March 5, 2009

First, the good news:  The American Recovery and Investment Act (ARRA), also known as the “Federal Stimulus Package,” was signed into law in February.  It is estimated that the ARRA will bring in approximately $925-950 million in resources over the next two years.  It is a highly complex package coming in roughly 300 different funding streams, each with its own terms and conditions.  Some of the funds will require state or local funding matches while others have tight time constraints. Most have very specific project parameters.

On February 26, Stephen Klein from the Joint Fiscal Office presented preliminary estimates as to the dispersal of these funds.  He cautioned us that these were truly preliminary.  They are still reviewing the implications and strings attached to these funds.  A percentage of matching dollars will likely be required to capture $240 million of these funds.  He estimated the following:

1.    $275-300 million will go to the Vermont General Fund
2.    $290 million will go to project funding such as transportation, energy, broadband, upgrading.
3.    $210 million to state, local and communities for schools, organizations, higher ed., research and businesses
4.    $25 million to individuals in the form of Pell grants, food stamps, SSI etc.

Representatives from the Legislature and Administration have been meeting continuously in order to better understand contingencies, plan and coordinate best use of these monies once they are available.

More good news:  Vermonters can also expect approximately $500 million in tax cuts for individuals and businesses.  Some of these tax cuts include credits for first time homebuyers, credit for education expenses, and child tax credits. We can also expect energy-related provisions for people who improve the energy efficiency of homes, purchase plug-in vehicles or invest in renewable energy such as biomass or wind among others.

Now, the not-so-good news.  By 2011, current projections indicate that we will face a deficit of more than $200 million if we stay on the same course.  Projected revenues are simply outpaced by spending.  Finance 101 reminds us that we must increase revenue, decrease spending, or both.  But these times call for more than that.  They also call for a clarification of principles and values that will guide us in restructuring and redesigning our state through hard times and into the future. Number shifting alone cannot do this.

When the Legislature returns, we will be addressing a 68-page bill that  1) establishes a state-wide guide to economic development, 2) promotes near-term economic development by getting the most out of ARRA and 3) promotes long-term economic development.  This bill will be guided by principles developed after 2 ½ years of testimony and public hearings from businesses and people throughout the state.  It is extensive.

Please join Joan Lenes and me at Bruegger’s Tuesday mornings at 7:30 or at Village Wine and Coffee most Monday afternoons at 4:30 or by appointment. I will be away the week of March 9th. KLWebb22@mac.com. I enjoy hearing from you.

A Visit to Vermont Yankee

This week, I attended a tour of the Vermont Yankee plant in Vernon hosted by Entergy.  About 20 legislators attended the tour.  Press and lobbyists were excluded.

All of us had been through security screening the week before the visit.  Apparently my traffic violations were not cause for concern and I was permitted to enter the plant.  I was issued a helmet, safety glasses and earplugs and was able to snap a picture outside the plant.  Once inside, alas, my camera was confiscated.

As a result I cannot show you the dizzying number of buttons, lights and computer screens pouring out graphs.  I cannot show you the repaired cooling towers, the dry cask storage, the spent fuel rods lying at the bottom of the hotel-size pool.  I cannot show you the faces of the employees hoping to keep their jobs.  I stood on top of a nuclear reactor.  I followed directions not to touch anything in radioactive areas.  I had lunch with employees.  “I wouldn’t work here if it weren’t safe,” said a union rep.  A conspicuously pregnant woman chatted with legislators.

By statute, the legislature grants approval for “continued operation” of the plant, however it is the Nuclear Regulatory Commission (NRC) that has jurisdiction over re-licensing. Many Shelburne residents have contacted me to vote against Vermont Yankee due to safety concerns.  The legislature cannot and must not make decisions based on safety issues.  Nuclear safety is federally regulated and falls to the NRC.  In addition to NRC and legislative approval, Vermont Yankee must receive a “certificate of public good” from the Vermont Public Service Board.

So what is the role of the legislature once a license is issued?  Within the frame of “continued operation,” the legislature can address economic and reliability factors.  Will the prices the utilities negotiate be good for Vermont?  Who bears responsibility if the decommissioning fund is inadequate?  Economically, is Vermont better off with or without Vermont Yankee?  The speed at which these and other questions are answered will determine whether the legislature addresses Vermont Yankee in 2009 or 2010.  As a member of the Energy Committee explained, if the economics work, then we look at reliability.

