Category Archives: Budget

Lawmakers look to retirement bonuses to save the state money

MONTPELIER — The Shumlin administration has proposed a retirement incentive package for state employees that could save the state $2.5 million, providing most of the retirees are not replaced.

Monday morning, the Senate Appropriations Committee reviewed a proposal that would offer financial bonus to as many as 300 employees who are already eligible to retire, with the goal of leaving 75 percent of those positions vacant after the employees retire.

The offer would be open to employees who are at least 62 years old and have put in at least 5 years of service; employees with at least 30 years of service; and employees whose age and years of service totals 87 or more.

The proposal would pay employees who have worked at least 5 years and less than 15 years a bonus of $750 for every year worked. Employees who have 15 or more years would receive $1,000 for every year worked.

Bonuses would be capped at $15,000 per employee and would be paid out either in one lump sum or in two payments, with no additional money for employees who choose to take two payments.

Currently, there are 915 state employees who are eligible for the incentives. The proposal would cap the maximum number of people who could take advantage of the incentives at 300. If more than 300 workers want to take the retirement bonus, the state will hold a lottery.

Committee Chairwoman Jane Kitchel, D-Caledonia, asked why the offer isn’t being made to employees who have been with the state the longest. Sec. of Administration Justin Johnson said the state needs to be very careful not to give the appearance of engaging in any behavior that could be construed as age discrimination.

Sen. Richard McCormack, D-Windsor, questioned the message some people might take from a proposal that ultimately looks to reduce the state’s work force by as many as 225 employees.

“Are we assuming their work was not being done efficiently?” McCormack asked. ““Either we’re saying these people weren’t pulling their weight in the first place, or their work was not essential.”

The retirement proposal is part of a plan by administration to save $10.8 million in state employee costs, one possible step to close the state’s $113 million budget gap. Shumlin has proposed reopening the state employee contract for renegotiation, a move opposed by the employees’ union.

The administration has warned that failing to reopen the contract could result in hundreds of layoffs, but on Monday, Johnson said that is not what the administration wants.

“It’s important that we don’t do across-the-board cookie-cutter cuts,” Johnson said.

Steve Howard, executive director of the Vermont State Employees Association, said the proposal — which could reduce the number of employee layoffs to fewer than 50 — has the support of his organization..

“We brought the issue of voluntary retirement incentives to the table for negotiation with the Shumlin administration,” Howard said. “While were not thrilled that we might see 300 fewer positions, we like the idea that this might result in fewer (layoffs).”

State Treasurer Beth Pearce warned that savings from offering retirement bonuses will only be found with a commitment to leave unfilled the positions vacated by the retiring employees.

In 2009, the state offered retirement bonuses to employees under a system that Johnson said “mirrors” the current proposal. A total of 243 people took advantage of the incentives.

However, that proposal was coupled with the plan to leave one-third — or 81 — of the positions unfilled. Instead, during the next four years, the state added 543 positions, according to Pearce.

Sen. Diane Snelling, R-Chittenden, referred to the 2009 round of retirements as “disruptive.”

“Will we ever get to the point when we have the right number of employees in the right places?” Snelling asked.

Capitol Beat 4-27-15

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Vermont Press Bureau chief Neal Goswami and VPB reporter Josh O’Gorman talk about the developments last week in the State House, including education, health care, vaccines and gun legislation.

Capitol Beat with the Governor 4-24-15

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Gov. Peter Shumlin and Vermont Press Bureau chief Neal Goswami discuss competing health care plans, the governor’s intention to sign gun legislation and the merits of lowering the state’s sales tax by expanding it to services.

State workers, supporters rally against cuts

MONTPELIER — Hundreds rallied at the State House Saturday to oppose cuts to the state budget and $10.8 million in labor savings sought by both the Shumlin administration and lawmakers in an event organized by the Vermont State Employees Association.

The state employees’s union was joined by other unions and groups, including the Vermont NEA, AFSCME and the Vermont Workers Center, to protest the the budget plan sought by Gov. Peter Shumlin and lawmakers.

