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>> mr. president, sergeant at
Arms, governor of the state of
Vermont, peter shumlin!
[applause]
>> it's now my distinct honor to
Present to you, the governor of
The state of vermont, the
Honorable peter e. shumlin.
[applause]
>> thank you so much.
Thank you so much.
Mr. president, mr. speaker,
Mr. chief justice,
Members of the general assembly,
Distinguished guests, and my
Fellow vermonters.
Two years ago, i delivered my
First budget address.
Times were tough.
We faced a financial gap of $176
Million, and together we made
Painful choices.
As i begin my second term, the
Picture has brightened.
Since the depths of the
Recession, our revenues are up
27%.
We enjoy the lowest unemployment
Rate this side of the
Mississippi, and we are slowly
Emerging from the great
Recession in better shape than
Our neighbors.
We are also delivering on our
Promise to rebuild vermont
Better than the way irene found
Us.
We just broke ground on a new
State hospital and are building
The best community-based mental
Health system in america.
Between the federal
Reimbursements -- sorry, between
The insurance, fema, and the
Recaptured federal
Reimbursements, once the new
Hospital is certified, the $43
Million total cost for
Brattleboro, rutland, and berlin
Will be paid for in a year and a
Half without reaching into the
Pockets of vermont taxpayers.
This is an extraordinary result.
[applause]
This is an extraordinary result,
And i want to thank you for your
Collaboration and swift action.
Unfortunately, we once again
Face big challenges in our state
Budget that will require more
Tough choices and restraint, as
We confront continued
Uncertainty about the fiscal
Crisis in washington.
Today, i present a proposal that
Balances our state budget
Without raising broad-based
Taxes.
It invests in areas crucial to
Our future jobs success.
It keeps our reserves full, and
Our pension contributions funded
At the recommended levels.
It's a budget that matches
Montpelier's appetite for
Spending with vermonter's
Ability to pay.
It also redirects existing
Dollars to grow prosperity,
Putting vulnerable vermonters --
Sorry.
Protecting vulnerable vermonters
While providing the help they
Need to get off welfare and get
Back to work.
[applause]
My budget also includes targeted
Investments that will ensure a
Brighter jobs future and greater
Prosperity, such as early
Childhood education, continued
Workforce development training,
And more funds to enhance our
Creative economy.
To support vermont's farmers and
Our national leadership in our
Farm-to-plate, forest products,
And value-added agriculture, we
Allocate $1.5 million to our
Working lands.
[applause]
To make higher education
Affordable to all vermonters, my
Budget includes the first
Increase in five years: an
Additional $2.5 million for uvm,
The state colleges, and vsac,
All directed solely at reducing
Tuitions for vermont's students.
[applause]
There are five areas where bold
Transformation and targeted
Investments are critically
Needed in order to keep vermont
On the path to prosperity.
First, our education system,
Including support for our
Youngest children; second, our
Welfare benefits program; third,
Health care costs; fourth, our
Transportation funding; and
Fifth, our investments in clean
Energy and efficiency.
First, the most important
Investments we can make to grow
Jobs and secure prosperity for
Our children, to make sure that
Our educational initiatives are
Implemented that i called for in
My inaugural address.
[applause]
We used to think of high school
As the four walls of the
Traditional building near our
Village downtown.
But, now, with our 21st century
Technology, with virtual
Learning, our technical
Education centers, our
Internship and apprenticeship
Opportunities, and our many
Colleges willing to offer
Credits to our students while
They are in high school, the
Four walls of our school
Buildings have been dissolved.
We must embrace and harness this
Change.
This requires us to think of our
Education system not simply as
K-12, but k-through-job.
[applause]
Now, i am not saying that
Everyone needs a four-year or
Advanced degree to make a good
Living.
For some students,
Post-secondary job training or a
Two-year college degree will
Secure a good-paying job in the
Field they love.
But, i am saying that a high
School degree alone is no longer
Good enough to ensure a bright
Future.
We know that 62% of the jobs
In the new economy will require
Post-secondary education, and
We have to seize the opportunity
To reshape our education system
To meet the demands of our
Stem-hungry workforce.
[applause]
And, i believe that the key to
Our success is to allow the
Existing money we are spending
Right now to follow each
Student.
We must make this happen this
Session.
[applause]
Vermonters agree that giving our
Kids a strong start, as early in
Life as possible, is the best
Thing we can do to ensure their
Bright future.
