[L]t. Gov. Phil Scott says that if he were governor, economic development would be his top budget priority.
Scott, who is contending for the Republican gubernatorial nomination, unveiled his budget plan this month. He committed to never proposing or signing a state budget that grows at a greater rate than the growth of the economy.
“I’m certain that there are savings to be found throughout government,” Scott said in an interview Friday. “It’s going to take a culture change in state government trying to deliver services in a much different way.”
When pressed on what areas of state spending he would look to cut, the candidate responded that health care would be a priority.
Scott pointed to the Medicaid program as a place where his administration would look to save money in light of significant growth within that program in recent years.
“If we’re looking at saving let’s say $50 million, you could look into that sector alone and come up with most of that,” Scott said. He did not offer specific points within the Medicaid program where he would cut.
He also said replacing Vermont Health Connect is a priority. He supports either moving to the federal exchange or working with regional partners to create a collaborative multistate exchange to try to lessen the financial burden on Vermont.
“We must take care of the fundamentals first and have an exchange that is actually fully functional,” Scott said.
GOP rival Bruce Lisman has called for transitioning to the federal exchange.
Scott said he would look to state employees for input on finding efficiencies. He suggested doing a state government version of his “Vermont Everyday Job” tour, in which he spends a day in the shoes of a worker in various sectors.
Asked whether he would pare down the size of the state workforce, Scott said that depending on the priorities of his administration, there “could be a right-sizing of the workforce.”
“There’s going to be some tough choices made, but we’ll right-size state government and provide the services in the most efficient manner possible,” Scott said.
Asked about pensions, which have been another major pressure on the state budget, Scott said it is an “unfunded mandate” with which many administrations have struggled.
“A handshake, you know, a contract means something to me,” Scott said. He said he would fulfill the commitments to state retirement funds but that any new proposals or deals “have to be something we could afford.”
Information technology systems have been the subject of considerable discussion in the Statehouse in recent years as lawmakers mull replacing decades-old systems in several branches of state government, including the Agency of Human Services and the judiciary.
There is a need to pursue updated technology to deliver services, Scott said.
“We can’t turn away from it, because it’s something that can be beneficial for us,” Scott said. However, funding it is a challenge, he said, because “it changes so dramatically, it’s hard to keep up.”
As with the health insurance exchange, Scott said there is a potential to collaborate with other states in the region on certain projects, such as a system the AHS is working toward that would consolidate the process for determining eligibility across many different benefits programs.
Partnerships with other states could lessen the implementation and maintenance burdens on Vermont, Scott said. “We’re too small a state to do it all on our own,” he said.
Scott said he is “averse” to using capital funds, for which the state issues 20-year bonds, to pay for the construction of IT programs. However, he said there is the potential to look for short-term lending options or to pay along the way to fund the build-out of some projects.
As for revenue, Scott said he plans to generate money to fund state spending through encouraging growth of the economy. He pointed to an atrophying working-age population. Scott said he will reach out to business leaders and others in Vermont for suggestions on how to stimulate that demographic.
Initiatives could include setting up tax incentives for filmmaking in Vermont. Another option, he said, could be giving tax breaks to young people to help them pay off student debt and become financially stable.
Scott said he does support the Vermont Enterprise Fund, a program that gives cash incentives to companies but does not tie the money to job creation targets. He said he sees the need for some greater guidance in the program. But overall “I think it’s still viable,” he said.
