"Our democracy, it is said, is not something we have, but something we do. And right now, we cannot do it because we cannot speak. We are shouted down by the bullhorns of big money. It is money with no manners for democracy. It is too loud and too ready to lie for its purposes."

— Granny D

Why run as a P?

This is the time when all the parties are running around trying to secure candidates for office at all levels. As we talk to people about running as Progressives it's only fair that we level with them about what's ahead. Running as a P is just about the most difficult option you could chose. Far  tougher than D, R, or I. It's not all bad news though. We support our candidates as a good party should. And we pick up votes in rural areas that Democrats struggle to earn. Witness Sandy Haas (P-Rochester) and Susan Davis (P-Washington). Both were elected besting republicans that previously held the seat. But, generally if you're interested in public service there are easier ways to go about it. There are folks in both big parties who are fighting for change. Why not just join them? Because that strategy hasn't worked. Health care is the most obvious example. The topic of universal health care has been debated since before I was born. Since I was old enough to vote the topic has dominated elections at every level. The party most likely to support comprehensive overhaul has completely and whole-heartedly failed. Clinton the first failed. Howard Dean failed. In both cases they had opportunities where they controlled all three branches of government. Is it more insane to try and build an independent party or to keep going back to the same power source that keeps letting you down? Beyond health care, does anyone really think either party recognizes the economic reality of most people? Is living paycheck to paycheck more than just a distant memory for those in office? There are good people in Montpelier, but the class consciousness of the legislature is non-existent. If we are going to change directions. If we're serious about ending the war and gaining energy independence. If we want a sustainable economy. If we believe health care is a right and protecting public schools is essential. If we want to see workers' rights protected. If we believe in democratic unions in the workplace. If we are going to honor our obligation to future generations - there is no choice. An independent, populist political party firmly based in the grassroots is essential. It's not the express path, but time has demonstrated one doesn't exist. I'm grateful many Vermonters are willing to take on this difficult task. The issues are too important to leave in the hands of the corporate parties. We should learn from history. We should break open the two-party system and treat our state to a vigorous debate. What other choice do we have?

Our Very Own Hillary

Many Democrats think Hillary Clinton's refusal to acknowledge the numbers in their presidential primary is by this time only harming her party. (Her negative and race-based campaigning doesn’t help any.)

But Hillary seems to be fighting for a principle: that she got used to thinking she would be the candidate, and in this it’s-the-Dems-election-to-lose race, the president. She also apparently has come to believe her own PR that any successes of the Bill Clinton administration reflect her deep White House experience, while its disasters such as NAFTA were done at those times when she was only a regular first lady.

She claims to want to beat John McCain (Bush III) but has been campaigning by undercutting the eventual Democratic nominee. It’s not just Democratic paranoia – she really has hurt the candidate and the party.

Now comes Gaye Symington with the same type of claim. She claims to share our desire to oust Governor Jim Douglas – an essential need for Vermont.

Essential, because Vermont’s situation is quite desperate. Far from the mere do-nothing caretaker opposing anything that constitutes progress, Douglas has avoided new opportunities and has sabotaged many of the state’s prior advances. His anti-progress, anti-competence administration is digging Vermont several big holes in everything from the environment to the economy. All apparently for the sake of, and certainly to the benefit of, big out-of-state businesses.

So we agree that Douglas needs to be replaced. The only problem with Symington’s run is that it is the best way to accomplish Douglas’ reelection, by splitting the moderate to left vote with Progressive candidate Anthony Pollina.

Pillsbury ends bid for Senate

May 14, 2008, the Brattleboro Reformer, by Chris Garofolo

BRATTLEBORO -- Citing a number of family related issues as a major factor in his decision, Daryl L. Pillsbury bowed out of the race for the Vermont State Senate Tuesday.

Pillsbury, 52, an outgoing independent state representative from Brattleboro, said he regrettably ended his campaign because he wants to spend more time at his home instead of in the Vermont House.

"I really wanted to serve the people of Windham County. I want to thank them for giving me an opportunity that was an experience of a lifetime," he said. "I'm just not focused enough right now."

