average time a Vermonter uses UI is 14 weeks.  Unemployment replaces less than 60% of employee’s regular wages – a significant reduction in income – and often the employee has lost health benefits as well.  The maximum weekly benefit in Vermont is $425, but the average weekly benefit is $312.  Until last year, employers were still being taxed on a wage base of only $8,000 dollars – set in 1983 and designed to be about ½ the average Vermont wage.  Here are some highlights of the legislation:

Supporting Our National Guard

We, as legislators, commend the 1,500 Vermonters from across the Green Mountain State deployed in Afghanistan and have made 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 and communities.  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.

Caring for Vermonters

The legislature worked very hard to protect and improve services for Vermonters, especially children, seniors and Vermonters with disabilities who need some help to live safely and with dignity.

Every child should have a stable, permanent home. We passed legislation that will help children who come into the foster care system find permanent homes with a grandparent or other relative. H. 507 will allow federal funding to be used to provide financial support for a child when a member of the extended family takes permanent guardianship of that child.

All our children should have enough good, nutritious food to fuel their growth and their learning. H. 408 encourages after-school programs and school-operated summer educational or recreational programs to make use of available federal funds to provide nutritious snacks or meals to participants.

It is the state’s responsibility to ensure that vulnerable adults—those who are elderly or have a disability—are free from abuse, neglect and exploitation. The Adult Protective Services (APS) Unit in the Department of Disabilities, Aging, and Independent Living receives and investigates complaints of abuse, neglect, or exploitation of vulnerable adults. Legislation calls for an independent evaluation of the Adult Protective Services Unit if funding becomes available to do that. The purpose of this is to ensure that we maximize the effectiveness of our protective services.

In Vermont’s cold winters, no one should be unable to heat their home because they can’t afford fuel. The legislature passed a bill, H. 456, updating our seasonal fuel assistance and crisis fuel assistance program eligibility. This program provides needy Vermonters with assistance for purchasing essential home heating fuel. The new law raises the maximum eligible household income so that more people will be eligible for assistance.

Protecting Vermonters from toxic chemicals

The legislature has banned the manufacture, sale or distribution of several types of products containing Bisphenol A (BPA). BPA is a chemical used in manufacturing various hard plastics.  Even low-dose exposure to BPA has been linked to delayed development, breast cancer, prostate cancer, and various other health issues. Young children, infants and fetuses are particularly susceptible to toxic damage. Beginning July 1, 2012, infant formula or baby food stored in a plastic container, jar, or can that contains BPA may not be sold in Vermont. Infant formula or baby food stored in a can that contains BPA may not be sold here starting in July 2014. Food or beverage containers intended for reuse such as baby bottles, sippy cups, and water bottles that contain BPA are prohibited in July 2012. Many stores already have stopped selling some of these items because safer alternatives are available.

Education

The house passed four education bills that focus on educational quality and safety. They will strengthen our communities now and in the future: Independent colleges will develop harassment policies (H.648), schools will have greater access to funds for nutritional programs (H.408), a PreK-16 council was charged with increasing college aspirations and completion rates (H.709), and separation agreements with former employees would no longer be permitted to hide conduct that could jeopardize the safety of a minor or vulnerable adult (H.730). In addition, children with learning disabilities will be able to participate in graduation activities with their peers without losing access to continued educational opportunities and school districts that decide to create a more efficient structure for their communities can merge voluntarily (H.66). Voluntary school district merger language was incorporated into H.66. The bill permits districts who find it is in their collective interest to merge to receive incentives and technical assistance to facilitate merger. It leaves decisions in the hands of the district, removes barriers to merger, and allows districts to design for efficiencies.

The education section of Challenges for Change (H792) maintains local control for our schools and prohibits a one size fits all decision.  Our schools have responded in the past and we have confidence that they will make the best decisions for their communities in these difficult times. They chose the efficiencies that are the best for them.

Invest in future

• a PK-16 council was charged with increasing college aspirations and completion rates(H709
• Voluntary merger option for school districts that decide to create a more efficient structure for their communities

strengthening communities

• Separation agreements with former employees would no longer be permitted to hide conduct that could jeopardize the safety of a minor or vulnerable adult(H730).
• Independent o colleges will develop harassment policies (H648),
• schools will have greater access to funds for nutritional programs (H408)
• local education control maintained for quality programs
• H66 guarantees that students with learning disabilities can participate in graduation activities with their peers without losing access to continued educational opportunities

Natural Resources

In the natural resources arena, the House has taken several significant steps to protect our environment, grow local jobs, save Vermonters money, and invest in our future.

