2021-2022 Biennium Report

The 2022 legislative session has officially come to a close and we’ve made great progress in building a more prosperous and resilient future for all Vermonters.

What an honor to represent you and advocate your priorities at the statehouse. Thanks to federal stimulus funds and surplus revenues, we made historic investments in the health, well-being and economic security of Vermont's families and small businesses, including:

  • The FY2023 state budget (H.740) totals $8.3 billion, a 5 percent increase over the current fiscal year. The budget honors the commitment the legislature made at the beginning of the pandemic: to support Vermonters, their families, and their communities across all 14 counties, and to leave no one behind in a strong statewide recovery. 

    That commitment includes investing $453.7 million in federal COVID relief in five broad areas: Economy, Workforce, and Communities; Housing; Broadband Connectivity; Climate Action; and Clean Water. Those investments, added to FY2022 investments, complete the allocations of the $1.2 billion received through the federal American Rescue Plan Act.

     The budget includes a long-overdue rate increase of 8 percent to community mental health providers, designated agencies, specialized service agencies, and home health care providers. It provides millions to support substance abuse disorder prevention and recovery. It includes increased funds for Adult Day programs, Vermont Legal Aid and the Vermont Health Care Advocate.

     We’re investing $96 million in broadband projects and $137.8 million in community, workforce and economic development. The University of Vermont base budget is increased by $10 million, the first increase in 14 years. The Vermont State College System also has a base increase of $10 million, plus $14.9 million to serve as a “bridge” in their ongoing transition to fiscal and operational stability.  Coverage is expanded by $4.9 million for working families within the Child Care Financial Assistance Program.

     This year’s investments in housing programs, including the “missing middle” and manufactured housing, tally $90 million. Transformational climate and water initiatives include $80 million for weatherization and $45 million for municipal energy resilience grants.  There is also $8 million for advanced metering infrastructure and over $60 million for additional electrification initiatives.

     As always, it is a balanced budget. To see all budget documents, click here.

  • Description text goes hereVermont’s emergency dispatch system has long needed an overhaul. The FY2023 budget contains a provision designed to stabilize a dispatch system on which Vermonters can rely. The system will include two Public Safety Answer Points serving only state-level entities, plus four or five new regional dispatch centers. There are already four regional dispatch centers in St. Albans, Lamoille, Hartford and Shelburne.

    The budget contains language to start this transformation, plus $11 million for the early stages of implementation. After decades of study, this is the first time funds have been allocated toward this regional concept.

  • The legislature continues to support clean water for Vermont and Vermonters. This includes investing in water, sewer and stormwater infrastructure and programs that improve community resilience to climate change impacts, such as flooding.

    In total, Vermont received $1.2 billion from the federal American Rescue Plan Act. In the FY 2022 budget, $100 million of that amount was designated for water and sewer investments. In the FY 2023 budget, an additional $104 million is allocated. This includes:

    • $31 million for permitting, design and construction support in stormwater retrofit projects related to the three-acre stormwater rule

    • $15 million to support design and construction of community-scale water and decentralized wastewater projects, or both, to support underserved designated centers

    • $5 million to municipalities, businesses and nonprofits to install or enhance pretreatment processes to address high-strength or toxic wastes

    • $10 million to municipalities with small and primarily residential customer bases to upgrade or replace water or wastewater treatment systems at risk of failure

    • $20 million to assist municipalities to design and construct projects to reduce or eliminate wet weather sewer overflows

    • $6.5 million for improving water and wastewater systems at coop-owned and nonprofit mobile home parks

    • $15 million to replace failed on-site water and wastewater supplies for Vermonters with low income or who are unable to access or afford market rate loans

    • $1.5 million to update leaking service lines, old plumbing, and replacing outdated fixtures (sinks, toilets, dishwashers, laundry) with high-efficiency devices

    Looking ahead, $355 million additional federal dollars are anticipated for water investments through the Infrastructure Investment and Jobs Act.

