Skip to Main Content

Legislative Update – Recovery Grants, Elections, Vaccine Info

October 30, 2020

Elections often feel like a chance for optimism, however, it certainly is hard to feel that way as the days get shorter and the list of counties requiring quarantine grows longer. Steady growth of the virus in the Northeast of over 21% continues to loom over Vermont’s economy. Vermont’s Department of Financial Regulation is warning that their modeling shows the growth of 50 to 60 cases a day by the end of November. The Cross State Travel Map limits the eligible number of travelers who can come to Vermont without quarantine to only 880,000. 

Furthermore, the ban on non-essential travel over the border with Canada was extended yet again until November 21st, with some expecting the border to Canada to remain closed potentially until next summer. It’s worth mentioning that many of these cases stem from private gatherings of individuals not wearing masks as Vermonters move inside due to colder temperatures and experience mitigation fatigue, so being mindful about what you do off the clock is just as important as what you do on the clock. 

In this week’s update:

Claim Your Vermont Economic Recovery Grants

ACCD and the Department of Taxes are administering Expanded Economic Recovery Grants. The Department of Taxes application is open through the myVTax portal until 11:59 pm TONIGHT. ACCD’s application will be open until Friday, November 9, 2020, at 11:59 pm. Visit the ACCD COVID-19 Recovery Resource Center for full details, eligibility requirements, how to apply, and FAQs for businesses. If you missed the webinar about the program, a recording has been posted to the website as well.

Applications Open for Frontline Employee Grants 

Even if your employees weren’t eligible for the first round of frontline employee grants, they might now be eligible to apply for $1,200 or $2000 per employee who meet grant criteria. The program also now includes former employees that worked during the covered period. For more information about eligible employees and how to apply, visit the program’s website and watch this webinar.

Elections Resources and What to Look For 

To say Tuesday’s election will have massive implications on every aspect of our country is an understatement; we’re here to give some guidance and lend some perspective on what is next. 

First, get out and vote if you haven’t already! For more information about all things voting, visit the Secretary of State’s website. If you are having trouble deciding who to vote for in the highly contested Chittenden County Senate race, take a look at our survey of those candidates

Get news from trusted sources; For reliable election day coverage of Vermont, you can follow this Twitter list of almost every available reporter or news outlet in the state. VPR and VTDigger also carry election day live blogs. Unofficial results can be found on the VT Secretary of State’s website here as they come in. 

Worried about election fallout in your workplace? In a day and age when it is as easy as ever for people to live in an echo chamber, the workplace can be the only place where people come in contact with people holding opposite beliefs. Our Government Affairs Manager sat down with three of the area’s leading employment attorneys to discuss politics in the workplace. Watch here

What to watch for and what effect it will have on Vermonters:

VT Gubernatorial Race 

The consensus is that Governor Phil Scott will coast to victory, however, don’t count Lt. Gov David Zuckerman out. Most of that assumption is based on the VPR/PBS poll released in September, which showed Scott holding a 55 to 24 lead over Zuckerman, with 16% undecided. The same poll recreated a question from the 2016 poll asking those that voted in the presidential election how they voted, this question showed showing Trump getting more voters (17% in 2016 to 28% in 2020 – actual election result was 29.76%) and Clinton sliding 10-points (45% in 2016 to 35% now – actual election results was 55.72%) compared to the polling VPR did in 2016, meaning this poll might have skewed more conservative. Finally, with record-high voter turnout, likely, evidence of the past might not accurately predict outcomes of the future. 

Presidential Race 

After 2016, who would want to make any prediction? Furthermore, we might not know the full vote total until days after the election. If Biden is able to land a definitive victory, it would likely mean a favorable outcome for Vermont, as it is assumed the Administration would push through a stimulus package the state will need to buoy bludgeoned tax revenues. A Biden Presidency also would mean greater importance for VT’s Congressional Delegation who is well-positioned to lead with the new administration, and Senator Sanders is reportedly already jockeying for a cabinet position. If Trump wins, expect that outrage of that to be the powerhouse of Democratic party activity for 4-more years and the further left elements of the party to blame the more central. 

VT Legislature 

The super-majority Vermont House Democrats gained in 2018 set the stage and tone for an entire legislative biennium after party messaging took the form of a proverbial football spike. Keep an eye on election night not just for the size of the new caucus, but also the tone of leadership as they announce the results. Additionally, some categorize the Speaker’s race as close; if the Speaker loses her seat, be ready for some quick power jockeying for the gavel. In the Senate, there are some close races, however, nothing that would dramatically change the uneven power dynamics of the chambers. Take a look at this coverage from VTDigger for a glimpse at a few of the tight races

