The Democrat-led Vermont Legislature is back in session this week, prepared to challenge Republican Governor Phil Scott's vetoes on several key initiatives. Among the contested measures are the state budget and significant social programs passed during the previous legislative session.

Before adjourning last month, the Legislature approved bills aimed at expanding access to affordable childcare, providing free school meals for all public school students, and addressing climate change. While Governor Scott has expressed support for some of these goals, he's voiced concerns about the overall level of spending.

In a message to lawmakers last week, the governor highlighted Vermonters' anxieties regarding affordability within the state. He pointed to the Legislature's actions, including a new payroll tax estimated at $100 million, a $20 million increase in DMV fees, and what he described as an unsustainable $70 million increase in base budget spending beyond his recommendations. He also mentioned the projected cost increases stemming from overriding his veto of the clean heat standard bill.

A major point of contention is the expansion of childcare subsidies. Governor Scott vetoed the bill, citing concerns about the associated payroll tax. Legislative leaders have pledged to overturn this veto, emphasizing the urgent need to address childcare deserts and ensure fair wages for childcare workers. The proposed $150 million childcare plan seeks to expand subsidies to families earning up to 575% of the federal poverty guidelines, along with increasing pay for childcare providers. Funding would be partially sourced from a 0.44% payroll tax shared by employers and employees.

Governor Scott also vetoed the proposed $8.4 billion budget, the largest in Vermont's history, arguing that it places an undue burden on taxpayers. House Speaker Jill Krowinski countered that lawmakers were acting on the public's desire for action on issues like affordable childcare and universal school meals. The House passed the childcare subsidies bill with a sufficient margin to override the governor's veto.