  • The FY2023 budget of $8.3 billion includes $566.7 million from the federal American Rescue Plan Act. Of that amount, $129.8 million is allocated for weatherization and other climate change mitigation investments. These allocations are informed by the knowledge that, in Vermont, transportation and thermal (building heating) are the sectors that pose the greatest challenges in reducing greenhouse emissions.

    • $45 million to the Home Weatherization Assistance Program to aid lower-income households

    • $35 million to the Electric Efficiency Fund for weatherization incentives to Vermonters of moderate income

    • $2 million to support continued build-out of electric vehicle charging infrastructure along highway networks

    • $20 million to provide low- and moderate-income households with financial and technical assistance to upgrade home electrical systems to enable installation of energy saving technologies, plus $5 million to install, at low or no cost, heat-pump water heaters

    • $2 million to help low- and moderate-income households to purchase electric equipment for heating, cooling and vehicle charging, plus support for municipal back-up electricity storage installations

    • $15 million to improve landscape resilience and mitigate flood hazards

    • $4.8 million to provide farms with assistance in implementing soil-based practices which improve soil quality and nutrient retention, increase crop production, minimize erosion potential, and reduce waste discharges

    • $1 million for the Urban and Community Forestry Program to plant up to 5,000 trees to improve air quality and reduce heat island effects

    Additionally, the FY2023 budget includes climate investments from both General Funds and Transportation Funds: $32.2 million and $600,000 respectively. These allocations support electric vehicle charging infrastructure, electrification incentives, and investments in public transportation.

    One last investment is an additional $8 million in General Funds to provide up to 70% reimbursement to municipal and cooperative electrical distribution utilities for implementation of Advanced Metering Infrastructure. This infrastructure provides the necessary information to help improve energy efficiency, while also helping utilities manage costs and improve customer service.

  • Vermonters pay more of their income on childcare than any other state. Vermont parents of toddlers spend 25.3 percent of their annual income on childcare. On average, that’s one quarter of every paycheck and even for those who can afford it, finding quality childcare is tough. To meet that demand, we need to bring more than 8,000 new spots online.

    The Vermont Legislature is listening. Over the past four years, we have been working to help in many different ways.

    • The Child Care Financial Assistance Program will help more families by expanding its eligibility requirements from 300 to 350% of the federal poverty level, and by increasing rates for centers from the 50th to the 75th percentile

    • All families below 150% of poverty level will qualify for $0 co-pays

    • Individual per-child co-pays will transition to one family co-pay

    • Information technology will be updated so it’s possible to pay benefits to childcare centers based on enrollment, not attendance

    • Early educators have access to a loan repayment program ($700,000)

    • Early educators have access to a scholarship program; expands TEACH programs ($1.8 million)

    • A systems analysis study is in process with a report due July 15, 2022

    • $27 million of Vermont’s ARPA funds invested in childcare stabilization

    • $6 million added for retention bonuses in FY22 budget adjustment

    • $1 million added for retention bonuses in FY23 budget

    • $800,000 a year for capacity grants (creating more spots for children in childcare centers with a focus on ages 0 to 3)

    • $500,000 plus for Children’s Integrated Services. This would increase the provider reimbursement rates from $600 to $650

    • $100,000 of one-time funds to support a pre-apprenticeship program in early childhood education that will allow high-school students enrolled in CTE programs to access paid internships within childcare programs, as well as relevant training and coursework

    • $125,000 grants to students to pursue early childhood education careers. This funding will support students in pursuing early childhood education careers.

  • This session, the House Agriculture and Forestry Committee worked diligently to address its policy work through the lens of sustainability, equity and rural economic resilience. Our working lands play a critical role in climate change mitigation, regional food security, and the state economy. We doubled the annual appropriation for the Working Lands Enterprise Initiative, which provides technical and financial assistance to innovative entrepreneurs at the forefront of our working lands economy. These strategic investments have the potential to transform our rural communities. By employing capital assistance to Vermont farmers and forestry workers, we’re demonstrating our commitment to keeping the working landscape vibrant and vital and to supporting the conservation impact of these businesses.