Other Shelburne residents have expressed concern over closing Vermont Yankee and the impact on global warming.   If we close Vermont Yankee in 2012, would this help speed our transition to renewable energy?  If we close Vermont Yankee in 2012 and are not prepared, are we risking an increase in global warming?   Are we failing our businesses like IBM?

I went back to the State House.  All the lights were on.

February 5, 2009

The State House has been a busy place with many people wanting to weigh in on the issues facing our state in these troubled times.  We are currently spending about 85% of our time in individual committees and this week, agency commissioners visited us to present budget information and the status of recent rescissions.  In addition, over 100 bills have been sent to committees.  I currently serve as clerk on the Fish, Wildlife and Water Resources Committee and have been placed on an additional joint committee to address issues related to Lake Champlain.  I will present this in a later column.  Here are a few highlights from last week:

SCHEDULE CHANGE:  Speaker Shap Smith has informed us that the legislature will be in recess (unpaid) for the first two weeks in March rather than the traditional one week.  Dropping a week in March allows flexibility to add it back in May when we have a clearer picture of the Federal Stimulus Package.  After April 15th, we will be better able to quantify additional revenue downgrades.

APPROPRIATIONS:  The Committee had a full week of testimony on the proposed FY 2010 budget and the Governor’s proposal to cut over 600 state employees. Administration has given the various state agencies targeted employee reduction numbers and a dollar figure.  This will be the fourth round of cuts.

TRANSPORTATION:  The Ethan Allen Amtrak route is still a hot topic in this committee and the hall has been filled with people and groups providing testimony. The possibility of upgrades to the passenger rail tracks between Rutland and Burlington using federal earmarks and stimulus money is being studied.  Across the state, ridership on public transportation has shown a 20% increase over last year. The Committee is also trying to match federal stimulus dollars with transportation projects and to determine the strings attached.

AGRICULTURE:   Pending full House approval, the Agriculture Committee will take on a new topic: “forest-based products and their markets.”  This should help raise the profile of forest products which accounts for $1.2 billion in revenues and is the second largest industry in the state.  I am sorry that I do not have anything to report this week on the recent drop in milk prices.

ENERGY: This week, the Commerce Committee took testimony on spent nuclear fuel, low-level radioactive waste and the decommissioning fund.  I will take a tour of Vermont Yankee this week.

HEALTH CARE:  H100 was introduced last week, the goal being universal access to essential health care services.  The bill proposed to establish health care service in Vermont through a publicly financed, integrated, regional health care delivery system.  You can follow this bill by going to the website: http://www.leg.state.vt.us and plugging in the bill number.

There has been much news regarding the looming budget deficits facing Vermont and the Nation.  While efforts to guide our state through this economic downturn predominate, the 14 committees in the House are also working on other critical issues.  I thought a better use of this column this week would be to provide you with an update on a few of them.

Natural Resources Committee:  Most of the efforts here will be on 1) how to expedite, to site, and deploy new renewable energy sources and 2) the pending question of continued operation of the Vermont Yankee.  Specific legislation has not yet reached the committee.

Judiciary:  This committee has received a draft copy of Senate bill S.13 which was developed in response to the growing concern regarding sexual crimes against children.     This bill proposes a statewide comprehensive approach and includes initiatives directed toward school programs, reporting requirements, sex offender registry compliance, the elimination of deferred sentences for offenders, and mandatory sentencing.

Transportation:   The committee has heard extensive testimony regarding future plans for the Vermont Rail System.  Under special scrutiny is the economic impact of the proposal to replace rail service with bus service along the western corridor.  The long term plan is to upgrade the tracks and restore train service. There will be a public hearing at the State House on January 21st at 5 P.M which I will attend.

Education:  5 of the 11 members are new to this committee now chaired bv Johanna Leddy Donovan of Burlington.  The committee has heard the administration’s proposal to freeze funds sent to local school boards, shift spending back to towns, level fund all categorical aid programs including special education and technical education among others.  How these proposals fare in relation to state law and the goals of the legislature will unfold over the coming weeks.

