Category Archives: Budget

State revenues disappointing for January, but better than 2011

MONTPELIER — A shortage of snow has hurt the Vermont economy and is one reason state tax revenues came in below target in January, the Shumlin administration said Wednesday.
General fund revenue was $4.7 million, or 3.5 percent, below target for the month, the administration said in a news release.
Administration Secretary Jeb Spaulding said the results were disappointing but not surprising.
“The lack of snow is having an impact on consumption tax receipts, and personal income tax withholding was less than predicted,” Spaulding said in a written statement.
The underlying economy appears to be stronger than the January results indicate, he said.
Revenues are below target for the year so far by less than 1 percent. But Spaulding noted that January revenue was still 1.3 percent higher than a year ago, “indicative of our modest but steady recovery.”
The transportation fund was also down 3.4 percent. Non-property tax education fund revenue — which accounts for 12 percent of the education fund — was down 1.5 percent.

The Rundown: Week 2

In week two of The Rundown, Thatcher Moats breaks down Gov. Peter Shumlin’s budget address.


Shumlin plan: Barre to get 170 state workers; Waterbury’s fate uncertain

MONTPELIER – Under a proposal from Gov. Peter Shumlin, Barre will get 170 state workers, Waterbury will ideally be made whole again, and Washington County will benefit from a net gain of state employees.

During a press briefing with reporters before Shumlin's budget address, administration officials laid out the governor's vision for solving one of the most vexing issues that has cropped up as a result of Tropical Storm Irene: replacing the flooded out state office complex in Waterbury that previously housed 1,500 workers.

Shumlin's plan calls for moving about 350 Agency of Natural Resources employees from Waterbury to the National Life building in Montpelier; moving 170 Department of Education workers from three separate locations to downtown Barre; and an attempt to bring Agency of Human Resources employees from Chittenden County to Waterbury. Under the administration's ideal scenario, Waterbury would end up with more than 1,000 Agency of Human Services employees.

The outcome of the shuffling of state workers could have major economic impacts, positive or negative, for the towns that lose or gain state workers.

Waterbury officials have been seeking certainty since shortly after the flood that the 1,500 displaced state workers – and the economic benefits they bring with them – would return to the central Vermont town. 

Shumlin's plan won't give them that certainty, because he still wants to vet any plan to go back to Waterbury and it could be too expensive.

“Our hope is we can deal with the flood protection and modernization issues in an affordable fashion, but we're not going to jump ahead,” Administration Secretary Jeb Spaulding said.

State officials still plan to view an alternate scenario for a different site for Agency of Human Services workers at a central Vermont site not at the office complex in Waterbury, Spaulding said.

“We will also be doing a scenario in central Vermont so taxpayers, the Legislature and the governor can look at what is the cost of doing to that in Waterbruy compared to doing it somewhere else,” Spaulding said.

– Thatcher Moats

The budget address: a sneak preview

In the earliest budget address in a decade, Gov. Peter Shumlin today will outline a $5.1 billion spending plan that increases overall spending by more than 5 percent over last year without raising any broad-based taxes.

Administration Secretary Jeb Spaulding said during a press briefing earlier this morning that the budget “finishes the job of Irene and makes strategic investments in our economic future.”

The transportation budget, up by 7.5 percent over last year thanks to additional aid from the federal government, will include more than $4 million in aid to towns and cities whose roads suffered severe damage in the late-August floods.

“For communities especially hard hit by Irene, we a proposing an expansion of the state match in the federal highway aid program,” Spaulding said, noting that the state will also pick up full freight of the cost to repair some town roads.

The governor will also dedicate about $2 million of the Vermont Housing and Conservation Board’s $13.6 million budget to “flood mitigation.” That essentially means VHCB will buy out the homes and properties of people who lost their assets in Irene.

An unexpected windfall in the estate tax will fund an $8 million plan for “innovation” in higher education, including $4 million for the University of Vermont and $4 million for state colleges.

The money will in part fund a continuing education program for older Vermonters interested in developing the math, science and tech skills needed for a career change

Though general-fund spending is up by more than 5 percent, or $65 million, Reardon says that more than $20 million of that is needed to offset lost federal revenue, meaning the increase is “really only like a 3 percent increase.”

