Senate passes spending bill with few big changes

H.885 was immediately sent to the House for consideration. Any changes in the chambers’ versions will have to be worked out in a committee of conference.

Vermont Enterprise Investment Fund

Gov. Peter Shumlin’s proposed Vermont Enterprise Investment Fund again was the subject of discussion in the Senate on Tuesday. Sen. Peter Galbraith, D-Windham, floated two amendments related to the $4.5 million fund to be created from any surplus revenues at the end of the current fiscal year.

Galbraith first proposed that any public investment in a private corporation through the VEIF should return some benefit to taxpayers, in exchange for their investment. He compared the idea to that of then-President George W. Bush, whose Troubled Asset Relief Program bailed out many banks and lending institutions after the economic crash of 2008.

Many of those investments have turned into public profit, Galbraith pointed out. According to data collected by the nonprofit journalism website ProPublica, repayment and other related revenues have netted $27.1 billion to date.

Galbraith also suggested the VEIF funds only be awarded to a company whose cash-on-hand is no more than 1,000 times the amount of investment it would receive from the state. It was an unveiled jab at both IBM, which operates a plant in Essex Junction, and General Electric, in Rutland. Both have been fingered as potential beneficiaries of the investment money, given their anchor status as major regional employers.

Sen. Kevin Mullin, R-Rutland, chair of the Senate Commerce Committee, said his panel unanimously opposed both provisions. Mullin said it would be unrealistic to set up stock certificates as part of a VEIF investment.

He added that the committee agreed the process has sufficient oversight because it requires the approval of the Emergency Board — a panel of finance and appropriations committee chairs who must OK monetary decisions with the governor when the Legislature is not in session.

“We believe there are sufficient safeguards in place,” Mullin said, particularly with amendments made Monday at the request of State Auditor Doug Hoffer, who requested clarification that any VEIF investment would entail sufficient documentation for the auditor to evaluate the fund’s performance.

Galbraith’s first amendment garnered seven votes from Sens. Tim Ashe, D/P-Chittenden; Robert Hartwell, D-Bennington; Mark MacDonald, D-Orange; Dick McCormack, D-Windsor; Anthony Pollina, P/D/W-Washington; Michael Sirotkin, D-Chittenden; and David Zuckerman, P/D-Chittenden.

Health Care Reform Oversight Committee

Another source of discussion was a policy provision that would create a new committee for oversight of the state’s health care reform efforts.

The Health Care Reform Oversight Committee, referred to as HROC, would operate after the Legislature adjourns. Chairs of both the House and Senate committees on revenues, spending, commerce and health would review funding, spending and planning related to health care reform. The group would receive quarterly updates from the commissioner of Vermont Health Access regarding the state’s current health care exchange.

But Sen. Ginny Lyons, D-Chittenden, expressed concern that the oversight committee appears to replace the existing panel that’s more broadly charged with overseeing health care policy in the state.

Lyons serves on the current health care oversight committee. A separate provision requires that group to essentially recommend its own replacement as one of its final acts in January 2015.

Lyons eventually withdrew a request that the new oversight committee issue formal reports.

Weatherization

Pollina dropped his campaign to find a way to pay to weatherize more homes of low-income Vermonters.

The Big Bill includes language that connects the state’s expenditures on LIHEAP and the weatherization program.

Low-Income Home Energy Assistance Program recipients are likely to see their benefit ratios discussed next year in the context of whether or not their homes are weatherized. Sirotkin made sure that income-sensitivity would be added to those considerations when the time comes.

Sirotkin said LIHEAP assistance should be based on fuel usage as opposed to house size.

Loan forgiveness for medical professionals

One spending addition would provide $1 million in matching funds to secure a federal grant for loan forgiveness for health care professionals. The grant, if it’s awarded, would help address a shortage of doctors and dentists in Vermont by providing the financial incentive of loan forgiveness if they practice in the state.

The money would come from expected surpluses from estate tax revenues at the end of the current fiscal year. In case the grant is not awarded, the surplus estate tax funds would be channeled as usual to the Higher Education Trust Fund.