Governor, Legislature
Don’t Agree on Budget
By M. D. Drysdale

The passage of a bill helping Vermonters take energy efficient steps in their home is an example of how progress can be made when the Democratic legislature and Republican governor work together, Gov. Jim Douglas said last week.

Douglas dropped by the Herald offices for a discussion of the legislative session at its midpoint.

The "all fuels energy efficiency" program would provide loans and limited grants for home modifications that would result in the use of less heating oil and propane. A similar bill was the centerpiece for confrontation and an eventual veto last year, but this year’s version passed quietly and was signed last week by Douglas.

Douglas also had good things to say about the health care bill making its way through the legislature. It provides some greater access and addresses some defects of last year’s bill, he said.

The health care bill was also the result of nonpartisan cooperation he said—after the Democratic leadership dropped earlier plans for a more ambitious expansion of health benefits.

Budget Disputes

Looking toward the second half of the legislative session, however, the governor saw trouble ahead. For the first time in his six years as governor, his proposed budget has run into serious opposition in the legislature.

That’s because of fiscal realities, he declared. Vermont must prepare for an actual decline in General Fund revenues, instead of the 3% to 4% increases of the last several years.

Some of the fiscal pain will be caused by cutbacks at the federal level—in Medicaid, drug enforcement, and transportation, he acknowledged. Some will be caused by shrinking Vermont tax revenues.

He defended his most controversial budget proposals, including a work force reduction of 400, moving $4.6 million from housing and land conservation to health care, and less money to towns for roads and bridges. The cuts, he said are "responsible and prioritized."

As an example, he pointed to the new bridge-building guidelines issued by Transportation Secretary Neale Lunderville, who has insisted that bridge engineering take place only after a project is in the pipeline, and is cutting down on frills.

The department plans to build 35 town bridges compared to 26 this year, he said—and for less money.

"We just can’t do everything," the governor said.

Douglas also said that school spending remains a problem, despite the fact that few budgets were turned down this year. Overall education spending increased just 4.3% this year, compared to the 6% or more in some recent years. However, he said, the average tax bill is slated to rise 7.2% for residences and 9.8% for non-residential properties.

The legislature is currently locked in a House-Senate dispute over the wisdom of the "two vote" procedure for school budgets, that was enacted last year.