Category Archives: Appropriations

Dispatch centers get temporary reprieve

MONTPELIER — Emergency dispatch centers in Rutland and Derby will get a temporary reprieve from the chopping block in the state budget approved Monday by the House Appropriations Committee.

Gov. Peter Shumlin proposed in his recommended budget that two of the state’s four public safety answering points be closed and operations consolidated with the remaining two in Williston and Rockingham. The plan, according to the administration, saves $1.7 million annually and would eliminate about 15 of the state’s 71 full-time and 33 temporary emergency dispatchers.

Facing a $113 million gap in the 2016 fiscal year budget, the administration has insisted the consolidation is necessary to help reduce spending in the budget.

But the House Appropriations Committee sought a way to keep all four dispatch centers open, even temporarily, following strong push back from the Vermont State Employees Association and first responders from around the state. Chairwoman Mitzi Johnson, D-South Hero, said the the committee’s plan will keep the PSAPs in Rutland and Derby open until at least Sept. 15.

Rep. Mitzi Johnson

Rep. Mitzi Johnson

The House plan uses $425,000 from the state’s Universal Service Fund, which assesses a 2 percent fee on telecommunications services to supports Vermont’s Enhanced E-911 program. It was approved by the committee unanimously.

“Although it is not our preference to use that money for anything other than, specifically, 911 call taking, this was closely related enough,” Johnson said Tuesday. “It is strictly one-time, USF money that keeps the four PSAPs running as is until Sept. 15.”

Johnson said the committee heard from many people, particularly in the Rutland and Derby areas, who are concerned that emergency dispatch services will suffer under the administration’s consolidation plan. Johnson said her committee deferred to the Government Operations Committee on safety concerns, but heeded requests to allow those communities time to explore options to maintain local dispatch services.

“It gives time for local entities to try to come up with an alternative or a transition plan,” she said. “They asked for some time to come up with a local alternative, so that’s what we’re offering.”

The committee included legislative language in its budget plan calling for Public Safety Commissioner Keith Flynn to meet with first responders in the Rutland and Derby areas about how dispatch services could be funded.

“I think there were enough questions raised, and there were enough possible alternatives raised, the fact that there are potentially viable, home-grown alternatives out there, is reason enough to say, ‘Is there a different way to do things?’” Johnson said. “There are places all over government where we’re asking for a different way to do things.”

Shumlin spokesman Scott Coriell said the administration is reviewing the Appropriations Committee plan and would not be commenting on each component. Shumlin issued a statement Monday after the House approved its plan on a bipartisan, 11 to 0 vote.

“My budget team will take a close look at the specifics in the bill passed this afternoon, and will continue to work closely with the Legislature as the budget makes its way through the next steps in the House and on to the Senate later this session,” Shumlin said in the statement. “I remain committed to making sure this budget responsibly spends our limited resources to advance our economy and protect our most vulnerable.”

neal.goswami@timesargus.com

House budget plan becoming more clear

MONTPELIER — The House’s path to closing the state’s $113 million budget gap is becoming more clear after a new framework was revealed Friday by House Appropriations Committee Chairwoman Mitzi Johnson.

Johnson, D-South Hero, in her first year leading Appropriations, unveiled her own budget proposal the committee will use to finalize its 2016 fiscal year spending plan. It incorporates many of Gov. Peter Shumlin’s ideas to close the original $94 million hole the state faced in January, and incorporates new ideas for the additional $18.6 million needed after a revenue downgrade in late January.

Rep. Mitzi Johnson

Rep. Mitzi Johnson

Some of Johnson’s ideas are taken from a list of potential cuts totaling $29 million that lawmakers crafted with the Shumlin administration. House Speaker Shap Smith, D-Morrisville, said Monday that list of potential cuts “is appropriate to use” to close the gap.

Among the cuts used by Johnson in her budget proposal are:

— $5 million reduction for Vermont Health Connect, including subsidies
— Eliminating a $6 million state contribution to the Low Income Home Energy Assistance Program
— Closing the Southeast State Correctional Facility in Windsor, for a $820,000 savings in both the 2016 and 2017 fiscal years
— A $1 million reduction in funding for the Vermont Veterans Home
— A $1 million reduction in funding for the Department of Information and Innovation
— A $560,000 reduction in funding for Vermont PBS split over the next two years

In total, Johnson’s proposal makes about $57 million in general fund cuts. It would incorporate $10.8 million labor savings the administration is seeking from state employees and also consolidate four emergency dispatch centers down to two.

