VT- Fiscal crisis to dominate legislative session

1-6-2009 Vermont:

BENNINGTON — State lawmakers will not converge on the statehouse to launch the new legislative session until Wednesday. One thing is already abundantly clear, however — a fiscal crisis that is deepening by the day will dominate the beginning of the new biennium.
Difficult decisions

A $66 million budget deficit caused by rapidly declining state revenues and upward budget pressures will require Republican Gov. James Douglas and the heavily Democratic Legislature to make difficult decisions as they look to trim the 2009 fiscal year budget. They must also craft a 2010 fiscal year budget amidst gloomier projected economic forecasts.

"There's no question that the economy and job loss is going to dominate our thinking. I believe that this will test our values as legislators," said Senate President Pro Tem Peter Shumlin, D-Windham. "We have to find efficiencies, reduce spending and remain loyal to the most vulnerable Vermonters who need us more than ever in this difficult time."

As a result, issues that some lawmakers once thought would be highlights of the new session — stronger sex offender laws, the fate of the Vermont Yankee nuclear power plant, and gay marriage — are likely to play second fiddle as Vermonters await the full impact of the growing fiscal crisis.

Last month, select lawmakers, members of the Legislature's Joint Fiscal Committee, agreed to about $20 million in budget cuts that hit departments across state government. Economists and lawmakers said the measure is just a start, though. More dramatic revenue shortfalls, upwards of $200 million, are expected in the 2010 fiscal year.
Some state programs are likely to be heavily scaled back, and some may be eliminated as the state works to balance its budgets. Douglas and lawmakers are likely to face strong resistance to further budget cuts.

In fact, the Vermont State Employees'Association announced Monday the start of a six-week television ad campaign to remind Vermonters that "they matter and so do their quality public services." About 50 state jobs have already been cut as part of the action taken in December, and the union said it is concerned with future cuts.

"If our leaders continue to just cut and cut — while tabling discussion about alternatives to cuts or ways to generate new revenue — some of our public services are probably in danger of being eliminated altogether," said VSEA Director Jes Kraus said. "Vermont state employees aren't blind — or immune — to the economic pain being suffered throughout our state. They care about their clients and they care about their co-workers. Hopefully, the VSEA ads will encourage more Vermonters to join the union's efforts to save Vermont's quality public services before it's too late."

When fiscal decisions will be made is still up in the air.

Lawmakers have indicated a desire to wait on budget decisions until President-elect Barack Obama is sworn in and the design of a federal stimulus package is finalized, which could be in late January or early February. Both Douglas and state lawmakers believe federal dollars will be available for roads and bridges, schools and the Medicaid program.

"Some of the things that the Bush administration wouldn't allow we hope the Obama administration will allow," said Sen. Dick Sears, D-Bennington, a member of the Joint Fiscal and Senate Appropriations Committees. "We're hoping they'll help, but there's a lot of people with their hands out."

Shumlin had suggested that legislators recess for two or three weeks following the opening of the session Wednesday until the federal stimulus package is complete, but "lost that battle."

Instead, legislators will likely address issues eclipsed by fiscal woes that may have otherwise headlined the session.

Sears, who serves as chairman of the Senate Judiciary Committee, said he intends to immediately move forward with legislation strengthening the state's sex offender laws. The committee held several hearings and meetings over the summer and fall following the death of Brooke Bennett, a 12-year-old Braintree girl who was allegedly sexually assaulted and killed by her uncle in June.

"I expect the sex offender law to have movement next week ... and to be on the governor's desk by Town Meeting day," he said.

It remains unclear whether Democratic leaders will move to address gay marriage during the session, though. If the issue is broached, it is unlikely to move through the Legislature with urgency.

Sears said Monday that he was not prepared to comment on whether his committee will attempt to move legislation that would allow gay marriage in Vermont.

"I'm not ready to answer," Sears said. "It's obvious it will be a very controversial issue."

Proponents of gay marriage are hoping lawmakers will push the bill through this session after Sen. John Campbell, D-Windsor, who serves as vice chairman of the Senate Judiciary Committee, announced last year his intention to introduce such a bill. Sears said he must first consult with Campbell, Shumlin and members of the House leadership to determine what will happen.

Shumlin, too, said he was unsure of how gay marriage will fare.

"There's probably 200 issues that need our attention. Until we have a road map on the stimulus package and these other pressing problems, I can't tell you what else we're going to do yet," he said.

Douglas has already indicated his strong opposition to the idea. Debate over the bill, if addressed, could be contentious and divisive, much like the debate that occurred in 2000 when the Legislature made Vermont the first state to allow civil unions.

Relicensing Vermont Yankee, the state's onlynuclear power plant, was also expected to be a high-profile issue in 2009. The plant's owner, Entergy Nuclear, is seeking a decision from the Legislature on whether the plant will be allowed to continue operations after its existing 40-year license expires in 2012.

But Shumlin said a vote by the 180-member General Assembly is no longer expected this session because Entergy Nuclear has not reached a rate agreement with Vermont electrical utilities that lawmakers had expected in December.

"We need to know what the deal is within the next week in order to reasonably be expected to pass judgment on the deal, how that rate will effect Vermonters," he said. "I can assure you that we can't make a judgment in the first half of the biennium unless we have a rate agreement expeditiously."

Lawmakers may also ask Douglas to sign into law legislation aimed at spurring economic development through emerging renewable energy technology.

"I believe that the economic revitalization of the country is going to come from the jobs and economic opportunities that emerge as we move to new energy technologies," Shumlin said. "Vermont needs to position itself to get a piece of that action. I really believe we need to focus on that this winter."

For his part, Douglas has shown an interest in rekindling the debate over the state's development review process, and pushing for permit reform. Some ideas that have surfaced would simplify the environmental permitting process, but have been previously rejected by the Legislature.

Shumlin said he is open to the discussion, but does not want to revisit old ideas.

"I would hope that it wouldn't be regurgitated ideas that have already been rejected," Shumlin said. "If there is one reason that Vermont is not experiencing the real estate crisis that you see from New York to Las Vegas to Los Angeles, it is because we do not allow for unfettered speculation and greed by speculators in Vermont. I think that has served us well."

Rep. Patti Komline, R-Dorset, the House minority leader, said her caucus will be looking first to address the state's economic woes, followed by escalating property taxes and public safety issues.

Other "boutique" issues, like non-binding resolutions opposing the war in Iraq and seeking the impeachment of President Bush, which were passed last year by the Legislature, should not be considered this year," Komline said. Rather, the Legislature must complete its work as quickly as possible and adjourn to save taxpayers as much money as possible, she said.

Shumlin said he and incoming House Speaker Shap Smith, D-Morrisville, intend to consolidate the session as much as possible.

"I think Speaker Smith and I will work diligently to make sure that the Legislature does extraordinary work and that we reduce the session from 18 weeks to 16 weeks," he said. ..News Source.. by Neal P. Goswami