National Legislative Trends

A democratic backlash is expected nationally in down-ballot state legislative races that might flip many from Republican-controlled to Democratic-controlled with impacts echoing over the next decade. Why? Because this year, in many states, the party that gains control will have an outsized impact on the next redistricting. Currently, Republicans control 60% of the legislative chambers across the country and control both legislative chambers and the governor’s office in 21 states, compared to Democrats in 15 states. Experts expect that up to six states could see a flip in control in this redistricting year. For more on this topic, see analysis from NCSL

Budget Pressures Becoming More Evident 

The administration issued their budget instructions last Monday to all Agencies and Departments with the request that they submit budgets by November 20th that reflect a level-funded budget. A level-funded budget does not mean that these agencies will have an easier time, as it will require them to absorb some of the natural growth in their budgets. Given the amount of current-law revenue expected, the state would already be $40 million deficit compared to FY 21, despite the latest revenues coming in above forecast. When totaling up all other pressures, the state is looking at approximately a $180 million general fund deficit for the FY 22 budget from FY 21 revenues. A deficit of about $104 million is expected for FY 22 revenues. 

This month brought some positive news around state revenues coming in over their August forecast, however, curtail your expectation that this might happen again soon without further stimulus from Congress. Evidence points to this being a one time kick from the last round of federal economy relief, and with its effect dissipating, so too will the downstream tax revenue. 

The administration will also ask departments to submit budgets with 1%, 2%, and 3% funding growth in the event of federal relief. Federal relief is looking increasingly unlikely given the stalemate that continued in our nation’s capital this week. Without federal aid, the legislature will face difficult decisions to cut revenue expenditures, raise new taxes, or borrow money. The latter option, borrowing, is likely to be one many will look to and has already come up on the campaign trail as an option, however,  such action wont be congruent with the Capital Debt Affordability Advisory Committee which will want to stay the course on reducing state net tax-supported debt to keep track with well-rated peers.

Also evident in the most recent budget are the pressures already faced in the state’s retirement system contributions which missed its 7.5% return assumption this year due to the pandemic. Last month the boards of the retirement committees met to lower return assumption from 7.5% to 7% to be in line with capital market assumptions. This increases the projected unfunded liability and increases the amount needed to close the unfunded liability under the current schedule. Additionally, the most recent experience study this year also increased the required contribution to $30-$40 million due to changes in the general population that are reflected in the coverage pool.

Finally, another smaller (relatively, as this would be large in other years) budget pressure that arises this year is from the unique characteristic of this fiscal year in which the state will face a 27th pay period and a 53rd Medicaid billing period, representing a cost of about $24 million. The state planned for this previously and created a 27/53 account in 2016, however, the account has only accumulated $21 million at this time and will require another $3.75 million this year. 

Today, the State’s Capital Debt Affordability Advisory Committee or CDAAC is expected to release its recommendations. CDAAC is required by Vermont statute to recommend the size and affordability of the State tax-supported general obligation debt, and submits to the Governor and to the General Assembly an estimate of the maximum amount of new long-term general obligation debt that prudently may be authorized for the next fiscal year. They will likely take the unusual step of reserving the right to revisit the report next year. Their recommendations mean that the state would not take on any additional debt this year, and if borrowing would be done to provide stimulus or mitigate the effects of the pandemic, Institutions Committees in the legislature would need to curtail the amount of capital-debt related work be done in other areas.

UVM Begins Vaccine Trials | State Releases Preliminary Distribution Plan 

The UVM Medical Center announced this week that the Vaccine Testing Center at UVM Larner College of Medicine has been selected to participate in a Phase-3 trial for a COVID-19 vaccine developed by Oxford University and manufactured by AstraZeneca. This is a two-year trial that will include and about 30,000 nationwide, among them 250 people UVMMC recruits, with prioritization of Vermonters over age 65, frontline workers, and people with pre-existing conditions, as well as racial and ethnic groups that have been disproportionately affected by COVID-19.

For more information about this vaccine trial, you can visit UVMHealth.org/COVIDStudy or attend an information session for the general public on Monday, November 2nd, from 5:30-6:45 p.m.; more information is available here

Last week, Governor Phil Scott and Health Commissioner Mark Levine, MD, detailed the State’s framework for the distribution of a COVID-19 vaccine, once one is produced and distributed to the state. The State has submitted responses to a series of questions from the Centers for Disease Control and Prevention (CDC), laying out the framework for vaccine distribution and Vermont’s preparedness. The federal government, which is responsible for the nationwide distribution of vaccines, still needs to provide details on many logistics surrounding a potential vaccine, and this interim COVID-19 vaccination plan will evolve as new information comes forward.

Assuming initial supply is limited, the State’s interim plan lays out a phased approach, subject to change, as follows:

vaccine information table

WATCH: LCC Employment Attorney Roundtable – Workplace Tension 

This is a tough time for everyone, as COVID-fatigue shows, elections add stress, and employees try to navigate the upcoming holiday season in the face of travel restrictions. LCC’s Government Affairs Manager sat down with three highly respected employment attorneys in our region to discuss how employers can navigate these hurdles. WATCH this only 30-minute video here.