Fish, Wildlife, and Water Resources.  This session, we expect to take up legislation that addresses invasive aquatic species, riparian buffer zones, storm water regulation, deer herd browse, and “compounds of emerging concern” entering our waterway among others. We will also be looking at the effectiveness of the Clean and Clear Act, its cost and impact on phosphorus levels in Lake Champlain.

Health Care:  The legislative goals for this session in spite of fiscal constraints, are to expand access to health care, improve quality and contain costs.  No small task.  A member of this committee informed me that the Health Care Affordability Act of 2006 continues to drive this committee.  The focus will be on strengthening programs created by the legislature such as Catamount and Dr. Dynasaur as well as less well-known efforts to reorganize care for people with chronic health conditions.  There is some hope that Senator Sanders will succeed in identifying our state as a pilot for a universal access to health care system.

Shelburne News Question 4:  Alternative sources of power generation must play a significant role in our energy planning into the future.  What do you feel are the most viable energy options for Vermont?

First, I would like to take the word “alternative” out of “alternative energy.” That is economically and environmentally the most viable option.  If we subsidized renewable sources – wind, solar, water, geo-thermal and biomass energy – as we have petroleum, ethanol and nuclear, they would be the clear economic winners, not the “alternatives.”

Second, all of the current available options are viable: wind, solar, hydro, and biomass. Our geography and weather patterns make us well suited to wind and small hydro-generated plants.  Our forests and farmlands produce a variety of forms of biomass: wood, grass, and agricultural waste products.  Solar is an option in open or highly developed areas. Electrically-powered mass transit could one day take pressure off our roads while reducing carbon emissions.

Third, I support an aggressive plan to develop localized generation of power - power that is owned, constructed and operated by Vermonters. Localized generation strengthens our grid, creates greater independence, and keeps money here.  Energy options must be determined region by region based on microclimate and economy.  In addition, the closer the production to the consumer, the greater the efficiency.  It is estimated that nearly 8% of energy is lost over long transmission lines.

Fourth, we must identify and overcome those barriers that are preventing construction of green energy. We are at “peak oil,” having consumed half of the world’s oil supply.  We must use our growing awareness of the limits of our finite resources and global warming to move forward and tap into those that are infinite.  Germany has gone from 2% renewably powered energy to 10%.   If we start now, it is possible that 90% of our energy could be from renewable sources within 30 years.

As a final note, energy conservation and green construction practices should always be part of the renewable mix.

Shelburne News Question 3:  Lack of private sector job growth in our state is viewed by many as a critical condition, with growth being experienced in government and non-profit jobs which do not contribute to the tax base in a meaningful way.  How would you addresss this concern of your constituents if elected?

As I travel through our community, I hear many stories:  a craftsman with dwindling orders; an engineer facing downsizing; a self-employed woman with crushing healthcare costs.  I also hear good news:  jobs are growing in the technology sector and small start-up businesses.

Vermont’s economic future appears to be as an incubator for entrepreneurial ventures and green businesses attracted to our quality of life, agricultural heritage and environmental ethic. We are poised to be leaders in energy technology and are attractive to businesses with under 100 employees.  While businesses create private sector jobs, the state must address those factors which make business viable:

1.    Build a healthy infrastructure throughout the state.  Reliable broadband, cell service and transportation are essential.
2.    Provide entrepreneurial funding or seed money to get businesses off the ground. Some may fail, but the ones that survive provide jobs and pay taxes.
3.    Support renewable energy.  This responds to a problem and creates a range of jobs.
4.    Develop a high quality, educated and trained workforce
5.    Streamline the state permit process without harming the environment.  People tell me they don’t mind following the rules – just make the process speedier and more predictable.
6.    Reward creativity and problem solving.  If a business can double the efficiency of a wind turbine, for example, make them tax exempt for the following 5 years.
7.    Support affordable workforce housing.  Businesses require it.  It creates jobs.
8.    Address basic health care for all and take it off the backs of business.

Non-profit businesses also benefit our community.  Our colleges and non-profits like Shelburne Farms and Museum have been good citizens, attracting out-of-state dollars and providing thousands of jobs.  Employees then contribute to the economy by purchasing goods, services and paying taxes.