  • The forest products sector is a major contributor to Vermont’s economy. It provides nearly 14,000 jobs for Vermonters, generates $2.1 billion in annual sales, and supports $30.8 million in economic activity from trail use and tourism. S.11 charges the Commissioner of Forests, Parks and Recreation with creating the Vermont Forest Future Strategic Roadmap to establish a viable future for our forest products industry. The roadmap will be developed with the goals of increasing sustainable economic development and jobs in the forest economy and promoting ways to expand the workforce and strengthen forest product enterprises. Our forestry sector plays a critical role in the management of our woodlands, and we worked hard to ensure that there are resources in place to allow this sector to thrive in Vermont.

  • The legislature worked to improve the possibilities for Accessory On-Farm Businesses in an effort to help farmers diversify—and grow their revenue—with products principally produced on their farm. For example, we want to encourage berry growers to make and sell jam as part of their business. As we continue our work on Act 250 reform, we’ve requested a report to analyze the current land-use planning requirements for farms with AOFBs — businesses that support a vibrant, resilient, and equitable food system

  • The Vermont Department of Health announced in April that 210 Vermonters died from opioid overdoses in 2021. It’s the highest annual number of fatal opioid overdoses ever recorded in Vermont. Overdose deaths increased by one-third last year compared to 2020. Rutland County had the highest fatality rates, followed closely by Windham and Bennington counties.

    In the FY2023 state budget, the legislature makes a substantial investment in prevention and recovery programs related to Substance Use Disorder (SUD).

    • $4 million to the Substance Misuse Prevention Coalition, including tobacco

    • $2 million to residential treatment, sober beds, and recovery housing

    • $540,000 to increase base budgets at the 12 recovery centers across the state

    • $150,000 to Chittenden County Treatment and Recovery for persons transitioning from incarceration

    • $345,000 for employment services embedded at a recovery center (pilot program)

    • $500,000 to Jenna’s House in Lamoille County

    • $295,000 for AIDS client-based support

    • $360,000 for HIV prevention and syringe exchange

    • $200,000 to Howard Center for prevention work

    • $880,000 to rate increases for residential treatment providers

    Prevention and recovery are not simple matters, and money alone is not a cure. Our hope is that, at a minimum, these targeted investments will alter the trajectory and help to save lives.

  • S.11 is a significant workforce and economic development bill that addresses the negative economic impacts of COVID-19 on our employers, workers and families and establishes opportunities to grow Vermont's economy for the future.

    The bill creates or enhances programs to increase workforce participation, and to reinforce and sustain workers in nursing, mental health care, childcare and the trades. It includes scholarships, forgivable loans, education, training and internship programs.

    S.11 helps Vermonters. It provides for economic development programs to support businesses and municipalities, sick leave related to COVID-19, tax credits, and assists specific sectors, including the creative economy.

    In total, $113.5 million is appropriated using ARPA, General and Education Funds to achieve these goals. A few highlights include:

    • Forgivable loans for businesses ($19 million)

    • Support for creative economy ($9 million)

    • Nursing and healthcare ($12.5 million)

    • Support for trades ($4.5 million)

    • COVID paid family leave ($15.18 million)

    • Unemployment insurance ($8 million)

    • Encourage new Vermonters ($5.93 million)

    • Community recovery and revitalization grant program ($10 million)

    • Downtown and village tax credit ($2.45 million)

    • Continuation of Everyone Eats program ($1.3 million)

  • The COVID-19 pandemic has taken a tremendous toll on the social, emotional, and mental health of Vermont’s school communities. S.197 taps into $3 million in federal stimulus funds to establish a two-year program that will offer COVID-19 recovery support for teachers and staff ($500,000) and provide grants to expand mental health and wellbeing services for children and youth ($2.5 million).

