Editor’s note: This commentary is by Vermont Lt. Gov. David Zuckerman, a Progressive/Democrat from Hinesburg, who is also an organic farmer.
[I]n my role as lieutenant governor I have the opportunity to travel to all corners of Vermont and to listen to Vermonters from every walk of life. I hear beautiful stories as well as massive challenges. As bills are introduced and debate progresses on so many issues in Montpelier, I am reflecting on working Vermonters and the needs of our families. We must identify tangible ways we can address the affordability challenges.
When we discuss affordability it is important to recognize that it has two parts: expenses and income. Each year the Public Assets Institute produces “The State of Working Vermont,” an informative, fact filled document that shows 10 years after the Great Recession we are seeing average Vermonters still struggling to make ends meet.
This year’s report highlights the challenges Vermont families face because our income is not keeping up with expenses. While Vermont prices for consumer goods are 1.6 percent higher than the national average, our annual wage is only 82 percent of the national average. Our median wage has increased by less than 50 percent over the last 15 years, while housing costs have nearly doubled, and child care fees have grown by almost $5,000 per year. Vermont was one of only 10 states where median income fell in 2017; if incomes had kept pace with the economy since 2007, median household income would have been almost $6,500 higher last year.
While some may see these challenges as insurmountable, I see great opportunities for us to enact legislation to address expenses, and more importantly, income. Below are a few ideas I would like us to work on.
First, enact paid family leave. Today marks the 26th anniversary of the federal Family and Medical Leave Act (FMLA), which guaranteed millions of workers access to job-protected unpaid time off to bond with a new child, recover from an illness or injury, or care for an ailing family member. Vermont can join other states and build on this success by passing paid family leave. The bill as introduced this year will provide up to 12 weeks of paid leave, and workers will receive up to 100 percent of their average weekly wage, capped at $1,067 per week. For workers earning the average income in Vermont this benefit would cost roughly 41 cents/day, much less than a cup of coffee or snack.
Second, we must raise the minimum wage. This will not only have a direct impact on hourly workers, it will infuse our local economies with additional revenue. An increase of 50 cents/hour means $1,000 more a year in a full-time worker’s income. Most of this will be quickly spent at local businesses.
Third, we must address inequity in property taxes and access to education. We can start by identifying redundancy between the Agency of Education and the Agency of Human Services in the programs they provide to schools and students. This would lower education costs and improve continuity of services and therefore outcomes. Additionally, we can ask wealthy Vermonters to pay the same income tax rate as the rest of us. This additional revenue could be used to train Vermonters for the 10,000 jobs currently open or make our state colleges free or much more affordable. This would help address the recent data from the VPR/VPBS survey indicating Vermonters ages 18-44 reported the cost of education to be one of the most financially stressful expenses they face, coming in second only to the cost of housing.
Finally, we must address the lack of affordable, quality child care available to Vermont families.According to Let’s Grow Kids Stalled at the Start report, 51 percent of Vermont infants and toddlers likely to need care don’t have access to any regulated child care program. A Building Bright Futures report found families earning the median Vermont family wage ($86,315) with two young children are spending almost 30 percent of their gross income on child care. This is why I support policy changes that make child care more affordable to more Vermont families; ensure more children have access to high-quality, affordable child care; attract and retain talented early educators; and make sure child care and early learning programs are paid fair rates for their services. These changes would support our businesses, build our tax revenue, and entice younger employees to stay in or move to Vermont.
I’m committed to building an economy that creates prosperity for everyone, not just the wealthy. That’s why I’m joining progressive legislators and advocates from across the state to fight for solutions that will build an economy where our families and communities can thrive. Together we can advance legislation that increases opportunity, embraces fairness and creates economic security for hard-working Vermonters by raising incomes, creating good jobs, and leveling the playing field. We know that we are strongest when we have policies in place that make investments in people and in our communities and create environments where businesses can thrive and expand. I hope you will join me this legislative session as we build a Vermont that brings prosperity to everyone.
