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For the week ending Friday, May 11 2001

Although predictions vary as to when it will happen, leaders in both the House and Senate appear to have adjournment on their minds. Act 60 has taken center stage during the last week with the Senate Committee on Appropriations recommending Act 60 reform without the income tax increase proposed by the Committee on Finance. After the full Senate approved the bill without the income tax, the Senate Committee on Finance revised the proposal again, which gained final approval on Monday. With that monumental task behind them, the Appropriations Committee can shift their focus to the FY02 budget.

In the House, two of the most controversial social issues of this session were voted out of committee and readied for debate by the full House this week. Early this week, legislation to require minor-aged women to notify their parents of their intent to obtain an abortion was voted out of committee. Debate on this highly volatile issue began on Thursday, with many suggesting the vote would be too close to call. The Committee on Judiciary, which has spent every Tuesday of this legislative session working on the civil unions issue, voted a bill out of committee that would repeal the Civil Unions law, replacing it with a new "Reciprocal Partnerships" law. Under this proposal, any two individuals not eligible to marry could enter into a Reciprocal Partnership. This issue is expected to be contentious in the House, however it is unclear whether the Senate will even consider the bill.

At this point, the Senate’s work on the FY 2002 State Appropriations bill is the only major obstacle to adjournment. The House leadership is heard to be considering sending the members of the House home on May 19th until such time as the Senate and various Committees of Conference have concluded their work, and are ready for adjournment.


The Budget
With some hard work, long hours and a little luck the Senate Committee on Appropriations could finalize their version of the FY02 budget and send it to the floor for full Senate consideration by the end of this week. Decisions and discussions on the budget have been delayed while the committee considered H.31, the prescription drug bill and H.29, the Act 60 reform bill.

Last week state economist Tom Kavet reported that due to problems with the new check processing system installed in February at the Tax Department state revenue projections for the next fiscal year cannot be determined. Although this little snag was met with a tepid reception, it does present a large problem for the committee as they struggle with how much they can spend. Without current revenue projections, they will need to rely on the January forecast that doesn’t take into account the April filings, which are usually very helpful and often enable the state to increase its revenue forecast.

With no significant action on the budget last week, VAHHS members can expect to see some discussion and hopefully decisions this week on the Medicaid reimbursement levels, the tobacco tax, and the nurse loan forgiveness program. The committee has already agreed on language for nursing homes financing and have agreed to eliminate the language in Section 123a relating to the elimination of the Medicaid cost shift as determined by the Joint Fiscal Office.

In addition, VAHHS testified before House Commerce on H-153. The bill would allow the insurance department to set discounts for automobile insurance for Vermonters over the age of 55 who complete a defensive driving course approved by the Department. VAHHS staff testified in favor of this bill. The bill is supported and advocated by AARP.


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