    The student-focused grants can be used for a wide variety of programs, like expanding school-based counseling, after-school or summer programs. Applicants must work closely with teachers, school counselors and staff to provide one-on-one or small-group sessions to address important topics like resilience, substance abuse, suicide prevention, social isolation and anxiety. The grants will target geographically diverse and underserved regions of Vermont.

  • Vermont made huge strides in combating food insecurity during the pandemic. With federal support, public schools provided free breakfast and lunch for all students during the last two school years. But this federal funding ends in June. To maintain this critical program, the legislature passed S.100, a bill to continue universal school meals through the 2022–2023 school year with $29 million from the Education Fund surplus.

    S.100 reduces hunger and erases stigma in our schools by ensuring that breakfast and a hot, nutritious lunch is available to all students. Under the old pre-pandemic program, not all food-insecure students qualified for free or reduced-price school lunch: the income limit was set very low, at $32,227 for a single parent with one child. During the upcoming school year, we’ll collect solid data around the cost of universal school meals and study the potential long-term funding opportunities for this program.

  • The House and Senate passed H.715, the Clean Heat Standard to put Vermont on a path to a more affordable, lower-emissions energy future. The CHS is the most significant policy recommended in Vermont’s Climate Action Plan, and the most important climate bill passed by the legislature this year.

    The CHS would obligate companies selling heating fuel in Vermont to lower greenhouse gas emissions over time. The CHS requirements could be met flexibly by delivering a range of clean heat alternatives — heat pumps, weatherization, advanced wood heating — that reduce fossil fuel consumption, or by displacing some fossil fuel delivery with lower carbon-intensity biofuels. Consumers would continue to have a choice with their heating options and would benefit from more incentives when they choose cleaner heat alternatives.

    In early May, the Governor vetoed H.715. In his letter to the General Assembly, he requested that the CHS return to the legislature for final review before its final 2025 approval, and that it include more analysis of CHS costs and impacts. The final bill included these measures.

    The climate crisis is a threat to our community and our prosperity and we cannot afford to delay action. We must move forward to help all Vermonters adapt our lives, communities and businesses to the accelerating effects of climate change in a way that leaves no one behind.

  • Last year, we passed H.360, dedicating $150 million of federal stimulus funds to the construction of publicly controlled broadband infrastructure in the most underserved parts of the state. The Vermont Community Broadband Board, established by H.360, has already distributed the $150 million in pre-construction and construction grants to all nine of Vermont’s Communication Union Districts. This year, we’ve allocated an additional $95 million of ARPA funds to support this infrastructure build. These funds will be supplemented by an additional $100+ million from the Infrastructure Investment Jobs Act funds in the next year with the aim of reaching every Vermont household with affordable, high-speed internet.

  • Given Vermont’s critical housing needs, bolstering our housing stock is a top priority. Through federal COVID relief funds, over $42 million was earmarked this year in S.210 and S. 226 to help Vermont renters and homeowners. With this funding, we were able to:

    • Dedicate $20 million toward forgivable loans to property owners to bring rental properties not up to code back online, plus incentivize the construction of new Accessory Dwelling Units to expand Vermont’s rental housing stock.

    • Direct $22 million to subsidize new construction to lower costs for middle-income homebuyers, plus $1 million to the Vermont Housing Finance Agency (VHFA) for down payment grants for first-generation homebuyers. Repair and improvement grants will also be available for manufactured homes.

    • Reform zoning laws, expand tax credits, and create pilot projects to encourage denser development and more vibrant town centers.

    • Create an Advisory Land Access Board, composed of representatives of groups that have faced historic discrimination in land and home ownership. The new board will work with the Vermont Housing and Conservation Board and its partners to reduce current disparities as a result of that discrimination.

    • Extend additional protections from discrimination and harassment for renters and homebuyers.

    • Create a statewide contractor registry to protect against consumer fraud in residential construction projects with a value of over $10,000.

    • Use federal relief money to increase the capacity of the Department of Fire Safety to conduct rental inspections.

