Here is a link to Power Alley profile of Senate action regarding the state budget and associated increases in taxes and fees.

http://www.campaignforvermont.org/power_alley_senate_875 

A link to House action on these three items was sent to you previously and can be accessed here.

http://www.campaignforvermont.org/mar_31_48_million 

To give context to these Power Alley profiles, please consider the following:

Federal Bureau of Economic Affairs (BEA) data profiles the Vermont economy as growing, on a nominal basis, at just 2.46 percent per year since 2007 and 2.81 percent since the bottom of the recent recession.

Gross State Product (GSP)

Further, Vermont Tax Department data shows that the adjusted gross income (AGI) of all Vermont returns increasing at an annual rate of just 2.34 percent since 2007. This data also shows that around two-thirds of tax filers report incomes at below $50,000 and that the annual migration of filers from below $50,000 AGI to above $50,000 AGI is only 8/10ths of one percent. 

Clearly, these macro data sets underscore the Vermont reality; that is we live in a state where the economy and incomes are growing in the 2 to 3 percent range and upward mobility is near stagnant. 

Yet, from 2010 through 2016, the state budget (state dollars only) has grown at the rate of 5.22 percent. The fiscal 2017 budget increase currently stands at another 2.99 percent but that’s before the 2017 “budget adjustment” receives legislative action next January. Of note, the 2016 budget adjustment (BAA) added $28.5 million to the bottom line, increasing the growth rate over 2015 from 3.8 percent to 5.1 percent.

State Budget – State Dollars Only

When our legislators and governor take an increasing share of economic and income growth, the private economy is proportionately diminished. Also, with laws such as Act 48, for example, which now centralizes power over health care institutions under the state’s five person Green Mountain Care Board appointed by the governor, the “invisible hands” of the market place of private decision-makers, who have traditionally guided our economy, are further weakened.

Some may like this result, and others may not, but it’s important to understand that this shift in Vermont’s economic decision making toward state house politicians is occurring incrementally more each year.

“But that’s not all”. With our electric bills statutorily used to subsidized energy efficiency and renewable energy investments, our education funds and health care premiums used to subsidize economic development projects such as the remodeling of Church Street Market Place along with other mandates like paid leave, unionized day care requirements and pre-k expansion; well it’s clear to see the reach of state government is expanding across-the-board.

Whether you support this expansion of state government or not, we believe in important that you be aware of its occurrence, especially as you consider candidates for state office during this important election season.

Be Well
Campaign for Vermont

We believe Campaign for Vermont offers substantive insight, information and advocacy on a non-partisan basis relative to Vermont's affordability crisis. We hope you have found value in the above presentation. A contribution of $50 dollars, $100 dollars or more would be greatly appreciated and well used to keep us working hard for you. We do recognize that not all of our supporters can afford this so a donation in any amount is highly valued. Please support Campaign for Vermont with a donation.

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