Spaulding said the administration has ensured full funding for existing human-services programs, but drew a line in the sand when it comes to starting new initiatives.

For that reason, he says, the administration has proposed eliminating a new mandate that would require the state to fund services for children with autism. Scrapping the new mandate, expected to cost about $10 million annually, helped the state balance the budget without raising taxes, Spaulding said.

“The governor’s budget tries to balance the appetite for spending on untold needs and Vermonters’ ability to pay for them,” he said.

Spaulding said the administration will catch flack from two sides – those who say the 5 percent increase is too much, and those who believe the state should raise taxes to pay for things like the autism mandate.

Save for a 0.1-percent increase in the hospital provider tax – a surcharge Spaulding said won’t impact their bottom lines (it’s being used, he said, to draw down federal funds – the administration’s spending plan doesn’t raise a dime in new taxes, officials said.

The budget does rely on a “fee bill” that will increase revenues from fees at places like the Agency of Transportation and Agency of Natural Resources by $11 million annually.

Spaulding said those are regularly scheduled increases designed to keep pace with the cost of providing services.     

House Republicans will offer a critique of the plan at a press conference later this afternoon.

Budget Address

Watch the Governor’s budget address live here:


Live broadcast by Ustream

House Republicans say THEY’RE the fiscal conservatives; Turner takes shot at JFO

MONTPELIER – Gov. Peter Shumlin has worked hard to claim the mantle of fiscal conservatism in his first year in office. But House Republicans are trying to reclaim that turf, outlining a legislative agenda Wednesday that revolves around financial issues.

Rep. Don Turner, the House Minority Leader, disputed the notion that Shumlin and other Democrats have been penny pinchers.

Based on his “inside information” Turner is expecting Shumlin on Thursday to present a state budget with a more than 5 percent increase.

“Vermont has not cut spending, and the budget is not sustainable, and we will not support an increase in spending at those rates going forward,” said Turner.

House Republicans, vastly outnumbered in Montpelier by Democrats, laid out their agenda for the session during a chilly press conference Wednesday on the Statehouse steps.

Their priorities revolve around financial issues – related to Irene recovery, education, transportation, health care – and making sure state government is efficient with taxpayer dollars.

They plan to introduce bills in the next few weeks to achieve their goals. Among other ideas, Republicans hope to use Vermont Housing and Conservation Board funds for an Irene recovery fund; demand answers to key health care reform questions that have been put off until after the 2012 election; push for a sales tax holiday on the anniversary of Irene; and relax regulations so state-funded projects are cheaper.

Turner also used the press conference to take a shot at the nonpartisan Joint Fiscal Office, saying he thinks it isn't nonpartisan at all and actually favors Democrats. Turner said he has tried to get a JFO staffer dedicated to his caucus so the minority party can adequately pursue complex financial issues. That hasn’t happened yet, he said.

“There is no way in today's government climate in Vermont that I can represent my constituents or these people behind me can represent theirs if we don't have the support from the Joint Fiscal Office or the (legislative) council that the majority does,” said Turner.

Having a JFO member assigned to his caucus wouldn't violate the non-partisanship goal of the office, Turner said.

“They don't necessarily have to be partisan, but they have to be dedicated to our caucus so that we can start with an idea and work it through the whole process with someone who understands what the end result is intended to be,” said Turner.

– Thatcher Moats

Shumlin in State of State: No new taxes

Peter Shumlin has announced proposals for “significant” state investments in higher education, a more aggressive push for renewable energy, and a prescription drug-monitoring plan aimed at curbing the availability of opiate pain killers.

Those are the main initiatives outlined in the governor’s State of the State address, which focuses largely on the stories of heroism in the days and weeks after Tropical Storm Irene.

Shumlin will close his speech in a couple moments by issuing what appears to be a no-new-taxes pledge.

“I remain determined,” he will say, “not to increase broad-based taxes on Vermonters as we begin to see signs of modest economic growth.”

That may not sit well with members of Occupy Vermont, a contingent of whom is sitting in the House gallery.


Occupy The Golden Dome? 99% prep for State of the State

We just got an email from the Occupy Vermont movement, which is planning to occupy the State of the State address this Thursday. The email says:

Silently displaying their feelings about details of the Governor’s assessment of the state of the State, using hand signals indicating approval, disapproval or withheld judgment, Vermonters from around the state will line the House chamber to occupy the state of the State address on the third day of the 2012 legislative session.