Lend Your Voice to the Emergency Broadband Plan

Rural Innovation Strategies, Inc. (RISI) is working with the State of Vermont Department of Public Service (PSD) to develop its COVID Emergency Response Telecommunications Recovery Plan as part of Vermont’s CARES Act funding initiatives. To do so, they are surveying Vermont residents and business owners in order to better understand their use of the internet and wireless-enabled services since the onset of the pandemic. You can lend your perspective with this business owner survey.

Save the Date – LCC December Legislative Reception 

Fresh off the success of our recent Legislative Breakfast, LCC is looking to keep you informed ahead of the next legislative session with a legislative reception on Thursday, December 10th at 3:00 pm. Mark your calendar and be prepared to interact with our team and newly elected legislators. Special thanks to our event sponsor, AT&T. 

VT Department of Taxes Releases Legislative Recap – Asks for Input on Tax Data 

The Vermont Department of Taxes released this past week its overview of significant legislative changes for 2020. Select the tax type or topic to see more information and available resources pertaining to these important changes or return to all available Legislative Highlight reports.

The Department is also looking or input on on how well their current data offering work for those who look to use them and are requesting that those who work with Meals and Rooms Tax, Sales and Use Tax, Property Transfer Tax, Property Tax Credits, Income Tax, Grand List Data, Current Use Data lend their perspective with this survey.

23 Members of Global Warming Solutions Act Appointed 

Act 153 called for the establishment of a 23-person Vermont Climate Council to adopt a Climate Action Plan by December 1, 2021 that will set forth the specific programs and strategies to achieve the required GHG emissions reductions and build resilience to climate change. This week saw appointments to the council as follows. 

The Speaker of the House, Rep. Mitzi Johnson, chose 8 members of the Council:

Catherine Dimitruk, Fairfax, Northwest Regional Planning Commission

Chris Campany, Newfane, Windham Regional Commission

Liz Miller, Burlington, Green Mountain Power

Johannah Miller, Montpelier, lobbyist for the Vermont Natural Resources Council

Michael Schmell, South Pomfret, Chief Operating Officer for Stone Road Energy

Lesley-Ann Dupigny-Giroux, South Burlington, Vermont State Climatologist

Adam Knudsen, Shelburne, Dynapower

Richard Cowart, Calais, Regulatory Assistance Project

Senate leaders chose 7 members of the Council:

Kelly Klein, Groenfell Meadery, St. Albans

Chad Farrell, Encore Renewables

Sue Minter, Capstone

Abby Corse, farmer, Windham County

Lauren Oates, The Nature Conservancy

Sarah Evans, youth member from Stowe

Jared Duval, Energy Action Network

The Climate Council also includes 8 members of the Governor’s cabinet:

Susanne Young, Secretary of Administration

Julie Moore, Secretary of Natural Resources

Anson Tebbetts, Secretary of Agriculture

Lindsay Kurrle, Secretary of Commerce

Michael Smith, Secretary of Human Services

Joe Flynn, Secretary of Transportation

Michael Schirling, Commissioner of Public Safety

June Tierney, Commissioner of Public Service

Laundry List 

  • The Vermont Landlord Association has updated its website to ease the application process to its free, online mediation program for landlords and tenants to work through and solve disagreements. Participants will have access to a free professional mediator who will conduct the mediation online.
  • LCC’s Advocacy Page is providing more timely updates now thanks to an embedded Twitter stream. LCC’s advocacy team recently took over the organization’s Twitter account and will be using it to post updates in-between emailed advocacy updates. You can follow us here, and if you don’t have a Twitter account, you can see the activity here. 
  • The Agency of Commerce and Community Development has received a $300,000 exporting grant to assist small businesses in the state. The grant is awarded through the Small Business Administration’s State Trade Expansion Program, a federal-state partnership initiative to increase the number of small businesses exporting their products. Learn more about the grant here and changes to ACCD’s administration of the grant here
  • Governor Phil Scott and the Vermont Department of Labor have announced the availability of a new $1,000 scholarship for eligible Vermonters to support training and other expenses incurred from enrollment in an adult career and technical education certificate program. The Adult Career Technical Education (CTE) Scholarship was created in partnership between the Department of Labor and the Vermont Student Assistance Corporation.
  • WATCH: Have you seen LCC’s Legislative Breakfast yet? We discuss the economic and political trends ahead of us with special guest, Emily Mandel from Moody’s Analytics. Watch it here. 

Concerned or need to learn more about anything in this newsletter? Email our team at [email protected].

We look forward to working with you.
Sincerely, 
The Lake Champlain Chamber Advocacy Team

Man with white shirt and black sports jacket
Tom Torti, President
headshot of lake champlain chamber president cathy davis
Cathy Davis, Executive Vice President
Austin Davis headshot
Austin Davis, Government Affairs Manager