VSEA members and supporters held a rally at the State House Saturday, April 11, 2015.

VSEA members and supporters held a rally at the State House Saturday, April 11, 2015.

The House has passed a budget that uses $33 million in new tax revenue, $53 million in cuts and $25 million in one-time funds to close a $113 million budget gap. The VSEA and others, however, want to see more tax revenue raised and fewer cuts.

The House-passed budget includes $10.8 million in labor savings that Shumlin, a Democrat, proposed. He has asked the VSEA to renegotiate its contract to help achieve the savings. Failing to do so will result in hundreds of layoffs, according to the administration.

About $2 million in labor savings has been identified by the administration, but $8.8 million remains of its target. It wants to delay by six months a 2.5 percent cost of living increase due to state employees in the 2016 fiscal year, and delay by one-year step-increases that average out to an additional 1.7 percent pay increase next year. Those steps would require union approval.

The union has so far refused to renegotiate, and has proposed ways to raise additional revenue instead. The 500 or so people gathered at the State House Saturday heard from Ed Olsen, a snow plow driver for the Agency of Transportation, about why the union is not willing to renegotiate.

“I pay taxes to this great state of Vermont, just like all the other hardworking, middle-class people. As a matter of fact, we, the middle-class Vermonters, pay more than 10 percent of our wages to this beautiful statehouse behind me, unlike the wealthy citizens who pay back 8 percent of their wages to our economy,” Olsen said. “That ain’t right. It pisses me off. That’s the biggest reason why I came here today.”

Olsen said the state’s wealthiest residents “aren’t being asked to give up anything.”

Agency of Transportation worker Ed Olsen speaks at State House rally Saturday, April 11, 2015.

Agency of Transportation worker Ed Olsen speaks at State House rally Saturday, April 11, 2015.

“I’m tired of being asked to give back more and more of my wages and benefits to help rescue Vermont’s economy,” he said. “I need every bit of the cash I earn. Vermont has a budget deficit and they always want to balance the budget on the backs of hardworking, middle-class citizens of Vermont.”

Several speakers compared Shumlin to Wisconsin Republican Gov. Scott Walker, who has sought concessions from union workers to help save money in that state, including Rev. Earl Kooperkamp of Church of the Good Shepherd in Barre.

“Vermont is not Wisconsin. Peter Shumlin is not Scott Walker. But it’s getting pretty damn hard to tell the difference,” he said.

Kooperkamp equated the effort to obtain savings from state workers to the seventh commandment — thou shalt not steal.

“It’s wrong, it’s immoral, and we’re here to say that,” Kooperkamp said.

The Shumlin administration is expected to meet again early next week to continue negotiations.

neal.goswami@timesargus.com

Capitol Beat with the Governor 04-10-15

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Gov. Peter Shumlin chats with Vermont Press Bureau chief Neal Goswami about the ongoing process to find $10.8 million in labor savings from the Vermont State Employees Association. He also discusses a failed effort to ban teacher strikes and lawmakers’ efforts pare down his legislative proposals.

Administration, VSEA find some savings, still far short of $10.8 million target

MONTPELIER — Ongoing talks between the Shumlin administration and the Vermont State Employees Association have resulted in some identified savings, but the union is still not interested in reopening its contract to help secure the remainder of the $10.8 million in labor savings the administration is seeking.

The administration says it needs to cut $10.8 million in labor costs in order to close a $113 million budget gap. The union, meanwhile, has proposed ways to raise revenue instead. The administration has shrugged off those proposals, however, and says it will seek as many as 300 layoffs to achieve the requisite savings if the union does not renegotiate some terms.

The House has passed a passed a budget that incorporates a generic $10.8 million in labor savings.

Justin Johnson

Justin Johnson

Secretary of Administration Justin Johnson, following another meeting with the union Thursday, said his team has found about $2 million in savings by freezing salaries for exempt employees earning more than $100,000 a year, reducing the use of temporary employees and rescinding some benefits to designated managers.

