Making Vermont the best place in America to do business, be educated and live life.

Rich States, Poor States

According to one source, the American Legislative Exchange Council (ALEC), Vermont ranks 16th in terms of economic performance (measured by personal income growth per capita; absolute domestic migration; and, non-farm payroll employment) and 49th in terms of economic outlook (up from 50th in 2008). There are fifteen variables that comprise the outlook ranking, which focus largely on tax and fiscal policy. By contrast, Utah, Colorado and Arizona rank 1, 2, 3, respectively; Massachusetts was the highest ranking New England state at 26th.

ALEC is comprised of conservative legislators who share common beliefs in free market, limited government, federalism and individual liberty. So the more liberal among us may disagree with the assumptions behind these results. However, in the current economic crisis where strong debates are emerging around spending cuts, new tax revenue, and threats of gubernatorial veto, or where people still have their heads in the sand around all of the above, Laffer and his co-authors of this “Rich States, Poor States” economic competitiveness index provide a necessary perspective for policymakers, beginning with its Ten Principles of Effective Taxation. Bottom line: when one compares the top ten economic performing states against the bottom ten, those states that spend less and tax less enjoy a higher rate of in-migration and economic growth. 

The full report, executive summary and individual state highlights can be found at www.alec.org. 

BUSINESS ROUNDTABLE AND VCET LAUNCH EMERGENT LEADERS COLLABORATION

Vermont Business Roundtable President Lisa Ventriss and Vermont Center for Emerging Technologies President David Bradbury have announced a new collaborative effort to strengthen the entrepreneurial vigor among next-generation Vermont business leaders. This announcement coincides with the kick-off of the Roundtable’s new Emergent Leaders Group, which is scheduled for April 7. (more…)

Op-Ed: Will You Have Carbon with Your Higher Cost?

An Op-Ed by Lisa Ventriss, President, Vermont Business Roundtable

For a few years now, Vermonters have said that we prefer to invest in renewable energy, efficiency programs, a reduction in our greenhouse gas emissions, and stably priced reliable power. But despite those opinions, and with our biggest source of clean, reliable, and affordable electricity – Vermont Yankee – having, according to some experts, only a 50/50 chance of being relicensed this year, we can see that the previous era of having the lowest electric rates in New England and cleanest air in the country is coming to a close. (more…)

Op-Ed: Dangerous Trends Require Action

Op – Ed by David Coates, KPMG (Retired Managing Partner) and Member, Vermont Business Roundtable

Rising mandatory expenditures in the state of Vermont mean that there are less discretionary dollars to support important programs to serve needy Vermonters. And in these difficult economic times, that is unfortunate news indeed. Yet, these “promises” made to certain constituencies must be kept. At issue, however, between debt service, retirement plans for state employees and teachers, and other post-employment benefits, is that those promises have become unsustainable. It is time to recognize the nature and severity of the problem and begin talking about how to change from the path we’re on.

(more…)

The Good and the Possible

The Good and/or the Possible. That’s the nature of the choices lawmakers, businesses, and private residents are faced with these days. Good isn’t always possible; possible isn’t always good. You’re lucky if you kill two birds with one stone.

 

So, when lawmakers reconvene the week of March 16th, they will have roughly eight weeks, if the proposed May 8th adjournment date holds up, to craft the new budget and allocate stimulus monies. And new revenue forecasts will come out in April, which will add another level of complexity to the process.

 

This is not the time for stimulus monies to further delay the necessary decisions that must be made around the size and scope of state government, though convincing people will be hard. Seven hundred million dollars is intoxicating to think of, so one can’t help but feel that the demon has been held at bay for a little bit. But we’ll hate ourselves in the morning if we go out on a bender and then wake up in two years to find we’re not better off.

