Meeting of November 25, 1997
The Legislative Oversight Committee on Restructuring Education met at 10:00 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. John S. Freidin; Martha P. Heath; Karen M. Lafayette.
STAFF PRESENT: Bill Russell, Emily Tartter, Anne Winchester and Rachel Levin of the Legislative Council; Steve Klein and Catherine Benham of the Joint Fiscal Office.
Senator Rivers called the meeting to order at 10:00 a.m.
1. APPROVAL OF 11/18/97 MINUTES *
Staff distributed the November 1997 issue of Valuation Views, from Property Valuation and Review.
Rep. Heath said that she had made suggestions for the 11/18/97 minutes and had forwarded them to Rachel Levin. Sen. Rivers asked that the suggestions be incorporated into the minutes and the Committee would review them in the afternoon.
The Committee discussed the report due on December 1, as well as the meeting schedule and the work to be completed. It was agreed that the Committee would evaluate the need for meetings on December 8 and 9 at the end of the day.
2. UPDATE FROM ADMINISTRATION
Sen. Rivers asked Kathy Hoyt, Secretary of Administration, to address the Committee. She distributed a 11/20/97 memo from Jeff Carr of Economic & Policy Resources to Commissioner Tom Pelham in reference to Requested Options for Inflation Indexing of the "per student block grant." She discussed the memo with the Committee and said she would get answers from Jeff Carr for questions the Committee might have. Sen. Rivers suggested that Committee members review the memo and that the issue be taken up in the afternoon.
Sen. Rivers reminded Secretary Hoyt that the Committee has asked the Administration for specific proposals on tax stabilization. Secretary Hoyt said that Secretary Shouldice is working on a memo to the Committee on tax stabilization and tax incremental financing issues.
Sean Campbell, Deputy Commissioner of Taxes and Special Assistant to Secretary Hoyt on Act 60, distributed a November 1997, Bulletin No. 1, How Does Act 60 Affect Homeowners and Renters?, as well as an advance copy of the Act 60 newsprint handbook to be inserted in all the daily newspapers on 12/3/97.
Deputy Commissioner Campbell noted that the "pie chart" on Page 5 had two labels reversed and that Marketing Partners would be placing adds at their own expense with the chart reprinted. He said they are at work on speakers and municipal packets of information; that public meetings are going well; and that the Tax Department would be giving an internal briefing on Act 60.
Rep. Freidin suggested that there be a Public Service Announcement prior to the newspaper insert so that people would know to look for the insert on December 3; that the weekly bulletins have a note on them to encourage people to copy them for others; that the bulletin state where it can be obtained; and that it be posted on the Department’s web page.
Sen. Rivers asked Deputy Commissioner Campbell about the status of Act 60 related litigation. Deputy Commissioner Campbell said that the Administration was following court cases and that Molly Bachman, General Counsel, was working with the Attorney General’s Office which is managing the cases. Sen. Rivers asked that a memo be prepared and distributed to the Oversight Committee outlining the cases and the time line for resolving them.
Rep. Heath asked Deputy Commissioner Campbell when the Department expects to have one page narratives on several issues, including Current Use, and said that it was important that it was done soon. He said they are working on it.
Ed Haase, Commissioner of Taxes, discussed Tax Department implementation issues including the issue of bank escrow accounts and the provision of funds for computers and software to municipalities. Commissioner Haase reported he had been discussing the escrow issue with the Bankers Association. Committee members encouraged him to continue these efforts and to include Allan Hunt from the VHFA in the discussions.
Rep. Lafayette raised the issue of rental property in larger cities and the $1 per parcel for separating out homestead.
Bill Johnson, Director of Property Valuation and Review, reported that there had been numerous complaints that the parcel payment only partially satisfies the goal of compensating towns for the separating out of homesteads.
Rep. Freidin made a motion to recommend in the Oversight Committee’s December 1 Report that the legislature extend $1 per parcel to all R1's and all mobile homes landed if they have less than 2 acres. The motion passed 7 - 1.
Sen. Shumlin said the Administration should make a recommendation about when the payments should go out.
Bill Johnson continued his report by saying that the computer certification process for towns is underway.
The Committee recommended sending a second letter to towns as a reminder of the computer software assistance available to towns.
He also said that information is being assembled on the topics of tax stabilization and exemptions; that the listers handbook is being updated; that the ‘97 grand list information is being updated; that the Commission on Quality Appraisals and Equalization is continuing to meet and come up with recommendations; that PVR is moving to Montpelier soon and that the December 1 PILOT payments are going out as scheduled; and that the lister training sessions are continuing.
The Committee requested that he provide a list of the PILOT payments. He said he would by the end of the day.
Marc Hull, Commissioner of Education, distributed a 11/25/97 memo to the Committee which updated the Committee on the Department’s activities. He focused on the status of the reports the Department is undertaking.
Rep. Heath requested that the Department give the Committee its list of technical corrections. Commissioner Hull said that he had been meeting with the Tax Department and he would provide the Committee, prior to the December 9 meeting, a preliminary report on technical corrections from the Department.
After lunch, the Committee decided it would not be necessary to meet on December 8 and scheduled the next meeting for December 9.
Staff distributed the following documents from Bill Russell of the Legislation Council: 11/21/97 cover memo and Draft Oversight Committee Report; draft technical corrections; a 11/24/97 memo on Tax Increment Financing in Maine; and a 11/25/97 memo on Draft Recommendations on Tax Stabilization Agreements: Proposals for Revision. Senator Rivers stated she had not had an opportunity to review the draft technical corrections bill prepared by staff.
4. REVIEW OF COMMITTEE’S STATUTORY CHARGES REQUIRED IN REPORT
Sen. Rivers asked Bill Russell, Chief Legislative Counsel, to review the Draft Report with the Committee and requested that members make suggestions and comments as it was reviewed.
After discussion, the Committee agreed to have one Act 60 bill with technical corrections and refinements.
Steve Klein of the Joint Fiscal Office, joined Bill Russell and distributed a draft of discussion of the economic impacts of Act 60 to be inserted into the report.
The Committee asked Steve Klein to redraft the section with minor revisions and approved the section for inclusion in the report.
3. TAX EXEMPTION, TAX STABILIZATION AND TAX INCREMENTAL
FINANCING REVIEW OF DRAFT LANGUAGE AND COMMITTEE DISCUSSION
Bill Russell reviewed his memos with the Committee.
After discussion the Committee agreed on these sections of the report and asked him to incorporate them.
The Committee then discussed a recommendation for the setting of the amount of the Block Grant, which was noted was one time for this year.
The Committee agreed to adopt the recommendation of $5282 per equalized pupil for Fiscal 1999, noting that in future years it may be refined to reflect changing economic conditions.
The Committee agreed unanimously to adopt the draft report with the changes discussed, to be reviewed by the Chair.
5. AGENDA FOR NEXT MEETING; CLOSING REMARKS
After discussion, the Committee determined the next meeting would be Tuesday, December 9 and begin at 8:30 a.m. The Committee also agreed to hold Tuesday, December 16 as another possible meeting date if necessary.
The Committee adjourned at 3:30 p.m.
Respectfully submitted,
Rachel Levin
* Please note that the numbers refer to agenda item number.