Johnson’s proposal would utilize more than $20 million one-time or short-term funding sources. About $5 million in reserve funds would be tapped to help close the gap. It also would shift $4.8 million in spending for the Vermont Housing and Conservation Board to the capital bill to be raised through bonds. Another $1.7 million would be generated by leasing prison beds to the U.S. Marshal Service.

Whatever proposal the Appropriations Committee settles on will be paired with a revenue package fine-tuned by the House Ways and Means Committee. Smith, D-Morrisville, said the House will likely move forward with a revenue package of $35 million.

It will include, Smith said, a Shumlin proposal to eliminate the ability to deduct the previous year’s state and local taxes for taxpayers who itemize deductions. That will generate an additional $15 million tax revenue.

House Speaker Shap Smith

House Speaker Shap Smith

The House will look to also cap the amount of all itemized deductions at 2.5 times the standard deduction, according to Smith. That will raise about $18 million in additional revenue. Another $2 million in a separate fee bill will generate the remaining revenue to help balance the general fund.

Smith said he supports the framework of Johnson’s proposal which will help the committee finalize its plan this week, including the use of reserve funds.

“I do think that the framework that she’s put forward, it works. I think we both have been trying to figure out ways to bring down the amount of one-time money that is used, recognizing that next year could be difficult as well. At this point in time, I think she’s done about as good of a job as she can limiting the use one-time money,” he said. “I think it is appropriate to use (reserve funds) given the challenge that we face as long as we’re thinking strategically how we might replace it … in outgoing years.”

Smith and other House leaders are still planning to finalize a budget plan this week, but additional time will be taken if needed, he said.

“My view is that if something comes up I’d rather get it right than get it done fast. I think that we’re on target right now for the completion of the budget by the end of the week with consideration of the full House next week,” Smith said.

neal.goswami@timesargus.com

Read Johnson’s budget outline below:

Capitol Beat 3-16-15

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Vermont Press Bureau reporter Josh O’Gorman and bureau chief Neal Goswami discuss guns, a sugar tax, new budget proposals and education in this week’s episode.

Capitol Beat with the Governor 3-13-15

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Gov. Peter Shumlin chats with Vermont Press Bureau Neal P. Goswami about a House Health Care Committee bill, the state budget and gun legislation.

Administration asks for list of state jobs to cut

MONTPELIER — The Shumlin administration has asked state agencies and departments to identify up to 325 state jobs to be cut to obtain $10.8 million in labor savings.

Agency of Administration Justin Johnson made the request in a memo sent to agency secretaries and department commissioners Wednesday. The memo was first reported Thursday by Seven Days.

The administration is seeking the labor savings to help balance the 2016 fiscal year budget, which has a hole of about $113 million because revenues are rising slower than the budget’s rate of growth. Officials have asked the Vermont State Employees Association to open the union’s existing labor contract to avoid job cuts, but the union has refused to do so.

Justin Johnson

Justin Johnson

The administration is looking to nix a 2.5 percent cost of living increase due to state employees during the 2016 fiscal year, and slow down so-called “step increases,” which average out to about a 1.7 percent additional pay increase for state employees annually.

Because the union is unwilling to renegotiate, job cuts will be needed, according to Johnson.

“It seems unlikely that the State’s labor contract will be reopened as part of the solution to balancing the budget. This situation leaves me with no alternative but to begin planning for a significant reduction in force across all sectors ofVermont state government to be effective July 2015, the start of the new fiscal year,” Johnson wrote in his memo.

The number of job cuts needed ranges from 150 to 325, depending on the positions. On average, the state’s general fund covers about 40 percent of the cost for each position. Each position, including salary and benefits, has an average cost of $83,000.

Johnson asked that positions be identified by March 16, and that vacant positions be considered first.

The Agency of Human Services, the largest state agency, has been asked to achieve the most savings — more than $4.5 million. The Agencies of Natural Resources, Public Safety and Administration must identify more than $1 million in saves each.

See the memo and the administration’s target reductions below:

Tax code changes eyed to balance budget

MONTPELIER — The 2016 fiscal year state budget the House considers is likely to include $35 million in new revenue raised through changes in the tax code, according to House Speaker Shap Smith.

