By Brent Addleman | The Center Square

Vetoes on the state budget and child care bills emanated from the House of Representatives in Montpelier on the first day of the General Assembly’s veto session.

The Democratic majority House voted to override Republican Gov. Phil Scott’s vetoes on House Bill 494, the state budget, and House Bill 217, a piece of legislation that would impose a payroll tax to draw funding that would be used to provide childcare.

House Speaker Jill Krowinski, D-Burlington

House Speaker Jill Krowinski, D-Burlington, said the budget prioritizes communities in all 14 counties in the state and improves on programs and services.

“It’s a fiscally responsible budget that reflects the values and priorities expressed by Vermonters across the state,” Krowinski said in a statement. “This budget stands as a commitment to Vermonters: We hear your voices and stand by your side. It includes appropriations that benefit every Vermonter, including significant investments in housing; high-quality, affordable child care; Medicaid rate increases for health care, mental health and substance use disorder providers; community resilience and climate initiatives; broadband access, and others.

“We were disappointed that the governor vetoed the budget and that the critical funds earmarked for vulnerable groups were delayed in getting out to Vermonters and community organizations for several weeks.”

Scott vetoed the state’s budget on May 27. The House voted 105-42 on Tuesday, surpassing the two-thirds majority needed, to push the bill over to the Senate, which will take up the bill either later in the day Tuesday or on Wednesday.

As previously reported by The Center Square, the $8.45 billion budget is a $202.8 million spending increase over the fiscal year 2023 budget but is a $193.3 million decrease. The budget includes $231.1 million in one-time general funds.

Scott said last month that the budget, as Vermont moves forward, was not sustainable as it contained a $100 million payroll tax, $20 million in increases in Department of Motor Vehicles fees, and $30 million in property tax increases, on top of an additional $180 million on potential clean heat mandates on state residents.

On Tuesday, several members of the House said they supported the budget stating it makes “historic investments” in housing, child care, transportation, and the workforce.

Earlier in the day, the legislative body overrode Scott’s veto on House Bill 217, which calls for a payroll tax to draw funding that would be used to pay for child care across the state. The Senate will take up the bill later Tuesday or Wednesday.

Several members supported the bill, stating it invests in child care, the workforce, and education, and addresses unemployment concerns.

A few members spoke out against the bill calling the payroll tax “regressive,” even as Vermont has one of the highest tax burdens in the country. The representatives said that under the bill, lower-income residents already receiving subsidized child care would effectively be paying for child care for higher-dollar earners.