Shelburne News Question 2: Affordable housing in Chittenden County, and specifically Shelburne, is not available in sufficient supply to meet the demand. What measures are you prepared to take to address this need in our community?

“Between a Rock and a Hard Place, Housing and Wages in Vermont” is an annual report issued by the Vermont Housing Council and Vermont Housing Awareness Campaign.  The 2008 edition pointed out significant gaps between the median purchase price of a home and median wages.  Sixty five percent of Vermont’s households have incomes below $65,000, which is the amount needed to purchase the median priced home of $201,000.  Prices in Shelburne are presumably higher.

The Vermont Housing and Conservation Trust Fund is our primary vehicle for funding affordable housing.  It ensures that not only is affordable housing created, it remains perpetually affordable.  In addition to housing, the Trust also helps to preserve open space so that our landscapes are not turned into apartment buildings, agricultural land can remain in agriculture, and historic sites are preserved.

The 2008 Legislature passed a comprehensive housing bill that increases tax credits and financing capacity for affordable housing through VHFA.  This bill also created the “Vermont Neighborhoods” program, which streamlines the creation of housing in town centers with access to transportation and services.  Shelburne village has been designated a “Village Center” and should consider participating in this program as it addresses the need for housing development while protecting our natural environments.

Shelburne has made some important progress in creating affordable rental apartments and home ownership through its work with the Champlain Housing Trust (CHT). HomeShare Vermont enables Shelburne elders and people with disabilities to remain living in dignity in their homes by bringing them together with people who seek affordable housing and care giving opportunities.

To keep affordable housing viable, I would support continued funding of the Vermont Housing Conservation Board. As Shelburne’s liaison to the legislature, I would work collaboratively with town officials to address this important issue.

Education spending in the state seems to be at odds with the recent NECAP results.
Only 25 percent of high school juniors are proficient in science. And there is the issue of declining enrollments. What is your position on education spending, and what steps are you prepared to take to address these issues?

Education is one of the cornerstones on which our communities and culture are built.  As a longtime educator myself, I know how important it is to motivate students of all abilities to do their absolute best in order realize their potential as adults.  I also know that this motivation takes talent, resources and community investment, both personally and financially.

As taxpayers and parents, we struggle with the competing interests of quality and affordability and are confused when costs still go up when enrollment declines.  We wonder why over half of our students at CVU did not meet the standard on the recent science NECAPs.

The answers to these questions are quite complex and multi-layered.  Act 68 does address cost containment by tying spending to enrollment. Staff reduction takes time and it is tough to lose promising young teachers.

I am not convinced that money is the only answer to quality education.  I am also aware that the cost of education is significantly less than the cost of adults who cannot live independently, are incarcerated, or get stuck for generations in the welfare system.  On a daily basis, I see how Essential Early Education translates to school readiness, how school readiness translates to availability for learning, and how availability to learn relates to success in life.

My response to the science NECAP scores has less to do with my position on spending and more to do with my position regarding the constructive use of data to help drive instruction.  Gathering data needs to be followed by critical analysis and interpretation, action plans for improvement, and public discussion.  CVU Principal Sean McMannon tells me this analysis is underway.

Getting to ‘Yes’

By Kate Webb

When times are tough, Vermonters have a history of coming together to find solutions that make life better not only for themselves and their families, but for the whole community. We have a tradition of taking responsibility for helping each other whether it be raising a barn, putting in hay, building a playground or helping a neighbor in need.

Today many pressures threaten the future of our communities, our country and our world.   We face threats to our economic security and the health of our planet.   We are wondering how we can afford quality health care and education.  It is easy to be negative these days.  It seems like so many things are going wrong.
Negativity has its place in helping us identify constraints to today’s challenges.  Over time though, sustained negativity simply makes us feel powerless, puts the focus on finding faults and takes us away from ingenuity and the hard work of getting things done.
As has always been the case, the most powerful strategy for reaching solutions is to tap into the cumulative strength of people committed to finding solutions and working together to bring them into form.  Today’s leaders in the private sector and in government must be ready to work together to solve complex problems; be skilled in collaborating with divergent points of view and be ready to move forward to solve our interconnected challenges.
Barns are not raised nor playgrounds built by getting stuck in what we can’t do or what we have not done.    Now more than ever, we need to move off “no,” and work toward “yes.”