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FAILED
in the State House of Representatives
on May 2, 2017, by a vote of
57-88
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Purpose: The underlying bill, H.196, would create a new, mandated, state-run insurance program (similar to unemployment insurance), funded by a payroll tax on employees, that would allow employees to take up to six weeks of paid leave to care for a new child or sick family member. The Donahue amendment would have replaced the mandated program and the tax that funds it with a voluntary program.
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As. Rep. Donahue explained her vote. “If the 70% of Vermonters who are reported to want this insurance, voluntarily participated, there would be no problem in sustaining it fiscally – and we would not have to impose it on those who do not want it.”
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Analysis: Those voting YES on the Donahue Amendment argued that if there were really a demand for a paid family leave in insurance program, employees would sign up for such a program voluntarily. The state should not force people to buy an insurance program they do not want or need.
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Those voting NO argued that Vermont employees who did not need a paid family leave benefit would not voluntarily sign up for and pay into a program if there were little or no chance that they would ever use it. However, extracting money from those who will never use the program to pay for the program is the only way to keep paid family leave “affordable.”
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As Recorded in the House Journal, Tuesday, May 2, 2017: “Shall the bill pass? was decided in the affirmative. Yeas, . Nays, 28.” ( Read the Journal, p. 1778-1788)
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