Douglas promises work-training money
SOUTH BURLINGTON -- Gov. Jim Douglas said Monday that he will increase funding for work force training programs and scholarships in his upcoming proposed 2009 budget.
Speaking to a crowd of about 350 at a Lake Champlain Chamber of Commerce breakfast, Douglas outlined his goals for the legislative session that starts today and defended a proposal to lease the lottery to a private vendor that already has drawn considerable criticism from legislative leaders.
Among his plans, he said, is to recommend more funding for the Next Generation Fund, which pays for college scholarships and work force training programs. The state is spending $7 million on the programs this year.
The Next Generation Commission, which explored the issue of how to train the next generation of Vermonters in the fall of 2006, recommended increasing the amount allocated by $2 million each year through 2012. Douglas didn't say how much more he would seek. Spokesman Jason Gibbs said the boost would be consistent with the commission's recommendation.
This year's money went more quickly than expected, indicating pent-up demand for work-force training, state Labor Commissioner Pat Moulton-Powden said. Most of the money has been spent, she said.
"I was a little bit surprised," Moulton-Powden said. "I didn't think we'd be running out of money this early."
The state has awarded Workforce Education and Training Fund grants in which the employer pays half and the state half of the cost of training workers that are slated to create 500 new jobs and upgrade the skills of another 800 workers, Moulton-Powden said. The program also has helped fund about 450 internships, she said.
Senate Economic Development, Housing and Military Affairs Committee Chairman Vince Illuzzi, R-Essex/Orleans, said he would welcome an increase in the work-force training money. "There's a demand for that," he said. "I think training funds have a demonstrated track record whereas some economic development programs do not."
Rep. Michele Kupersmith, D-South Burlington, who pushed for the work-force training money, said she expected to see pressure to increase the amount by $2 million.
Douglas told the breakfast audience that finances will be tight for the 2009 budget as he expects revenues to slow. One of his proposed solutions is to lease the state lottery to a private company. Douglas said he expects to be able to receive $56 million upfront for the leasing rights, plus annual revenues matching existing ones.
He acknowledged Monday that the idea has been criticized.
"Some people think it's preying on poor people," he said, but studies show lottery players are middle class, and a private company would logically be targeting people with money to expand profits.
Other complaints have focused on turning state assets over to Wall Street. Douglas argued that the state already pays Wall Street firms "tens of millions."
"I think it's a good idea," he told the audience. "I'll see what the Legislature has to say."
Contact Terri Hallenbeck at thallenb@bfp.burlingtonfreepress .com.