That amount is consistent with what Gov. Peter Shumlin recommended in his budget, which was presented to lawmakers in January, the Democratic speaker said in an interview Thursday. But the House plan will likely also look to cap itemized tax deductions to raise additional tax revenue from wealthier Vermonters, he said.

“The governor’s original budget relied on $35 million of new revenue and we are looking at that amount of revenue to balance the budget that the governor presented, as well as the additional … $18 million that was necessitated by the revenue downgrade. We’re continuing to rely on the need to raise $35 million in new revenue,” Smith said.

The 2016 fiscal year budget has a current hole of about $113 million. After raising $35 million revenue, lawmakers will need to make about $78 million in cuts.

House Speaker Shap Smith

House Speaker Shap Smith

The House, Smith said, will use the governor’s proposal to eliminate a current policy that allows taxpayers who itemize deductions to deduct their previous year’s state and local tax liability from their taxable income. But the House will look to go even further and cap all itemized deductions at two-and-a-half times the standard deduction. For a couple filing jointly that would be about $31,000.

Those two measures would raise $32.4 million, Sara Teachout, a fiscal analyst with the Joint Fiscal Office, told the House Ways and Means Committee Thursday. Revenue included in a fee bill makes up the additional general fund revenue needed to hit the $35 million target.

Smith said he did not want to commit to that plan before the committee fully considers it, but said he supports it.

“I think that given the reductions that we’re making in the budget and the fact that it largely impacts people at the lower end of the income ladder that it’s fair to ask those at the upper end of the income ladder to pitch in to solve the problem, and through capping the itemized deductions I think we could do that,” he said.

According to Teachout, Vermonters earning $75,000 or less would chip in an additional $3.91 million under the proposal. Vermonters earning $75,000 or more would contribute an additional $28.48 million in tax revenue.

According to data Teachout provided the Ways and Means Committee Thursday, about 84,000 of Vermont’s 310,389 tax filers would see a tax increase. But the increases would be minimal for low- and middle-income Vermonters. People earning $75,000 or less would see their tax bills rise by $144 or less, on average. The state’s 355 filers earning $1 million or more would see an average tax increase of $18,603.

Smith said limiting deductions will put Vermont more in line with tax policy in most states.

“They often times don’t allow the itemized deductions that we do. I think it moves us closer to what other states do,” he said.

Exactly where the House will look to make budget cuts is still evolving, Smith said. However, some of Shumlin’s recommendations are likely to be used, including cuts to the state’s assistance program known as Reach Up and to the Low Income Home Energy Assistance Program and through the consolidation of emergency dispatch centers.

The House will also look to include $10.8 million in labor savings from the state’s work force, according to Smith.

“Under any circumstance in balancing this budget it’s going to require some labor savings,” he said.

The administration ratcheted up pressure on the Vermont State Employees Association this week in its effort to obtain the labor savings by requesting that agencies and departments identify up to 325 positions to be cut. The administration has asked the union to reopen its contract to negotiate the savings without job cuts, but the union has so far refused to do so.

Meanwhile, the House Appropriations Committee held a public hearing Thursday on a list of potential cuts totaling $29 million. The list features a range of ideas, but most would not provide immediate savings for the 2016 fiscal year, Smith said. Many of those ideas could be used to address future budget gaps, including in 2017, which faces a shortfall of about $45 million.

Smith said the Appropriations Committee, led by Chairwoman Mitzi Johnson, D-South Hero, will use the list as needed.

“I really do have confidence that that committee will make the right recommendations that need to be done to balance the budget. I really rely heavily … on that committee to make the right decisions,” he said.

The final House plan must pass muster with both the administration and the Senate. Smith said there are ongoing conversations with both, but areas of disagreement will be addressed when the Senate considers the House version.

“I don’t think that we have identified, sort of, the areas of tension yet. I don’t think we’ll have a good sense of that until it gets over to the Senate,” he said.

neal.goswami@timesargus.com

Capitol Beat with the Governor 3-6-15

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Gov. Peter Shumlin sits down with Vermont Press Bureau Chief Neal P. Goswami and discusses recent poll numbers on his job performance.

Video: Vermont this Week on Vermont PBS

Vermont Press Bureau chief Neal P. Goswami joined the panel Friday on Vermont This Week. Watch for an update on potential budget cuts, an education reform bill, a showdown between Gov. Peter Shumlin and the latest on MIT economist Jonathan Gruber’s woes.

