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Friday, July 5, 2013

End of Session Report

Dear Friends and Neighbors,

It continues to be an honor and a privilege to serve you. Many thanks, to those of you who have contacted me with questions, concerns and ideas. I hope to hear from more of you!

You can contact me at 802-236-6722 or email at mhuntley@leg.state.vt.us

A little text about what I am doing in the legislature.

Your Representative
Mark Huntley

Vermont’s Statewide Budget of $5 Billion
For the seventh year in a row, the Legislature began the 2014 budget process with a projected gap between estimated revenues and expenditures.  Each year, the Legislature has struggled to find the right balance between maintaining necessary services while making investments for the future.  As in previous years, the Legislature balanced the state budget and made difficult choices.

Human services and health care spending is roughly $2 billion per year, or about 40% of the statewide budget.  This includes Medicaid, Long Term Care, VHAP (Vermont Health Assistance Program), Catamount Health, 3Squares, Reach Up, and General Assistance.   This year’s budget invests $18 million state dollars in Medicaid expansion to leverage $68 million in federal dollars, helping to transition Vermonters who are on state sponsored VHAP and Catamount as well as uninsured or underinsured Vermonters to the new Vermont Health Connect.  The final budget addressed the Medicaid cost shift by increasing the long overdue provider reimbursement by 3%.  This will affect not only hospitals and doctors but also our direct care workers who serve the developmental services and choices for care populations.   

Childcare is another important part of the human services budget.  The Legislature invested an additional $4.5 million in childcare in 2014, expanding both who qualifies for childcare subsidies and raising the subsidy by 3%, a benefit to childcare providers.

For the first time, the State appropriated dollars for LIHEAP in the base budget; recognizing that what was for many, many years a federal responsibility must now be partially paid for by the state in order to keep Vermonters safe and warm. 

The Legislature invested in housing by redirecting General Assistance from crisis management to housing supports.   Along with this, the Legislature added support for Vermonters with substance abuse and mental health issues.  The funding for the new state hospital, Reach Up supports with additional substance abuse focused case workers, and the addition of a manager for the Hub and Spoke initiative are a few examples.
Education spending is 34% of the $5 billion statewide budget.  Each year, the Legislature examines closely both the quality and quantity of education spending, making sure Vermont provides the best education possible for all students while ensuring both local control and affordability.  In 2013, the Legislature improved access to free lunches for children in need; expanded access for high school juniors and seniors to take college courses; added $1.5 million in scholarships to Vermont colleges; and provided $8.4 million in education property tax relief. 

Transportation spending is 12% of the statewide budget. In fiscal year 2014, the State of Vermont will leverage $260 million in state transportation funds in order to obtain $370 million in federal transportation money, for total combined spending on the maintenance and construction of Vermont highways and bridges of $630 million.  A new tax on gasoline and diesel fuel will allow the state to maximize federal matching funds that would otherwise be left on the table.  A driver using 40 gallons per month would pay an additional $2.36/month in taxes used to fund transportation infrastructure. 

The Legislature appropriated funds to address Jobs & Economic Development in Vermont.  We’ve taken steps to both build jobs and get people back to work.  By continuing and increasing our investment in working lands, using further investment from the federal government to rebuild from Irene and supporting employers hit by that storm we are building industries and jobs of which Vermont can be proud
Genetic Engineering – Our Right o Know Labeling

According to a UVM poll, more than 90% of Vermonters are in favor of labeling foods produced using genetic engineering, and they want this labeling for health, religious, moral, economic opportunity and environmental, reasons.   On a strong vote, the Vermont House voted for this right, moving it onto the Senate for action next year. 

The State faces potential litigation from the biotech industry on 3 legal issues:  federal pre-emption; first amendment rights; and the dormant commerce clause.  The bill was carefully crafted to address possible litigation on each of these issues.  According to expert testimony, the bill as written is legally defensible and has a reasonable possibility of prevailing in court.  Should the bill pass the Senate and be signed by the Governor next year, it would go into effect 18 months later as long as two other states passed similar legislation or in two years.  At that time, Vermont would join 64 countries that already have such labeling requirements in place

Education  In Vermont 
Flexible Pathways:  With the passage of S.130, Vermont expands its “flexible pathways” program, encouraging high school completion while simultaneously allowing students to earn college credit.  This dual enrollment offers two state-funded college courses to qualified juniors or seniors offered on college or high school campuses. Work based learning, virtual or blended learning, and early college for seniors are some of the new offerings that will be guided by Personal Learning Plans (PLP’s). PLP’s will be fully implemented in 2017 for 7 -12 students.   S.130 provides an exciting opportunity to better prepare students for their adult lives with basic core competencies and adaptive skills.

