Vermont Business Magazine Matt Dunne, Democratic candidate for Governor, today released his detailed plan for fighting poverty in Vermont, beginning with five actions that can be taken to immediately help the neediest Vermonters. Dunne unveiled his policy agenda during an event at the Vermont Foodbank, and was joined by longtime anti-poverty activist Chris Curtis, Sara Kobylenski from the Upper Valley Haven, former Department for Children and Families Commissioner Dave Yacovone and activist Dustin Tanner.
Dunne also announced that he and campaign staff, volunteers and supporters will launch a series of service politics actions at locations across the state, with the first taking place at Listen Furniture Store, a branch of Listen Community Services in White River Junction on Saturday.
“Too many Vermonters are still struggling to put food on the table or find safe, affordable housing for their family. We need to change the story and find innovative ways to reduce poverty in Vermont,” said Matt Dunne, Democratic candidate for Governor.
“We’ve been fighting the ‘war on poverty’ for 50 years,” said longtime anti-poverty advocate, Christopher Curtis. “The incessant drumbeat to slash the safety net is failing working families and is costing taxpayers more as low-income families are thrown into constant crisis. While the cost of food, housing, and other necessities soar, wages have stagnated. Matt’s plan to leverage new funding for housing and put money into the pockets of working families is exactly the kind of action Vermont needs to take break the cycle of poverty.”
Matt supports a plan to conduct a needs assessment at the beginning of the state budgeting process. This assessment, combined with a larger strategic approach, will help put budget proposals in context and clearly identify the tradeoffs that policymakers face every budget cycle.
Matt’s plan to fight poverty in Vermont starts with five core strategies:
1. Make an historic investment in affordable housing.
Matt is proposing an historic investment in affordable housing by granting a newly-created public authority, working under the Vermont Housing and Conservation Board (VHCB), the ability to issue a $200 million bond. The proceeds of the bond issue would be used for affordable housing programs across the state in line with VHCB’s current strategy. A backlog of affordable housing projects exists due to a lack of funding. A substantial up-front investment in affordable housing will begin working right away, helping to fill a housing gap that limits workers and the state’s diverse industries that struggle to fill positions because of a lack of affordable workforce housing. This bond action would be the first of its kind in Vermont, but is a mechanism that is routinely and successfully used in other states.
The bond issue would be funded with a common-sense plan to establish a $2 per night Occupancy Fee on hotel and motel stays, which would raise $12 million per year in new revenue, 90% of which would come from out-of-state tourists who can afford it.
2. Make Vermont’s earned income tax credit (EITC) the best in the nation.
Matt proposes putting the state on a path to expand the EITC from 32% of the federal credit to 40%, which would match Washington, D.C. as the best in the nation and provide immediate tax relief for the 40% of working Vermonters who need it most. Think tanks on both ends of the ideological spectrum have cited the EITC as one of the most effective anti-poverty programs used today, and studies have shown that when low-income households have additional available resources, they tend to spend it on goods and services their families need, putting these dollars back into our economy.
3. Eliminate “poor taxes” on Vermonters least able to afford them.
Matt proposes immediately repealing the Reach Up “tax” imposed on the poorest disabled parents with children. Currently, a family of three on Reach Up receives just $640 a month, much less than it takes to pay rent and put food on the table. Matt’s plan would help poor families move to self-sufficiency by reforming the “benefit cliffs” to a graduated scale so that families who earn a dollar don’t lose their benefits, and adjust grants to help families meet their housing needs. This would cost approximately $1 million and would be paid for by eliminating the sales tax exemption on airplane parts.
4. Raise the minimum wage to $15 an hour.
No one should work 40 hours a week and live in poverty. Matt supports raising the minimum wage to $15 dollars through a graduated phase-in, starting by quickly increasing the minimum wage to $12.50 an hour, and then to $15 an hour in line with recent legislation in New York and California.
5. Deploy a statewide microenterprise program and invest in financial asset development.
A statewide microfinance program would make it possible for Vermonters to create new opportunities with small amounts of up-front funding. Microloans, if administered well, have default rates much lower than for regular commercial loans. The fund would be capitalized with one-time money, and successful microenterprise funds become self-sustaining, providing an ongoing source of capital to help displaced workers and low-income people start successful small businesses. Capacity building efforts will build on existing financial institutions - credit unions, small business administration offices using AmeriCorps*VISTA members, as well as others, and will leverage federal funds that are available but not currently coming to Vermont. CapStone Community Action has demonstrated the powerful impact of this work in Washington County.
Financial asset development programs work with low-income Vermonters to build their assets. Individual development accounts, earned-savings programs, and financial literacy training will be incorporated into programs throughout the state.
In addition to these proposals, Matt’s anti-poverty plan outlines strategies for a $100M Energy Savings Company (ESCO) bond that will provide capital for efficiency improvements in multi-unit buildings across the state, investing in financial asset development, and ensuring food security, among others.
Source: Dunne campaign. 7.14.2016