Policy challenges lie on the horizon as the new legislature prepares to convene in January
We knew going into the 2022 election cycle that there would be many new faces in Montpelier for the upcoming 2023 legislative session. Nearly one-third of House of Representative chose not to run for re-election. Eight members of the Senate chose not to seek re-election, and with redistricting there will be seven new faces in the upper chamber. We also knew prior to the election that the federal races were a foregone conclusion, with Peter Welch stepping up to the U.S. Senate and Becca Balint stepping up to the U.S. House of Representatives.
VERMONT ELECTION RESULTS
• Republican Governor Phil Scott was re-elected to his fourth term over Democrat candidate Brenda Siegel by a margin of 71-24%. Governor Scott will need 100 votes in the House to sustain a veto and 20 in the Senate. Sustaining a veto in the House will be virtually impossible, however not totally unlikely in the Senate depending upon the issue and importance to the Democratic caucus.
• Democrat David Zuckerman will regain his role as Lt. Governor after stepping away to run for Governor in 2020. Republican Caledonia State Senator Joe Benning was defeated by a margin of 54-43% in his first statewide candidacy.
• Former Deputy Attorney General Charity Clark was successful in her first campaign for statewide office defeating Michael Tagliavia by a margin of 65-35%.
• Democrat House Rep. Sarah Copeland-Hanzas will become Vermont’s next Secretary State defeating perennial statewide Republican opponent Brooke Paige by a margin of 65-35%.
• Republican Brooke Paige was also on the ballot for Treasurer, and he was defeated here, too, by first time candidate, former Commissioner of the VT Department of Financial Regulation Mike Pieciak, by a margin of 66-34%.
• Auditor Doug Hoffer – D/P, was re-elected to his seventh term over a virtual unknown, Republican Richard Morton, by a margin of 65-35%.
• Vermont General Assembly: The Senate make-up will 22 Democrats, 7 Republicans, and 1 Progressive. The House make-up will have 104 Democrats, 38 Republicans, 5 Progressives and 3 Independents.
• House of Representatives – Democrats secured a historic majority on November 8, picking up twelve (12) seats. Speaker of the House Jill Krowinski, D-Chittenden-6-3, has served in the House since 2012. It is anticipated that she may face a challenge for speaker. There is expected to be a new slate of committee chairs with the retirement of nine incumbents.
• Senate – Senator Philip Baruth, D-Chittenden, is anticipated to become the next Pres Pro Tempore with the vacancy created by Becca Balint, who was elected to the U.S. Senate. There will be seven new faces in the Senate; three from Chittenden County and one each from Franklin, Washington, Windham, and Windsor counties.
FEDERAL RESULTS
• U.S. Senate – Congressman Peter Welch, D-VT, glided to victory (68-28%) over Republican challenger Gerald Malloy. Welch has spent the past eight terms serving as Vermont’s lone member of the U.S. House. One of Vermont’s two U.S. Senate seats was vacated with the retirement announcement of longtime U.S. Senator Patrick Leahy.
• U.S. House – Unofficial results show that Democrat Becca Balint handily beat out Republican Liam Madden (63-28%) for the congressional seat left open by Congressman Peter Welch, who stepped up to win the U.S. Senate seat. Balint, currently holds one of two Windham County senate seats and is the President Pro Tempore. Liam Madden is a self-described independent who won enough Republican primary votes to carry the nomination, but the Party would not endorse him.
NFIB MEMBER ISSUES
Pressure on businesses has not eased since the pandemic lockdowns ended. Many industries are reporting more grim business conditions today than two years ago, and many businesses who survived the pandemic are deeper in debt. Right now, businesses are facing an avalanche of mounting costs. Inflation is at 9%, driving food prices up by a nationwide average of 13.1% in July. Gas prices soared to a high of $5.61/gallon in June, which came as businesses are continuing to struggle to source basic products amid ongoing supply chain issues. Vermont labor costs rose 15% during the pandemic, well above the nationwide average of 5%. In addition, health insurance premium increases and hospital spending are putting a greater burden on those in the small group marketplace.
In 2023, we will ask lawmakers to consider the accumulation of these costs on small businesses before raising taxes, passing new or increased fees, or mandating costly and time-consuming compliance with new programs. Vermont has seen stores closing, reduced restaurant hours, fewer options for childcare, fewer homes being built, and longer wait times to see a doctor or dentist. NFIB will work had to ensure that those under the golden dome in Montpelier balance their desire to spend with Vermont’s ability to pay.
Below are few issues that we are aware of at the present time, but there will be many others as the Vermont Legislature reconvenes in January 2023. NFIB needs to hear from you, it’s important for us to hear your story, please connect with [email protected] to share your thoughts and suggestions.
• 2023 Minimum Wage Increase: Earlier this month, the Vermont Department of Labor announced the annual increase to the State’s minimum wage rates. Beginning January 1, 2023, Vermont’s minimum wage will increase to $13.18/hour, which is a $0.63 increase from the current minimum wage rate of $12.55. This annual adjustment also impacts the minimum wage for tipped employees. The Basic Tipped Wage Rate for service, or “tipped employees,” equals 50% of the full minimum wage. On January 1, 2023, the tipped minimum wage will increase from $6.28 to $6.59 per hour. Additional information on the Vermont Department of Labor and its resources may be found by clicking on this link: Home Page | Department of Labor (vermont.gov).
• Apply for Business Relief – VEDA Short-Term Forgivable Loan Program: After several delays, this program is open and will provide financial assistance to businesses that continue to experience current and ongoing harm due to the COVID-19 pandemic. While businesses in the travel and tourism, restaurants, lodging, childcare, and agriculture sectors and BIPOC-owned businesses were prioritized, the application is open to all business sectors now. Click here for more info: Forgivable Loan Program | VEDA
• COVID Paid Leave Grant Program: The rollout of this program continues to be delayed; however. we are told that the launch date will not change the total amount of time that the application window will be open. Employers must demonstrate the dates each employee was out due to COVID, the total and hourly sick leave wages paid to each employee out due to COVID and provide documentation to support that the leave was due to eligible COVID-related reasons. Click here for more info: Covid-19 Paid Leave Grant Program | Department of Financial Regulation (vermont.gov)