Capitol Beat 2-27-15 with Pro Tem John Campbell

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Senate President Pro Tem John Campbell sits down with Vermont Press Bureau Chief Neal P. Goswami to discuss the legislative session, the state budget and guns.

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Senate President Pro Tem John Campbell records Capitol Beat

List of $29 million in potential budget cuts revealed

MONTPELIER — A list of potential budget cuts totaling about $29 million was revealed Thursday by the Shumlin administration and key lawmakers that may be used to help close a budget gap in the 2016 fiscal year that has grown larger during this legislative session.

The list of cuts, characterized by Finance Commissioner Jim Reardon as a list of “brainstorming ideas,” includes far-fetched ideas such as reducing the 150-member House to 120 members. It also includes painful reductions to the state’s online health insurance marketplace and premium subsidies that many Vermonters rely on.

Rep. Mitzi Johnson

Rep. Mitzi Johnson

The list, revealed at a House Appropriations Committee meeting Thursday afternoon, prompted Chairwoman Rep. Mitzi Johnson, D-South Hero, to note that lawmakers and the administration would need to take a “good, hard look at a lot of our loyalties and core values.”

“I just want to acknowledge how incredibly difficult this is,” she said.

The list, which also includes the possibility of closing the Vermont Veterans Home in Bennington, was compiled by administration officials including Reardon and Secretary of Administration Justin Johnson, as well as Johnson, Senate Appropriations Committee Chairwoman Jane Kitchel, D-Caledonia, and analysts with the Joint Fiscal Office.

Rep. Mitzi Johnson, D-South Hero, left, listens as Secretary of Administration Justin Johnson, right, speaks at a committee hearing Thursday.

Rep. Mitzi Johnson, D-South Hero, left, listens as Secretary of Administration Justin Johnson, right, speaks at a committee hearing Thursday.

The legislative session kicked off early last month, when the projected budget gap in the 2016 fiscal year budget was $94 million. But a revenue downgrade just weeks later made it balloon to at least $112 million. It could grow even more if lawmakers do not sign off on Gov. Peter Shumlin’s proposed 0.7 payroll tax on Vermont businesses, which would funnel some of the revenue generated to cover the $16 million needed to pay for the expansion of Medicaid under the Affordable Care Act.

A full story will appear in Friday’s editions of the Rutland Herald and Barre-Montpelier Times Argus.

See the full list of potential budget cuts below:

Major changes to Vets Home on table to help balance budget

MONTPELIER — Major changes to the Vermont Veterans Home are once again being considered as the state looks to address a large budget gap in the 2016 fiscal year state budget.

Shumlin administration officials say privatizing the state-run facility in Bennington, or even possibly closing it, are on the table with many other ideas to trim state spending. But those ideas are only concepts at the moment and not serious proposals.

The 2016 fiscal year budget gap has ballooned from $94 million in early January to at least $112 million following a revenue downgrade late last month. The Veterans Home relies on several million dollars from the state’s general fund to operate.

The Vermont Veterans Home in Bennington.

The Vermont Veterans Home in Bennington.

Shumlin administration officials and legislative leaders both acknowledge that making changes to the Veterans Home has not advanced to a point where budget writers have explored what kind of savings could be achieved by privatizing or closing the home. However, those ideas that were once ruled out last year by former Secretary of Administration Jeb Spaulding are back.

Current Secretary of Administration Justin Johnson said this week that the administration and lawmakers are considering a range of ideas.

“In a sense, everything is on the table,” Johnson said. “The first thing for me is, does it get you any closer to the goal? I’m actually not sure that it does.”

Justin Johnson

Justin Johnson

“I’d say it’s no more or less on the table than any other idea that I don’t know if it gets you what you need,” he added.

Johnson cautioned that making any major changes to the way the Veterans Home is run remains a remote possibility.

“I don’t know enough to rule anything in or out. We still have this challenge of meeting the budget,” he said. “I would want to see the numbers. I would want to see the impact. I haven’t looked at any of those things. It’s not an idea that I’ve spent any time on.”

Gov. Peter Shumlin, in an interview with the Vermont Press Bureau, also did not rule out the possibility of major changes to the home.