    Overall, these investments — which, when combined with mid-year budget adjustments dedicated to emergency shelter and low-income housing, total over $90 million — send a clear message to Vermonters that we’re doing everything we can, and teaming up with whomever we can, to provide more safe, healthy and affordable housing as soon as we can. We’ve advanced funding and policy that will make a dent in our critical housing needs, while establishing pilot programs that could provide a template for future investment on a state and federal level.

  • In May 2021, the legislature passed J.R.H.2, apologizing and expressing sorrow and regret to all Vermonters and their families and descendants who were harmed because of state-sanctioned eugenics policies and practices. As a follow-up, H.96 creates a Truth and Reconciliation Commission to research and investigate systemic discrimination caused or permitted by state laws and policies, and to propose action to the Legislature or governor to remedy the impacts on affected communities.

    The charge is to listen, research, learn, acknowledge and propose remedies. The work is expected to take three years, delivering detailed findings and recommendations for actions to eliminate and to address harm caused or permitted by state laws. Public input is integral to the entire process.

  • Every ten years, after the U.S. Census is taken, Vermont must adjust its legislative districts to accurately reflect any changes in population. Our state Constitution spells out the criteria for reapportionment: Districts must maintain equality of representation, have one or two Representatives, and make sense geographically.

    This year, the complex and lengthy process was delayed by months because the Census was unable to deliver population numbers on time. This put our work behind schedule. The Census reported that Vermont’s population grew a little, with population declining in some areas (especially in Southern and Northeast Vermont) and increasing in others (primarily in Northwest Vermont).

    The Census information guided the independent Legislative Apportionment Board’s work in providing recommendations for redistricting. Based on these recommendations and those of Boards of Civil Authority, the House Government Operations Committee prepared a final redistricting plan that was signed into law in early April. The maps for the districts can be found here.

  • The General Assembly has put the state’s public pension system on a path towards long-term sustainability, so that teachers, troopers, and all state employees can rely on a well-funded, solvent system when they retire. Legislators balanced commitments — one to State employees and teachers and another to Vermont taxpayers — in the face of a $5.6 billion unfunded liability that would have continued to grow without action.

    S.286 is the result of 15 months of hard work to engage Vermonters in a shared and sustainable solution. The State of Vermont will contribute $200 million in one-time surplus revenues. Meanwhile, teachers and state employees will increase and restructure their contributions — higher-income workers will pay a higher percentage of their income — and accept a small adjustment to cost-of-living increases. These savings will be re-invested into the pension system to retire the debt sooner.

    In all, these changes will eliminate $2 billion of unfunded liability and ensure retirement security and healthcare certainty for retired teachers and state employees for years to come.

    The law is the culmination of months of hard work and negotiation of the Pension Task Force, made up of legislators, public employees, and an administration employee. Through that collaboration, we won unequivocal tripartisan support and got a deal across the finish line.

    The Governor vetoed the bill, but the House and Senate voted unanimously to override the veto. The resounding override sends a clear and strong signal of support for our hard-working state employees. This is the first time in state history that both chambers have voted unanimously to override a veto. S.286 gives our teachers and state employees peace of mind: They will have their hard-earned pension when they retire.

  • H.572 will help Vermont schools struggling to hire and retain teachers. The bill makes it financially feasible for retired educators to return to work for up to a year, without giving up their pension benefits. The teacher must hold an active license, and both teacher and employer must continue to make contributions to the pension and other post-retirement benefits, such as health care. The workforce shortage in our schools is a long-standing problem that has been exacerbated by the COVID-19 pandemic. This bill supports our schools by giving them an option to put an experienced educator in a classroom. Our students will benefit from the stability of an experienced teacher when their classroom teacher is out on leave.

  • The legislature recognized early in the pandemic that telemedicine was going to be a crucial tool in keeping Vermonters connected with their health care providers. This was particularly true for those needing mental health support, where continuity of care is important. The state also loosened its telehealth licensing requirements to ensure that Vermonters had access during the pandemic to out-of-state providers.