We have a responsibility to
Examine how we are using
Taxpayer money so we provide the
Strongest possible start for our
Highest priority, our children.
In my inaugural address, i
Called for the largest increase
Ever in the state's early
Childhood support, by
Redirecting $16.7 million from
The state's portion of the
Earned income tax credit to help
Lower-income families pay for
The cost of quality childcare.
This is not new money.
It's money the state is already
Spending by supplementing the
Federal earned income tax
Credit.
There's been a fair amount of
Discussion about my proposal,
And some misunderstanding.
[laughter]
Let me tell you why i believe
This change makes sense.
Here are the facts:
This year, vermont taxpayers
Paid $26 million to supplement
The federal earned income tax
Credit.
While 23 other states also make
Some match in the federal
Credit, 27 states choose to
Contribute nothing.
Vermont's contribution is the
Second-highest in the nation.
Many of you may be as surprised
As i was to learn that because
This program is
Federally-indexed, vermont's
Contribution has risen
49% in the past eight years,
While state spending in other
Programs, per beneficiary, has
Stagnated.
Reallocating $16.7 million from
Our current $26 million credit
Will bring us in line with other
States.
And, here's the point that may
Be getting lost: no one is
Proposing to eliminate the
Important and critical earned
Income tax credit, and we never
Would.
Our proposal would mean that an
Average, eligible recipient with
No need for childcare would see
A 15% reduction in the combined
Federal/state payment in a
Program that has seen more than
Triple that growth in the past
Eight years.
It's also important to remember
That since we adopted the
State's earned income tax
Credit, vermont has a made a
Number of other policy choices
To help lower income vermonters
Pay their bills.
Our income tax is now among the
Most progressive in the country.
On average, we ask people who
Make under $35,000 to pay a tax
Rate of less than two cents on
Every dollar.
As a result of acts 60 and 68,
Our property tax and renters
Rebate is now based upon income,
Giving the largest benefit to
Those who earn the least.
Our sales tax now exempts
Clothing and shoes, in addition
To food and medicine.
Despite federal cuts, in the
Past few years, we have
Scrambled to keep vermonters
Warm in the winter by filling
The gap for heating fuel
Assistance.
All of these policies deliver
Targeted help to lower income
Vermonters.
We cannot be satisfied with
Business as usual; we have to
Invest for the future.
With the second richest earned
Income tax credit in america, we
Have to ask ourselves, is a
Once-a-year check from the state
That has increased 49% in the
Past few years, the best help we
Can offer to lower income
Vermonters who are struggling to
Stay in the workforce?
Secretary racine and the rest of
My team have examined this
Question, and our answer is, no.
We have concluded that the
Biggest barrier to work for many
Lower-income vermonters is the
Cost of quality child care.
We believe that we should help
Chip away the benefits cliff for
Working vermonters to make sure
That the next generation has the
Best chance possible.
[applause]
Here is the transformation our
Plan offers.
Our proposal raises the
Childcare subsidy for all
Eligible families.
Every single one.
Today, families making about
$40,000 per year only get a
Minimal benefit that pays just
Ten cents of every dollar for
Childcare.
Those same families, under our
Proposal, will have up to 50
Cents of every dollar of their
Childcare expenses paid by the
State.
This will enable lower-income
Children to access quality care
That ensures healthy brain
Development, school readiness,
And a bright future, while it
Enables their parents to work
And contribute to their family's
Economic success without
Actually losing money by going
To work.
This is a smart, strategic way
To create a better future for
Our children.
The second area that requires
Bold action builds off our
Historic commitment to
Our children, and to childcare,
That i've just proposed.
We have an opportunity right now
To match this significantly-
Increased investment in early
Childhood education with a fix
To the way we deliver our
Welfare-to-work benefits.
We face an insidious problem
Right now in our welfare system.
It is a problem that hurts both
Those who desperately want to
Move from welfare to work and
Vermont's taxpayers who pay for
Our welfare program.
It might surprise most
Vermonters to learn that vermont
Is --
It might surprise most
Vermonters to learn that vermont
Is the only state in the country
That extends reach up benefits
Without interruption to the
Entire household for a lifetime.
In contrast to vermont,
46 states limit assistance to
Five years or fewer.
And, all of our neighbors
Have limitations either in the
Time period or cash benefit of
Their welfare programs.
