Editorial
The
Governor's "Vermont's Way Forward"
By John McClaughry
Even his opponents must concede
that Gov. Jim Douglas is a master at the podium. Not only is he superb
at speechmaking, but he is also politically shrewd. The most recent evidence
was last Thursday's inaugural address.
The Governor stood before
a chamber heavily dominated by his Democratic opponents. He knew that the
leading issue in the voters' minds is the rising burden of property taxes
to support public education. Curbing the steady rise of education costs
has been a major component of his Affordability Agenda.
He knew, too, that the central
issue for the new Senate leader, Sen. Peter Shumlin of Putney is not education
costs but, rather amazingly, "global warming". The senator believes that
Vermont must take the lead in a program of subsidies, prohibitions, taxes,
and mandates, to save the planet for future generations.
So beyond the usual pleasantries
about nonpartisan cooperation for results, what to say?
The governor duly noted that
Vermonters want property tax relief - but that it cannot come from shifting
rising costs onto another tax base, meaning the income tax. He reiterated
his request for capping the property tax, but mentioned no specifics beyond
somehow "containing costs"
before quickly passing on
to his next subject.
To appease the anti-global
warming enthusiasts, the governor recited his active support for the Regional
Greenhouse Gas Initiative and his adoption of California auto emissions
standards. He vowed to press forward to meet the goal of having 25% renewable-generated
electricity by 2025. (We would have that now, but the legislature inexplicably
does not count HydroQuebec electricity as "renewable".)
For the purchasers of vehicles
getting better than 30 mpg, he proposed to rescind that portion of the
vehicle sales and use tax raised in 2003 to finance education. He also
proposed to subsidize biodiesel fuel so that people will use it for transportation
instead of lower priced petroleum diesel.
The governor again supported
the idea of the "Green Valley", proposed a year ago by Lt. Gov. Brian Dubie.
He proposed to promote environmental engineering, with the goal of attracting
companies into a new Vermont "green industry" cluster. Whether this will
require new subsidies to compensate "green" firms for the higher costs
imposed by Vermont's combination of business taxes, regulations and mandates,
the governor did not say.
Having tarried briefly on
the property tax-education issue, thrown several green bones to the anti-global
warming enthusiasts, and reiterated his support for the Green Valley, Douglas
then launched into his Big Idea: The Vermont Way Forward, making Vermont
into a world-class "E(lectronic)-State"
That will require, he said,
creating a new Vermont Telecommunications Authority. This government entity
will invest the proceeds of up to $40 million in revenue bonds to build
wireless towers and fiber optic networks that private enterprise is not
now willing to build. Users of the new facilities will pay fees and charges
sufficient, one hopes, to pay off the bonds.
Part of the governor's comprehensive
proposal calls for streamlining the telecom permitting processes, exempting
some towers from Act 250, and giving quick approval for the use of state-controlled
buildings
and rights of way. One wonders,
though, whether providing
state-controlled sites and
ending permit process cost and constipation would not by itself spur private
companies to expand broadband service throughout the state, without creating
a new Authority.
There is always an urge among
politicians to find reasons to create new Authorities to cope with issues
that the private sector is alleged to be unable to handle. The Vermont
Economic Development Authority and the Vermont Housing Finance Agency have
been successful by trading on the federal tax exemption for revenue bond
interest. The experience of the ill-fated Whey Authority and Health Care
Authority should give legislators some pause. So should the embarrassing
$28 million debacle of Gov. Dean's Champlain Flyer.
Gov. Douglas is unquestionably
right that Vermont's sketchy and inadequate telecommunications service
puts this state - and especially its rural areas - at a serious competitive
disadvantage. Correcting this situation does require bold action, and the
governor deserves credit for dramatically presenting a Big Idea.
By focusing on this important
issue, the governor has defined an agenda that the Democratic legislature
can hardly refuse to address favorably. In fact, the 2006 Democratic Platform
pledges support for "universal broadband services statewide".
If the governor can make
this issue expand to become the foremost issue on the legislature's agenda,
the more contentious issues, like expanding Catamount Health into a universal
single payer system, tapping the Education Fund for universal preschools,
and raising the income tax on "the rich" to support more government spending,
may drift into the background.
That would be a fine example
of the governor's political skill and leadership.
-- John McClaughry is
President of the Ethan Allen Institute (www.ethanallen.org)
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