A resident of Brattleboro since 1979, Pillsbury has six children and six grandchildren and is involved in more than a dozen organizations in the town. He said being up in the Statehouse has taken a toll in the amount of time he gets to spend with his loved ones and wants to be there more often for his children and aging parents.

"People do not realize the sacrifice politicians make," he said. "It's time for me as a husband, a father and a son to spend time with my family and I hope the people understand that."

Asked if he will return to public office in the future, Pillsbury said he still has a desire to serve the people of Brattleboro, but is comfortable with his decision to step down following the end of the legislative session.

"I may be back in a couple years, but right now I just have to deal with my family," he added.

A former member of the Brattleboro Selectboard, Pillsbury served in the House since 2000 before launching his campaign in mid-February to challenge incumbents Democrats Senate President Pro Tem Peter Shumlin and Sen. Jeanette White.

After the issues surrounding the campaign finance reform legislation in April, Pillsbury said the campaign for the Senate seat could get nasty and would rather spend time watching his daughter run track than play politics.

The Brattleboro independent voted last month against the override of Gov. Jim Douglas' veto to the bill because he felt the measure was geared strongly toward incumbents and unfair to independent and third party candidates.

The four-term representative put his support behind longtime teacher and Progressive Party member Molly S. Burke to replace him in the House.

"The people will be in good hands with Molly," he said.

Burke officially announced her race for the vacated seat back in October with Pillsbury's support.

[Source]

Politics Over Policy

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Following on the heels of Rep. Symington's announcement, most media are repeating what the Democrats are saying, that is: "we hope to get Douglas under 50% so that it can go to the general assembly where she can win". This is very telling. It points out two things, one is that the Democrats are essentially admitting that Anthony has support from across the political spectrum (yes…that means historically Republican voters too!) as that is the only way that Douglas will get below 50%. And two, that Symington would have a hard time winning the election outright if it had been head-to-head. What all of this means is that the Democrats did not have anyone who wanted to run against Douglas because he was “unbeatable”, but now that Anthony is in the race, they see it as a winnable race because he is there. My how the times change. They used to blame him (wrongly) for the election of Douglas and Dubie. In 2002 the election went to the general assembly because neither Douglas nor Dubie obtained the necessary 50%. But it was the Democratic plurality of legislators who elected Douglas and Dubie, because of electioneering pledges based on political expediency at the time (which backfired 100%). So they have blamed Anthony for this for the last 6 years. He was not even in the race for Governor that year. Now the comical irony is that they are changing their tune 100%. All of their blame can now be dismissed as they are going to try to use the constitution (as it was meant to be used) this time, and will be grateful that Anthony is in the race. But of course…you will never hear them tell it like it is. They will still try to make him a pariah. The reality is that if this is really going to be won in the general assembly then that means voters can truly vote for who they want. There is no spoiler (we would never say there was anyway). Voters can vote for who they really want. The Democrats will still try to argue that you can not vote for your first choice…but the reality is that you can. As long as you do not vote for Douglas you can vote for who you feel would best represent you. The choice is clear…Anthony Pollina.

Tired of politics as usual?

Channel 3's Andy Potter asked for Anthony Pollina's reaction to the entry of another candidate into the race for governor.  His response:  "If those people who are interested in politics as usual, those people who think that what goes on in Montpelier is going just fine, they may vote for someone else. But people who are ready for something different, who are saying we're tired of party politics, we're tired of politics as usual, those people are going to vote for me. And there's a lot of those people out there -- enough to win the election." I'm tired of politics as usual.  I want someone to represent me.  The last six years have been wasted and it's time for real change.

Bennington Sick Building Returns

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The Bennington Banner today reports that state workers handling files from the state building on Veteran's Memorial Drive (the "Bennington Sick Building"), may be getting sick from those files. Though now temporarily housed in Douglas-donor-contracted modular offices on site, workers are reporting respiratory ailments believed to be contracted from files that were moved over, but cleared as safe. You'll remember last year the administration did a poor job initially of handing the problem.  In an election summer, perhaps the response will be more...responsible.

