Senate budget focuses on economy
BYLINE: Nancy Remsen Contact Nancy Remsen at 229-4125 or nremsen@bfp.burlingtonfreepress.com
Senate budget focuses on economy
MONTPELIER -- The Senate Appropriations Committee wrapped up work on a $4.7 billion budget bill Friday -- a bill that members said would pay for programs Vermonters need now and invest in economic development for the state's future.
"We decided our priority is the economy," said Senate Appropriations Chairwoman Susan Bartlett, D-Lamoille.
"What Susan is realizing, as we all are, is we have to generate tax revenue," said Sen. Hinda Miller, D-Chittenden, who helped write the Senate's version of the budget. "The only way to do that is to create jobs."
The economic development investments in the budget include small appropriations for tourism and marketing, a sustainable jobs program and groundwater mapping to make development easier, Bartlett said. Miller noted those and other investments promote Vermont as a niche for environmental technology businesses. "It is a huge, entrepreneurial opportunity for the state."
The committee struggled up to the last day to spread the bulk of the available dollars across all the necessary services and worthwhile programs in state government.
"It was a difficult budget," said Sen. Diane Snelling, R-Chittenden. "From a human services perspective, we have managed to hold the line."
The bill includes a controversial directive to the Department of Corrections to come up with a plan to save $4 million by November. The committee suggested the savings could be achieved by shifting more inmates to out-of-state prisons which cost less than Vermont prisons, by closing the Dale Women's Facility in Waterbury which is the most expensive prison, and by moving all female inmates to the Chittenden Regional Correctional Facility in South Burlington.
One last-minute decision rocked the higher education community. The committee decided to make a smaller increase to the University of Vermont, state colleges and student loan and grant corporation than Gov. Jim Douglas recommended or the House proposed.
The Douglas administration disagrees with the higher education reduction, said Secretary of Administration Michael Smith. Generally, however, Smith said the administration prefers the Senate Appropriations budget to the bill passed in the House.
For example, Smith criticized the House choice to pay for a chronic care management program called Blueprint for Health with one-time money. The House had rejected the Douglas plan to tap a new fund set up to cover the costs of the Catamount Health, a health insurance program for the uninsured that will start in the fall. The Senate went along with the governor's funding plan.
Smith was disappointed that both the House and now the Senate omitted a provision that Douglas highlighted in his budget address -- a cap on future budget growth equal to the rate of inflation plus population growth. Smith said Friday, "We wanted that budget cap."
A tough choice
Thursday afternoon, the Senate Appropriations Committee still had to find $1.3 million in cuts in its spending plan.
Encircled by anxious advocates, the committee pondered a list of choices that Chairwoman Bartlett distributed.
"None of it is pretty," Snelling said wearily.
"It's time to make the tough decision," said Senate President Pro Tempore Peter Shumlin, D-Windham. "It doesn't get any easier, staring at it."
Sen. Dick Sears, D-Bennington, put a $1.2 million higher education cut on the table. "I don't do it lightly. I don't want to." He explained later that it seemed easier to make one big cut than "nickel and dime an awful lot of programs."
Sears noted that the budget includes $12 million for the Next Generation program -- new investments in work force development and college scholarships.
The governor recommended a 3.2 percent increase for the University of Vermont, the state colleges and the Vermont Student Assistance Corp., which would total $2.5 million. The Senate Appropriations Committee settled on a $1.34 million increase. The Senate plan would give $41.2 million to UVM, $23.7 million to the state colleges and $18.9 million to VSAC.
Sears also proposed a change in the way the money would be distributed. Instead of a percentage increase, he wanted the $1.34 million divided equally, with UVM, the state colleges and VSAC each getting $447,257.
"I do think there needs to be an examination of our higher education funding process," Sears said. "The percentage system is very advantageous to UVM."
Higher education advocates said they will lobby for a reversal of the funding reduction when the budget comes before the full Senate next week. If that fails, they have another opportunity to win a change when the House and Senate negotiate the differences in their budget bills.
"We are very hopeful that the funding will be restored and the allocations will follow the normal formula," said UVM President Dan Fogel, who came to the Statehouse on Friday. "We feel that higher education is terribly underfunded."
Contact Nancy Remsen at 229-4125 or nremsen@bfp.burlingtonfreepress.com
Senate budget
The Senate Appropriations Committee wrapped up work on its budget Friday:
WHAT'S NEXT?: The committee presents the budget to the full Senate on Monday beginning at 3:30 p.m. Debate and votes are scheduled for Monday and Tuesday.
RESOLVING DIFFERENCES: Once the Senate has passed its version of the budget, the House and Senate will have to negotiate the differences between their spending plans. Those talks could start Wednesday.