“I would say that our record shows that we don’t want to close the Veterans Home. We’ve been supportive of the Veterans Home. We want to keep the Veterans Home going. They deserve us. I do think that everything in state government has to be more efficient in order to balance this budget,” the governor said.

Shumlin said his administration has included funding for the home in the budgets that he has presented to lawmakers. But the state will need to find ways to reduce the impact of the home on the general fund.

“I have a record. My record as governor has been that despite the fact that the Veterans Home continues to need more and more money from the general fund, millions of dollars every year, we have supported the Veterans Home throughout my administration. We have done that throughout my administration and we have not supported privatization. We have done that because our veterans deserve that kind of treatment from us,” he said. “Having said that, we have also supported any plan … to try to figure out ways to ensure that we’re not constantly always losing money on the Veterans Home because the state can’t afford to do this forever.”

Sen. Dick Sears, D-Bennington, said he will oppose any effort to privatize or close the Veterans Home. He said the jobs it provides are important to the region.

Sen. Dick Sears

Sen. Dick Sears

“My job, amongst other things, is to represent Bennington County and Wilmington and one of those ways is keeping excellent state employee jobs in Bennington County,” Sears said. “I’ll do everything I can to prevent the privatization of the Veterans Home.”

Plasan North America, a Bennington-based defense contractor, announced last week that it will close its Vermont facility and move it to Michigan. Sears said the area cannot absorb the loss of jobs at the Veterans Home, too.

“Given what happened … with the announcement of Plasan, I think putting on top of that losing those good jobs would be a critical damage to Bennington’s economy and to the economy of the region,” he said.

Johnson said the administration is exploring options to bring veterans from Massachusetts, were there is a waiting list for space at state-run homes, to Vermont. Massachusetts has resisted in the past, however.

The administration is not yet exploring how much money could be saved by privatizing or closing the home. It is not yet clear if they will be among the ideas that are further explored to determine savings, according to Johnson.

“What I expect to happen, after we have more conversations with the Legislature around options and concepts and ideas, is that the next step would be to start running numbers. I don’t want to just start running numbers on everything that anyone dreams up because we’ll have people have work on all this stuff that perhaps goes nowhere,” he said. “If we’re able to narrow down where we’re going to go then we can do some number crunching.”

neal.goswami@timesargus.com

Capitol Beat with the Governor 2-20-15

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Gov. Peter Shumlin and Vermont Press Bureau chief Neal P. Goswami discuss his effort to obtain an “all-payer waiver,” efforts to find savings in labor cuts and the Vermont Veterans Home.

Nixing raises and mileage reimbursements considered to trim labor costs

MONTPELIER — The Shumlin administration is considering a range of options to present to the Vermont State Employees Association as part of its effort to secure $10 million in labor savings, including eliminating scheduled pay raises.

With a gap of at least $112 million in the 2016 fiscal year budget, the Shumlin administration — and legislative leaders — insist that at least $10 million in labor costs must be trimmed as part of the effort to balance the budget. Administration officials say they hope to obtain the savings without having to take money away from workers that is already in their paychecks.

But, doing so would require the union to agree to renegotiated its existing labor contract.

Eliminating the 2.5 percent cost of living increase that is scheduled for the 2016 fiscal year would achieve about half of the $10 million the administration is seeking. That option is preferable to the administration because it would not require workers to give up pay they are already receiving.

Additional measures would still be needed, though.

The administration is also considering reducing the mileage reimbursement for state workers by more than 50 percent, down to 23.5 cents per mile. That would provide about $1 million in savings for the general fund, according to the administration. It would only impact those employees that use their personal vehicles rather than the state’s fleet.

Restructuring so-called “step increases” could also help reduce labor costs. State workers are grouped into various pay grades, with each grade containing 15 steps. The first five step increases occur every year. The next several step increases occur every two years, and the last group of step increases occur every three years. They average out to a 1.7 percent salary increase annually.

If the step increases are adjusted the state could achieve significant savings that would be ongoing in future years, according to the administration. Details of how the steps would be adjusted are not yet known.

Implementing five furlough days for state employees, which is also being considered, could achieve a 2.5 percent reduction in total salaries paid out by the state. That idea is less desirable, however, because it would be cutting pay that workers are already receiving.

Secretary of Administration Justin Johnson said last week that if the union does not work with the administration to achieve the $10 million in labor savings it is seeking more than 400 state workers could be laid off.

