Temperatures in Vermont’s State House corridors heated up last week despite the abnormally cold weather outside as the legislature moved forward on several key pieces of legislation amid controversy surrounding failure in the House to override a gubernatorial veto in a test of end-of-session political power.

The defection of two Democrats and an independent from the Democratic majority sank the Democratic leadership’s efforts to gain the two-thirds majority required to override Governor Jim Douglas’ veto of a mid-year budget adjustment bill. Douglas sent the bill back to the legislature because it lacked funding for an administration priority for higher-education scholarships.

Political fireworks erupted because one of the defecting Democrats was a newly-seated member appointed by the Governor to fill a House vacancy. Democrats were already simmering over the appointment because Douglas had bypassed a list of recommendations from the local district’s Democratic committee to fill the vacancy. Adding more fuel to the veto controversy was an accusation by another Democratic House member that a Douglas administration official offered him a favorable decision on a highway project in exchange for support on the veto vote. The official denied the charge.

Otherwise, the legislature moved forward smoothly on session priorities, including health care. The House approved a 2008 general fund spending bill (H.537) that includes small increases in Medicaid funding for hospitals and physicians. The House also approved a “technical corrections” bill (H.229) amending the health care reform initiative passed last year that created Catamount Health. The bill contains exemptions from an employer assessment for both part-time and seasonal employees. And a House plan for “next steps” in the Blueprint for Health and health care reform (H.531) was also approved and referred to the Senate.

The Senate last week passed its health care priority for the session, a prescription drug initiative (S.115). The Senate Health and Welfare Committee last week began discussions on the House health care reform bills. Three of the committee members also advocated for their own proposals to expand Catamount Health to include additional populations, such as small business with three or fewer employees, farmers, non-profits, and self-insured plans. The committee decided to instruct legislative staff to develop cost estimates on the expansion proposals prior to making any decisions.

This week, the House Health Care Committee devotes its time to S.115 and prescription drug issues. The Senate Health and Welfare Committee continues its hearings on the House passed bills, focusing on H.531. And on Thursday, the Legislative Commission on Health Care Reform meets at 4:30pm.

For more information on legislative proposals, visit the Blue Cross and Blue Shield of Vermont website at www.bcbsvt.com or call Leigh Tofferi at (802) 223-6131 or Kathy Parry at (802) 371-3205. If you wish to discontinue receiving these updates or know of anyone else who would like to receive it, please call Kathy Parry or send an e-mail to parryk@bcbsvt.com