Healthy students:  New laws will put three initiatives in place to improve children’s health and safety in school.  First, schools will be required to have a management plan including a clear policy and procedure for those student athletes suspected of suffering a concussion.  Second, schools will be required to have epi-pens and staff training to administer an epi-pen.  This is intended for those students who suffer an allergic reaction for the first time at school and don't carry a pen with them.  Third, to address the growing concern regarding mental health issues in our schools, the Agency will complete a study to examine services and programs currently offered in schools.  The study will also survey model national programs as well as current and future funding mechanisms.  In addition to these initiatives, a wider range of families will have access to free and reduced lunch.   

On the docket for next year - preschool:  The House passed a bill that would expand 10 hours per week of school-funded quality preschool education for Vermont’s 3 and 4 year olds.  Although research shows the long term cost savings in terms of special education costs, lower dropout rates and repeated grades, the session ended before the Senate could fully vet these issues.  Expect to see action on this next year. 
Funding our Transportation Infrastructure

In fiscal year 2014, the State of Vermont will leverage $260 million in state transportation funds in order to obtain $370 million in federal transportation money, for total combined spending on the maintenance and construction of Vermont highways and bridges of $630 million. 

Each year, the Legislature seeks to maximize federal transportation dollars.  Over the past 10 years, state revenues from the per-gallon gasoline tax have declined because Vermonters are consuming less gasoline, even as they drive more. Due in large part to more efficient vehicles, Vermonters purchased 36 million fewer gallons of gas in 2012 as compared to 2005. 

To make up for this lost tax revenue, and to maximize federal matching funds, the Legislature adopted a new sales tax on gasoline to replace part of the per-gallon tax.  Assuming the new tax is passed on to consumers, gasoline prices will increase by an estimated 5.9 cents in May 2013. Likewise, diesel prices will increase by 2 cents per gallon in 2014 and will increase by another penny in 2015.  Seen another way: if you drive 10,000 miles a year, at 25 miles per gallon, this new tax structure will cost you $24 in additional taxes in 2013. 

This much needed increase in transportation revenues will allow Vermont to fully access our share of federal transportation funds, to maintain funding of our town highway aid programs, and to continue essential repairs to our roads and bridges.

Funding State Government
Taxes and revenue were front and center from the beginning of the legislation session. The budget presented to us by the Governor depended on an additional $34 million in new revenue. At the end of the session, thanks to increased revenues and the hard work of House and Senate Appropriations, we were able to end the session with very little additional revenue and no general fund tax increases.

Reining in Education Spending
With a $70 million increase in education spending statewide while numbers of pupils continue to decrease, a significant increase in the education tax rates for FY14 was inevitable. The legislature was required to raise the non-residential rate to $1.44, the base penny rate to $.94, and the base calculation amount to $9151. These tax rate increases prompted us to look closely at possible ways to curb education spending.

The establishment of Act 68 encouraged increased spending in property-poor communities but did little to suppress spending in communities; the only real tool that was put in place was the spending threshold over which taxpayers in high-spending communities pay double in per-pupil spending over the threshold. This session, the Legislature reduced the threshold from its current 125% to 121% of the previous year’s statewide average per pupil spending.

The legislature also created two studies: first, to look at the renter rebate program to analyze if the $8 million we are spending on this program is achieving the goal of helping low-income renters effectively, and secondly, a data collection and recommendation process for looking at our staff-to-student ratios to make recommendations about possible tax consequences for an excessive number of paid adults in the school buildings

Opioid Addiction and Methamphetamine Abuse
This spring, the legislature took significant steps to address the growing problem of drug addiction in Vermont and its devastating affects on health, crime and the environment. First, access to addictive drugs is reduced.  The legislature strengthened the Vermont Prescription Monitoring System, making it more difficult to “doctor shop” for multiple purchases of legal but addictive drugs such as oxycontin.  In addition, purchases of drugs containing the key ingredients in making methamphetamines or “meth,” will require an ID, allowing pharmacists to check into a real-time database (NPLex), alerting them to multiple purchases. 

Second, the Department of Health will look into improving services for those addicted by developing guidelines and training for hospitals and creating a pilot program for naloxone, a drug that reverses an overdose.  In addition, by granting limited immunity to those calling 911 to report an overdose should help reduce death because users and friends were too afraid to call.

Third, two studies will address crime related to drug addiction.  One will look at the effect of meth labs on housing while another looks at stolen property used to support drug addiction























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