Dear Subscriber First Name,

Housing Bill (S.100)

S.100, the HOME bill, was a major focus of our work in the Economic Development, Housing and General Affairs Committee this year. Our statewide housing crisis is part of a national crisis with multiple causes. We heard testimony from home builders large and small, major employers, frustrated homeowners and renters, homeowners who didn’t want to sell because they didn’t have a good place to move to, town officials and planners, and people experiencing homelessness.

We started with a draft bill from a summer committee with the goal of being both comprehensive and strategic. We made very specific amendments to Town zoning regulations, targeting regulations that have stifled housing development in existing neighborhoods for years.

The two major changes we made to municipal zoning were:

• Required that Towns allow duplexes wherever single-family homes are permitted year-round (to distinguish summer camp areas). Allowing duplexes is a form of “gentle infill,” a term to describe adding housing to an existing developed area in a way that isn’t disturbing ornegative to the neighborhood. The State of Maine is also experiencing a housing crisis; they implemented just this single change and believe that it will have a significant impact on the housing crisis. What I especially like about it, in addition to the logic of gentle infill, is that it gives the homeowner options to get more value out of their property without having to sell their home. They can add a unit for rental income or a unit where an elderly parent or adult children could live.

• Limited the number of parking spaces that a Town may require of a new or renovated multi-family building to 1.5 spaces per unit (rounded). The developer or property owner is free to provide more than this number—but the Town can not require more. This regulation will free up properties in older downtowns that have not been able to be renovated because the number of parking spaces currently required would not fit on the lot.

The budget funds numerous shelter, transitional and permanent housing programs, including increases to Vermont Housing and Conservation Board programs, an expanded and updated First Generation Homeowner Program, and the Vermont Housing Improvement Program (VHIP) which is a grant and loan program to bring private apartments up to code. The VHIP program is exceptionally cost-effective, and 111 units in our region were brought on-line between March of 2020 and December of 2022 at an average cost to the State of $27,853 per unit. The benefit to the community in addition to the newly-available unit, is that these units are in existing downtowns and neighborhoods and preserve the character of the area, which should increase the value of neighboring properties.

We made temporary changes to Act 250, allowing developers to build 25 units (versus 10) in designated areas. They have three years to obtain a permit and then another three years to complete the development. This should provide additional housing quickly and demonstrate the impact of easing Act 250 limits in specific areas. What I heard from developers was that the appeal process for both municipal permits and Act 250 permits is the number one permitting barrier to construction of new housing, because it is unpredictable and can take more than a year to resolve. We will continue to work on Act 250. It has provided significant protections for Vermont since it was enacted 50 years ago, but it needs to reflect the conditions that have changed since then, particularly the increased ability of some Towns to manage the review process.

The Governor signed the HOME bill into law, but vetoed the budget which includes $80 million for housing. I’ll be supporting the budget when we return to Montpelier on Tuesday.

Child Care (H.217)

Another vetoed bill that made headlines and is vitally important is H.217, the annual Workers’ Compensation bill that became the Child Care bill. In the Economic Development Committee, we heard much testimony from employers and employees on how critical childcare is to the economy and how important quality care is to young children and their families. Home builders said that the lack of childcare severely impacts their workforce.

The Governor indicated that he vetoed the bill because of the payroll tax of 0.44 percent, which would be paid ¾ by the employer and ¼ by the employee. An employee making $40,000 per year would pay $44 per year and their employer would pay $132. Because the system includes both subsidies to child care workers and increased subsidies to families, parents will be able to access better care provided by caregivers who are paid a reasonable wage. 

Employers testified to our committee that a lack of affordable, quality childcare was harming their business and they would be willing to pay to support the state program. One employer said he’d calculated that he’d recover his monthly payroll cost in three days. I’ll support the override of the Governor’s veto.

State Auditor Authority (S.9)

I was disappointed that the bill returning authority to the State Auditor did not make it through the legislature in the first half of the biennium and I’ll be advocating for it in 2024. It’s fundamental to me that tax dollars be well and wisely spent and that requires a functional and active review process, at multiple levels, which must include an empowered, independently elected Auditor.

Workforce (H.484)

In the Economic Development Committee, we heard testimony that confirmed what I heard from local employers that the scarcity of workers is harming the economy. We prioritized $49 million in proposed programs for next fiscal year including forgivable loans through VSAC for public school teachers, nurses, dental hygienists and psychiatric mental health nurse practioners. We included a new 3-D program and Restorative Justice programs at the State Colleges, and funding for the trades, EMS training and numerous other programs.

Universal School Meals (H.165)

I also was proud to vote for H.165, which will provide free breakfast and lunch to all students at all schools in Vermont. This makes permanent a trial program that demonstrated in the 2022-2023 school year that it is both necessary and feasible to provide all Vermont kids with equal access to nutritious food. The “universal school meals” program is important for public health and for social equity, reducing food insecurity and the stigma that was formerly attached to selective “free and reduced lunch” programs. It also is well established science that kids who are eating enough good quality food will learn better, so this bill stands in support of our education system, too.  The costs will be offset by savings in time and administration. The Governor did not support H.165, but he did let it become law without his signature.

VT Saves (S.135)

The retirement initiative proposed by Treasurer Mike Pieciak called VT Saves and recently signed into law by the Governor was easy to support. With no recurring cost to taxpayers or businesses, the program will provide a public retirement plan for over 80,000 Vermonters who are not currently offered a plan through their employer. VT Saves requires employers who do not currently offer a retirement plan to sign up for the program, which will automatically establish a Roth IRA with payroll deductions for their employees. Employees can opt out or set their own contribution rate.

Saving for retirement can be daunting, especially if you’re just starting your career and particularly when other bills are competing for your take-home pay. That’s why an automatic-enrollment program like VT Saves will have a transformational impact. For example, employees with access to a retirement plan are fifteen times more likely to save for retirement, which will help more people have a secure retirement, benefit our economy and take pressure off our state budget. VT Saves is set to launch in 2025 and I encourage all eligible Vermonters to participate.

Veto Session Begins June 20

The Legislature is returning to Montpelier on Tuesday to consider overrides of the Governor’s vetoes. The most critical of these vetoes is the budget for next year, which begins July 1. The budget for FY24 adopted by the Legislature totals $8.45 billion, and is actually less than the adjusted FY23 budget of $8.64 billion.

As stated by the Committee of Conference,

“the budget addresses many of Vermont’s ongoing challenges as the State continues to emerge from the COVID-19 pandemic. The budget meets pension, transportation, and clean water obligations, fills all statutorily required reserves, and makes essential investments in housing, workforce, economic development, human services and the environment. In addition, the budget provides funds for child care. Total unduplicated spending in this budget is $8.45b. Compared to the FY 2023 budget as adjusted, this reflects a General Fund increase of $202.8 million and an all funds decrease of $193.9 million. This total includes $231.1 million of one-time General Funds.”

The Governor vetoed the budget largely because it increased fees, and particularly noted the fees for the Department of Motor Vehicles. Fees for driver licenses and registration are payments for services upon which the DMV relies to fund its operations and have not increased since 2016. They are normally adjusted as necessary on a three-year schedule, so we are four years behind schedule. The increase proposed is $6 for driver licenses and $15 for registration.

Legislative leadership is working on preparing a companion bill to the budget that will extend the hotel shelter program with modifications, and require the administration to make sure that people who leave the hotels are going to appropriate and safe places. I plan to support this bill.

I am truly grateful for your support and I take my responsibility to serve you very seriously. Please reach out to me with any questions or suggestions or if you’d like to set a meeting over the summer.

Thank you,