VPR’s Vermont Edition: Vermont In Transition: Job Growth (Featuring Roundtable President Lisa Ventriss & Policy Analyst Doug Hoffer)

Even before the current recession hit, job growth in Vermont had slowed – and much of the existing growth was concentrated in Chittenden County. (more…)

Time to Think and Act Anew

The Wall Street Journal’s Review and Outlook article was entitled, “The Decline of California”, but the table included Vermont as having the third highest income tax rate (9.5%, behind California at 10.5% and Rhode Island at 9.9%, and just above Oregon at 9.0%). This is the quote that caught my attention: “The tragedy … is that the political class still won’t address the root cause of its financial problems, which is that the state is becoming less economically competitive.” The article suggests that Californians will not solve their woes unless they reduce their tax burden and adopt more radical spending controls. (http://online.wsj.com/article/SB123491737158404543.html)

 

Everything is relative, but Vermont’s challenges are similar. Our public generosity has become unsustainable, our tax base is small and capacity is limited, and we now find ourselves on the horns of a dilemma. How do we make it through this recession while inflicting the least harm on the neediest, and how do we invest now in the near term so that we are positioned for a fast start when it’s over? There are certainly proposals floating throughout the halls of the State House that merit thoughtful examination. But in this era of profound pressures and demands on state government, do we have the will to think and act radically rather than incrementally?

 

In addition to rethinking the structural organization of state government, is there capacity and political will to think anew about how we fund state government? Some would suggest it’s time for temporary tax increases, or whatever euphemism is used to describe the same thing. But, does the current tax structure reflect the old economy or the new economy? Are we taxing the right things? Are the rates at the right levels? Would such an effort accomplish the intended goal?

 

There is spirited chatter on these questions from all sides. Perhaps it is time after all, as some suggest, for objectively examining the state’s tax structure and all its myriad fees so that we are encouraging those things we desire more of – like the creation of new wealth that can support the state’s reprioritized obligations.

 

 

 

 

Vermont Business Roundtable 2009 Position Statement on Electric Energy Policy

Approved by the Board on February 9, 2009

Introduction

Due to long-term, fixed-price contracts with both Hydro-Quebec (HQ) and Vermont Yankee (VY) that provide over 60% of our base load power, Vermont has had very little exposure to price variability in the electricity marketplace, and our rates are, relatively speaking, quite competitive within the New England/Northeast region. Looking to the future, however, these supplies will need to be renewed in significant measure, and demand for electricity could increase as economic growth expands and if Vermont consumers move away from their heavy reliance on transportation vehicles and home heating fuels. (more…)

Facing Insurmountable Opportunities

This was the challenge as described by Justice John Dooley when he spoke to the membership about the ways in which the Judiciary branch of government is attempting to reduce its spending. Faced with significant cutbacks, and with the low-hanging fruit long gone, they are now closing courthouses, furloughing employees, and reducing work weeks. But, as happens in economic downturns, caseloads are on the increase, which only exacerbates the dilemma.

So the optimist looks for opportunity amid the turmoil. Where are the Mothers of Invention? Where is the genius who will turn chaos into order by changing the paradigm from old to new systems thinking? There are ways in which Vermont can turn itself around, if we only leverage the bold decision-making and strategic visioning that are the hallmarks of the private sector, and apply them to government reorganization itself.

All the Problems Are Short-term

At the Roundtable’s membership meeting in mid-January David Coates, one of Vermont’s most respected statesmen and the 2006 recipient of the Roundtable’s Vision Award, presented “Dangerous Trends and the Need for Action” to the membership. At the onset, Coates framed his remarks by saying that there are no long-term problems; Vermont’s problems are all short-term and require immediate attention.  Then he launched into a presentation of heavy commitments – mandatory expenditures and unfunded liabilities- that Vermont has on its books: debt service, retirement plans, other post-retirement benefits, and education funding. Taken in their totality the figures were staggering and implications alarming.

In addition to the data, which couldn’t be disputed, Coates identified various structural issues that prompted the audience to wonder about the fairness of current law and the sustainability of these commitments. Because several programs ~ long held sacred cows ~ are not readily transparent at the local level, including the residential rebate program, education fund, and state employees’ retirement fund, Coates suggested that the state conduct stress testing to illustrate the urgent need for action. And because Vermonters don’t fully understand the complexity or implications of all these funds in the aggregate, there is no informed and objective debate that includes more than the vested interests.

The Roundtable will begin a series of presentations of this information to a variety of audiences throughout the state. Coates’ slides will be posted to the Roundtable’s website at www.vtroundtable.org.

VERMONT BUSINESS ROUNDTABLE

30 Kimball Avenue, Suite 300
South Burlington, VT 05403

Follow Us On

Facebook-f X-twitter Linkedin

Email Us >>

Phone: 802.865.0410

© 2006 - 2026 VBR. All Rights Reserved.

Site by Scout Digital