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2021 Final Vermont Legislative Update - May 2021 | Downs Rachlin Martin PLLC

Business
The unemployment bill formerly known as S.10 – Business owners had their most challenging year in memory. Many hoped that the legislature, knowing this, would have sought to offset their challenges. Unfortunately leveling unemployment tax rates was considered by some to be too much help.
One of the most contentious negotiations of the session centered on the formula that determines the Unemployment Insurance Trust Fund balance. Recent years unemployment rates are entered into the calculation, and many experts felt that 2020 was an anomaly and should be removed from the formula given the pandemic. Without 2020 in the equation, the balance required would be $600 million, and with 2020 it would be $1 billion (by all accounts too much). ....

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Vermont Legislative Update Week 15 | Downs Rachlin Martin PLLC

[co-author: Jessica Griswold]
Senate passes budget
On Friday, the Senate gave final approval to the $7.17 billion FY 2022 budget, H.439. Senate Appropriations Chair Jane Kitchel, D-Caledonia, called it “as complicated a budget as I’ve ever had to put together in my time in the Senate” due to the flood of federal aid to Vermont for coronavirus relief and an unexpected $211 million revenue surplus.
The bill spends $478.5 million in federal American Rescue Plan Act funds, while incorporating only a portion of Gov. Scott’s ARPA spending proposal. Kitchel said the governor’s plan did not focus enough on the legislature’s funding priorities, including service delivery structure, court re-opening and higher education needs. Scott had asked the legislature to place all of the ARPA expenditures in a separate bill. Kitchel rejected that request, instead placing all ARPA spending in one designated section of the budget bill. ....

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Governor's $6.8 billion budget and $210 million economic recovery plan

Key Budget Items (click HERE for full Summary):
Supports FY2022 total General Fund appropriations of $1.99 billion.
Supports base spending with base funding.
Fully funds state retirement and debt obligations.
Maintains all statutory reserve levels.
As part of the Governor’s ongoing pandemic response, he proposes using $210 million in one-time funding for economic recovery through investments in housing, infrastructure, broadband buildout, environmental stewardship, carbon reducing initiatives, and government modernization, among others.
As part of the one-time investments, makes a down payment on state government modernization by creating a Technology Modernization Fund to propel costly, and much needed, IT upgrades.
Economic Recovery and Downtown and Village Center Revitalization: ....

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