Jobs Bill to Bring $66 Million to Vermont (VT)
August 11, 2010
The House passed legislation Tuesday containing $66 million for Vermont to expand Medicaid and prevent hundreds of teacher layoffs.
Lawmakers interrupted their August recess to vote 247-161 for the $26 billion emergency aid measure, which passed the Senate last week. It now goes to President Barack Obama for signing. Tuesday’s vote was largely along party lines, with three Democrats voting no and two Republicans voting yes.
The compromise measure will provide $16 billion to shore up Medicaid programs in every state and $10 billion to prevent layoffs of public employees, including about 160,000 teachers nationwide. The $16 billion continues, through the first six months of next year, an arrangement in which the federal government will pay an increased share of Medicaid costs.
Vermont Rep. Peter Welch, a Democrat, voted for the measure. Last week, Vermont Sens. Patrick Leahy, a Democrat, and Bernie Sanders, an independent, also voted yes.
Vermont will receive $47 million in Medicaid funding and $19 million to avoid layoffs, mostly of K-12 teachers. The U.S. Department of Education estimates the money will save 300 teaching jobs in Vermont.
“It will give Vermont breathing room,” Welch said. “Vermont has been doing a better job managing a difficult budget situation than other states, but it faces challenges, especially with Medicaid.”& lt;br />
As unemployment has climbed, Medicaid enrollment has shot up nationwide.
Gov. Jim Douglas’ office said Vermont will use the extra Medicaid money to upgrade technology across state government, build a new state hospital, and fund other one-time projects that will produce savings down the line.
Congressional Republicans called the bill a gift to teachers unions, major allies of Democrats. Democrats countered that students shouldn’t suffer when they return to school in the fall. The bill would be financed by trimming federal programs such as food stamps and by ending tax breaks for companies that create jobs overseas.
It would reduce the federal debt by $1.3 billion over the next decade, according to the Congressional Budget Office.
The federal money may help offset education cuts in Vermont, where school districts were asked last Wednesday to slice $23 million — 2.3 percent — from their already meager budgets for the 2011-2012 school year.
“It’s a significant amount of money for school districts to use to spare layoffs,” said Jill Remick, communications director at Vermont’s Education Department, adding that personnel costs account for 80 percent of Vermont schools’ expenses.
But the governor’s office said Vermont spends too much on education, noting that the state has been hiring teachers rather than laying them off.
“It’s concerning that this money might be used to prop up school budgets to a level that might be unrealistic in 2012 and 2013,” spokesman David Coriell said. “At some point, the federal spigot will be turned off.”
Educators — and their labor union — disagree.
“I don’t think the threat of layoffs is over at all,” said Darren Allen, communications director for the Vermont-NEA teachers union. “If the governor were to get his fondest wish, which would be to keep cutting education until Vermont resembles the rest of the nation, layoffs would definitely happen.”
Jeanne Collins, superintendent of the Burlington School District, said she hopes federal aid will prevent program cuts for needy and gifted students and staff cuts in Burlington.