Vermont lead by corporate lapdog

I don't know what my problem is, but I keep expecting that Jim Douglas operated under some onus of decency. Sure I know he's close to the big wigs at Entergy. And I knew the decommissioning bill didn't make him happy. Still, somehow I expected he would do the right thing. Who would want to explain over and over again that he is comfortable with Vermont taxpayers bailing out the Yankee owner when it comes time to shut the plant down? Surely not a savvy politician like Gov. Jim. Wrong again. I give him the benefit of the doubt and he just re-affirms his status as Vermont's top corporate lapdog. In the Free Press today, Terri Hollenbeck points out that IBM didn't like this bill either for fear it would increase their $34 million energy bill. Yikes - you can see how that would be a concern. It's a wonder we don't see a faint glow from over in Essex. On the other hand, it's reasonable to assume IBM's Essex facility is a multi-billion dollar producer. Let's say their annual earnings are $5 billion. That makes $34 million less than 1% of their operating costs.* IBM, Yankee and Governor Douglas consistently scream foul when anyone comes close to brushing up against their profits. It's the job of IBM and Yankee to make money. Isn't it Douglas' job to protect Vermonters? He'll be long gone when this decision comes back to haunt us. Current estimates show the decommissioning fund is $400 million shy of what it will cost to dismantle the plant. The brilliant scheme Entergy suggests, and I can only assume Douglas favors, is to hold the plant in so-called SAFEMODE for many years after it goes off line. This keeps the high-level radioactive waste cool while the fund builds enough equity to pay for dismantling. Charming! Thanks for the leadership, Governor. *Thanks to Doug Hoffer for this analysis

Douglas vetoes Yankee decommissioning bill

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May 8, 2008, the Burlington Free Press, by Terri Hallenbeck

MONTPELIER — Gov. Jim Douglas vetoed a bill that could have required Vermont Yankee to boost its commitment to the nuclear power plant’s decommissioning fund, saying he was protecting Vermont’s electric costs.

Those who supported the bill, however, said the measure would have protected Vermonters against long-term costs associated with the plant’s eventual closure.

“As Vermont’s employers have made abundantly clear, they oppose this legislation because it would unnecessarily and substantially increase the future cost of electricity on both businesses and families. I agree,” Douglas said in his veto message.

“It’s his veto today that’s surely going to raise rates,” countered Senate President Pro Tempore Peter Shumlin, D-Windham. He suggested Vermonters would be stuck with the bill if there is not enough money in the fund to pay for the plant’s closure.

The bill would have required that if the Vernon plant changes ownership the new owner must guarantee funding for full decommissioning, a more thorough process than is required of current owner Entergy. Entergy has a proposal pending with the state Public Service Board to restructure the company and put the plant under new ownership.

A decision from the Public Service Board on whether Entergy can spin off Vermont Yankee into a

Remembering Workers' Memorial Day

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April 28th is internationally known as Workers' Memorial Day. According to statistics provided by the Vermont Workers' Center, every day more than 15 workers are killed on the job in the United States; nearly 6,000 workers lose their lives on the job each year and more than 4 million workers are injured or made ill on the job every year in the US. The most recent statistics from Vermont show that in 2006, 14 workers lost their lives on the job. On April 28, I hosted a press conference with the Vermont Workers' Center to help bring attention to Workers' Memorial Day. The event included representatives from each office of our Congressional delegation, the Vermont Department of Labor, several union representatives, and family members of workers who had died on the job – in particular, Michelle Lewis, who also helped organize the event. Workers' Memorial Day is an opportunity to recognize those who have been killed, injured, and fallen ill on the job – and to consider how we can work together to improve workplace safety. I appreciate the efforts of the Vermont Workers' Center to increase awareness about this issue.

Legislature Wrap Up



The caucus talks about a few legislative victories from 2008:
-Yankee bills
-Ground water in public trust
-Legalization of industrial hemp
-And more





Will This Housing Really Be Affordable?

