Vermonters for Economic Health

The national recession is hitting Vermont harder and ever more frequently.

Today(11/20/08), Resolution, Inc. in Williston announced an additional reduction of 32 full-time workers because of business slowdown. This new round of layoffs adds to the 44 jobs lost in August.

Yesterday, Vermont Store Fixture Corporation, a firm which moved to Danby eight years ago from New Jersey, announced a layoff of 57 of their 87 workers.

Here's the bottom line for fiscal year 2009.

The State now projects that the General Fund shortfall is $64.
million.  This number does not include federal matching funds that will be
lost in Global Commitment/Medicaid.  This number includes upward budget
pressures of $27.4 million of which $19 million is in the AHS budget including
Vermont State Hospital at $7 million and Global Commitment at $4.1 million.

Today's (11/19/08) Burlington Free Press acknowledges the need for spending cuts to meet the revenue shortfall. Some would suggest that taxes should be raised, too. Now is not the time to raise taxes, but to get spending priorities right. This will be a difficult, but painfully necessary task.

"...As the economy continues to sour, the need for social services tends
to increase. That rising need comes as the state has fewer resources at
hand. Montpelier has already wrestled with the impact of falling
revenues, cutting $32 million in spending over the summer. The latest
revenue forecast and budget analysis issued Tuesday say the state must
find another $64 million in cuts by the end of the fiscal year in June.

Some will argue about Vermont's actual national ranking on high taxes, but this data from the Tax Foundation is informative. Vermont ranks 7th highest in property tax collections per household and 6th highest in per capita property tax collections in FY2006.

The General Assembly should keep this in mind if they have even the slightest idea about raising more taxes to close the budget gap expected in this recession.

Vermont's best course of action is to rein in spending. Some will argue that in these tough times, we should expand the social safety net. Maybe so, but NOT by raising taxes.

Hearty congratulations to the winners and many thanks to all the candidates who signed the VEH Candidate Pledge and ran the good race.

In this election, 38 candidates signed the VEH Pledge. One Senator (Bill Doyle) and 16 Representatives were elected to the General Assembly on November 4th. Of those 17, 10 were incumbents. A recount is underway in one race involving a VEH endorsed candidate.

Bravo!