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Political notes from Free Press staff writers Terri Hallenbeck, Sam Hemingway and Nancy Remsen


4.19.2007

 

Worrying about the future

Lawmakers have plenty to worry about these days. Foremost is whether they will get done in a timely manner. Then there's all the tough spending decisions they are making as the big money bills come up for action. In transportation, for example, many lawmakers believe there's a need for $150 million more than will get spent in the coming year.

John McClaughry offered the Legislature the chance to shoulder some long-term worries, too, by sponsoring a noon-time roundtable discussion ominously titled, "Where will the state get the money to pay for its programs in 2030?" McClaughry, president of the Ethan Allen Institute, has run these kinds of discussions at the Statehouse for five years. Today was the first of this legislative session.

The roundtable discussion keyed off a study, sponsored by the Ethan Allen Institute, that examined demographic and governmental spending trends for the next 25 years. Check out the study here. The study predicts calamity unless there's a change in the state's appetite for spending or a whole lot of young folks move in because of the state develops a hot job market.

The seminar drew a tiny audience. House members had a group photo scheduled on the steps of the Statehouse. The Senate was on the floor debating the transportation budget bill.

Dick Heaps laid out the reason for the gloomy predictions in the study. Boomers will be retiring and the generation behind them is much smaller. Despite declining school enrollment, spending continues to increase. Human service spending also continues to rise. Heaps argued that the state couldn't increase economic growth enough to overcome the demographic and spending trends.

Tom Kavet, an economist who advises the Legislature, praised the long look taken by the study, but wasn't convinced of its conclusions. "There are many variables that can change."

He suggested, too, that just because boomers would retire, didn't mean they would become a fiscal drain. "The elderly is one of the wealthiest population cohorts we have in this state." He also said increased productivity might turn out to be another factor that could change the trend.

Two administration representatives -- Tax Commissioner Tom Pelham and Finance Commissioner Jim Reardon -- noted the steps that the Douglas administration and --yes, they said, lawmakers, too, -- were taking to curb spending. "There is a healthy debate going on right now on school spending," Pelham said. "We should be able to bend that curve."

Paul Cillo, former Democratic legislator who now heads his own public policy organization -- Public Assets Institute, questioned whether the trend of increased school spending over the past 20 years indicated the future direction. He said two reforms had taken place during that period that required financial investments. Beginning in the 1980s, he said the state moved from ranking 47th in teacher pay to middle of the pack. In the late 1990s, Act 60 helped close the gap between low-and high-spending school districts. He said that even without the cost containment measures under consideration this session, the increase in school spending has shrunk in recent years.

McClaughry's message to the handful of lawmakers who dropped by: "You don't have to do anything about this issue between now and the end of the session, but it will bedevil Legislatures to come."

Rep. Bill Botzow, D-Pownal, didn't minimize the challenges. In fact he added to the list. Still he suggested marching forward with more optimism, based on past experience. He noted that towns like his and the state have faced significant challenges before. "We should look back and see how we have responded in the past."

So what do you think? Is state government headed for a "train wreck" or will things work out in a way we can't yet imagine?

-- Nancy Remsen

Comments:
The great and powerful ME has spoken. You may wonder what makes me so omnipotent, but that is for me to know and for you common heathens to figure out.
 
Read the report. The demographic and fiscal trends are clear. Will our "leaders" address these looming issues with real leadership, or fiddle while Rome burns?
 
I'm not worried about the same demographic issue as McClaughry. Young people will move here when jobs open up as boomers retire. The bigger issue is, will what will the boomers do in retirement? If a lot of them move to Florida or North Carolina or Washington state, Vermont will lose a huge part of its income tax base and the housing market will take a big hit. So the big question right now should be: how do we keep retired boomers as Vermont residents? (hint: taxes are a one big issue).
 
"how do we keep retired boomers as Vermont residents?"

More retired people are moving IN TO Vermont than are moving away.

Our senior population is growing faster than Florida's.

Check with the Vermont Dept of Aging and Disabilities.

Old people leaving Vermont is not a problem.
 
Watch the boomer exodus when our lawmakers switch to the income tax to pay for schools. We'll have to charge an exit tax to recoup the losses generated by this ill-conceived proposal.
 
The legislature is not switching to the income tax to pay for schools.

Neither body is poised to pass any such thing.
 
"The legislature is not switching to the income tax to pay for schools. "

Neither is Douglas or even the Revolt and Repeal misfits.
 
That's right. The proposal is DOA, leaving the argument of "Anon 12:09" worthless.
 
We need to vote Shumlin in as Governor and get things done.
 
If you vote Shumlin in as Governor, you'll get something done one day, then the next day he'll change his mind and undo what he did the day before. He's told so many different things to so many different people, he just plain can't remember.
 
He is the biggest liar ever.
 
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