Dressed in green, with personal messages for the Governor taped to their chests, Vermonters identifying themselves as the 99% will make themselves visible in a peaceful and respectful demonstration of their position at the center of government.

The point, organizers say, is to draw attention to the needs of the regular people of the state, who are hurt most by the budget cuts.

November state revenue results are in

Secretary of the Agency of Administration Jeb Spaulding has released the November revenue results for the state, and things are looking better than last year – state revenues for Nov. 2011 were $78.6 million, or about 2.9 percent ahead of the forecast. That puts the state about $12 million ahead of the forecast for the fiscal year thus far.

“Naturally, we are pleased that General fund revenues continued a positive trend for the month and
through the first five months of the fiscal year. All four of the major tax sources – Personal Income,
Sales & Use, Rooms and Meals, and Corporate Income – are ahead of target and last year’s actual
results, for the month and year to date,” Spaulding said in a press release announcing the results.

The forecast was approved by the Emergency Board in July; the next meeting of that board – made up of the Governor and the chairs of the four 'money' committees in the House and Senate – comes on January 18 of 2012. At that meeting, the E-Board will also take up a number of mid-budget year requests for adjustments on the expense side, including a request for more district technicians from the Agency of Transportation (which are somewhat related to Irene recovery efforts, but the agency is also recommending become permanent), and a new need from the Dept. of Fish and Wildlife, which is facing a budget shortfall. Irene accounted for $25 million in shortfalls in this year's budget so far, according to officials.

While personal income and corporate tax receipts, and consumption taxes like the Sales & Use tax are ahead of forecast, real estate transfer taxes are down, more than 30% below the forecast for November and more than 11% below the fiscal year to date forecast.

Transportation Fund receipts are up, which helps provide more bonding capacity for VTrans, according to Spaulding, while the Education Fund non-property tax income was ahead of forecast for November, but still lagging slightly for the fiscal year to date. 

“It is definitely good news that the General Fund has exceeded target for the fourth consecutive month. However, uncertainty from the continuing global economic instability and the unknown extent of federal budget cuts require us to remain cautious. While the current results indicate a positive note for the current fiscal year (FY 2012), there remains a good deal of uncertainty for FY 2013. We look towards the January Consensus Revenue Forecast revision, scheduled for consideration by the Emergency Board on January 18, 2012, with interest and what we hope will be a clearer picture of the revenue future for our three major funds," Spaulding said in the release.

Vermont Disaster Relief Fund has $1M, but is waiting to dole it out

MONTPELIER – The Vermont Disaster Relief Fund, which will be run by a board of gubernatorial appointees and aid agencies, has raked in over $1 million in donations to help Vermonters affected by Tropical Storm Irene.
But the fund is still getting off the ground, so money is not yet being sent to struggling residents.
“It’s hard to say to people this isn’t ready yet,” said MaryEllen Mendl, the director of Vermont 211, one of the agencies that will administer the fund.
The fund’s bank account was set up just days before Irene struck the state on Aug. 28. The May flooding was the impetus for the fund, which was originally created by the United Ways of Vermont, the executive board of the Vermont Voluntary Organizations Active in Disaster, and Vermont Emergency Management, said Mendl. Because it was months after the flooding in May that the fund was even loosely established, Mendl said, it became clear it was going to be most effective for future disasters.
“We were really building it for the future,” she said. “We just never realized how quickly the future was going to come.”
The money is one of several pots of donations compiled from across the country to help Vermonters recover from the historic damage the Aug. 28 flooding left behind.
It is also one of the largest funds and is closely affiliated with state government.
The donations have come from individuals and corporations. Vermont Public Radio raised more than $600,000 for the fund, said Mendl, the largest single chunk of money.
A surprising number of donations – and accompanying messages – have come from Louisiana, a state that received a flood of donations after Hurricane Katrina, said Mendl.
“It’s heartwarming to read these notes,” she said.
Though about $1 million has been pledged to the fund, not all the money has hit the bank account yet, said Mendl. Funds likely won’t be available until after Oct. 31, which is the deadline to register for FEMA, she said.
This money is designed to meet needs left unfulfilled by the Federal Emergency Management Agency, insurance companies and other groups, she said, and it is focused on individual Vermonters rather than businesses, nonprofits or people with damaged second homes.

