by Representative Heidi E Scheuermann (R-Stowe) With just a few weeks remaining until the 2015-2016 Legislative Biennium concludes, various items are still being developed in both the House and Senate. Unfortunately, none of the items being considered will put us back on a path of fiscal responsibility and real economic growth. The Fiscal Year 2017 budget that passed the House raises General Fund spending by 4% this year, meaning a Comparable Annual Growth Rate over the last five years of 4.6%. As most of us clearly understand, this continues to be well above both the rate of inflation and the underlying economic growth in Vermont.
In fact, the total budget - excluding federal funds and education spending - is $2.45 billion in FY 2017. This is an increase of over $575 million since FY 2011. And, how do we pay for this spending? By instituting additional and higher taxes and fees on Vermont families and businesses over the last six years. The tax and fee increases being proposed this year total $48 million, making a two-year total increase of $96.7 million.
While the Senate is still considering these various pieces of legislation, I do not expect numbers to change dramatically before everything is finalized.
For ten years, I have fought for fiscal responsibility and a smart, comprehensive strategy for economic growth. Right now, however, as I look back on this last year, this biennium, and frankly, the last several years, I can't help but think of missed opportunities, failed leadership and political agendas that put politics ahead of smart, long term public policy.
While we have been able to put together some modest proposals for economic growth over the last several years, they have been overshadowed by the increased cost to Vermonters in taxes, fees, energy, and the already burdensome regulatory process; in addition to the Vermont Health Connect fiasco, and the countless reasons why so many Vermonters just don't trust our government anymore.
And this year, as many of us continue to try to make some additional progress on the economic development front, Governor Shumlin is hanging his leadership hat on the divestiture of our pension funds (on which our state's retirees rely so much) from coal and Exxon-Mobil assets, and the legalization of marijuana.
Regardless of how you feel about these particular issues, they are not what Vermonters have been pleading with us to do. Instead, Vermonters have been asking us to reform state government in order to bring sustainability back; to reform our state's education funding system to ensure property tax relief; and to put into place policies that will encourage private sector job growth.
Rest assured, I will continue to fight for sound public policy through the final weeks of this session, but I am also looking ahead at what we might be able to accomplish in the next biennium.
There are many changes coming to Montpelier next year. With open seats for Governor and Lieutenant Governor, and both the Speaker of the House and the President Pro Tem of the Senate leaving their posts as well, we can start to right this ship of state, if we have people in there who share our desire to do so.
To be clear, we can make a difference! We simply need to get involved!
Toward that end, I am hopeful that Vermonters who share my desire, and the desire of so many others, to put us on a path to fiscal responsibility and economic prosperity, consider joining me either by running for office themselves, or by getting involved.
If you are interested in becoming involved, please contact me.
INDEPENDENT CONTRACTOR CONTINUES TO LANGUISH
The Independent Contractor bill, which passed the committee of jurisdiction unanimously on March 10th, continues to languish after the Speaker of the House sent the bill back to our committee for further work.
To be clear, we are absolutely committed to working on some of the points of the legislation that big labor (labor unions) finds objectionable, but we have yet to come to consensus on the major sticking points.
The concern that I have now is that we have simply lost too much time - that even if we pass a bill in the House, there won't be enough time for the Senate to consider and approve it.
And, if we are simply going to put something forward that "will be important for the next Legislature," as the Speaker indicates in this article, I would prefer it to be the strongest possible message we can send, not an already compromised position.
As I have said many times in the past, I have worked diligently for years, with colleagues from across the political spectrum, to do something that would ensure the many protections for workers historically in place are maintained, while ensuring that we position our state as a place in which the new, independent and collaborative workforce is encouraged to grow and invest.
I believed strongly that H 867 did just that.
Unfortunately, big labor opposed it, and found an ear that was receptive.
Given the lateness of the session, I expect we will know whether we come to some consensus on this bill by the middle of this week.
JAY PEAK EB-5 FRAUD
The state's business and political establishment was rocked last week by federal and state allegations of massive fraud by Northeast Kingdom EB-5 Project developers Bill Stenger and Ariel Quiros.
The lawsuits allege $200 million in EB-5 investor funds being "misused, " and an additional $50 million being "misappropriated" by Mr. Quiros for personal use.
Since the Jay Peak, Burke and Newport projects began, they have been seen by many as a beacon for economic and job growth in the Northeast Kingdom. And, Mr. Stenger, specifically, became the poster child of successful EB-5 projects - lauded by the political establishment in both Montpelier and Washington.
That has all come to a halt now, and with it, at least two of the projects that have yet to get off the ground - the ANC Bio facility, and the downtown Newport Renaissance Block.
The good news is that some very important infrastructure is in place for the Kingdom to continue building upon for its economic vitality. From the Jay Peak Expansion to Q Burke, I am confident the people of the Northeast Kingdom will come together to ensure its success.
In general, though, this is a truly sad development for the people of the Kingdom, and for all of Vermont. It is absolutely clear that proper oversight of, and real accountability for, these projects was not in place for a very long time. Kudos to Susan Donegan and the team at the Department of Financial Regulation for its diligence in uncovering all of this after the oversight was given to them last year.
VERMONT TECHNOLOGY ALLIANCE (vtTA) REPORT RELEASED
I was really pleased to attend last week's unveiling of the Vermont Technology Alliance Report - "Vermont's Tech Employment: The Hidden Driver of our Economic Growth."
I have long believed that our technology sector is one of the fastest growing sectors of our economy, and one of the sectors in which we have great opportunity. This report not only substantiates that assumption, but provides us great insight into the total economic impact of the sector.
The following from the vtTA Press Release provides some detail about the specific findings:
Highlights from the Vermont Technology Alliance Report include:
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Tech jobs make up 25% of all Vermont employment, representing 77,249 jobs.
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Tech jobs generate an estimated $5.6 billion in wages, representing 40% of all Vermont wages.
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Vermont's tech workers earn 63% more compared to the Vermont average wage. A Vermont tech job pays and average annual wage of $72,732, while the average annual Vermont wage is $44,540. This premium generates an additional $280 million for Vermont's economy.
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Tech jobs are growing faster than Vermont's total employment, with growth of 8.3% over the past ten years compared to the state's average employment growth of 1.2%. Tech jobs are projected to grow at a 7.5% annual rate from 2014 to 2022, the fastest growing in Vermont.
I am hopeful that other legislators and public policymakers read this report to get a full picture of the opportunities that are in front of us.
Rep. Heidi E. Scheuermann [email protected]> April 19, 2016