IN MAY 22’S FINAL READING:
— Senate Econ lawmakers took a first dive into Gov. Phil Scott’s $400 million recovery package for Vermont businesses. Former Barre Mayor Thom Lauzon, one of Scott’s advisors on the plan, made clear that this program alone won’t solve Vermont’s business woes.
“$400 million in my opinion — this is not the opinion of the administration,” Lauzon said. “$400 million won’t do it. It’s going to take more. It’s going to take upwards, looking at my back of the napkin calculations by sector, $600 to $750 million to really see businesses through this crisis.”
Committee chair Sen. Michael Sirotkin, D-Chittenden, questioned whether the package would have guardrails to keep businesses that don’t plan to reopen from collecting grant money, or if there would be limits for businesses that weren’t financially viable before the pandemic.
Lauzon said there could be a vetting process instituted to ensure that money goes to the right businesses. – Grace Elletson
— Business owners also told House Commerce, which also began parsing through Scott’s package today, that they welcomed the relief from this plan, but that they need it quickly.
“We’re in a sheer state of panic,” said Jed Davis, who owns Farmhouse Tap and Grill and other restaurants. He said businesses have been hesitant to take on Payroll Protection Program loans from the federal government because they’re afraid they won’t be forgivable.
“I know that we want to see the other side of this,” Sue Bette, owner of BlueBird Barbeque in Burlington, told House Commerce lawmakers. “But without help, and without really fast help, we’re going to start losing industry colleagues quickly.” – Grace Elletson
— Helen Scott, a UVM English professor, told Senate Education lawmakers that “The University of Vermont is a deeply unequal institution,” during her testimony during hearings on the university’s financial health.
“Top administrators make high six figure salaries while many staff make below a liveable wage,” Scott said. She argued that the cuts UVM are proposing are primarily burdened on to its most vulnerable community members — lecturers with low salaries and students who lose out on cut classes.
Other professors provided similar critiques. Felicia Kornbluh, a history professor at UVM, requested that lawmakers undertake a similar financial analysis of the university’s books, like the one being pursued with the Vermont State Colleges, before the university’s board can make cuts. – Grace Elletson
— Senate Finance ran into another roadblock with the federal CARES Act guidelines governing how states can use the relief money. The committee had hoped that money from Vermont’s $1.25 billion pot could be used to issue direct payments to Vermonters who are struggling to pay their property taxes.
Mark Perrault with the Joint Fiscal Office told lawmakers that one line of the guidelines says that the CARES money could be used to give emergency economic assistance to Vermonters who are struggling to pay their bills, which could include property taxes.
“Although that sounds promising, further down on the same page,” Perrault said, “the answer is ‘fund payments may not be used for government revenue replacement, including the provision of assistance to meet tax obligations.’”
In the coming weeks, Committee Chair Sen. Anne Cummings, D-Washington, said lawmakers will need to brainstorm alternative solutions for revenue, because there are only two other options the state can take to crawl out of the deficits it’s facing: chop budgets or go into debt. – Grace Elletson
— Rep. Randall Szott, D-Barnard, will not be running this fall to reclaim his Windsor 4-1 district seat. Szott, who is serving his first term in the House, announced the decision in a listserv to his constituents, according to the Valley News.
Szott sparked controversy in February when he voted against overturning the governor’s veto on a paid leave plan. The veto override failed by one vote. He referenced this clash in his statement to constituents.
“I think Vermonters are better served by representatives committed to the common good, rather than to what advances the interest of their parties or their own political ambitions,” he wrote in the statement.
“I know the importance of being a team player in politics, but I also know that people see the importance of independent thinking.” – Grace Elletson