H.781, an Act Relating to Renewable Energy, makes another big investment in our clean energy future. It's a package of actions that build on last year's major success, the feed-in tariff, which allowed many small renewable energy developers to start selling their power at a fair and consistent price. This year, again without changing environmental standards, we made the process for permitting renewable energy projects more predictable and efficient. Smaller projects will be able to use a simplified permitting process, and larger projects will see a more defined permitting path. Among other provisions, H.781 also gives much-needed price stability to the pioneering farmers in the Cow Power program by allowing them the same feed-in tariff rates that we allowed last year for newer methane digesters, and it allows the Vermont Air Guard to develop a significant solar project through the simplified net metering process. Across the board, we are signaling that Vermont is open for business and that we are committed to continued investment in our energy independence.

E-waste

Vermont’s legislature acted to protect the environment from a growing scourge and help Vermonters save money: S.77, an Act Relating to the Disposal of Electronic Waste. This is a "producer responsibility" bill that addresses the fastest-growing and most hazardous portion of the waste stream. Effective next January, the bill will ban the disposal in landfills of all electronic devices, such as computers, monitors, TVs, printers, and other detritus of modern life. These products contain lead, mercury, and other hazardous substances that pose a threat to human health and the environment if improperly discarded. Consumers who currently recycle such products must pay a big fee to do so, which is a major disincentive to disposing of them responsibly. Joining some 20 other states, S. 77 requires the manufacturers of certain electronic devices to take responsibility for their disposal; they will pay a fee to the Agency of Natural Resources, according to market share, to fund free, convenient collection sites around Vermont by the year 2012.  

Clean air and wood boilers

Another major pollutant in Vermont is the smoke from the older generation of outdoor wood boilers. Unfortunately, many of the owners of these boilers depend on them for heat and can't afford to replace them. We addressed this problem through S.239, an Act Relating to Retiring Outdoor Wood Fired Boilers that do not meet the 2008 emission standard for particulate matter. Using the five-year settlement funds of $360,000 per year that Vermont received from the air pollution case against American Electric Service Corporation, we will enable Vermonters who own these older boilers to buy new heating units that meet current emissions requirements. This voluntary retirement of high-emission units will be administered by the Agency of Natural Resources.

Texting

Pretty nearly everybody agrees texting should be banned while driving. The Senate passed a bill which specifically made it illegal for any person to engage in texting while operating a moving motor vehicle on a highway. Texting is defined as "the reading or the manual composing or sending of electronic communications including text messages, instant messages, or e-mails using a portable electronic device." This does not include use of global positioning or navigation system. Penalties for texting are $100.00 for the first offense and two points on your license, and $250.00 and five points for the second offense and any subsequent offense. This ban applies to all drivers.

When the bill came to the House, additional provisions were added, to protect our young drivers. We banned the use of any portable electronic device while operating a moving vehicle on a driveway for drivers under 18.  Additionally, while wearing a safety belt is the law for everybody, now police may stop a car driven by someone under 18 if it appears the driver is not wearing a seatbelt.

Health Care: S.88

Everyone knows that the health care system needs to change. Insurance coverage is too expensive or insufficient for many, drug costs are too high, and hospital costs can bankrupt a family.  Federal health care reform will help, but… is it enough? How do we make sure Vermont’s health care system reflects our care for each other and strengthens our communities?  S.88 answers this question in two ways.

First, it moves us toward a single system of health care, by authorizing Vermont’s health care reform commission to hire one or more consultants to produce at least three such designs.  One must be a single-payer option (meaning publicly financed and government-administered), and one must be a public option (meaning that you can choose between private insurance and a government-run plan).  Every design must take into consideration federal reforms and meet a list of principles and goals that stress fairness, equitable and sustainable financing, and equal access for all.

For example, all Vermonters should have access to comprehensive, quality health care. We should be able to choose our primary care providers. The health care system should continually improve and its leaders should continually eliminate unnecessary costs. And the financing of health care must be fair, sustainable, shared equitably, and adequate to cover costs. 

But this in itself is not enough. Every developed country in the world, whether single- or multi-payer, publicly or privately run, faces unsustainable increases in costs. Therefore S.88 also furthers Vermont’s ongoing reform efforts, because improving the way health care is delivered and reducing costs are key to building strong communities.

The Blueprint for Health, at the center of our reform efforts, organizes care around the patient and his/her primary care provider, who might be a family doctor, nurse practitioner, gynecologist or someone else. These are supported by a “community health team” that might include a nurse, nutritionist, behavior specialist, or other specialist. These people together make up the patient’s “medical home” and work together, supported by electronic health records, to keep the patient healthy.  Instead of only getting paid per procedure, the participating practice also gets a per-member-per-month fee to support its work—and this model has been proven to lower costs by reducing emergency room visits and hospital admissions. S.88 furthers statewide expansion of the Blueprint.

