INotes from Montpelier
by Rep. Bill Frank

On of the most important jobs the Legislature does in Montpelier is to build a responsible, balanced budget that benefits all Vermonters.  The process is not all that different from the ones our Select Boards do in developing the town budget and our School Directors do for our school budgets, albeit on a larger scale.  Including federal and statewide education property tax funds, the state budget is over $4 billion.  The budget is over $2 billion without federal and statewide education property tax funds. 

The process started on January 22 this year when Governor Douglas presented his proposed budget before a joint meeting of the House and Senate.  A complete and detailed budget, agency by agency and department by department was delivered to the Appropriation Committees.  The House always votes on the budget bill first.  To get to that vote requires almost the entire session of review and making changes to the proposed budget.   The Appropriation Committee takes testimony from Agency Secretaries, Department Commissioners and dozens of other interested parties.  They also hold public hearings both in the committee room and on Vermont Interactive Television.  Each committee member is assigned a section of the budget to study in depth and then make recommendations.  The Appropriation Committee also asks other committees to look at specific parts of the budget that their committee oversees and to make recommendations. 

As you may imagine, there are many differences of opinion on how much money there is to spend and where money should be spent.  For example, Governor Douglas cut $5.3 million of funding for the Vermont Housing and Conservation Board (VHCB) in his version of the budget.  This cut came after he has said: “This Legislature needs to recognize that Vermont has a housing crisis that threatens to undermine our economic security.” (Governor Douglas, Press Release, April 26, 2007).    The cut will result in 150 fewer new affordable homes through a program that’s proven eminently successful.  Faced with this proposed cut and with other fiscal constraints at the federal level the House is working on H.833 –“Housing Creation and Preservation” to create some affordability to Vermont housing.  The bill creates a Vermont Neighborhood Program, that may be designated within an existing growth center, or within or contiguous to a town, village or downtown center, that has appropriate local zoning and infrastructure.  The Vermont Neighborhood will not require Act 250 review except for wastewater.  It will utilize smart growth principles while meeting density requirements.  The bill also includes protection for the character and tradition of rural settlement patterns.  It also balances removal of Act 250 jurisdiction to promote planned moderate and affordable housing in existing centers while keeping rural character and settlement traditions in place.  It balances a very tight budget with targeted ways to promote the creation and preservation of housing in Vermont.

The governor has a proposal to sell the Vermont lottery.  I don’t agree with this proposal, whether you do or not, the governor is assuming he can sell it in FY09 for $50 million and has used the proceeds to pay for school construction.  The question is where to find the $50 million if the lottery does not sell.

            Governor Douglass proposes to cut town bridge funding by 19% and level fund other local road programs.  This will cause local property taxes to increase by requiring the towns to raise more money for maintaining their roads and bridges.

            A very startling budget omission resulted in the governor forgetting that 2008 is a presidential election year and democracy is not free.  It costs money to hold an election; about $450,000 in Vermont, but the governor did not include any money in his budget for the 2008 election, saying instead that we would take care of it later.

            The Appropriation Committee factors everything together and creates a bill known universally as "The Big Bill", the appropriations bill.  Once "The Big Bill" passes on the House Floor, the Senate goes through a similar process and then a Conference Committee of members of the two chambers iron out their differences.  If the governor agrees, we have a budget and the legislative session ends.  

Legislators spend a great deal of time laboring over the state budget.  It is just as important that all of us spend some time reviewing our town and school budgets.  Spend time with your town report, your elementary school report and the Mt. Mansfield school report. Town and school meetings will be held Monday evening March 3^rd and Tuesday March 4^th.  Voting will take place all day March 4^th including the Presidential Primary.  Be sure to vote and I hope to see you at the Town meetings.

Congratulations to Marsha Faryniarz of Underhill who was appointed by Governor Douglas to the Child Care Services Advisory Board. Marsha is also a Mt. Mansfield School Director.