'extra' $20 million?

I was pleased to see a couple of days ago that the St. Albans Messenger printed Vermont Tax Commissioner Pelham's letter to legislative leaders explaining the extra $20 million that recently appeared in the Education Fund. There were significant changes to the Ed Fund outlook after the legislature adjourned, starting with the FY2008 close out. Part of the surplus resulted from missed estimates. Part of the it is a $6 million reduction in the amount required in the stabilization fund - it's not new money, but money that is now available for other purposes.

As I've written many times, the Education Fund generates too much money. That's why the legislature has been able to lower the school property tax rate every year for both Homestead and Non-homestead taxpayers. In spite of this, property taxes remain burdensome.

Many lobbyists have their eye on that $20 million. Budgets are being slashed everywhere across state government. The Ed Fund is the only place money appears.

What should be done with this unexpected revenue? Nothing yet. We haven't seen the bottom of our economic struggles. It is not needed to balance the books for school needs FY10. The Rainy Day Fund remains intact, so far. We should continue to search for ways to reduce spending. This unexpected revenue may be needed more dearly sometime in the near future, and the best option may be to simply return it to the taxpayers.

Rep. Carolyn Branagan
Franklin-1, Fairfax/Georgia
Vermont House of Representatives