Deficit in 2010 State Goverment Budget Could be More than $100 Million
Jack Hoffman of the Public Assets Institute in a paper titled Beyond Belt Tightening predicts Vermont's state budget deficit in FY 2010 could be as high as $120 million. If so, the next legislative session will be an ideal time for lawmakers and the Administration to reexamine public policy and refocus their priorities. Vermont has been living beyond its means for far too long. The 'find revenue' culture must give way to a rational tax policy and policy/spending priorities that will encourage economic development, private sector job growth and an expanded tax base.
Many will argue for even more income redistribution by taxing the wealthy to pay for the present spending policies. The risk that many more will flee the state is real. Instead, we need a careful, rational examination of spending policies and priorities. As a small state, we simply cannot 'have it all' by raising ever more taxes from a shrinking economy.
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