Gov. Scott vetoes budget, tax bills

Gov. Phil Scott vetoed the state budget and property tax bills Tuesday, saying the Legislature had failed his standard of "making Vermont more affordable in every way we can."

Specifically, Scott wants to set up a statewide health plan for all school employees, which he says would help taxpayers recoup savings after new lower-cost health plans take effect in January.

Lawmakers said they needed more time to study the governor's idea. That was not enough for Scott.

"We literally cannot pass up this opportunity to put a dent in property tax growth," Scott wrote in his veto message to the House of Representatives, which listed more than five pages of objections to the tax and budget bills.

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All school employees in Vermont are transitioning to the lower-cost health plans in 2018 through the Vermont Education Health Initiative.

Scott argues he could maximize taxpayer savings — which he estimates at $13 million in the first six months of 2018 — by setting up a statewide negotiation regarding health care.

Democratic leaders in the Legislature initially dismissed the governor's proposal as too rushed, but they eventually were forced to negotiate and offer their own attempts at finding education savings.

When negotiations with the Scott administration broke down, the Legislature passed a tax bill that reduces the residential property tax rate, raises the non-residential property tax rate, and sets up a commission to study the idea of a statewide teacher health benefit. 

Scott objected to the study commission, saying that with five union representatives and five representatives of school boards and superintendents, the group was "set up to ensure impasse."

Republicans in the Legislature have stood behind Scott, while Democrats and the Vermont-National Education Association union have protested.

Faisal Gill, chairman of the Vermont Democratic Party, wrote in an email Tuesday that Scott's veto was not about saving money, but about "flexing political muscle and holding the appropriations bill hostage."

In addition to the budget and tax bills, the governor also has blocked an attempt at marijuana legalization. All three bills may be considered by the Legislature at a special veto session on June 21-22.

Rep. Alice Emmons, D-Springfield, has been participating in budget negotiations as the dean of the House of Representatives and continues to believe that compromise with Scott is possible.

"I feel that we will find some venue, some avenue, that we can reach agreement," Emmons said in a telephone interview Tuesday. "That's how we operate here in Vermont."

Scott has promised to sign the budget and tax bills if no agreement materializes in June to avoid a state government shutdown.

Contact April McCullum at 802-660-1863 or amccullum@freepressmedia.com. Follow her on Twitter at @April_McCullum. 
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