Investing in the future, S.88 also provides for pilot projects to manage costs at a regional level. It also limits increases in hospital spending and directs a workgroup to address the shortage of primary care providers, 

Finally, it says that if the federal government does not release to the states the information it will be collecting from pharmaceutical companies about free drug samples given to physicians, then the companies must provide that same information to Vermont’s Attorney General. And, because people choose lower-calorie items when they know the calories, S.88 requires fast-food chains to post the number of calories on their menus and menu boards. This information will allow people to make healthier choices and help reduce obesity and its attendant health and cost issues.

Protecting renter’s security deposits

H.213 will bring some fairness to both landlords and tenants when it comes to repayment of security deposits and rent.  In the past, if someone was moving from one apartment to another, they would receive their security deposit from their previous landlord within a certain amount of time.  When some of the amount is withheld, and if the tenant disputes that amount, the tenant would not be able to cash the check, or use it for a security deposit for their new apartment.  This is because if they sign and cash the check, they are accepting that amount as payment in full, and if they cash it, they give up any right to pursue full payment.  H.213 allows people to cash that check and, if they have a disagreement with the landlord about the withheld amount, they will be able to seek an agreement.  From a landlord’s perspective, the same concept will apply to partial payment of rent.  If a renter only pays a portion of their rent, the landlord may cash that check and still be able to pursue the balance of the rent.  These are exceptions to the “accord and satisfaction” provisions of law.

By creating this exemption, we are allowing tenants who may move the ability to use any partial payment of their security deposit when the rest of it is disputed, while still retaining the right to seek reconciliation of their dispute.  It also gives landlords the reciprocal right with relation to the collection of partial rents.

Mobile home ownership

H.542 is an important piece of legislation with respect to ownership of mobile homes, as well as rent-to-own agreements.  This bill recognizes and addresses the reality that rules and regulations surrounding mobile homes have been notoriously confusing.  It attempts to untie some of the knots and succeeds in setting a foundation for further strengthening of UCC regulations in the future.

In a nutshell, it is sometimes difficult to track sales and rentals of mobile homes and this makes a negative impact on the renters, as well as municipalities that must track property taxes for the home.  Many homes are owned, and the pad upon which they sit is rented from a mobile home park owner.  The mobile homes themselves have, in the past, been considered real property at times and real estate at others.  Put upon this confusion the general lack of sophistication of the owners and renters and the “deals” people make for “rent to own” properties, there has been much abuse.  This bill will help provide a straight line of rentership or ownership between the buyer and seller, and will provide municipalities an easier way of tracking ownership so the collection of property taxes will be easier. 

Mobile homes remains one of our primary “affordable housing” categories. They are an important component of our housing stock and have been in a sort of legal limbo for years.  By taking care of some major aspects of this limbo, we are going a long way toward settling those communities, providing important guidance to owners and sellers and giving our municipalities tools to maintain proper records.

A Stronger Vermont Economy

Our actions will create jobs and more broadband throughout Vermont.  Namely, we wrote new policy and funded critical projects.

Our jobs bill invests almost $9 million in federal stimulus funds in broadband, workforce training, access to capital, agriculture, and many worthwhile projects.

Our new policies make business and commerce more equitable and operate more efficiently. This includes a solution for the unemployment insurance trust fund, strengthened rights for condo-owners and others in home associations, fair labor laws that ensure proper classification of employees for workers’ compensation, strengthening of the VT Seal of Quality, and support for Farm-to-Plate grants and the Buy Local movement.

Additionally, merchants will be helped by being able to decide for themselves whether to accept credit cards for purchases under $10, responding to the fact that they often lose money on small credit card transactions due to high credit card fees.  Non-profits will be strengthened by prohibiting discrimination against drivers who are volunteers.  Furthermore, we responded to concerns from Ben & Jerry’s and Vermont Businesses for Social Responsibility to create a new structure for businesses to choose to define their bottom-line-results.  This would allow them to not only maximize profits, but also make business decisions based on the greater social good through the designation of Benefit Corporations.

As our economy struggles to rebound, we have set in place many of these measures to put Vermonters back to work, strengthen our telecommunications infrastructure, and help businesses thrive in Vermont.

Challenges for Change

The legislature initiated “Challenges For Change” as an innovative approach to address the state budget crisis.  Facing the $154 million gap in the state budget and the mounting social pressures of the Great Recession requires leaderships and a willingness of all branches of government --  legislative, executive and judicial – to work together to find new ways of achieving desired goals.