    H.655 has created a new telehealth registration and licensing process through the Office of Professional Regulation that balances healthcare access, continuity of care, and the protection of Vermonters. The new three-tiered licensing process makes it easier for out-of-state providers to offer care to Vermonters while protecting Vermonters from incompetant or unethical practitioners.

    As Vermont faces both a healthcare workforce shortage and a mental health crisis, H.655 ensures that clinicians practicing in the state using telemedicine have met standards. The bill also provides peace of mind to Vermonters who are receiving valued care from out-of-state providers.

  • Vermont has a nursing workforce shortage, in part due to the toll that COVID has taken. There are many reasons, including insufficient faculty to educate new nurses and fewer students pursuing a nursing career. Multiple opportunities to address the problem are included in the FY 2023 budget.

    • $2 million in grants over three years to nursing faculty (ARPA)

    • $400,000 in incentive grants to hospital-employed nurses to serve as preceptors in Critical Access Hospitals (ARPA)

    • $2.5 million to the Agency of Human Services for a healthcare employer nursing pipeline and apprenticeship program (ARPA)

    • $2 million for a nursing and physician assistant loan repayment program and $500,000 for medical technician, child psychiatrist, or primary care provider loan repayment program (ARPA)

    • $1 million for the nurse faculty forgivable loan and loan repayment program (ARPA)

    • $1.5 million for forgivable loans for master’s level mental health professional programs (ARPA)

    • $1.25 million to Designated Agencies and Specialized Service Agencies for recruitment/retention tuition (ARPA)

    • $750,000 for Agency of Human Services health care workforce data center (ARPA)

    Ongoing scholarships for nursing forgivable loans and UVM third- and fourth-year medical students who return to practice primary care in Vermont

    These loans and grants stipulate that the recipient must practice in Vermont for the same number of years that they receive the support.

  • For many decades, Vermont has recognized reproductive choices as deeply personal, fundamental rights that should be free from governmental or political restrictions. Reproductive choices affect all Vermonters in their freedom to become a parent, to use contraceptive birth control, or to choose or refuse sterilization.

    This session, after a four-year, deliberate and inclusive legislative process, the House passed Proposal 5 by an overwhelming majority. If ratified by the voters in November, Prop 5 will enshrine reproductive liberty into our state’s constitution, ensuring that these rights are preserved for future generations.

    While the U.S. Supreme Court is poised to overturn federal protections provided by Roe vs. Wade, and many states across the country are slipping backwards in their laws regarding reproductive liberty, Vermonters will now be able to vote these values into our state Constitution this November, a historic opportunity at a critical time for our nation.

  • This year the Vermont legislature passed S.234, an act that improves Act 250 governance and makes it easier to build housing in Vermont’s designated Downtowns and Neighborhood Development Areas (NDAs).

    Vermont has a serious housing shortage. To address this crisis — to support our residents, our economy and our communities — we must pursue both short- and long-term solutions. S.234 begins to loosen Act 250 jurisdiction in communities that have adopted strong local mechanisms to support the construction of well-located housing, while looking more closely at resources — like unfragmented forest blocks — that are regional or statewide in nature. The bill gives small, rural towns the same access to housing programs and benefits that larger communities have enjoyed for years, while paving the way for more housing and mixed-use development in all NDAs.

    S.234 also makes Act 250 more functional by replacing the Natural Resources Board with a professional five-member Environmental Review Board. This board would hear appeals, rather than the current practice of having appeals heard by the court system. This new board would build up expertise and, in turn, provide guidance to the entire system.

  • This session, the House and Senate passed the annual Transportation Bill. This $860 million piece of legislation funds the entirety of the Agency of Transportation’s budget and reflects increases in funding to meet the demand for infrastructure projects while drawing down the influx in federal money.