The administration is also considering encouraging employee retirements.

“We have had a long conversation about the idea of retirement incentives,” Johnson said.

But the full benefit of offering retirement incentives is unclear. Johnson said the state treasurer’s office has some concerns because savings to the general fund would be offset elsewhere because of the need to begin paying out benefits. He said the expected savings is between $500,000 and $1 million.

“That would require us not to fill any of the positions that retired. That’s problematic,” Johnson said.

If all of the proposed savings were realized, that would leave about $7.3 million that still needs to be achieved.

With the union’s blessing, Johnson said the administration would look to institute a six-month delay in the 2.5 percent cost of living salary increase the contract calls for in the 2016 fiscal year. That would save about $2.5 million.

“It wouldn’t cost anyone anything because no one’s pay would go down,” he said.

Eliminating one year of “step increases” would save $3.9 million. State workers are grouped into various pay grades, each containing 15 steps. The first five step increases occur in successive years. The next few step increases come every two years, and the remaining step increases come every three years. The pay raises average out to 1.7 percent annually.

Those ideas would require approval from the union.

“There are some big chunks of money that you could save by doing things, but they are contractual,” Johnson said.

The administration is also considering instituting five furlough days to save $3.5 million.

“That in some ways is worse than delaying the cost of living because it means people would actually get a cut in pay,” Johnson said.

Finally, a 50 percent reduction in mileage reimbursements would save more than $800,000.

All of those ideas were outlined in a memo to VSEA President Shelley Martin following a meeting between the two sides on Thursday.

“We’re just making the point that you could get to the numbers by doing some of these things. But, we can get to the numbers anyway,” Johnson said.

VSEA Executive Director Steve Howard said the union is willing to work with the administration on savings “right up to the last hour of the legislative session, but we’re not opening our contract.”

Steve Howard

Steve Howard

“We have been consistent throughout the whole effort … that state employees cannot be asked to dip into their paychecks to balance the state budget before wealthy Vermonters are asked to pay more,” he said.

Union members have been “actively engaged” in the process are not interested in renegotiating the terms of their contract.

The two sides are expected to meet early next week to continue discussions.

neal.goswami@timesargus.com

Read the memo to VSEA President Shelley Martin:

 

Read the Response from VSEA:

Beverage tax advances to support health care spending

MONTPELIER — The House Ways and Means Committee on Thursday advanced a sweetened beverage tax and a hike in the state’s cigarette tax to cover the cost of proposed health care initiatives after weeks of wrangling.

Thursday’s vote came after a number of potential revenue sources were laboriously explored. Committee Chairwoman Janet Ancel, D-Calais, and Democratic House leaders considered myriad options before piecing together a plan that raises about $18 million and could also garner enough votes.

In the end, the committee found just enough votes to pass the bill out on a 6 to 5 vote.

Rep. Janet Ancel

Rep. Janet Ancel

“I would like to have a stronger vote coming out of the committee than we’re going to have, but I really appreciate the work that people have done to get to where we are,” Ancel said before the vote.

The committee-passed revenue plan includes a half-penny excise tax on sweetened beverages, including diet drinks and any beverage with artificial sweeteners. It also includes a 25-cent increase in the cigarette tax with a proportional increase in the tax on other related products like chewing tobacco. In addition, the plan eliminates the current sales tax exemption on dietary supplements.

Competing revenue plans sought to eliminate sales tax exemptions on soda, candy, bottled water and other products, but never found enough support on the committee, which features centrist Democrat Jim Condon of Colchester and independent Adam Greshin of Warren.

“Anytime you have an array of taxes and you’re looking at sales tax exemptions, which is kind of the alternative funding sources that we looked at, you have issues because of folks who live on the New Hampshire border,” Ancel said. “I think the retailers have been successful lobbyists against any sales tax on candy and soda for years. It was a whole variety of things. I think if you talk to any member of the committee they would have their own reasons for having trouble getting to yes.”

