|ACT OF THE GENERAL ASSEMBLY||2007-2008|
NO. 202. AN ACT RELATING TO COMPUTATION OF THE BASIC NEEDS BUDGET AND THE LIVABLE WAGE.
It is hereby enacted by the General Assembly of the State of Vermont:
Sec. 1. 2 V.S.A. § 505 is amended to read;
LIVABLE WAGE ANALYSIS; BASIC NEEDS BUDGET CALCULATION AND
LIVABLE WAGE; REPORT
other year beginning January 1, 2007, the joint fiscal office shall issue a
report on or before January 15. The report shall be updated as needed on or
before January 1 of the interim year to reflect any significant economic,
policy, or statutory changes that substantially affect the information in the
report issued the previous January 15. The report shall include a computation
of baseline data of the cost of living in Vermont and the current wage levels
within various sectors of the economy using the methodology used by the livable
income study committee in its report issued on November 9, 1999. The report
shall include; For the purposes of this section:
set of “basic needs budgets” for various household configurations for the
previous year. The “basic needs budgets” are calculations of the amount of
money needed by various households to maintain a decent standard of living in
Vermont, using current state and federal data sources for determining such
basic monthly expenses as food, housing, transportation, child care, utilities,
tax burden assessment, personal expenses, and health care.
“Basic needs” means the essentials needed to run a household, including food, housing, transportation, child care, utilities, health and dental care, taxes, rental and life insurance, personal expenses, and savings.
changes in the federal minimum wage and in the minimum wage rates of
surrounding and comparable states “Basic needs budget” is the amount of
money needed by a Vermont household to maintain a basic standard of living,
calculated using current state and federal data sources for the costs of basic
(3) “Livable wage” means the hourly wage required for a full-time worker to pay for one-half of the basic needs budget for a two-person household with no children and employer‑assisted health insurance averaged for both urban and rural areas.
for changes or revisions in the methodology used to determine the basic needs
budget calculations as needed shall be approved by the joint fiscal committee
On or before January 15 of each new legislative biennium, beginning in 2009,
the joint fiscal office shall report the calculated basic needs budgets of
various representative household configurations and the calculated livable wage
for the previous year. This calculation may serve as an additional
indicator of wage and other economic conditions in the state and shall not be
considered official state guidance on wages or other forms of compensation.
report and any revisions shall be presented to the house committee on general,
housing and military affairs and the senate committee on economic development,
housing and general affairs The methodology for calculating basic needs
budgets shall be built on methodology described in the
November 9, 1999 livable income study committee report, modified as appropriate by any statutory changes made by the general assembly and subsequent modifications adopted by the joint fiscal committee under subsection (d) of this section.
(d) The joint fiscal committee may adopt modifications to the methodology used to determine the basic needs budget calculations under subsection (c) of this section to account for public policy changes, data availability, or any other factors that have had an impact on any aspects of the methodology. Changes or revisions in methodology adopted by the committee shall be effective no later than November in the year preceding the release of the report.
Sec. 2. BASIC NEEDS BUDGET
TECHNICAL ADVISORY COUNCIL;
(a) A basic needs budget technical advisory council is established to work with the joint fiscal office and a panel of experts. The council shall:
(1) Review the current methodology for calculating the basic needs budget and determining livable wage.
(2) Take testimony from a variety of stakeholders, including employers and employees, in order to acquire broad public comment.
(3) Make written recommendations for revisions to the methodology to the joint fiscal committee by November 15, 2008.
(b) The basic needs budget technical advisory council shall consist of eight members, who shall serve from July 1, 2008, until January 15, 2009, when the basic needs budget and livable wage report is issued. Members of the council shall include:
(1) One member appointed by the speaker of the house who shall be co‑chair and of a different political party from the legislative member appointed under subdivision (2) of this subsection.
(2) One member appointed by the senate president pro tempore who shall be co-chair and of a different political party from the legislative member appointed under subdivision (1) of this subsection.
(3) One member jointly appointed by the speaker of the house and the president pro tempore of the senate who may be from either chamber of the legislature.
(4) Five additional members with expertise and experience with the data and methodology used to calculate the basic needs budgets and who shall include a representative of each of the following selected by the organization:
(A) The Vermont sustainable jobs fund.
(B) The Vermont small business development center.
(C) The agency of human services, division of operations and planning.
(D) The department of labor, economic and labor market information division.
(E) The Vermont society for human resources management.
(c) The chairs of the house committee on general, housing and military affairs and the senate committee on economic development, housing and general affairs, or their designees shall be co-chairs of the council. The joint fiscal office shall provide administrative support and shall engage a panel of independent experts to assist with data analysis and methodological considerations. For service on the council, members of the council who are members of the general assembly shall be entitled to per diem compensation and reimbursement for expenses as provided in 2 V.S.A. § 406; and other members of the council who are not also state employees shall be entitled to per diem compensation and reimbursement for expenses as provided to members of state boards by 32 V.S.A. § 1010.
Approved: June 10, 2008
The Vermont General Assembly
115 State Street