[T]he House gave preliminary approval Thursday to the capital bill. The legislation will fund $158.7 million in state infrastructure projects over the next two years.
The state pays for the capital bill by issuing bonds, usually 20 years in length.
A provision in the bill bumps up pay for workers on state construction projects. Legislators voted down an amendment that would have axed the mandated pay increase.
The so-called “prevailing wage”, puts Vermont in line with the federal Davis-Bacon Act. Federally funded projects pay construction workers at a set rate; currently the state pays a lower wage.
The cost of Capital Bill construction projects will go up from $2 million to $4 million annually as a result of the wage increase, according to the Joint Fiscal Office.
Rep. Cynthia Browning, D-Arlington, a member of the Corrections and Institutions Committee, which has jurisdiction over the capital bill, proposed a floor amendment to strike the prevailing wage section.
“This is using your credit card to give a raise to one of your employees,” Browning said.
She criticized the use of bonded money to give some workers pay raises when the Shumlin administration and the House are looking to save about $10.8 million in labor costs for state government, which could lead to layoffs of as many as 350 state employees.
The amendment prompted debate on the House floor about the impact of state jobs on economy.
“Whatever we can do to increase the wages of our citizens, we must do,” said Rep. David Sharpe, D-Bristol.
Browning’s amendment was defeated by a vote of 83 to 58.
The House capital bill represents a $2 million increase over the governor’s proposal for infrastructure spending.
The capital bill helped close the $113 million General Fund budget gap between projected tax revenues and state spending in fiscal year 2016. Rep. Alice Emmons, D-Springfield, chair of the House Corrections and Institutions Committee, estimated earlier this week that the capital bill absorbed about $18.3 million of expenses that “in the good times” are included in the budget bill.
The capital bill absorbed $2 million of investments in the Vermont Housing and Conservation Board from the general fund for FY 2016, on top of the total of $5.6 million that the governor had proposed.
The capital bill as passed by the House includes:
• $18 million for statewide major maintenance over the next two years, an increase of $1.7 million more than Gov. Peter Shumlin’s proposal.
• $19.4 million for the Agriculture and Agency of National Resources lab facility in Randolph, a $2.9 million increase over the governor’s recommendation.
• $19.1 million for the Waterbury Complex, a $1.7 million more than what the Shumlin administration proposed.
• $300,000 for state construction aid for school district consolidation, a $2.7 million decrease from the governor’s recommendation.
• $14.7 million for the expansion of an IT project in the Department of Finance.
• $8 million over the next two years (half of the governor’s recommendation) for an IT project in the Agency of Human Services that would manage eligibility for Medicaid and other benefits programs.
The capital fund draws on $3.1 million of carryover money from FY 2015, as well as $11.6 million in bond premiums. The remaining $144 million will be paid for by issuing bonds.