Democrats waited patiently for days for all committee members to be present. With Rep. Johanna Donovan, D-Burlington, back at the State House Thursday after several days away, Democrats finally had enough votes in place to advance the revenue package.

The bill that arrived from the House Health Care Committee was a non-starter for many members of Ways and Means. That plan sought to spend about $52 million on health care and used a 0.3 percent payroll tax and a 2-cent per ounce excise tax on sugar-sweetened beverages.

Through its weeks-long deliberations, Ways and Means killed off the payroll tax — first proposed by Democratic Gov. Peter Shumlin in January at 0.7 percent — and lowered the beverage tax significantly. Ways and Means also extended the beverage tax to diet drinks and anything that is sweetened with either natural or artificial sweeteners. Maple syrup, the state’s hallmark product, is exempt.

For Reps. Sam Young, D-Glover, and Jim Masland, D-Thetford, the two-cent tax was just too high. But eliminating it altogether was not an option for Rep. George Till, D-Jericho, a medical doctor, who sought an increase in the cigarette tax.

The final Ways and Means revenue plan nearly hit another roadblock Thursday when Young made a motion to reduce to the increase in the cigarette tax. Young agreed to withdraw the amendment after Till threatened to drop his support for the entire measure.

Opponents of the excise tax vowed to continue fighting against. Jim Harrison, president of the Vermont Retailers and Grocers Association, said the Ways and Means plan “is totally going in the wrong direction.”

“The excise tax is absolutely a nonstarter for us. This is a very regressive tax on food products that’s going to do nothing except hurt Vermonters in their pocketbook and send more retail business out of state because products in Vermont will be more expensive,” Harrison said.

And Andrew MacLean, a lobbyist for the beverage industry, said the original “health care aspects of the bill have dissipated” as lawmakers have moved beyond just sugar-sweetened beverages. It is now “strictly a revenue generator,” he said.

Andrew MacLean

Andrew MacLean

“I think the problem with the excise tax is it puts a stigma on a particular business and a particular product and its something that can be raised over time,” MacLean said.

The bill passed Thursday by Ways and Means discarded the House Health Care Committee’s previous policies and spending. The Health Care Committee’s revised plan that takes into account the available revenue will be finalized by the House Appropriations Committee.

That plan, outlined this week will provide about $3.3 million in state funding during the 2016 fiscal year to boost Medicaid reimbursement rates for primary care providers. That would draw down $3.7 million in federal funds.

The health care proposal would also provide $2.45 million for a Medicaid rate increase for professional services, drawing down $2.77 million. No additional state funds will be applied to hospital outpatient rate increases.

The House Health Care Committee’s plan provides just a fraction of the Medicaid rate increases that Shumlin proposed in his January budget address.

neal.goswami@timesargus.com

Capitol Beat with the Governor 3-27-15

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Gov. Peter Shumlin chats with Vermont Press Bureau chief Neal P. Goswami about the health care package in play in the House, new unemployment numbers and gun legislation that cleared the Senate this week.

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Proposed health care bill could see cut in funding

MONTPELIER — Lawmakers are considering a scaled-back health care bill that strips out a proposed payroll tax.

The House and Ways Committee is looking to fund a proposed health care bill with $20 million in revenue, a far cry from the $52 million in revenue proposed by the House Health Care Committee.

“I think it’s safe to say that the figure we come up with will be less than the figure the Health Care Committee came up with,” said Ways and Means Chairwoman Janet Ancel, D-Calais. “If that’s true, we’re going to ask the Health Care Committee to reorder its priorities to decide how best to spend it.”

Earlier this month, the House Health Care Committee approved a bill that included a 0.3-percent payroll tax, as well as a 2-cents-an-ounce tax on sugar-sweetened beverages, which, together, would generate $52 million in revenue.

