THANK YOU for the opportunity to represent you. It is a privilege and honor, particularly in these times o funprecedented economic challenges. The legislature is determined to do what it can to help Vermonters. This includes spending state and federal money wisely; putting Vermonters back to work; stimulating economic growth and reviving our housing sector; protecting our environment; repairing roads and bridges, and building our future energy and broadband infrastructure. We must also try to ensure that we do not go backwards in health care, education, and essential services, which will cost us more in the future. This report briefly summarizes the progress we are making in some of these areas. I welcome your comments and suggestions.

HEALTH CARE – We’re working hard to make sure everyone either has insurance, privately or through Catamount or VHAP, or can get care through a free clinic or a community health center. Other efforts include: strengthening the Blueprint for Health that is geared toward preventive and primary care; trying to keep reimbursement rates for primary care up so those providers can afford to see you if you’re on VHAP or Catamount; supporting loan-repayment programs that help family doctors settle in Vermont and programs that encourage young people to pursue health care careers; encouraging the use of generic drugs instead of expensive brand-name drugs, and exploring ways to save Vermonters money by eliminating duplicate tests or procedures, reducing hospital re-admissions, and simplifying forms.

CATAMOUNT HEALTH CHANGES – Catamount Health is Vermont’s health care plan for adults who don’t otherwise have insurance; Dr. Dynasaur generally covers children. It’s a public private partnership, which means that the state subsidizes premiums for people up to 300% of poverty (about $33K for one person and $66K for a family of four) but contracts with private insurance companies (Blue Cross and MVP) to manage and pay claims. The person being insured is responsible for monthly premiums ($60 – $205 per person per month depending on income), co-pays, and meeting a deductible. Preventive care is excluded from the deductible. People over 300% of poverty can join Catamount by paying the full premium of about $435 per month per person. You’re eligible for Catamount if you’ve been uninsured for the past 12 months. But the waiting period is waived if you’re uninsured because you lost your job, or graduated from college, or a number of other reasons. Expansions of Catamount largely depend on federal health reform, which might allow us, for example, to waive or shorten the 12-month waiting period, eliminate pre-existing condition exclusions, and make coverage more affordable for more people.

HUMAN SERVICES IMPACT – The legislature is making significant progress in addressing the financial challenges created by the global recession. After passing a balanced budget for this year (FY ’10), the legislature again faces the challenge of addressing a projected $150 million deficit for next year. This deficit is the result of a significant drop in state revenues and an increase in the number of Vermonters who need a hand. Balancing the budget while respecting the needs of Vermonters is very difficult. The administration has proposed dramatic cuts that will have severe effects on Vermonters. Services that will have less funding include assistance that allows seniors to live at home longer instead of having to go into a nursing home; assistance that helps families with children move out of poverty by helping the parents become part of our workforce; assistance that allows individuals with disabilities to live with dignity and as much independence as possible; and assistance to families caring for a member who has a disability, making it possible for the wage earners to keep going to work. There are many more proposed cuts, and some families may be affected by cuts in a number of areas, making the cumulative effect devastating for that family.

The legislature has heard repeated concerns about many of these proposals. There are also concerns that some of these proposals will actually result in higher long-term costs for services. And according to a report from economist Tom Kavet, “In Vermont, the proposed AHS cuts reviewed herein are likely to result in the loss of

more than 1,000 jobs per year.” These factors pose a real dilemma for the legislature. We are working to find ways to minimize the reductions and their impacts, but it will be impossible to avoid them completely.

Closing the projected budget gap for next year is a daunting challenge, but we have made significant progress already. The legislature has worked with the

Governor’s staff to develop a plan to save $38 million through reforms to increase both efficiency and outcomes of state government. Teachers have contributed another $15 million through an agreement on retirement changes. State employees have contributed about $10 million to the solution through reductions in pay. Prudent savings in this year will allow us also to have over $20 million available to use next year to further reduce the challenge we’ll face then.

The steps taken by the legislature have gone a long way toward creating a balanced budget that meets our financial challenges while trying to respect the needs of Vermonters.

SUPPORTING OUR NATIONAL GUARD – We commend the 1,500 Vermonters deploying to Afghanistan. On the first day of the legislative session, the House passed a resolution honoring the Vermont Guard and continues to make every attempt to ensure our servicemen and women do not have to worry about their families back home while they serve our nation overseas.

The House and Senate have passed the Military Parents’ Rights Act, which protects the parental rights of military members when they are absent from their children’s lives due to orders. Swift mobilization can be disruptive to custody arrangements, sometimes causing military parents to lose access to their children because of deployment. The bill expedites court processes and custody hearings, requires the non-deploying parent to facilitate contact between the child and deployed parent, and stipulates that a permanent loss of custody cannot be based solely on deployment. I am honored to have sponsored this bill. The Department of Defense recognized the bill as a best practice for states to model.

For financial or resource assistance, please call the

Vermont Veteran and Family Outreach 24-hour hotline:

(888) 607-8773.

REPRESENTATIVE MAXINE GRAD Contact information: 301 Paddy Hill Rd. Moretown, VT 05660 828-2228 (State House) 496-7667(Home) maxjg@wcvt.com