State Budget

[Carolyn Branagan]

We are in extraordinary times.The nationwide recession has hit Vermont harder than many were expecting. In fact, I am afraid most Vermonters still don't realize how bad the impact will be on all of us,  but the Governor's budget address earlier this week gave a hint. These uncomfortable departures from typical spending plans are his design to set up lasting solutions.  All  Vermonters will share the burden of cuts as we face this $200 million shortfall expected for fiscal 2010..

I strongly believe we have to avoid balancing our state budget on federal stimulus aid. Our state budget has several structural problems that should be fixed so when we emerge from the recession we are  stronger.The Governor obviously understands this and has used the bad economic situation to make needed changes.

I do not agree with everything he proposes, but he is right that all Vermonters are going to have to share in the 'pain' of budget cuts.His budget suggests adding to some areas and cutting in many others. Among his proposals is the elimination of Vpharm, the Medicare part D wrap around program that covers very ill persons, mostly elderly, who are on lots of medications. The budget also includes cutting over 600 state employee positions and a 4% reduction in all Human Service grants. The Governor's plan proposes adding to the state's early education program and adding to higher ed. He proposes again requiring monthly premiums for Medicaid programs and Dr. Dynosaur recipients and creating a Health Savings Account for young healthy Catamount participants. He wants to add $2 million to the new Crime Lab, and also add Special Investigations Units statewide. He wants to shift the Teacher's Retirement funding to the Education Fund instead of the General Fund and freeze school spending at last year's per pupil costs. His budget includes raising nearly $10 million in new fees and bonding for road projects.   


Feel free to share your comments about the Governor's budget by posting a reply. As your state representative, I want to  know  your opinions. 

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

[ohhman]

Question:  what , if anything, is being done to level fund costs in Montpelier?  Are our elected officials still getting pay raises?  Is there an increase on the amount each is allowed to spend on meals & rooms?  I remember many years ago a relative was a legislator & it was common practice to accept the full amount allowed for meals, gas, rooms even if it wasn't actually spent!  I'm not directing this  at Carolyn or Gary,I feel strongly you do a great job,  but I mean in general;  also, has our governor been "level-funded" himself?
I agree to some extent schools need to cut back, (I am NOT a supporter of full day kindergarten), but if it's being said we need to control spending, then I think that needs to start at the top!

[Mummy]

3plusK,

Excellent points.  Savings in multiple little area will add up to a huge savings. I too am NOT a supporter of full-day Kindergarten.  Although after watching the news and hearing the radio talk shows, I can't help but wonder if there isn't more on the horizon.  Listen to what they are NOT saying

 ... with things as bad as they MUST be how safe are the current pensions being paid out to those folks who are collecting pensions?  What would things look like if all those folks who are collecting a pension just STOPPED?  It could happen.  The Gov. is speaking and his words are being selected VERY CAREFULLY.  Listen to what he is not saying. 

[j_gluck]

Carolyn,

I read your post and the Governor's budget address and I am still trying to find the ways ALL Vermonters are going to share in the pain in this budget.

I have posted here before ideas for revenue enhancements. Doug Hofer (an independent policy analyst based in Burlington) posted this uncomfortable (for the Governor) fact on Green Mountain Daily - http://greenmountaindaily.com/showDiary.do?diaryId=3844

Since 2003, the number of filers reporting more than $500,000 in adjusted gross income (AGI) has more than doubled and their income has tripled to almost $2.3 billion. Big deal right. But here's the kicker. In 2003 those earning over $500,000 paid 5.9% of their AGI in state income taxes (not much when you consider our top marginal rate is 9.5%). But in 2007 this group paid only 5.4% of their AGI in state income taxes. That's right. The percentage of income they paid in state income taxes WENT DOWN!!

So tell us again Governor how "Vermonters" have no capacity for higher taxes and how we're chasing the wealthy out of VT.

It appears that the Governor is pitting:
- teachers and schools vs property owners (can you explain to me how his education plans as announced are NOT a $62million tax increase for property owners)
- Vpharm recipients (and others who receive help from the State) vs early education and colleges
- State employees vs their union (and the rest of Vermont)

What will 600 less State employees look like? Will the State close all offices in Bennington? Springfield? Newport? St. Albans?

When ALL Vermonters share in the pain of this recession and budget shortfall, I will be happy to listen to the Governor's ideas.

[special ED]

I do not think his budget goes far enough, Now is the time to clean house and get rid of all the dead wood,feel good programs and only keep nessesary government services

[j_gluck]

Will you define "nessesary government services"?

[special ED]

law enforcement,roads and bridges,fire and rescue,high speed intenet access,cell phone coverage,stuff like that..you have the fed for border patrol, you have the epa for eviromental protection, you have the irs for tax protection,you have the atf for other bad stuff ..on and on and on. state government should have a very little roll in our everyday lives but somehow since the state was concieved way back things kept getting added on and here we are today..we are promised the pursuit of happiness not the guarantee