    This bill prioritizes improving our roads ($150 million for paving,) bridges ($36 million,) and supports local investments in safety ($45 million to municipal transportation infrastructure.) It funds programs to help lower- and moderate-income Vermonters purchase electric or highly efficient cars. It invests in electric vehicle charging equipment, safer walking and biking infrastructure, zero-fare transit and over $44 million in public transportation funding. It also funds the Mobility and Transportation Innovations Grant Program to quicken our transformation to a clean transportation system. The current investments in climate solutions are a necessary first step in advancing the carbon-reduction policies as recommended by the state’s Climate Action Plan.

    Vermonters can expect a busy construction season and a robust re-investment in the coming years for improved travel whether it be by car, bus, bike, or foot.

  • H.737, the annual “yield bill,” fully funds Vermont's PreK–12 education system and notably reduces education property taxes by $35 million.

    Because of an unprecedented $95.7 million surplus in our Education Fund, we were able to return $20 million to taxpayers while also funding universal school meals for 2022–2023 ($29 million), PCB testing and remediation in our schools ($22 million), and new investments in our public pension system. We’re also creating a new program through our career and technical education centers that will teach students the construction trades by building and rehabbing housing and other community projects ($15 million). Despite strong statewide growth in education spending, the yield bill projects an average homestead tax rate of $1.385, significantly lower than last year's rate.

  • The legislature updated Vermont’s education funding formula to meet our constitutional commitment to public education, while maintaining our state’s longstanding tradition of local control over school budgets.

    One of the mechanisms in Vermont’s complex education formula is called “weighting.” It adjusts for the varying costs of educating different categories of students. The weights acknowledge that it is more expensive to educate middle and high school students, children who are living in poverty, children in rural areas, and children for whom English is not their primary language.

    S. 287 incorporates updated weights from a UVM/Rutgers study into the education funding formula, providing greater taxing capacity for many districts. The bill also creates a glide path of tax-rate protection for districts that will experience reduced taxing capacity. The new weights will be implemented in FY25, giving districts time to plan and prepare.

    In Vermont, we have a shared commitment to education: No matter where we live, we’re all responsible for educating all of our students. By updating our funding system through S.287, we take another important step toward making that vision a reality.

  • Building on the success of the federal CTC, H.510 creates a new Vermont Child Tax Credit. It will give $1,000 per year to parents and guardians for every qualifying child five years of age or younger. The bill increases the Child and Dependent Care Credit to 72 percent of federal CDCC, and increases our Vermont Earned Income Tax Credit to 38% of federal EITC — making us the highest state EITC in the country.

    The bill creates a deduction for all interest paid on student loans, increases income thresholds for existing Social Security benefits exclusion by $5,000, and creates new exclusions for $10,000 of retirement income from military, Civil Service Retirement System, or other states’ noncontributory retirement systems. It increases funding for three programs: an existing housing tax credit to increase access to manufactured home purchase and replacement, the Aid for the Aged, Blind, and Disabled program, and the Child Care Worker Retention Grant Program.

    This bill is a big win for Vermont families. We’re creating a clear and significant message in our tax code that Vermont is a place that supports families and workers. We understand what it means to parent, to carry student loan debt, and to care for aging parents.

    Overall, H.510 will provide more than $41 million in tax relief affecting at least 70,000 Vermonters, and likely more. It is an historic and significant bill.

Our work is far from done. The last two years offered us the rare challenge of strategically allocating a lot of money. As federal COVID relief dollars dry up, we will have to carefully prioritize scarcer dollars for the policies to create a Vermont that works for everyone.

Rural Vermonters deserve equitable access to education, homeownership, entrepreneurship and economic security. I will continue to advocate for the issues that matter to our community. 

After a season in Montpelier, I look forward to getting back into our communities to reconnect with you and learn more about your priorities for the future.  

It has been a true honor representing the people of Albany, Barton, Craftsbury, Greensboro, Glover, Sheffield, and Wheelock in the Vermont House of Representatives.

Thank you for all your support. 

Sincerely, Rep. Katherine Sims

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