After much talk about the need for affordable housing, the bill just passed by the legislature does little to help families in rural Vermont. H.863 requires that any new housing construction project within its guidelines have 20% of its units at or below 90% of price limits set by the Vermont Housing Finance Agency (VHFA). For Windsor County, that means the few required “affordable” units could be priced at $237,600. The other 80% of the units could be much more expensive. The guidelines are interesting. The 2007 median income for Windsor County was $60,800. According to VHFA, a family with that income could afford a house costing $186,500. That means that the cheapest units built pursuant to H.863 will cost $51,000 more than the median-income family can manage. For those of us living in rural areas, the story is even grimmer. The countywide median income includes high earners in the Norwich and White River Junction area. Incomes in our mountain towns and villages are generally lower than that median. In our area, the people who can pay $237,000 are usually second-home buyers from Connecticut and New Jersey. It’s a shame that the builders’ lobby won the day on this issue.

Looking Back

For the months of hand wringing and small victories, just about everything of significance that happens in Montpelier passes in the last week or two of the session - for two reasons. 1) The budget is the last bill we vote on and it overshadows nearly all the policy bills of the preceding months. 2) The juicy policy bills are held until the end to be used as bargaining chips by one chamber or the other. As Progressives, we try to promote economic policies that push the balance back to the working people of our state. You know, the majority of us. It is a lonely battle. In this era of "tight times" (we only spent $1.4 billion in the General Fund) the lack of class understanding becomes more obvious than ever. The two parties have it well set up. The Republican Governor proposes all sorts of horrific cuts to programs and increases in fees and co-pays for those that can least afford it. The Democrats push back, narrow the cuts, trim the increases and claim victory for the little guy. The little guy still pays more and still gets less. Progressives are essentially shut out of the money committees and so the discussion about effective policy remains off the table. For the most part, we are relegated to nibble around the edges - which we're able to do quite effectively. Here's a quick summary of some of our highlights: -helped shape VT Yankee inspection -helped insist Yankee decommissioning fund was full -helped craft the bill to make VT's groundwater a public trust (these are perhaps the legislature's most significant accomplishments of the biennium) -lead the discussion to legalized hemp -pushed IRV to the governor's desk (vetoed) -played central role in reforming child welfare oversight -championed the agreement to elect president by popular vote -held back damaging changes to worker's compensation -pushed for rental housing registration but got thorough study -championed removal of state workers gag order (forbidding them to talk with lawmakers) -pushed for whistle blower protection of state workers -lead the discussion to limit pay increases for high-income state workers -expanded raw milk and other strategies to keep more money in farmers' pockets -lead charge to repeal ridiculous "vote twice" law (passed House, never got through the Senate) -played central role in pushing for switch to ed funding through income tax (never got out of committee, thought proposal received significant attention) -championed bill strengthen public workers' right to organize (passed House, slashed in the Senate) -continued to lead the charge to close the unearned income tax loophole (we'll get there yet, just not this year) More will come to me as the stress of it all dissipates. One thing's for sure though, it is imperative that we go back with more members. A new governor would be nice too.

Action on major bills

May 4, 2008, the Burlington Free Press


Agriculture

The fate of some of the hundreds of bills the Legislature considered in 2008:

Hemp: The state will establish procedures for growing industrial hemp to allow the practice if the federal government changes its regulations to permit it. H.267

Manure injection: The Agency of Agriculture will help custom farm operators and large farmers buy equipment that injects manure into soil to reduce surface runoff, reduce odor and improve water quality. S. 290

Meat slaughter: On-farm slaughtering of animals could be possible by April 15 if Vermonters buy a live animal and contract with a farmer to raise the animal and have it slaughtered. The change depends on whether the federal government rules that it won't affect the state's meat inspection status. S. 322

Milk: Farmers may advertise and sell up to 50 quarts a day of raw, unpastereized milk. Act 101.

Business

Abenaki: Abenaki artisans are left without a fix to a flawed 2006 law that was supposed to allow them to meet federal rules for selling their work as Abenaki-made. The Senate, having difficulty finding a way to make the change, passed a bill late in the session that set up a process to grant tribes official state recognition, but the House never took it up. S. 369.

