I hope everyone had a wonderful 4th
of July and successfully survived the record-setting heat wave that
accompanied the holiday. My final Legislative Report usually occurs
in May. Last year, the veto session led me to write a report in
June. This year, because of another budget veto, the special session
of the legislature lasted until the last week of June before the
budget controversy, which included two vetoes, was resolved. While
still disagreeing with the fiscal policy of the legislature, which
had been supported by many Republican lawmakers, Governor Scott
allowed the final budget passed by the legislature to go into law
without his signature. Because the Republican minority chose to
uphold the Governor's vetoes rather than stand behind their original
support for the budget, the special session required lawmakers on the
Appropriations, Ways & Means, and Education committees to try to
negotiate a compromise with the administration over several weeks.
When those efforts failed in the House, the Senate Finance committee,
with the unanimous support of the Senate, drafted language that
incorporated essentially what the House had presented on its third
attempt at compromise, but which had been again rejected by the
administration. With the deadline approaching for a government
shutdown on July 1, this version passed both the House and Senate
giving the Governor 5 days to make a decision. Fortunately, he
decided to let the budget become law without his signature rather
than plunge the state into default.
While the legislature ultimately agreed
to use about $30M of one-time (windfall) money to keep the
residential property tax rate level and hold the non-residential rate
to a 4.5 cent increase, the budget keeps Vermont on a fiscally
responsible path. Revenue we can count on receiving annually is used
to pay for ongoing expenses. Windfalls, like receipts from the recent
tobacco settlement, are invested in paying down state debt and
building our savings. This protects us from the uncertainty brewing
in DC, the possibility of a recession, and ensures we can continue to
make the kind of investments that support our working families.
Everyone is aware by now that the price
of gasoline has increased about 50 cents/gallon during June and has
remained around $3 per gallon since. In one of my reports back in
January, I introduced the ESSEX (Economy Strengthening Strategic Energy EXchange) Plan, a proposal to put a price on carbon pollution to reduce
dependence on fossil fuels and promote energy transformation. The
plan was criticized for placing an additional burden on hard-working
Vermonters. That proposal would have raised the price per gallon by
40 cents over 8 years at the rate of about 5 cents per gallon per
year. 100% of the revenue raised would be returned to Vermonters as
a credit on their electric bills with larger rebates aimed at low
income and rural Vermonters. Now, prices have risen in a single month
more than the maximum projected carbon tax, and that same amount, 40
cents, leaves the state into the pockets of the oil companies.
Higher prices, whatever the cause, will probably reduce consumption.
Unfortunately, the current increase will not provide any revenues to
help Vermonters insulate their homes, convert to electric vehicles,
or take other measures to reduce their dependence on fossil fuels.
Perhaps we should send letters of protest to the CEOs of the oil
companies. Do you think they would listen? Probably not; but, as
always, I can be reached by phone (802-233-5238) or by email
(myantachka.dfa@gmail.com)
