Tape No. 97-39, 97-40, 97-41

LEGISLATIVE OVERSIGHT COMMITTEE

ON RESTRUCTURING EDUCATION

MINUTES

Meeting of December 16, 1997

The Legislative Oversight Committee on Restructuring Education met at 9:58 a.m. in the Legislative Lounge of the State House, Montpelier, Vermont.

MEMBERS PRESENT: Sens. Cheryl P. Rivers, Chair; Nancy I. Chard; James H. Greenwood; Helen S. Riehle; Peter E. Shumlin; Reps. David C. Hathaway; John S. Freidin; Karen M. Lafayette.

STAFF PRESENT: Bill Russell, Emily Tartter, Anne Winchester and Rachel Levin of the Legislative Council; Catherine Benham of the Joint Fiscal Office.

Senator Rivers called the meeting to order at 9:58 a.m.

1. APPROVAL OF 12/9/97 MINUTES *

Sen. Rivers reported on a meeting in Springfield she had participated in the night before, then outlined the day's agenda, noting that Kathy Hoyt, Secretary of Administration, would be presenting the Governor's proposal on transition after lunch. She asked the Joint Fiscal Office to distribute 12/16/97 draft estimates on the cost of the cap for year 2 of the Governor's proposal.

Staff distributed 12/9/97 draft minutes for the Committee's review, a 12/10/97 Property Valuation and Review bulletin addressing Locally Voted Exemptions and Stabilization Agreements; two news articles, a 12/11/97 editorial from The Herald of Randolph and a 12/16/97 letter to the editor from the Rutland Herald.

2. SUMMARY OF KEY ISSUES ON APPRAISAL IDENTIFIED BY THE

COMMITTEE ON QUALITY APPRAISALS

Bill Johnson, Director of Property Valuation and Review, distributed and reviewed a 12/11/97 draft Report of Quality Appraisal Committee. He said the report would be sent to all the listers in the state for comments and that the Committee would have a final meeting on 1/12/98 to finalize the report and present it to the legislature by the due date of 1/15/98. Bill Johnson said the report focused on the appraisal process.

Sen. Greenwood asked why Property Valuation and Review would ask towns to pay for training materials as part of seminars offered by PVR. Bill Johnson said he would give the Committee an estimate on what the cost of the materials was. Sen. Chard suggested putting the package of training materials on the WWW and updating them as necessary.

Page 2

12/16/97

Sen. Rivers asked the Committee how it would like to proceed. Sen. Shumlin made a motion to adopt the draft report. Rep. Freidin made a friendly amendment to adopt a reference to the work of the Committee on Appraisals in the Oversight Committee's Report. The Committee agreed.

Bill Johnson continued his update on PVR activities, responding to the Committee's questions on the status of certification of town's computer systems.

3. REVIEW OF TECHNICAL CORRECTIONS

Bill Russell, Chief Legislative Counsel, distributed and reviewed a 12/16/97 draft Act 60 Technical Corrections Bill as well as a section-by-section summary. Emily Tartter of the Legislative Council and Bob Gross of the Department of Taxes responded to questions from the Committee.

Sen. Rivers said she had received letters from constituents on the issue of whether small investment clubs are subject to the minimum tax and asked if other members had also received letters. Several said they had. Sen. Rivers asked the Department of Taxes to clarify the issue.

Sen. Rivers thanked Bill Russell, Emily Tartter and Anne Winchester for their work on the Act 60 Technical Corrections Bill and said that she appreciated Bill Russell's role.

Rep. Freidin made a motion to amend the Oversight Committee's report to the General Assembly to include that a preliminary report from the Committee on Appraisals had been received and a final report was anticipated on 1/15/98 at which time it would be made available to the General Assembly. The Committee unanimously approved the motion. The Committee agreed to have one Act 60 Technical Corrections Bill.

After lunch Sen. Riehle made a motion to adopt the final version of the Oversight Committee's Report with the addition of the final version of the Committee on Appraisals Report, the technical amendments and the Local Officials Advisory Committee Report as appendices. Rep. Hathaway made a friendly amendment to attach the section-by-section summary to the technical amendments. The motion passed unanimously.

Sen. Riehle made a motion to ask the Administration for frequent written updates on Act 60 implementation to be delivered to each Committee member. Sen. Chard made a friendly amendment to ask the agency heads to provide the information on a weekly basis. The motion passed unanimously.

Page 3

12/16/97

5. PRESENTATION OF THE GOVERNOR'S PROPOSAL ON TRANSITION AND

UPDATE FROM THE ADMINISTRATION

Kathy Hoyt, Secretary of Administration, distributed a 12/11/97 press release from the Office of the Governor entitled, Governor Dean Unveils Act 60 Transition Proposal. Secretary Hoyt outlined three proposals in the Governor's press release: a one-time, one-year $2.78 million tax transition package; the endorsement of the Oversight Committee's proposal on tax stabilization agreements; and an early retirement option for teachers.

Committee members asked Secretary Hoyt to list the rationale behind the towns which were chosen to receive additional revenue as part of the tax transition package as well as the cost of the early retirement option.

Sean Campbell, Deputy Tax Commissioner, reported that the education program was on schedule, that a more specific municipal handbook was being developed, that PVR was moving to Montpelier to the Pavilion Building and that Bulletin 3 was being reviewed by the Department of Education. In response to a question from Rep. Freidin, Deputy Commissioner Campbell said that he would provide the Committee with the cost of printing additional copies of the newsprint

piece in quantities of 25,000, 50,000, 75,000 and 100,000.

Sen. Shumlin thanked Secretary Hoyt and Deputy Commissioner Campbell for doing a tremendous job. He then said he was proud of the job Sen. Rivers did chairing the Committee. Sen. Rivers said it had been an educational experience and thanked Committee members, the Administration and staff for their work and support.

Staff distributed on behalf of the Department of Education, a 12/15/97 memo on the Capital Debt Study. Staff also distributed a 12/15/97 editorial from the Addison County Independent.

Rep. Hathaway made a motion to approve the minutes of 12/9/97. The motion was seconded by Rep. Lafayette and passed unanimously.

The Committee adjourned at 2:45 p.m.

Respectfully submitted,

Rachel Levin

* Please note that the numbers refer to agenda item number.