By Guy Page

With the Senate and House at odds over education and housing reform, the Legislature in the next week or two will either make big compromises or ‘kick the can down the road.’

The education reform bill, H.454, has cleared all of the Senate committees (education, finance, appropriations) and likely will go to a vote by the full Senate Wednesday.

Stung by the loss of their supermajority at the hands of voters unhappy with double-digit tax property increases, leaders of both House and Senate promised education funding and governance reform this year. But even among supporters, there is an acknowledgment that much of the proposal includes placeholder language likely to require substantial revision—either in a forthcoming Committee of Conference or in future legislative sessions.

As seen in this graph in the Lake Champlain Chamber advocacy newsletter, the approved House and yet-to-be-approved Senate versions differ bigly on base payment per student, implementation date, and TBD school district boundaries. The Legislature has a choice: work out the differences now, or pass ‘placeholder’ legislation that delays the tough decisions. 

Housing bill in turmoil over tax committee version

The House housing bill, H.479, touted early on as a cornerstone initiative to address the state’s growing affordability crisis, has hit a major snag. Tensions flared in the House after the Committee on Ways and Means made significant changes to the Community Housing Infrastructure Program (CHIP).

Both Democratic senate leaders and Gov. Phil Scott expressed dissatisfaction with the tax committee’s changes of this session’s signature housing bill.

Senator Majority Leader and Senate housing committee member Kesha Ram-Hinsdale (D-Chittenden) reportedly slammed the new version as “another Rube Goldberg tax program.”

The House alterations to CHIP, a key funding mechanism intended to support municipal infrastructure improvements tied to new housing development, have made the bill nearly unrecognizable to some of its original supporters. In particular, changes would make it harder to develop housing in small towns – much to Gov. Phil Scott’s dissatisfaction, he said in a May 16 statement:

“For the last eight years, I’ve been sounding the alarm about our housing crisis. Vermonters across the state are impacted by a lack of housing options – from renters, to first time homebuyers, and retirees looking to downsize. That’s why, in January, I proposed legislation to move the needle on the housing we desperately need,” Scott said. 

“This included expanding infrastructure for housing and flood recovery by modifying the existing TIF program to include a project-based option – so smaller towns with fewer resources can access this economic tool as easily as larger cities and towns along.

“We proposed changes to our permitting process, because it’s difficult to navigate, which has led to project costs skyrocketing and fewer homes being built because it doesn’t make financial sense.

“We also asked the legislature to expand and extend the Act 250 exemptions that are expiring soon, to give rural communities opportunities to thrive and grow. In addition, we proposed reforms to the wetlands permitting and appeals process which will help places like Barre, Montpelier and Plainfield, as they recover from recent flooding.

As the legislative session comes to a close, I’m concerned we have not done nearly enough on housing. With 41,000 more homes needed by 2030 (just to catch up) we cannot afford to kick the can down the road again. Last session, the Legislature passed 70 bills in three days, so I’m confident there is still time to pass a housing bill that actually helps Vermont, because without action, we will fall further behind.”

The $300,000 Question

With the legislative calendar technically nearing its end, attention is now turning to what some are calling the “$300,000 question”—a reference to the weekly cost of running the State House: When will lawmakers go home?

At this point, the answer remains elusive. Legislative leaders have made it clear that they intend to finalize the two outstanding bills before adjourning. But with the housing bill stuck in a political quagmire and the education bill still full of unfinished business, few believe a swift resolution is likely.