IN JAN. 16’s FINAL READING…
Budget concerns loom as revenue is up but workforce is down, Vermonters get a reminder that the state has more to do on racial inclusivity and Gov. Phil Scott says he thinks the Senate will handle impeachment impartially.Â
THE TOP TAKE
A very uncomfortable “fiscal crunch” is in the works for state capital spending. So says Sen. Joe Benning, R-Caledonia, chair of the Senate Institutions Committee, which oversees spending on state infrastructure projects.Â
“For anyone who comes into the committee seeking funds, we’re waving a red flag warning,” Benning said. He expects that the next two-year capital bill, covering the fiscal years 2022-23, will be about $20 million smaller than the current bill’s $124 million.
That’s almost a 20 percent cut, at a time when major new expenditures may be needed for the Department of Corrections and the mental health system. There are also calls for a new state housing bond and restoration of state aid for public school capital projects, which used to be a significant part of the capital bill. And available funds could actually decrease.
State Treasurer Beth Pearce isn’t ready to put an official number on the next capital bill, but she has warned that money will be tight. “We do see pressure to reduce bond spending in the next biennium,” she said. A formal recommendation will come this fall from the state’s Capital Debt Affordability Advisory Committee, whose advice is usually followed by the Legislature.
The committee’s 2019 report recommended no change in the existing capital bill, but warned that the state’s issuance of new bonds will exceed its retirement rate for old bonds through at least the year 2025 — which means that Vermont’s total indebtedness will rise, even if the capital budget remains flat.
Two of the nation’s three major bond rating agencies have downgraded Vermont’s rating within the past 15 months. The major factors: aging demographics, a flat economy and a shrinking workforce. Those downgrades weigh heavily on the minds of Pearce, Benning and others responsible for the state’s finances. Every downgrade increases the cost of borrowing, and every new bond issue heightens the risk of further downgrades.
“I hope this will change by the time we get [to the next capital bill],” Benning said. But neither he nor Pearce are proponents of hope-based budgeting. – John Walters
WHAT YOU NEED TO KNOW
— Sen. Michael Sirotkin, D-Chittenden, is being tight-lipped about what a minimum wage deal may look like when lawmakers enter conference committee to hash out the details early next week. He did say the deal will likely be centered on a two-year wage increase period.Â
“I’m looking to achieve a bill that can become law,” Sirotkin said, “either with the governor’s signature or if necessary through a veto override.” – Grace Elletson
— The Senate Natural Resources and Energy Committee took testimony on a plan to create an “all-fuels” efficiency program to better coordinate the state’s heating, electrical and transportation efficiency efforts.
Patty Richards, general manager of Washington Electric Co-op, said she thinks weatherization should be prioritized. “It doesn’t make sense to throw in cold climate heat pumps into a house that’s basically got its windows wide open,” she said. – Elizabeth Gribkoff
— A new report to the Legislature on sexual assault in Vermont’s National Guard says there are “positive indicators” that show leaders are creating a climate where more feel comfortable coming forward. However, the report does not include statistical indicators proving the point.
It does point to a variety of initiatives and programs the Guard created in an attempt to rectify past problems, like hosting discussions about gender equity inspired by Sheryl Sandberg’s “Lean In” and the creation of an anonymous reporting platform for assault survivors. – Grace Elletson
— Sen. Phillip Baruth, D/P-Chittenden, held a press conference Thursday to promote his latest gun control proposal, which would require guns be locked in a safe when not in use and restrict Vermont’s open carry laws so that semi-automatic weapons cannot be carried in certain public areas.
Both measures would likely be vetoed by Gov. Phil Scott if they make it that far. But Baruth said he’s not resigned to that fate. “We can hope that we can move a bill that triggers his conscience to reexamine,” he said. – Grace Elletson
— Rep. Mari Cordes, D-Lincoln, spent part of the Christmas season in a refugee camp on the U.S.-Mexico border. Cordes, a registered nurse, provided volunteer medical support for people seeking asylum in the U.S.
Conditions in the camp are primitive, she said, with refugees living in tents with minimal supplies of food, water and sanitation. Cordes has previously volunteered in disaster zones and refugee camps in the U.S., Haiti, Africa and Europe. – John Walters
— Jack Thurston from NBC 10 Boston tweeted about a white supremacist hate group sticker on a signpost outside the Statehouse Thursday. He said he peeled it off, but wouldn’t say which group it belonged to in an effort to not draw attention to the organization. – Grace Elletson
— Director of Racial Equity Xusana Davis says Vermont has a long way to go in addressing racial inequity. A report updating lawmakers on her work begins with a wake-up call for those who may be unenlightened to Vermont’s inclusivity challenges.
Davis wrote that “too many Vermonters see racial equity as a project that does not impact their lives,” adding, “It is of critical importance that Vermonters of dominant groups recognize that equity — in this case, racial equity — benefits the whole.” – Grace Elletson
REPORTER’S NOTEBOOK
Gov. Phil Scott met with lawmakers for a E-Board meeting Thursday where the state’s budget projections were discussed. But he also shared some interesting views about the upcoming Senate impeachment hearings.Â
Grace Elletson spoke with VTDigger’s Xander Landen to hear more about Scott’s views on the hearing.
GE: What did Scott say today?Â
XL: Back in October he said he was supportive of the impeachment inquiry and became one of the first, if not the first, prominent Republicans to back the impeachment inquiry. But when I asked Scott about it today the governor said he has faith in the Senate to conduct a fair trial.
GE: What did you make of that?Â
XL: Reporters were very interested in getting his opinion on this today, because the governor has consistently distanced himself from Trump since he took office. Now, instead of going against the grain of his party, he’s taking the GOP position on impeachment.Â
