by Bruce Lisman Affordability is a renewed slogan that has recently found its way into the vocabulary of Governor Shumlin and some members of the Legislature. Former Governor Douglas spoke often of it when combating the legislative impulse to regulate and tax Vermonters. Today, it’s being used as a euphemism for growing property taxes.
I believe the Administration and the Legislature can do more than re-consider how we pay for education. Now is the time to examine why it’s so expensive to live here, and what controllable costs go into that equation. All government mandates ought to be judged in part, by their added costs. So too, legislation even in support of the most popular policy measures should provide an accurate cost to families and employers. We expect our government to take a balanced approach to governance. So, let’s re-examine all existing programs to ensure the benefits outweigh the burden to pay for them.
Affordability—our financial capacity to live in our state is shaped by tax policy, but also by the cost of everything we need or want to buy and how much we earn.
Vermont’s high cost of living didn’t arrive with our morning coffee. Rather, it seeped quietly into our lives over time. It isn’t one thing—it’s most things. It’s having the 7th costliest residential electricity, 8th highest commercial rates, the 12th highest heating oil prices, the 4th highest propane prices, 8th highest natural gas prices, top 10 gasoline prices, top 8 diesel prices, 15th highest gas tax. Food prices are 25% above the national average, rents are above the national average, property taxes as a percentage of income ranks 3rd, the “Total Tax Implication” ranks us 10th, and we rank 10th in a state-by-state cost of living index.
The high cost to live here means the average Vermont family has relatively less money to spend after paying for what they need and therefore less money to pay for what they want. It negatively affects Vermonter’s standard of living and quality of life.
Affordability is very relevant. We all feel the burden from high costs, but that burden falls hardest on the lower half of the middle-class and the poor. As costs rise that burden spreads to those on fixed incomes. It doesn’t stop there. High costs limit the ability of employers to re-invest in our state; it impacts the number of jobs created, and creates a barrier to recruiting new employees. It’s an obstacle to economic growth and shared prosperity.
New England and New York are notoriously high cost regions. Our cold winters and our geographic location play a role, but so do government policies.
Every mandate placed on our education system—from Pre-K to special education to common core raises budgets and our property taxes. The higher out-of-pocket expenses for health care and higher premiums raises the cost to live here.
When our government imposes fees or adds to the complexity of doing businesses, those costs are passed along to customers. If newly unionized childcare workers receive higher state payments, it will raise costs; so too, will mandated paid leave, adding to the cost of doing business that will likely be passed onto you and me.
I’m a fan of renewable energy, but developers are paid a high rate which is funded by utility customers; I believe in energy efficiency, but the ratepayers provide much of the $40 million paid to Efficiency Vermont.
Labeling of food was passed by the legislature, but there was a way to do it without subjecting our state to a lawsuit. The outcome—Vermonters will pay to defend the law in court and families will likely see an added cost of $200-400 for labeling and adjusted distribution costs. That isn’t much unless you are poor, on fixed income, or struggling to meet current bills.
Vermonters sent a message: Affordability matters. Fix property taxes, than fix the rest.
Bruce Lisman is a resident of Shelburne