Legislators Announce Plan to Merge Labor and Economic Development, Eliminate Commerce Agency

Senate President Pro Tem Peter Shumlin and Speaker Shap Smith today announced a large-scale restructuring plan for two state agencies to deliver higher quality services and reduce state spending. Senator Shumlin and Speaker Smith called on the Senate and House committees to consider a consolidation of the Department of Labor and Department of Economic Development and the dissolution of the Agency of Commerce. Governor Douglas said he vehemently opposes the plan.
With Vermonters facing the most difficult times many of us have ever seen and with the need for state services higher than ever, it is critical that Vermont s government be as efficient and effective as possible, said Senator Shumlin. Much of our governmental structure is outdated and reflects a time when Vermonters were facing different challenges and had different needs. It s time for a modern state government that reflects the realities of Vermont in the 21st
Century.
In order to more efficiently deliver high quality services and reduce state spending, Senator Shumlin and Speaker Smith called for the restructuring of the Department of Labor and the Department of Economic Development.
Under the plan, the Agency of Commerce and Community Development will be dissolved and much of its services folded into the Department of Labor or transitioned to existing private entities. Savings in the first year are estimated to be between $1.2 to $1.5 million with a high potential of additional savings in FY11 and beyond.
It will only be with strong leadership that Vermont emerges from this crisis as a more vibrant state than before, said Speaker Smith. We need to modernize our government to ensure we can do a better job with less.
Senator Shumlin and Speaker Smith directed both the Senate and House Committees to analyze and implement as appropriate the proposal.