Governor Douglas announced this afternoon that he intended to veto the $4.5 billion budget bill as it is currently constructed and that he is calling the Vermont Legislature back in session for June 2. Douglas has not yet received the budget, and therefore has not vetoed it, because the bill is still being proofed. In a long and sharply worded letter to Speaker of the House Smith and Senate President Pro Tem Shumlin, Douglas said, "It is unfortunate that you are unwilling to attempt to find a moderate compromise supported by a multi-partisan coalition of lawmakers one that includes Republicans, Democrats, Progressives and Independents that represents the views and opinions held by most Vermonters. Rather you seem intent on a budget that satisfies more fiscally liberal members of your caucus, even if that comes at the expense of fiscal prudence. If my only choice is between allowing your fiscal 2010 budget to become law or a veto, I must choose veto. I cannot abandon Vermonters long-term economic security for short-lived political accord."
Douglas also made a point of noting that Vermont's social services are rated amongst the best in the nation and that its tax burden is also among the highest, if not the highest in the country. He said it does not make sense in this economic climate to raise both. He also noted that the consequences of this fiscal year 2010 budget bill would result in a General Fund deficit of $67.38 million in fiscal 2011 and a deficit of $141.59 million in fiscal 2012. Fiscal 2010 starts on July 1.
Since the Legislature finalized the budget last Saturday, the two sides have met cordially but unproductively leading to an escalating war of words. Smith and Shumlin, Democrats who hold close to a veto-proof majority in the Legislature, have complained that Douglas has simply told them that he does not like the spending and tax measures, but has not offered substantial alternatives.
They sent a letter to the governor yesterday which says in part," We have asked on a number of occasions in recent weeks to see a clear and specific breakdown of your proposals that includes how much revenue you would raise and from what sources, what specific additional cuts you would make and how much additional obligation you would like to shift to the Education Fund. It is critical that your plan also indicate what the impact of your proposals will be in Fiscal Year 2011, and that it does nothing to make the problem more severe.
"To date, we have not received such a plan from your office. We are happy to continue discussions at a mutually agreeable time once we see your plan. As discussed, any plan will need to be scrutinized by all legislators."
Unless a deal is stuck between now and then, all legislators will indeed get a chance to scrutinize whatever plan might surface when they are forced back to Montpelier on the first Tuesday in June.
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Letter to Governor 5-14-09.doc54 KB
Douglas Letter Special_Session_51509.pdf319.92 KB