The Challenges for Change bill  changes the way government spends taxpayer dollars to provide services, by establishing an outcomes-based budgeting process for government accountability. 

The Challenges process began in January when the legislature and administration agreed to work together to achieve $38 million in savings through new initiatives for delivering services. In February, the Administration presented its ideas for savings and outcomes to the Legislature, and the legislature worked to carefully review the proposals and accept statutory changes for the proposals it believed appropriately achieved the defined outcomes and could save money.

The Challenges for Change bill did not incorporate all of the governor’s proposals.  The legislature did not agree to take local control away from Vermont communities by mandating statewide school consolidation. We declined to compromise Vermont's environment by allowing for a pre-determined permitting process, nor for conditional exemptions as suggested by the administration. The legislature said no to the administration's proposal to undermine our regional planning commissions and economic development corporations, which help create Vermont jobs.

The Challenges for Change bill embraced a number of innovative proposals for change that the administration presented.  The House endorsed proposals for performance-based contracting; establishing appropriate targets for school boards; reducing nursing home beds and keeping seniors in residential cares settings; reducing health care costs and expanding the Vermont Blueprint for Health; and reducing the number of non-violent offenders in prison.  These changes amounted to some $30 million in savings without drastic cuts to services that Vermonters depend on.

In spite of a sometimes contentious process, some positive and innovative suggestions for change have emerged from a process of out-of-the-box thinking about how we invest public dollars. These ideas constitute real change; and change is not easy. The Challenges for Change process will continue into the future, and new ideas for change are encouraged from state employees as well as the public at large.

Transportation

Vermont’s road conditions rank close to the bottom in the nation. Commuters and tourist alike experience this fact each day.  The national infrastructure is poor at best, dangerous at worst.  Washington DC understands the investment in infrastructure results in better roads and the funds generated will put people to work. An investment in jobs is money well spent.  Improvements bring tourists to this state and move them around the state.

Vermont will invest almost $600 million on transportation projects in fiscal year 2011. This is the largest transportation budget in Vermont history.  A combination of funds from bonding, taxes, balance of stimulus and grants attribute to this record amount. Municipals received a much needed increase ($3.5 million increase) in paving and structures program grants. VT rail received several of the federal completive grants which will update the Vermonter rail line in mid VT.  The Western Corridor rail grant was not obtained but, the state will be reapplying in the future as opportunities open.

Bridges in Vermont continue to receive a hearty investment however; the number of bridges in need of significant work is large and growing.  We will need to be mindful of the problem(s) and be aware it will require many years of investment with strong oversight.  It is good news indeed that Vermont be able to invest in infrastructure. There is little doubt of the positive impact highway projects has on Vermont’s employment.  Happy motoring this summer!    

Miscellaneous Tax Bill

The Vermont Legislature made good on Speaker Shap Smith’s pledge not to raise any broad-based taxes.  Our state faced a 150 million dollar budget gap in January, yet the budget was balanced without any increases in sales, income or property taxes---a major accomplishment! 

Earlier this year, the Douglas administration had forecast a two-cent increase in base property tax rates.  The legislature was able to avoid the predicted tax hike, keeping property tax rates the same as the current year, and saving property tax payers 20 million dollars across the state.  And, on the income tax side, lawmakers continued their two-year plan to reduce top marginal income tax rates.

To help avoid tax hikes, lawmakers applied stricter eligibility standards to recipients of homeowner rebates.  At the same time, the House and Senate also approved a full pass-through of the federal production deduction, which should help many local businesses.   

S.295 creates an Agriculture Development Director and an Agriculture Development Board.  Vermont agriculture is the most visible industry in the state and both agriculture and forestry are major drivers of the state’s economy and tourism industry. Ninety-five percent of tourists purchase locally produced food items when visiting our state, and two-thirds of these visitors report purchasing Vermont-made products when they return home.

We talk about the “Vermont brand” which signals quality and value, and reminds consumers of the rural beauty of Vermont. Vermont’s tourism industry, worth $2 billion to the state, highly depends on our rich, visible and productive agriculture and forestry.

More and more food, dairy, livestock and value-added products are being produced all over the state. They prove that Vermont agriculture will continue to be a major economic driver for our state’s fiscal health. The work of an agriculture development director and an agriculture development board will be to recognize and coordinate the efforts of these initiatives, balancing the needs of production methods with the opportunities to market products that enhance Vermont agriculture. Their most important charge will be to develop and implement a comprehensive agricultural economic development plan for the state of Vermont. 

