Stop the Economic Thrashing 
By Jim Black

As a Professor of Business and Economics at Johnson State College, I am aware of how Vermonters’ budgets are being thrashed. I just filled up my car. $58.62. Fifty eight bucks! I saw the dollars roll up and up on that pump through the eyes of someone who has to commute forty miles each day. How is this going to affect my grocery budget, which is also increasing each day? What am I going to have to cut back on to cover this bill? And, what are these oil prices going to do to my home heating bill this winter?

Recently, I had a conversation with a friend whose small business is in trouble. He told me "Customers are cutting back but my equipment payments are still due." He went on to say "Taxes are killing me. Diesel is over $5 per gallon. Frankly, I am frightened." He does not want to layoff any of his employees. He is trying everything he can do to cut his costs and find new customers. He has even gone so far as to submit a bid that was so low it could not cover his diesel costs. "I had to do something" he said. "Times are tough, very tough." His business is being thrashed.

These are real problems that Vermonters need help with here and now. Taking control of our economy – getting it growing again -- must be our legislature’s number one focus. It is clear why Governor Douglas has been trumpeting the need to actively keep Vermont affordable. We need to elect candidates to the House and Senate who also share that goal.

It is very frustrating to hear Senate leaders say that Vermont has the ability to influence global climate change and save polar bears, then turn around and say that they are powerless to help Vermonters cope with their own economic problems. Perhaps it is Vermonters who are being thrashed.

The Vermont State Government can help. We can begin by reforming our tax system and regulatory policy to improve the business climate, create jobs, increase incomes, and lower prices.

A big reason the legislature had to cut programs, at a time when Vermonters need help the most, is because they spent every surplus dollar we taxpayers have provided. Between 2004 and 2007 there was over $100 Million surplus. That money was spent. Where did it go?  In 2007, the state surplus was $32 Million. According to the chair of the Senate Appropriations Committee (Bartlett), all that money was spent. We know that the Appropriations Committee allocated $1.65 Million to "extra projects" and $2 Million to the Bennington Office project cost overrun. None of the surplus seemed to find its way to Lamoille County, the Morristown bypass, or Morrisville’s bridge project. Perhaps it is the citizens of Lamoille County who are being thrashed.

Montpelier is responsible for the way state funds are spent. Montpelier has increased its spending three times faster than our incomes have grown. School spending alone has increased 60% in the last 8 years. That’s simply not economically sustainable.

Bartlett goes on to state "we put $13.5 Million in the education fund to help reduce property taxes."  But, you don’t need an economics degree to know that you can’t use tax money to reduce the tax burden!

Vermont has the highest per capita taxes in the nation. Our taxes have increased 54% in the last 8 years. According to the US Census Bureau, we pay $3,600 per person in taxes. That is $1,400 higher than the United States average. That is $1,400 we will not have to pay for gas/heating oil/food. Perhaps Vermonters are being thrashed.

Between 2000 and 2006, Vermont has had essentially no private sector job growth. According to WCAX/Burlington Free Press, 972 private sector jobs were lost in 2007. No new job gains were reported. Lost jobs means lost income for the state. Even tax revenues are being thrashed.

Growing the Economy and curbing government spending is the key to Vermont’s success. It is time for Vermonters to demand real change by electing legislators who understand economics. It is time for Vermonters to stop being thrashed.
 

Jim Black for Senate
2392 Stowe Hollow Rd.
Stowe, VT. 05672
phone (802) 253 - 2083
cell (802) 324 – 8499
Jim@JimBlackforSenate.com