Montpelier 5/20/2012
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  1. Thank you for this report, Andrew & vtdigger. “Complex” is one way to describe the problem, but it becomes simple if we pose the problem in a different way: How will the legislature raise enough revenue to take care of the basic needs of all Vermonters? Isn’t that the role of government–to defend the Constitution & the security of all citizens?

    The problem becomes simple when we understand that some Vermont residents are not fairly sharing the burden of these challenging economic & political times. Many of them–the top 5% income bracket–are willing to do so. Republican Governor Snelling offered a practical model back in the 80s. The lack of will to raise broad-based revenues this year is based on “politics” and the already-debunked myth that the rich will change residency if taxed at a higher rate. Many in that tax bracket have expressed that they are willing to do their part to contribute more fairly to Vermont’s economy in these difficult times. We need job security, food security, health & education security, affordable housing, and green energy development. We can lead the way here in Vermont… people who live here do so because of our caring and community-based way of life, the beauty of the region and our basic civility.

    As long as the voice of money and big business control our elections (and the public dialogue via mainstream media), government will ask the wrong question (how to stay in office) and thus come up with the wrong answer (cutting social spending). Let’s take real leadership change the dialogue in our small state.

  2. “With tears of emotion, statistics, a deluge of paper and even a little theater, Vermonters with disabilities and officials representing state and local organizations painted a bleak picture at the state capitol of the impacts of proposed budget cutbacks.”

    Never has a statement been truer.

    Some 60% of U.S. debt matures within three years or less meaning: Interest Rate Risk is enormous.

    A four percentage point increase in the U.S. 10 year Treasury bond would push U.S. government interest costs upwards of $500 billion. At a current rate of about 3.6%, a 10 year U.S. bond of 7.6% is historically within reason.

    Interest rate risk and the U.S.’s need to pay higher interest costs will continue to crowd out other areas of the U.S. budget, such as Community Block Grants and Home Heating Fuel Assistance to states and municipalities.

    More “tears of emotion” is indeed in our future and Montpelier has in its power to ameliorate these tears should it take note of a simple economic principle:

    Economics is about the allocation of scarce resources.

    Montpelier needs to find where the “slack” is in Vermont’s economy and begin to quantify the substitution or opportunity costs of its various decisions and policies.

    To wit:

    1) Education: Close and consolidate Vermont’s smaller schools and shrink school districts to about one per county. Increasing class size from about 10:1 to 13.5:1 (student to teacher) would produce roughly $100 million in savings, helping to offset cuts in Vermont’s Human Services division.

    2) Extremist land-use and environmental regulatory policies that curtail business growth and tax revenue should be weighed against cuts in Vermont’s Human Services division, as well.

    These two Vermont “third rail” untouchables, to date, have avoided the microscope of their opportunity costs and their contribution to the “tears of emotion” felt by Vermont’s Human Services division.

    Unfortunately, I believe only more “tears of emotion” must prevail before such action is taken.

    Those tears have left port, long ago, and will arrive on our shores sooner, rather than later.

    1. The chicken little screed continues.

      Please provide examples of Vermont’s “Extremist land-use and environmental regulatory policies that curtail business growth and tax revenue.” And make sure you give us actual data instead of opinions.

      1. Doug, Is that the best you can do?

  3. Its time for Peter Shumlin to raise taxes at home in this state and not just advocate for it at the federal leve!!!!!!!!!!!!! We need to EMBRACE SOCIALISM !!!!!!!
    This administration is not living up to its campagin promise of protecting the most vulnerable!!!!!!

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