Extending welfare to work
Benefits without interruption
For a lifetime does nothing to
Actually encourage people to get
A job.
What is far more troubling is
That we actually penalize
Vermonters who want to earn
Money and get a job because we
Reduce their childcare and other
Benefits as they begin to earn
Money, causing many to stay out
Of the workforce or quit their
New job because they do better
On welfare.
Meanwhile, we have seen our
Welfare rolls grow and our state
Budget strain under the
Pressure.
There is no doubt in my mind
That solving the way we deliver
Welfare to work benefits will
Improve our long-term
Prosperity.
Vermont is a caring state.
The well-being of our most
Vulnerable families matters to
Us deeply, and we know that for
Some the road out of poverty
Will be longer than it is for
Others.
This administration will
Continue to make sure the safety
Net is strong for those who are
Fighting against the unrelenting
Undertow of poverty.
But, it is neither compassionate
Nor prudent to continue a system
In which struggling vermonters
Are financially punished for
Getting off government
Assistance, finding a job, and
Providing for their children by
Going to work.
[applause]
Listen, here's how the system
Should work, as reflected in my
Budget.
The state will provide benefits
For a maximum of five years, by
Providing up to three years of
Initial benefits to vermonters
Who need time to stabilize their
Lives, receive job training
Opportunities, and find a job.
For those who need more help,
The state will provide an
Additional two years of non-
Consecutive eligibility.
There is no better social
Program than a good-paying job.
We will not allow vulnerable
Vermonters, such as those who
Are disabled, to fall through
The cracks, but we will ask
Those who can work to get the
Training and support they need
And get a job.
[applause]
This fix is long overdue.
It takes courage to say it, but
Say it we must: benefits for
Vermonters who are able to work
Must be temporary, not timeless.
It is long past time for vermont
To reform our welfare system
From one that discourages work
To one that makes prosperity
Achievable for all vermont
Families, including those living
In poverty.
Let's get that done.
[applause]
The third great obstacle
Standing in the path of job
Growth and prosperity is the
Skyrocketing cost of health
Care.
Currently, we spend 20 cents of
Every dollar we earn on health
Care, more than the national
Average.
And, those costs are growing at
Unsustainable rates.
If our health care costs grow in
This decade at the same rate we
Saw in the last decade, costs
Will again double by 2020.
Two years ago, you joined me in
Starting down the path to the
First universal, sensible,
Single-payer, publicly-financed
Health care system in america
That finally takes on these
Unsustainable, job-killing
Costs.
Our partnership began with the
Passage of act 48, and the
Establishment of the green
Mountain care board.
It continues with the creation
Of the health insurance
Exchange, as required by federal
Law.
In addition to the plan we are
Releasing today that describes
The benefits and costs of a
Universal health care system and
The options to pay for it, we
Are also releasing a plan
Detailing the implementation of
Next year's federally-mandated
Health care exchange, which will
Require no additional dollars in
Fy-2014.
My budget also makes certain
That vermonters currently in
Catamount and vhap do not suffer
Federally-imposed cost
Increases, by allocating the
Money needed to buy back the
Premium increases that would
Otherwise result from the less
Generous federal exchange.
[applause]
I also keep my promise to begin
To fix the so-called cost shift
From medicaid to our business
Community who struggle to
Provide their employees with
Health insurance, by including
Long-overdue inflationary
Increases in medicaid payments
That will help reduce insurance
Premiums.
This step alone will save almost
$25 million in insurance
Premiums every single year.
[applause]
This is hard work, and we have
More ahead of us, but with your
Help, we will create the best
Health care system in america,
Right here in vermont.
[applause]
The fourth challenge that
Requires bold action is the
Transportation fund shortfall.
This is a good news/bad news
Story.
As we move to more
Fuel-efficient cars and drive
Less, we are buying fewer
Gallons of gasoline.
34 million fewer gallons per
Year since 2005.
As a result, our revenues to
Maintain our crumbling roads and
Bridges have dropped and are
Projected to drop even further
In the future.
This is not a question of
Raising new revenue or creating
New programs, it is a question
Of repairing and refilling a
Leaky bucket.
If we fail to repair the leaks,
Our state transportation fund
Receipts, which are $36.5
Million short just this year,
Will result in our sending back
To washington more than $40
Million of federal highway funds
This year alone, causing us to
Delay or cancel critical road
And bridge repairs.
