Legislative Affairs
Legislative Update... PLA and spending measures...
Included in this weeks update is the Transportation Funding Bill, the 2011 State Budget, Miscellaneous Tax Bill, and an update on the Project Labor Agreement on the Lake Champlain Bridge....
ADMINISTRATION AND VERMONT LEGISLATIVE LEADERS REJECT PROJECT LABOR AGREEMENT ON LAKE CHAMPLAIN BRIDGE
The Associated General Contractors of Vermont testified in front of the Vermont House Transportation Committee against a Project Labor Agreement (PLA) and proposed an amendment to the House Transportation Funding Bill which restricted any state or transportation funds on a project that required a PLA. The amendment was rejected based on input from committee members feeling the amendment would be too restrictive and may delay the project. Rep. Diane Lanpher even stated during testimony that she felt the Secretary of Transportation was doing what was needed and thought that, &we dont need to strengthen their [AGCVTs] voice by adding language to the transportation bill. However, after much debate, the committee unanimously agreed to write a letter supporting our position against a PLA. The Chairs of the Vermont House and Senate Transportation Committees wrote a letter opposing a PLA saying, The Committee would oppose any project labor agreement with terms that would have the effect of imposing higher costs on non-union contractors or subcontractors&the committee would oppose any PLA with terms prescribing that Vermont contractors or subcontractors hiring outside their usual labor pool&
Members of The Associated General Contractors of Vermont came out in force against a Project Labor Agreement (PLA) on the Lake Champlain Bridge. Secretary Dill from the Agency of Transportation (AOT) also sent a letter to the Acting Commissioner of the Department of Transportation (DOT) in New York last week supporting AGCVTs position against a PLA which requires the unionization of contractors and hiring from within the union halls prior to utilizing our own employees. The bottom line, however, is that Vermont finds the proposed PLA unacceptable.
There was significant press coverage over the weekend which was well deserved. New York State Department of Transportation is having a pre-bid meeting today at 1:00 PM and should announce if they will be moving forward with a new PLA and delay the project or continue with the course of action without a PLA on the Lake Champlain Bridge. You can find the articles at the following links:
http://www.rutlandherald.com/article/20100329/NEWS03/3290375/1004
http://www.burlingtonfreepress.com/apps/pbcs.dll/article?AID=/201003270600/NEWS02/3270320
http://www.boston.com/news/local/vermont/articles/2010/03/26/labor_fight_looms_on_lake_champlain_bridge/?s_campaign=8315
VERMONT HOUSE PASSES $578 MILLION TRANSPORTATION BILL
A $578 million transportation bill passed the Vermont House of Representatives last Friday without opposition. Within the bill is $367,155,365 in highway infrastructure . The bridge maintenance program has been merged into the State and Interstate programs with a total of $93,644,004 along with $19,089,340 for town bridges for a total of bridge funds of $112,733,344. The maintenance, paving, and roadway categories total $227,740,825. The bill is now off to the Senate for their review and suggested changes. Additional information can be found on the legislative website at
http://www.leg.state.vt.us/database/status/summary.cfm
VERMONT HOUSE PASSES MISCELLANEOUS TAX BILL
The Miscellaneous Tax Bill is always a potential vehicle for tax increases and this year the House of Representatives is poised to increase $5.3 million in revenue to close the budget gap by eliminating certain tax deductions and incentives currently available to Vermont businesses. The extra money provides $2.5 million to balance the budget and $2.7 million to rebuild a reserve in the state Education Fund. The House Ways & Means Committee went to school this week on the production deduction and when they were done they voted to cap this deduction for business, essentially increasing costs on Vermont manufacturers, software developers, and other "producers" at a time when they can least afford increased costs. The production deduction is a federal tax exemption that allows businesses to deduct from gross receipts a percentage of qualifying income from certain activities. Enacted in 2004, the tax deduction was slated to increase from 6 percent to 9 percent in 2010 however, the Committee proposed to cap that at 6 percent. The deduction applies to businesses that sell, lease, or license property that is manufactured entirely or partially in the United States including manufacturing activities of tangible personal property like software production, construction, food processing, farming, and engineering. (misc. tax information came from the VT Chamber of Commerce Update)
HOUSE PASSES $4.79 BILLION BUDGET The House passed a $4.79 billion Fiscal Year 2011 budget on Friday. The budget bill is all inclusive from state, federal, transportation and special funds allocated by the state which includes $1.1 billion in the state's general fund. At the beginning of the budgeting process, there was a $154 million shortfall while depending on $38 million from the Challenges for Change bill enacted earlier this session which restructures state government. To make up the remaining projected shortfall-which resulted largely from a decline in ARRA funding, growth in Medicaid and health care costs, retirement expense pressures and other rising costs in state government-the bill saves: " $17 million by making changes to the teachers' and state employees' retirement system; " $10 million by changing pay and benefits in the state employees' contract; " $13 million in payments Vermont will not have to make to Medicare; and " $45 million by trimming the Agency of Human Services' budget.
While there are no new taxes in this particular bill, there are increases in the miscellaneous tax bill previously discussed. Next week the House will debate the Capital Bill which does have some controversial measures in it. To view the Capital bill, please go to: http://www.leg.state.vt.us/docs/2010/Bills/Intro/H-790.pdf
Date Posted: March 29, 2010
