Legislature refocuses budget cuts to retain safety net

After hearing the testimony of those who would be affected by the Douglas Administration's proposed rescissions, the Joint Fiscal Committee determined that the state cannot solve its budget shortfall by disproportionately placing the burden on the backs of the most vulnerable Vermonters. Instead Senate President Pro Tem Peter Shumlin and Representative Shap Smith worked with members of the Joint Fiscal Committee to craft a counter-proposal that better serves Vermonters.
The Joint Fiscal Committee recommended and approved its counter-proposal to reduce the severe impact of its rescissions on the mental health community, working parents, and small businesses.
The plan reduces these impacts by asking the mental health and developmental disabilities agencies to accept a 5% half year cut, instead of an 8% half year cut; postpones the implementation of the childcare eligibility change until April 1, 2009 instead of eliminating the eligibility change; and accepts only half the reduction in the Individual Development Accounts and Micro business lending program. These measures not only reduce the impact on vulnerable and working Vermonters, but send $2.2 million more into the community than the administrations proposal, due to federal matching funds.
Senator Shumlin and Representative Smith expressed optimism that federal stimulus measures will reduce the need for rescissions to mental health.
"In these difficult times, we must make many difficult decisions now so our choices and their impacts do not become even more painful in the next year," said President Pro Tem Shumlin. "Yet, these decisions must be measured and thoughtful."
"We made these changes with an eye to the future," said Representative Smith. "Without adequate mental health services, vulnerable Vermonters may end up on our streets and in our hospitals, which costs more in the long run. Working parents rely on access to affordable child care and the micro businesses program is more important than ever as Vermonters pursue lasting economic opportunity in these difficult times."
The legislature's package does not alter the total $19.7 million in rescissions. Instead, the measures refocus the states priorities to better protect Vermonters who rely on mental health and childcare services and preserve jobs and economic opportunities for working Vermonters in this time of economic crisis.
The plan equally reduces the state's expenditure of Vermont Housing and Conservation Board funds and unobligated Next Generation funds, transfers unused energy loan program funds, accepts the Judiciary's proposed savings, changes the funding source for the drivers' education grants and the technical center leadership education grants to the education fund, and re-assesses the value of the 5% reduction to exempt employees to reflect benefits and non-general fund savings.
"Every state program serves some Vermont community," Senator Shumlin said. "We recognize that reducing any of these services impacts Vermonters in very real ways. While these decisions are difficult we believe that this alternative is fiscally prudent and protects the most vulnerable among us, jobs, and the child care system rather than proceeding with a new program. In all, it better serves Vermonters."