Sending money back to washington
Is not a smart way to continue
The progress that we're making
To improve the condition of our
Roads and bridges.
I pledge to partner with you,
Reviewing the good work of the
Legislative study committee on
Transportation funding, to
Determine the best way to repair
The leaks this year and into the
Future.
Let's get that done together.
[applause]
Meanwhile, we must also continue
To make strategic transportation
Improvements, including the
Rehabilitation of the western
Corridor rail line to bring
Passenger rail from bennington
To rutland to burlington to
Create jobs and economic
Development that the western
Side of our state so desperately
Needs.
[applause]
My budget proposes $11 million
To build upon last year's
Investments and accelerate our
Progress on this critical
Western line project.
[applause]
Let me now turn to the fifth and
Last area where our investment
Will increase our prosperity and
Vermont's quality of life.
Our leadership in clean energy
In vermont is nothing short of
Remarkable.
We have more green, clean jobs
Per capita than any state in the
Country.
Since i became governor two
Years ago, we have seen the
Amount of solar energy on our
Grid double.
We are successfully harnessing
The sun, the wind, our water,
Fields, forests, and manure to
Generate clean, green power.
We continue to lead the nation
In electric energy efficiency.
We are on the right path, but
It's not enough.
We have done a great job of
Creating jobs and saving money
By helping vermonters cut down
On their electric usage.
We have done a lousy job of
Keeping our homes and buildings
Comfortable and affordable in
Our cold winters on days like
Today.
We heat about 60% of our homes
With traditional heating oil, a
Huge and growing expense for
Vermonters, and a huge cost to
Our environment.
Meanwhile, we have for several
Winters now kept needy
Vermonters from freezing in
Their homes by scrambling to pay
For funding from the oil as a
Federal government -- for
Heating oil, as the federal
Government callously slashes its
Contribution to the liheap
Program.
We must do better.
That is why my budget proposes
To join our neighbors in
Connecticut and massachusetts by
Assessing a 10% surcharge on the
Retail value of break open
Tickets, and applying the $17
Million raised to comprehensive
Energy program funding.
[applause]
I propose to allocate the $17
Million for three purposes:
First, to keep low income
Vermonters warm in the winter
Through the state's first-ever
Base budget contribution to
Liheap, at the level of $6
Million.
[applause]
Let's recognize the sad fact
That washington is unlikely to
Fund this critical program
Adequately, and let's do
Something about it so that all
Vermonters stay warm in the
Winter.
[applause]
Second, we must create jobs,
Save energy, and stop wasting
Dollars in drafty homes by
Investing another $6 million per
Year in thermal efficiency.
[applause]
We have a simple choice.
As oil prices continue to rise,
We can send our hard-earned
Vermont dollars to oil-producing
Countries that mostly don't like
Us, or we can buy less oil and
Help fight climate change by
Keeping our heat inside our
Homes and buildings.
That's the choice.
[applause]
Third, i propose that we provide
$5 million as a stable source of
Support for the clean energy
Development fund to continue our
Leadership in building renewable
Energy and efficiency projects.
Across the great state of
Vermont.
[applause]
Now, i know we are going to have
Plenty of debates this session,
And at times we will disagree.
But, i am optimistic about the
Outcome.
Together, we share a tremendous
Opportunity and a tremendous
Responsibility to help our
Economy and to grow prosperity
For all vermonters.
We can reshape our education
System to match the needs of our
21st century jobs, and we can
Put our money where our mouths
Have long been by providing
Childcare benefits to better
Nurture and educate our most
Vulnerable children.
We can encourage independence
And employment while ensuring
That no vermonter is penalized
For having a job.
We can create the best, most
Affordable health care system in
America.
We can rebuild our crumbling
Roads and bridges and improve
Our rail corridors.
We can keep vermont at the
Forefront of the clean energy
Revolution.
And, we can do all of this while
We build jobs and save money.
That's what this budget is
About.
[applause]
So, i ask you to join me, but i
Also commit an open door and an
Open mind.
We will have our differences,
But we will carry out our work
In the best vermont tradition,
Without malice and with respect
For each other, regardless of
Party label.
We will work together to find
Common good.
But, we must also take bold
Action, not simply find ways to
Say no.
Vermonters expect nothing less;
Nor should we.
Thank you so much.