The bill itself was borne out of a proposal from Gov. Peter Shumlin, who proposed implementing a 0.7-percent payroll tax to close the gap between how much Medicaid reimburses doctors for services and how much those doctors charge private insurers. Shumlin argues that boosting the amount paid by Medicaid will result in lower premiums for individuals with private insurance.

Shumlin’s proposal came after his decision in December to — either permanently or for the moment — shelve his single-payer health care plan.

“We’ve been looking at the bill that the House Health Care Committee voted out, both looking at the spending part and looking at how the revenue will be raised, and I think there is, just speaking for myself, there are initiatives in the bill that I would like to be able to accomplish,” Ancel said. “Certainly, the investment in the cost sharing, the increased reimbursement for primary care, are things that the heath care bill attempts to put in place. The challenge, always, is how do we raise revenue for it?”

Wednesday afternoon, House Health Care Committee members discussed proposals that would reduce the amount of money to address the so-called “Medicaid shift” that would close the reimbursement rate gap between Medicaid and private insurers.

Rep. George Till, D-Jericho, proposed amending the bill from House Health Care that would do away with the payroll tax altogether, and would impose a 0.75-cents-an-ounce tax on sugar-sweetened drinks. Till also proposed eliminating the exemption for candy from sales tax.

Rep. James Masland, D-Thetford Center, said that reducing the sugar-sweetened beverage tax to 0.5 cents an ounce could still raise $20 million.

Rep. Alison Clarkson, D-Woodstock, said the direction the committee will take on the bill is still very much up in the air.

“There are three questions before this committee: Do we want to spend money on health care? How much do we want to spend? And, if we want to spend money, how do we want to raise it?” said Clarkson, who later said she supported the $20 million figure.

Ancel said that, should her committee decide to reduce the amount of revenue as proposed, it would be up to the House Health Care Committee to decide how that money should be spent.

The House Ways and Means Committee is expected to take up the health care bill Thursday.

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

First responders oppose proposal to close dispatch centers

MONTPELIER — A proposal to consolidate the state’s emergency dispatch centers as a way to save money is meeting opposition from the emergency responders themselves.

Tuesday night, more than 100 people filled the House Chamber for a joint hearing of the House and Senate committees on government operations to take testimony on a proposal to close dispatch centers in Rutland and Derby and consolidate their services in Rockingham and Williston.

The proposal, borne out Gov. Peter Shumlin’s State of the State Address in January, would reduce the number of state dispatch centers from four to two, a move projected to save $1.7 million as the state looks to close a $112 budget gap.

The proposal would eliminate approximately 15 of the state’s 71 full-time and 33 temporary emergency dispatchers.

The four dispatch centers handle approximately 75 percent of emergency calls in the state, including 215,000 calls in 2014.

During that time period, the Rutland dispatch center took 38,000 emergency calls, and 65,000 calls total.

The House chamber was filled with both legislators in ties and jackets, and police, firefighters and EMTs in uniform. Prior to the start of the hearing, Rep. Job Tate, R-Mendon, handed out candy Life Savers to the “life savers.”

Crystal Golden, a dispatcher in Rutland, presented a petition with 3,000 signatures from people in opposition to the proposed consolidation, as well as resolutions in opposition to the proposal from a number of towns, including Brandon, Castleton, Chittenden, Killington, Pawlet, Pittsford and Wallingford.

“Please do not put Vermonters’ lives in jeopardy with this ill-conceived proposal,” Golden said.

Donald Chioffi, clerk of the Rutland Town Select Board, where the Rutland dispatch center is located, noted that between the closing of stores at the Diamond Run Mall and the catastrophic fire that closed Rutland Plywood, the town has lost hundreds of jobs during the past year.

“Eliminating those 40 jobs amounts to kicking a community while it’s down,” Chioffi said of the possibility of closing the Rutland dispatch center.

Chioffi, and many others, argued that the loss of a local dispatch center will result in the loss of institutional memory and local knowledge that allows a dispatcher to provide emergency responders with the information needed to best respond to a crisis.