Housing: Act 250 land-use permitting will be lifted for new housing created in specified areas alongside existing development in communities with planning in place provided that 20 percent of the homes meet moderate-pricing ranges of about $250,000. The bill also makes mobile homes real property rather than personal property, giving buyers access to better interest rates and provides mobile home park residents with rights in case of park closure. H. 863

L3Cs: A new designation allows for the creation of a hybrid between a nonprofit organization and a for-profit corporation. The entity would be a low-profit, limited-liability company with "charitable or educational" goals. Enacting the legislation in Vermont, advocates say, gives the state an opportunity to further burnish its credentials as a progressive and innovative economy and might generate revenue for the state when in- and out-of-state companies register as L3Cs here. S. 308

Mercury: The sale of mercury thermostats is banned beginning April 1, 2009. By fall, the Agency of Natural Resources must have a plan for a financial incentive program to collect old mercury thermostats beginning in April. The incentive will be a $5 refund or coupon, with the cost covered by the manufacturers. H. 515

Vermont Yankee: The state will conduct an independent audit of the Vermont Yankee nuclear power plant and have a panel oversee the results in preparation for a decision next year on whether the plant should be allowed to continue operation at 2012. The Legislature is also seeking to ensure the plant's decommissioning fund has sufficient funding for complete decommissioning if ownership of the plant changes, although Gov. Jim Douglas has hinted he will veto the bill. S. 364 and S. 373

Worker's compensation: If a worker has a minor injury, misses no more than a day of work and incurs medical costs of less than $750, an employer may choose to pay those expenses and not report the injury. Also, small businesses must be offered policies with deductibles. S. 345

Consumer Protection

Boating while intoxicated: Offenders may be charged with separate counts for each victim in a boating-, all-terrain-vehicle- or snowmobiling-while-intoxicated incident. This brings other vehicles in line with rules governing automobile drivers. H. 599

Domestic violence: Penalties increase from 12 to 18 months for domestic violence. People who interfere with a person's access to emergency services face criminal charges. Police will receive more training on domestic violence and more money will go toward prevention program and services offered to victims. Money will come from increases in court surcharges and marriage and civil union license fees. S. 357

Drunken driving: Anyone who permits his or her vehicle to be used by someone who is drunk or has drunken-driving convictions faces new penalties. The state will also investigate alcohol ignition interlock systems as a check on drunken driving by people who already have one conviction. S.168 Elevator safety: Many more elevators should receive inspections, thanks to an increase in the fee paid for those inspections. Lawmakers raised the fee from $100 to $250 per inspection to attract more inspectors. H.878

Library records: Libraries can't release information about patrons, such as lists of the books they borrow. Exceptions will be made if there is a court order and for requests from parents of children younger than 16. S. 220

Marijuana penalties: The Senate voted to remove jail time as a penalty for small-quantity possession on first and second offenses, but the bill died because the House never voted on it. S.238 Nursing mothers: Employers must allow nursing mothers time, although not necessarily paid time, to express milk for their children. They also must try to provide a private space that isn't a toilet stall. Employers would be exempt from this requirement if providing time and space disrupts operations. H. 641

Smoke detectors: Starting Jan. 1, single-family homes will have to have photoelectric smoke detectors (rather than ionization style) at the time of sale. S. 226

Whistleblower: State employees will have more specific protections for speaking up about job-related problems. S. 201

Education

School calendar: Both chambers passed bills that would establish more uniform school calendars in the state, but neither took the other's bill up, meaning both expire. S.117 and H. 864

Snowboards: The Senate passed a bill sought by sixth-graders in Swanton to make snowboarding and skiing official state sports, but the House never acted on the bill, meaning it expires. S. 216

State board of education/commissioner: The Senate voted to eliminate the state Board of Education and change the Department of Education to an agency headed by a secretary appointed by the governor, but the House let the bill die. S. 371

Student medications: Beginning in the fall, students with life-threatening allergies or asthma may carry their medications and self-administer them at school and at school-sponsored activities. Their parents must work with a school nurse before students are clear to self-administer their medications. H.748

Two-vote repeal: The House agreed to repeal a controversial 2007 law requiring two votes on some school budgets, but Senate leadership blocked any vote on the question. The two-vote law takes effect for school budgets that come up for votes next winter. H. 864.