Vermont State Employees Association Executive Director Steve Howard and Johnson said Thursday they are working to set a meeting to begin discussions. The union is not interested in any discussion about opening the existing labor contract, however, according to Howard.

Steve Howard

Steve Howard

“We’re happy to hear what they have to say. We’re willing to hear what they have to say. We have some ideas on how they can raise revenue from the folks who have had all the income growth,” he said.

Howard said union officials will announce next week several ideas about where revenue could be raised.

“I think our position remains that before you take money out of the paychecks of state employees who are regular working class Vermonters who are struggling to pay their bills, the administration needs to work on raising revenue from Vermonters who have had all the income growth in the last decade,” he said. “For some reason they are putting all their energy into how we can take money out of the pockets of people who are serving the public and protecting with all their strength the wealthiest people in the state.”

Gov. Peter Shumlin, speaking at an unrelated news conference Thursday, again ruled out tax increases as a way to forego the labor savings it is seeking. House Speaker Shap Smith and Senate President Pro Tem John Campbell have also said the labor savings must be a part of the effort to close the budget gap.

Shumlin said the state must lower the growth rate in state spending, which has been about 5 percent, to the growth in revenue, which has been about 3 percent.

Gov. Peter Shumlin speaks to reporters during a  recent news conference.

Gov. Peter Shumlin speaks to reporters during a recent news conference.

“I would caution us from thinking that we can turn to Vermonters when they’re struggling to pay their bills, when they’re frustrated that their incomes aren’t going up despite the recovery. I would caution us from believing that we can tax our way out of this problem,” Shumlin said. “Revenue will not solve our problems. We’ve got to make the tough choices … of actually matching our appetite for spending with the money that’s coming through the door.”

Howard said the union will continue to resist efforts to seek the cuts from state workers.

“The administration has set up a false choice. They have said, ‘Look, state employees, you can cut off your left hand or you can cut off your right hand. That’s not the right way. That’s not the right choice,” Howard said.

neal.goswami@timesargus.com

VSEA pushes back on cuts, Shumlin unfazed

MONTPELIER — Members of the Vermont State Employees Association took to the State House Tuesday to make a direct pitch to lawmakers and the governor to abandon proposed cuts and embrace new revenue instead as they work to balance the state budget.

More than 100 state workers gathered for the union’s State House Day, hoping to ward off budget cuts proposed by Gov. Peter Shumlin to various services, including emergency dispatching and educating inmates.

The governor has proposed consolidating dispatch centers in Rutland and Derby with existing ones in Rockingham and Williston. The move, the Shumlin administration argues, will save the state $1.7 million and not impact public safety. The union counters that it will cost dozens of jobs and have a major impact on public safety.

Shumlin, a Democrat, met with some state workers for a casual conversation in the State House cafeteria. They used the opportunity to share their concerns with the governor about his proposed cuts.

“There’s an obvious public safety issue if you’re expecting less people to do more work,” said Melissa Sharkis a dispatcher at the Rutland facility that could close.

Dispatchers in Williston and Rockingham will not have the knowledge of local neighborhoods or rural locations, Sharkis said.

“The more time we have to spend looking up locations if we don’t know the area, that’s longer that it takes to get people help,” she said.

Gov. Peter Shumlin met with state workers at the State House Tuesday and heard their concerns with his proposed budget cuts.

Gov. Peter Shumlin met with state workers at the State House Tuesday and heard their concerns with his proposed budget cuts.

Thomas Lague, another dispatcher, said reducing dispatch jobs will have a negative impact on communities.

“We know there’s a budget and we know that we need to trim corners, but if we want to grow the economy, cutting the service sector doesn’t appear to be the best route to do it,” he said.

Meanwhile, Bill Storz, who works in the Community High School program, told Shumlin that cutting the program, which provides education to inmates, is a mistake. It’s facing a proposed 50 percent cut in funding.

“I want to make first clear that the budget cut is based on declining need, or perceived declining need. We feel that there really is no declining need,” he said.

But Shumlin did not seem to be moved by what he heard. Just a few moments later he told reporters that the cuts are necessary to help balance the state budget, which faces a budget gap of at least $112 million in the 2016 fiscal year.

“It’s my responsibility as governor to balance the budget in a responsible way. We came up with over $15 million of ongoing efficiencies just in the way state government can deliver services to be more efficient and meet the challenges that we’re facing of over a $100 million budget gap,” he said.

