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Childcare bill veto focus of Governor Phil Scott’s weekly briefing

 Vermont Governor Phil Scott (file)
Pat Bradley
/
WAMC
Vermont Governor Phil Scott (file)

Vermont Governor Phil Scott vetoed a childcare, early education and workers’ compensation bill on Tuesday and discussed the move during his weekly briefing.

Governor Phil Scott’s veto message excoriates the Legislature for refusing to accept a compromise from his administration while H.217: An act relating to childcare, early education, workers’ compensation, and unemployment insurance, was being crafted and instead creating a new payroll tax.

The Republican says expanded access to childcare has been a top priority and is part of his cradle to career philosophy.

“We share similar goals and priorities but where we differ is how we pay for it and the speed in which we get there. Knowing we all wanted to go big on childcare this year, I proposed using $56 million in organic, ongoing based revenue growth to bring the subsidy up to 400% of the federal poverty level. When the Senate and House appeared to be at a stalemate in May on childcare, my team approached legislative leadership about a path to get to 450% of FPL with a 10% rate increase without relying on new and regressive taxes. Instead, they seem determined to raise a new tax, so they ended up with a regressive payroll tax.”

The legislative plan, according to Scott, would include childcare for households making up to $172,000 annually. But he says the bill requires that lower income households already receiving free childcare would now have to pay a tax to help subsidize more affluent families to access childcare. The governor says Vermont is already one of the highest taxed and least affordable states in the country.

“Even this session, I've sounded the alarm about the cumulative impact all the new fees, taxes and penalties that were discussed. That's why I felt as though I had no choice but to veto their regressive tax plan. I want to be very clear. I know some headlines will probably read ‘Scott vetoes childcare.’ But I'm not vetoing childcare. I'm vetoing the payroll tax. No governor in state history has been as committed to funding childcare and I'm very proud of that record. We can care for our kids without making Vermont less affordable.”

There had been tri-partisan support for the bill and Scott says while his veto decision was difficult when childcare is among his priorities, he cannot support additional taxes.

“In my seat, you have to look at the cumulative impact of all the taxes and fees that are being raised and look at the health, the economic health, of the entire state. And this much in one year gave me pause and I decided that this is not the time to be raising this amount in a payroll tax especially when we have all the surpluses we have. The payroll tax itself hasn’t been used before in this way and it opens the door for a lot more. Once the door is open, I guarantee because it’s just a little bit out of everyone's pocket, that they’ll be going back to the well time and time again.”

The leaders of the House and Senate issued statements in response to the veto.

Democratic House Speaker Jill Krowinski noted "The Governor vetoed a bill that would have cost an individual Vermonter, earning the median wage less than $1.00 dollar per week. That is a truly significant benefit for Vermonters at a minimal cost... Thousands of child care providers, families, and business owners have advocated for the urgent need to have affordable and accessible child care. It is truly disappointing that the Governor chose to veto this investment in working families and our economy.”

Democrat/Progressive Senate Pro Tem Phil Baruth said the veto “comes as no surprise, unfortunately... This bill will be our number one priority for the veto override session... We will vote to end the childcare deserts in our state, and we will vote to pay childcare professionals a respectable wage. Vermont's kids can't wait any longer."

A veto session of the legislature is set for June 20th.

Despite communities such as Burlington asking for an extension, Vermont is phasing out a hotel-motel voucher program for low-income individuals that it continued after federal pandemic funding ended. Individuals receiving the vouchers must find other lodging. The governor says the program was intended to be temporary and had to end at some point.

Agency of Human Services Secretary Jenney Samuelson says just under 800 individuals had left the program as of Tuesday.

“We recognize that this transition is really hard for many Vermonters and I want to acknowledge that. But what we're seeing on the ground is that the majority of the individuals have had a plan. They've moved forward with a service provider. And this mirrors what we've seen in the past for the end of our adverse weather conditions policy. And so we're not seeing a lot of pressures on the downtown's or a lot of crisis and mental health. So far, while we recognize the impact it has on individuals, we feel like the transition has gone relatively smoothly.”

Governor Scott added:

“Secretary Samuelson pointed out numerous times over the last couple of days that her team is ready, willing and able to help anyone who is finding themselves without a plan, without a place to go. And we have services that we can help point them in the right direction, help them out and we're eager to do that.”

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