Vermont highway damage $300-$500 million, Searles says

MONTPELIER – Damage to the state highway system from tropical-storm flooding could hit $500 million, state officials told lawmakers this morning. And the cost to repair damage on municipal transportation infrastructure "is going to be huge, " according to Secretary of Transportation Brian Searles.

Preliminary damage estimates for state highways alone will likely fall somewhere between $300 million and $500 million, Searles said during a briefing to a panel of legislators.

That doesn't include the cost to fix municipal roads, where Irene inflicted similarly widespread devastation. As of yesterday, there were 1,128 road segments with some damage on the municipal system, and 207 of them remain closed, Searles said. There are another 132 damaged bridges, 77 of which are closed.

"There's a growing magnitutude of this storm damage that we can’t fully explain yet," Searles said.

Vermont mental health services get competitive; MDs on the march

From the Vermont Press Bureau (paywall stories):

Health care providers rally to oppose "provider tax" in Shumlin budget

More than 250 doctors, nurses and volunteers visited Montpelier on Wednesday to tell legislators why they think a proposed tax increase on health care providers is a bad idea.

Among them was Kristin Baker, who takes pride that the emergency department at Fletcher Allen Health Care, where she is nurse manager, is the only one in the state to offer specialized emergency-room care. But she told lawmakers that some of those services would be eliminated if Gov. Peter Shumlin’s proposed tax increase on hospitals goes into effect.

Racine proposes free-market competition approach for mental health agencies

Already targeted by Gov. Peter Shumlin for an $11 million spending cut, Vermont’s mental health agencies are now fighting an administration proposal that seeks to open up the mental-health care system to free-market competition.

Budget cuts and revisions; Vermont revisits campaign finance

What's the VPB working on?

Budget cuts and revisions

Leaders in the Vermont House of Representatives say they plan to undo some of the cuts to human services contained in Gov. Peter Shumlin’s budget proposal.

Rep. Martha Heath, a Westford Democrat and chairwoman of the House Committee on Appropriations, said she plans to unveil a budget on Friday that restores funding to some of the programs targeted in Shumlin’s fiscal-year 2012 spending plan.

“I’m sure it won’t be as much as some members of the body would like,” Heath said Tuesday. “But I’m sure it will be better than the budget as proposed by the governor.” Read more…

Campaign Finance:

Efforts to overhaul Vermont’s campaign finance laws have been thwarted in the past five years by a U.S. Supreme Court decision, two gubernatorial vetoes, veto override attempts that failed by one vote, and inaction by the House of Representatives.

But a Senate committee is trying again this year to change the way campaigns are funded in the state, with the hope that a new Democratic governor will mean a new result.  Read more…(paywall)

February revenue results are in, Spaulding says ‘mixed’

The Secretary of Administration has released the February revenue results for Vermont, and personal income tax receipts are still "mixed" after a January that was below the consensus forecast by state economists, Jeb Spaulding said.

February General Fund revenues were off the forecast by 5%, or $2.71 million, the report says. Because of refunds delivered to early income tax filers, the income tax receipts were actually negative, which also has Spaulding looking ahead to March for a sign on how the remainder of the fiscal year will go.

“We will be watching the individual and corporate tax filing season and the remainder of the winter tourism season closely. It is critical that the next two months exceed or, at a minimum, meet the targets in our four major tax categories (PI Tax, Corporate Income, Sales & Use, and Meals & Room) if we are to end FY 2011 with GF revenues at or above target for the fiscal year,” he says in the agency's press release.

The entire release can be found below:

Download Feb Rev

Mental Health Awareness Rally

Hundreds of people gathered outside of the statehouse at noon, today, asking legislators not to make cuts to mental health and developmental services in the upcoming budget.  They chanted, "no more cuts" in unison. In the governor’s proposed budget, there would be $4 million dollars in cuts to these services. This rally was the centerpiece of Mental Health Awareness day at the statehouse

After the rally, a portion of the group went inside to talk to legislators and to give testimony at committee hearings — telling stories of how the mental health and developmental services funding affect their lives and to plead for the legislators not to cut this funding.