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February, 2008 Waterbury/Duxbury Exit 10 :”State Budget Challenges”

Last weekend I participated in an exciting ski tour around our district – the Camel’s Hump Challenge. This annual tour is a fundraiser for the Alzheimer’s Association of Vermont. The day was blustery and beautiful and we skied the 16 mile high country traverse in six hours. It was a wonderful experience and I am so pleased that my generous colleagues in the Legislature donated over $600.00 to support my cause. What a great motivation for exploring the district in winter!

Back at the State House, we have begun to learn more details about the Governor’s proposed FY ’09 budget. The budget, which is currently under review within the House Appropriations Committee, is the most important business of the legislature. The timing of the entire session evolves around the budget -- when a budget is passed, we all go home.

We are facing serious challenges with our state and national economy. As a result, we need to tighten our belts and reduce expenditures where we can and should. However, there are several serious shortcomings in the Governor’s proposed budget which will make it very difficult for the legislature to build a responsible budget.

One glaring problem is that the Governor’s budget has no funding for our November election(!) By not providing funds for the election in this budget, the administration is gambling that future surplus revenues (“budget adjustments”) will cover the election expenses. Betting on future surplus funds for our election is particularly problematic because revenues have been coming in below projections, which means there may not be extra money available to fund our election.

The Governor’s budget also incorporates his unpopular plan to raise money by leasing our state lottery to Wall Street. This places legislators in a challenging situation because if we do not lease the lottery, we need to fill a $50 million hole in the state budget. Meanwhile, the proposal to lease the lottery seems speculative at best, given that to date (six weeks into the session) no one from the Administration or Wall Street has been willing to testify to the legislature about the lottery proposal. The plan, as described by a written report from Lehman Brothers, depends on making Vermont a “high performing” gambling state, by increasing gaming opportunities throughout the state. While the state could possibly receive a lump payment of $50 million, Vermonters could be paying twice this to the Wall Street firms who anticipate profit on their investment.

Another huge budget hole that I am concerned about is the Governor’s $4.6 million cut in funding for Vermont’s Housing and Conservation Board. This is particularly troubling in light of the Governor’s push for more affordable housing in his State of the State address – a priority I concur with. Unfortunately, the cuts in VHCB funding will result in significant loss in housing production. In the past three years, $4.8 million in VHCB funds has resulted in 175 units of affordable housing providing 400 Vermonters with safe, decent and affordable housing. Given the pressures in our housing market, these are not funds I think we should cut at this time.

All of these matters are problematic, and place the legislature in a very precarious position in our effort to pass a careful and sustainable budget that meets our priorities as a state.

I will do my best to keep you informed about the resolution to these challenges as the session continues. As always, I welcome your comments and concerns.

Sincerely,

Rep. Sue Minter
900 Maggie’s Way
Waterbury Center, VT 05677
sue@sueminter.com
244-7955

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