S. 262 Autism Insurance Reform
Autism Spectrum disorder (ASD) is a medical condition which is diagnosed by a medical doctor and will now be covered by health insurance for children who are between 18 months and 6 years of age.  The treatment plan includes "applied behavioral analysis" an intensive therapy, which is required to be supervised by a nationally board certified behavioral analyst. For many years insurance has claimed that these treatments were experimental and they denied coverage on that basis. This legislation requires all health insurance providers to offer coverage for children until they enter first grade. Studies show that for a subset of children with ASD, early intervention with intensive behavioral therapy can result in half of them being able to attend first grade indistinguishable from their peers.  Those results coupled with the fact that special education for children in Vermont with ASD is $48,000 per year as compared to non special education costs of $14,789 made a compelling case for this bill.
The Agency of Administration in collaboration with the Agency of Human Services and the Department of Education are also directed to work together to do an evaluation of the payment structures for school aged children with ASD and report back to the legislature.  The effective date for the insurance coverage is July 1, 2011 if all provisions of the bill are met.  
 
This will impact the quality of life for children and their families who live with the challenges of ASD every day.  It gives hope that they will get on a path to becoming productive, happy individuals who are independent.  At the same time the savings to the state with be significant over time by decreasing the demand on special education.

Judicial Restructuring:  Access to Justice and Savings Achieved

Last year, we informed the Judiciary that it would need to deliver $1 million in savings in the FY 11 budget.  This year we delivered those savings together with a “unified judiciary” that has been in the works for 36 years.

In 1974 the Vermont Constitution was amended to provide the Supreme Court with management of all the state’s courts.  Statutory amendments creating a truly unified judiciary system passed the House in 1977.  Senate inaction, however, left the Supreme Court with a fragmented rather than a unified judiciary.

Our judicial restructuring bill consolidates the existing Family, district, superior, environmental and probate courts in to a single Unified Superior Court with family, criminal, civil, environmental and probate divisions.  We have statutorily required that courts will continue to operate in all 14 of our counties.  And we consolidate all court staff as state employees under the management of the court administrator.

This important government efficiency measure saves $1 million in the general fund AND an additional $1.2 million in property taxes (through county budget savings); it allows the court to “buy-back” most (but not all) of the existing court closures.  Most importantly, it gives the Supreme Court the tools it needs to manage the entire judicial system efficiently.

The Budget

For three years now, the global recession has affected Vermont families, businesses and the state budget.  The FY 2011 budget required difficult choices to resolve a $154 million gap between revenues and expenditures, while caring for each other, investing in the future and strengthening our communities. Through hard work and compromise we are positioning our state for a solid economic recovery. 

The budget gap results from: $20 million in declining Federal Stimulus revenues, $70 million of growth in Medicaid and health care costs, $25 million in retirement expense pressures, in part due to loss of investment revenues in those retirement funds, $39 million of pressures in state government, and $17 million in other factors.  We were able to work through these difficulties, as well as the legislature’s differences with the Governor, to agree on a responsible, balanced budget.

The 2011 state budget makes investments to preserve the health, well being and dignity of Vermonters.  We restored the Administration’s proposed cuts to home-based services that are critical to keeping elderly Vermonters and people with disabilities in their homes. By sustaining Vermont’s Senior Companion program, Housing and Supportive Services grants, Foster Grandparent program, and the Neighbor to Neighbor program, our neighbors can continue to live with dignity in their communities and avoid the extraordinary cost of nursing home care.   Our restoration of flexible family funding, attendant services and targeted case management means that parents of children with disabilities can maintain employment, knowing their children are in good care.

Many Vermonters are sharing the burden of budget reductions.  State employees and legislators accepted a pay cut for 2 years.  Teachers made changes to their retirement saving Vermont $15 million.  Participants in Catamount Health will pay higher deductibles.  Grants throughout state government will see reductions. 

In order to improve Vermont’s financial stability, the FY2011 budget invested in tax policy to promote business investment, as well as positions that encourage business growth, collect owed taxes, and save significant funds by improving Medicaid integrity.

The FY2011 budget demonstrates responsible choices for Vermont’s fiscal future by reducing the 2012 deficit from $250 million to $122 million.  We saved $17 million in retirement costs for teachers and state employees for this year, and each year going forward.  We provided a portion of funding to replace the expensive and inadequate Vermont State Hospital.  We began a new budgeting process in Challenges for Change that reduces costs by $38 million, and more in the future, while improving government effectiveness and outcomes.  This is a budget that reflects our means as well as Vermont’s community values. 

Thank you for the opportunity to represent you in the Vermont Legislature.

George Till

Rep.georgetill@gmail.com