Legislators, Governor
Disagree on Stimulus
By James Dwinell

As Vermont’s legislative session near an unseasonably early end, its work becomes more difficult. A special meeting with the state’s economists concluded with the agreement to cut the state’s budget by $25 million.

Upon hearing the grim news, Gov. Douglas directed his staff to develop economic stimulus ideas which might improve the economic outlook but which would not increase the budget. He presented new ideas including sales tax holidays, increased logging on state lands, tax credits to businesses in the "distressed" communities along the Canadian border, and a variety of home mortgage adjustments. He also improved his New Neighborhoods proposal to jumpstart new home construction.

Senate President Peter Shumlin and Speaker Gaye Symington created a special committee to both look at the governor’s ideas and to create its own. State Rep. Mark Larson of Burlington chaired this Committee of Economic Recovery and Opportunity.

Before presenting its ideas this week, Senator Shumlin said, "The causes of our current economic pain are beyond our power to control: the high cost of gasoline and heating oil, the high food costs created by Washington’s subsidy of growing corn for fuel, and the housing crisis created by greedy folks on Wall Street."

After Larson presented a list of ideas, Symington acknowledged that the list "includes much that we have already done or are doing to help those Vermonters suffering the most pain."

When asked why there was nothing in the package to stimulate business, Larson replied, "We wanted not to stimulate the (part of the) economy which had already not been working.

"Vermont families’ income has not been rising," he said, pointing to a graph prepared by the Vermont Tax Department. It showed that Vermonters making under $60,000 have been taking home less year after year while those earning over $75,000 have seen their incomes grow by an average of 10% a year.

The Governor’s Press Secretary Jason Gibbs replied, "Those comments illustrate the fundamental and ideological difference between this governor and the people leading the legislature." Larson’s comment, he charged, "shows a disdain for employers and entrepreneurs." Sen. Shumlin concluded by saying, "There is only a little bit that we can do."

When Randolph businessman Wayne Warner, owner of Valley Bowl, heard Senator Shumlin’s comment, he laughed. And then he added, "Just in our little project here, state regulators were very difficult. For example, they told us that we did not need a sprinkler system. None of the other tenants here have one.

"After we had borrowed the money for the project, they returned to say, ‘You must install a sprinkler system,’ forcing us to also bring a four-inch water pipe from Main Street. All in all, their changes cost an additional $150,000. All of those decisions are under the state’s control."