“Lives that otherwise would have been saved will be lost, and property that could have been saved will perish,” said Chioffi, whose thoughts were echoed by Killington Fire Chief Gary Roth.

Roth also heads Killington Search and Rescue, which is frequently called in to find Killington Resort guests who have traveled out of bounds and become lost.

He said the consolidation of the state’s dispatch centers — formally referred to as public safety answering points, or PSAPS — will impact his organizations’ rescue efforts.

“The consolidation of PSAPs will affect my town,” Roth said.
“Their ability to track down people in the back country, getting us to small back roads for fires and emergency for fires and emergency, would be lost.”

Supporters of the consolidation plan, such as Department of Public Safety Commissioner Keith Flynn, have argued that ever-improving technology will allow two dispatch centers to handle the same volume of emergency calls as four dispatch centers.

Lt. Rodney Pulsifer with the Brandon Police Department cautioned against relying on technology so much.

“Technology does fail,” said Pulsifer, himself a former emergency dispatcher. “I know how tense and stressful being a dispatcher will be. It doesn’t make sense, that with the amount of stress that is involved, that you would eliminate positions and put more stress on those people.”

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.

Interest groups oppose budget cuts

MONTPELIER — Advocates for children, the arts and the disabled were among nearly 100 people who turned out for a hearing Thursday on $29 million in proposed cuts to the state budget.

Members of the House Appropriations Committee heard from representatives from host of organizations on a list of cuts released in February to enable the state to close its $112 million budget shortfall. The cuts range from the drastic — closing the Vermont Veterans’ Home and Windsor prison — to charging state employees to park when they come to work.

“This is very unusual to have a hearing at this time in the process,” said Chairwoman Mitzi Johnson, D-South Hero. “The list you have seen, which why you are here, is an open brain-storming list. It’s not the sort of list that usually goes public.”

Karen Taylor-Mitchell, executive director of Governor’s Institutes of Vermont, came to the hearing with students from U-32 High School in East Montpelier and Leland and Gray Union Middle and High School in Townshend, as well as a 1,200-signature-strong petition asking the state not cut the program’s funding.

“We reach out to communities that do not have access to educational opportunities of their own,” said Taylor-Mitchell, noting the program offers opportunities in poor and rural areas, such as enabling a student to study engineering, even if the courses aren’t offered at the local school.

“If funding is cut, we will become a tuition-funded program that will leave rural and poor students behind,” Taylor-Mitchell said.

Karen Schwartz, executive director of the Vermont Developmental Disability Council — which is part of the state Agency of Human Services — spoke of the impact eight years of rescissions has had on her program.

“I ask you to consider the cumulative effect of the rescissions over the years,” said Schwartz, who noted that, in face of constant cuts, the number of people her program serves has risen from 1,700 to 2,800, while the number of people overseeing the administration of services has shrunk from 12 to 4.5.

“All people count,” Schwartz said. “It’s a wise use of money to make sure everyone is treated with dignity.”

On the arts front, Victoria Young, chairwoman of the Vermont Symphony Orchestra, discussed how a 20-percent cut in the aid it receives from the state will result in a smaller orchestra better suited to chamber music than full-symphonic compositions.

Young also noted her organization would reduce its youth programs, which, for some students, fill a gap as schools around the state reduce their music programs.

Bruce Bouchard, executive director of the Paramount Theatre, spoke of the $90,000 his theater received from the Vermont Arts Council, which allowed for the installation of a high-definition system to broadcast everything from opera to the Superbowl.

“We are considered the centerpiece of the cultural renaissance of Rutland, Vermont,” Bouchard said. “None of this would have happened without money from the Vermont Arts Council.”

Raul Rodriguez, of Salisbury, discussed coming out of prison and his positive experience with the Turning Point Center of Addison County, which is among the recovery centers from around the state whose funds could be cut.

“It’s given me a way of life,” Rodriguez said. “It’s taught me to be selfless, not selfish.”