Shumlin said people “can always make an argument for not making change.” But, he said taxpayers are expecting that he and lawmakers will find a way reasonable way to find savings.

“Taxpayers expect me to make the choices that are necessary to responsibly balance this budget, and that’s exactly what we’re doing” he said.

Shumlin said his public safety team has reviewed the plans to consolidate dispatch centers. It can be done without harming public safety efforts around the state, he said.

“We firmly believe that we can make that system more efficient with technology that’s advanced since the system we created a long time ago, and deliver better services,” Shumlin said.

Shumlin said his administration wants to continue to provide education opportunities to inmates, but the program is not currently providing that service in an efficient way.

“We’re not saying let’s not educate young people in prisons, what we’re saying is we’ve got 49 teachers that graduated 41 students this year. I don’t think there’s a Vermonter who would say, ‘Wow, that’s an efficient way to deliver education — 49 teachers, 41 graduates,” Shumlin said. “All we’re saying is let’s find the areas where government isn’t being efficient and not always turn to taxpayers.”

Shumlin has told lawmakers and others that if they don’t like his proposals they must present their own that provide equal savings. So far, those ideas have not been forthcoming, according to Shumlin.

“We’re always interested in any alternative plans. What is not OK is to say, ‘Just go out and raise taxes on Vermonters,’ and that’s what I’m hearing in the background here. What they’re saying is, ‘Listen, don’t change anything. Don’t make government more efficient, just ask taxpayers to pay more.’ As governor, I’m not going to do that,” Shumlin said.

Later in the day VSEA members met in the House Chamber to discuss the impact the cuts will have. Leslie Matthews, an environmental scientist with the Agency of Natural Resources said Shumlin is “extracting millions of dollars” from state workers.

“We’re here to say, no more cuts, raise some revenue,” she said.

The cuts to state services are on top of $10 million in labor savings that Shumlin hopes to achieve be renegotiating the labor contract with state workers. Workers are slated to receive a 2.5 percent cost of living increase and a resumption of “step increases” that would provide an average salary bump of 1.7 percent to workers.

The budget gap should be addressed by seeking additional revenue, Matthews said, not by asking state workers to forego pay raises that are in the labor contract or cutting funding for the departments and agencies they work for.

“That crisis does not constitute an emergency on our part, or obligate us to open up our contract that we bargained in good faith,” she said.

She asked lawmakers to “raise revenue from the people who can afford it.”

“We need to grow it from those people who have seen their income grow dramatically in recent years,” Matthews said. “We call on our legislators to reject the governor’s proposed cuts and instead raise revenue.”

Shumlin maintains that he and legislative leaders are committed to achieving the $10 million in labor savings.

“The best way to do that would be if the union would come to the table and work cooperatively with us to find those savings. We have to do it. There’s no choice. If you talk to legislative leadership, if you talk to me as governor, they’ll tell you, we cannot solve this budget challenge without getting some savings from our workforce. It’s just not possible,” he said.

The Shumlin administration has asked union officials to sit down and discuss the best way to achieve the savings. If the union does agree to make some concessions, more than 400 state workers could be laid off, administration officials said last week.

“There’s many ways to do this and that’s why it’s so important they come to the table. We can do this the hard way, which won’t be the best for them and the best for taxpayers, or we can do this by doing what we do in Vermont,” Shumlin said.

So far, neither Shumlin nor his aides have provided any specific proposal to reduce labor costs. Those details should be be worked out with the union, they said.

neal.goswami@timesargus.com

Labor costs, guns and organs: Capitol Beat, Feb. 16, 2015

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Vermont Press Bureau chief Neal Goswami and VPB reporter Josh O’Gorman chat about the showdown between the Shumlin administration and the Vermont State Employee’s Association over labor costs, the state of gun legislation in the State House and a bill that would make organ donation the default option in Vermont. Also, Barre-Montpelier Times Argus Editor Steve Pappas talks about a few stories he’s worked on in the past couple of weeks, including a profile of Rep. Janet Ancel and Sen. Tim Ashe, the lawmakers that chair the taxing committees in the State House. He also updates on a potential second bid for governor by Republican Scott Milne. Lots going on in this episode — have a listen.

Check out recent episodes of City Room with Steve Pappas, which are discussed in today’s podcast episode:

Scott Milne episode

Paul Costello and Ted Brady episode