Environment

Composting: The bill puts a two-year hiatus on Act 250 environmental enforcement of all composting operations. It will allow Intervale Compost Products in Burlington and Vermont Compost Co. in Montpelier to keep operating while a panel meets to recommend how composting should be regulated. Both composting operations are under orders to seek an Act 250 land-use permit after it was determined they were no longer primarily agricultural enterprises. H. 873.

Environmental enforcement: Penalties will increase for violation of environmental permits, particularly for those who realize an economic advantage by not following the law. The Agency of Natural Resources is directed to establish a database of enforcement actions taken and report to the Legislature on the use of stormwater general permits and enforcement actions involving those permits. H. 865.

Groundwater protection: Underground water becomes a public trust and the state may regulate large withdrawals. Domestic and farm use are exempt from regulation. Reports are required for withdrawals greater than 56,000 gallons per day. S. 304

Lake Champlain cleanup: A cap established last year on the amount of phosphorus that sewage treatment plants near the lake can emit is repealed because of municipalities' concerns about cost. Instead, the state will pursue other efforts to reduce pollution in the lake. H. 873

Government

Campaign reform: Lawmakers passed a bill setting a host of campaign contribution limits, but Gov. Jim Douglas vetoed it. Although the Senate voted to override, the tally for the House override fell one vote short, so the bill died. A similar bill met the same fate in 2007. S. 278

Capital gains: The governor wanted to eliminate an exemption that spares individuals from paying taxes on 40 percent of their capital gains and use the increased revenues to offset changes in the income tax rates for the highest- and middle-income taxpayers. Lawmakers rejected the idea. Court records: The public will have access to Vermont Crime Information Center records for a fee, but full state court records will not be published online. S. 246

Instant-runoff voting: The Legislature passed, but the governor vetoed, a bill that would have authorized instant-runoff voting in federal races, beginning this fall in the U.S. House race. Lawmakers, lacking the votes, never tried to override the veto. Under IRV, voters indicate second, even third choices among candidates, which come into play if no candidate receives a majority. S.108

Proposition 1. Pay freeze: The highest-paid staff in state government won't see pay increases next year. The constitutional officers, the judiciary and the legislative branch also agreed to the pay freeze. Workers covered by the union contract aren't affected. H. 890

Lottery: Lawmakers rejected a Douglas administration proposal to lease the state lottery to a private operator for 40 years with the expectation the state would receive an upfront payment of $50 million. Mobile polling stations: The Secretary of state may allow a town clerk to set up a mobile polling station in nursing homes. This is a pilot project. S. 232

Prison reorganization: The Dale prison for women in Waterbury will close, and all female inmates will be housed at the prison in St. Albans. Men in St. Albans will be shifted to other prisons or out of state. The women's prison in Windsor will become a work camp offering substance-abuse treatment. Savings from these changes will be invested in treatment and transitional housing to try to reduce recidivism. H. 859

Public records: The Secretary of State's Office will take charge of managing the state's public records and coordinating what records must be preserved. S. 229

Young voters: The Senate and House passed an amendment to the state Constitution that would allow young Vermont residents to vote in the primary election in September if they would turn age 18 by the date of the general election in November. It needs to pass the Legislature next biennium, receive approval from the governor and the state's voters to become law. Proposition 5.

Health

Mental health parity: State insurance officials have clearer authority to respond to complaints and regulate insurance plans that use separate firms to manage their mental health care. S.114

State hospital: The state will investigate where to put a 15-bed, secure residential unit for psychiatric patients who no longer require hospitalization. Officials had considered new construction at the Waterbury office complex, but lawmakers directed them to look at a Dale building that would be vacated if female inmates housed there are moved to St. Albans, and at the current hospital building. Planning for the secure unit is another step in the process to close and replace the 54-bed Vermont State Hospital in Waterbury. S. 365

[Source]

Hemp Escapes Judiciary

Today's Times Argus reports that Sen. Dick Sears, chair of the Judiciary committee, has allowed the hemp bill to pass out of his committee.  Readers of our e-newsletter will recall this section from Monday's edition:

By the end of Friday it became apparent that Sen. John Campbell from Windsor County plans to hold up almost all of the work that the House Agriculture Committee accomplished this session.

First, it was Sen. Dick Sears (Judiciary chair, where Campbell also serves), who appeared to take control of the Hemp bill as reported last week.  That bill is still "hostage" in Sen. Judiciary as the Senators try to get the House to pass legislation to reduce the penalties for possession of small quantities of cannabis.
Sears, in the TA article, explains his change of heart:
"I had 73 calls this morning," said Sen. Dick Sears, chairman of the Senate Judiciary Committee. Sears, a Bennington Democrat, didn't have occasion to respond to the callers, but he did hear their message. And with some reluctance, Sears allowed the bill to pass out of committee and onto the Senate floor, where legislation legalizing industrial hemp cultivation in Vermont won nearly unanimous support.
It is nice to know that a little focused citizen lobbying it all it takes to get our representatives to represent our interests.  At least when it is an issue they don't care about. Certainly over this biennium there has been broader and more vocal support last year for the impeachment resolution, and this year for universal health care.  Could it be that the powers that be in the statehouse did not want to go on record holding the President accountable for his actions?  That the only health care reform they want to see is movement of more money from state government to private insurance companies, with little real increase in benefit to Vermonters?

Democrats duck fight with Douglas over tax holiday

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May 2, 2008, the Burlington Free Press, by Nancy Remsen and Terri Hallenbeck

MONTPELIER -- Democratic legislative leaders backed away from a confrontation with Gov. Jim Douglas on Thursday over his desire to hold a two-day sales tax holiday in July that will cost about $2 million in lost revenues.

It was one of dozens of decisions lawmakers made as they quickened the pace of their march to adjournment. Leaders now say the gavel will fall Saturday -- unless there is an unexpected snag.

Without fanfare, House and Senate negotiators agreed on the budget, but they put off signing it until after they review the finished document today.

Teams trying to resolve differences in several other money bills -- transportation, capital project, pay and miscellaneous tax -- all reported progress, but had yet to wrap up.

For most of the day, lawmakers carrying fat folders scurried through the Statehouse to negotiations, then retreated to review and revise offers. Those not assigned to negotiating teams packed their files.

Floor debate was minimal, although the House was the scene of a brief skirmish over enhanced driver's licenses.

The negotiation that drew the biggest crowds throughout much of the day involved housing legislation.

Conferees met several times formally and in informal clusters around the Statehouse, but left for the night without settling their largest differences. Those included whether to use education tax money to offer incentives for new housing and how much of the housing would have to meet pricing requirements to be eligible for an exemption from land-use regulations.

Tax breaks

Douglas proposed a tax-free weekend for July 12-13 in an economic stimulus package he unveiled two weeks ago.

House Speaker Gaye Symington, D-Jericho, summed up how many lawmakers see the sales tax holiday when she addressed a special legislative panel charged with reviewing all the governor's suggestions.

"I don't think it is the best use of taxpayer resources," she said. She noted that the Legislature's economist had said the holiday would do little to stimulate the economy. She added, "I don't think it benefits the Vermonters who are struggling to make ends meet -- instead it focuses on Vermonters who have discretionary income and can choose when to make their purchases."

Still, she said she wouldn't try to stop it because she didn't want the disagreement to mar other progress made during the session. "This is important to Governor Douglas. I realize that."

An hour earlier, Douglas had repeated his call for the sales-tax holiday. "This is something the people of Vermont and our visitors deserve," he said. "I'm optimistic the Legislature will see its value."

Members of the legislative review panel, however, weren't persuaded of the economic merits of the sales-tax holiday, but agreed with Symington that it wasn't worth a political fight. The public expects it, too, they concluded, because of all the publicity.

"We had better go with it," said Sen. Robert Starr, D-Essex/Orleans.

"It's only with great reluctance that I would vote in favor," said Rep. Harvey "Bud" Otterman, R-Topsham.

The committee endorsed the tax-free weekend with conditions. Only purchases under $2,000 would be tax-free. The state would have to refund revenues lost by municipalities that have to suspend their local option sales taxes.

The panel also agreed to a revised proposal from the administration that would help struggling manufacturers in high-unemployment regions. Lawmakers didn't like the administration's first suggestion because it provided tax credits to profitable firms. They wanted to help companies close to failing.

[Full Story]

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