"Whether Democrats or Republicans are in power--and we have a lot of historical experience that tells us this--corporate power will dominate the country, the military-industrial establishment will be in power, the war against the poor will continue, and we will need a movement, a great national movement, to oppose that."

— Howard Zinn

Vermont unemployment deal deflects challenge

May 6, 2010, the Burlington Free Press, by Terri Hallenbeck

MONTPELIER -- A group of pro-labor House members tried Wednesday to strip out parts of a deal regarding unemployment insurance that they found toughest to swallow.

The group was thwarted after House Speaker Shap Smith, D-Morristown, delivered an impassioned speech to Democrats asking them to stick with a fragile agreement lawmakers landed Monday with the Douglas administration.

Reps. Paul Poirier, I-Barre; Susan Davis, P-West Topsham; and David Zuckerman, P-Burlington, fought for a three-part amendment on the House floor that would have removed a one-week waiting period for unemployment benefits, restored the option to receive severance and unemployment simultaneously, and given unemployed workers the chance to earn more part-time pay before losing benefits.

Smith told Democrats the agreement to replenish the bankrupt unemployment insurance fund represented the most difficult negotiations he has had in his two years as speaker. Without the agreement, he said, the fund's problems would worsen, and that would put the state's social safety net in peril.

"I'm asking for your vote," Smith said. "This is probably one of the most important things we will do for the long-term success of the social safety net."

He won their votes in the end, with the overall bill passing 133-9 and all three parts of the amendment failing by a large margin.

Those seeking the amendments called for roll-call votes on all three parts -- votes that Zuckerman said he hopes labor groups will take note of at election time.

"Democrats claim they're the party of the worker, but they squashed their own members' autonomy to vote for the worker," Zuckerman said.

Burlington and Jobs

Figures announced earlier this week by the U.S. Department of Labor showed that the Burlington-South Burlington market has the lowest unemployment in New England. The rate as of March 2010 is 6 percent, down from 6.9 percent a year ago. This announcement followed on the heels last week of the announcement by Dealer.com that they will be staying, and expanding, in Burlington – adding 300 jobs in the next 3 years.

And They're Off, and Running!

Two Progressives kicked off their legislative campaigns this past weekend.

Burlington's Chris Pearson served in the House from 2006-2008. He is vying for the seat currently held by Progressive David Zuckerman, who has announced that he will not seek re-election. Pearson started his campaign off at a noontime rally on UVM's campus last Friday. "I am running because I was an effective legislator and I was just getting started," he told the crowd. "We have to get serious about a sustainable future and I’m the right person to jump-start the conversation." Pearson is running in Chittenden 3-4, a two-seat district in Burlington encompassing UVM and parts of Ward 1 and Ward 2.

Cindy Weed is running to represent the Franklin County towns of Enosburg and Bakersfield in the Statehouse. Her campaign will focus on the economy, healthcare reform, and Vermont’s energy future after Vermont Yankee. She lost in a close three-way race in 2008, and is returning for a rematch against the incumbent Republican. "The campaign was a great experience," Weed said. "The feedback I got from voters on the doors was very positive, and I am committed to making sure that their voices are heard in Montpelier.”

Please contact Morgan if you are willing to help out on either campaign.

Gubernatorial rivals differ on use of budget reserve

April 28, 2010, the Times Argus, by Nancy Remsen

MONTPELIER — Two state senators who are Democratic gubernatorial rivals sparred Tuesday about whether the Legislature should tap a budget-stabilization reserve, commonly referred to as the “rainy day fund,” to balance next year’s budget.

The face-off between Sens. Susan Bartlett, D-Lamoille, and Doug Racine, D-Chittenden, unfolded during the Senate’s debate of a half-dozen amendments to the proposed $4.7 billion budget bill.

Populism vs. WASPulism

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April 28, 2010, the Texas Observer, by Bob Moser

“Populism” is surely the most abused noun in the English language these days. If you’re a white, well-educated sort who detests government and worships the mystical powers of free markets, you’re a populist. If you’re protesting health-care reform and Photoshopping toothbrush mustaches onto images of President Obama, you’re a populist. If you’re Gov. Rick Perry, rhetorically bashing government while using it to enrich the rich, you’re a populist. If you’re Perry’s political paramour Sarah Palin, declaring at the National Tea Party Convention that “We got into this mess because of government interference in the first place,” you’re not merely a populist; according to that paragon of the establishment media, David Broder, you’re espousing “pitch-perfect populism.”

Except that you’re not. You’re doing exactly the opposite.

If anybody ought to understand this, it’s Texans. Populism—the real kind—was born here, after all, when the Farmers Alliance movement was formed in Lampasas in 1877. The Alliance helped spawn the People’s Party, which had a brief but heady national run in the 1890s and dreamed up damn near every significant progressive reform of the 20th century.

Populism was—still is—all about making government a force for economic justice. It’s about class warfare, straight-up and unapologetic. It’s the sworn enemy of the right-wingers now claiming the name. As Peter Beinart wrote recently on The Daily Beast, “The Tea Partiers aren’t standing up for the little guy; they’re standing up to the little guy.”

Lord only knows what these folks would do if we had an actual populist in the White House. “We believe that the power of government—in other words, of the people—should be expanded,” declared the original 1892 platform of the People’s Party, “as rapidly and as far as the good sense of an intelligent people and the teachings of experience shall justify, to the end that oppression, injustice and poverty shall eventually cease in the land.”

Like the tea partiers, populists have always railed at Washington—not for doing too much, but rather too little. The original populists worked for democratizing reforms—women’s suffrage, direct elections of U.S. senators (long chosen by state legislatures), getting rid of literacy tests and poll taxes—that would make government more responsive to the people and less the tool of the moneyed elite. And while plenty of racist Southern politicians later espoused economic populism, the real deals were dedicated to empowering blacks and whites alike. So what can we accurately call the tea partiers? Kevin Baker, in Harper’s, suggests “counter-populists.” I think “anti-” might work—as in “anti-populist Gov. Rick Perry.” That has a bell-clear ring of truth to it. Then again, so does a term I spotted in a cartoon on the web site of Texas’ best-known living populist, Jim Hightower: “WASPulist.”

Beinart has another suggestion: “What kind of adjective suits older, grumpy, well-off Americans who believe Democrats are communists, the poor have it too easy and white people are oppressed? The term ‘Republican’ comes to mind.”

Call them what you will; just don’t call them populists. Why does it matter? Because, no matter how much it’s been distorted, there is serious power in owning the word. That’s why the right has fought so hard to claim it. And why the left needs to reclaim it—not only in name but in spirit.

“Populists have always been out to challenge the orthodoxy of the corporate order,” Hightower writes. That’s a far cry from the liberalism embodied by Obama. “Classic liberalism,” Hightower notes, “seeks to live in harmony with concentrated power by regulating its excesses.”

That’s the liberalism that creates health-care reform that delivers millions of new customers to private insurers—rather than a single-payer system. Contemporary liberals work to make things better, not to bust them apart and reinvent them for the people’s benefit. And that’s partly because we’ve swallowed the notion that populism is the property of the right—that the American people, at their core, are fundamentally and unshakably devoted to small government and big money.

“The triumph of populism,” writes Observer alumnus Lawrence Goodwyn in the definitive book on the populist movement, Democratic Promise, “was the belief in possibility it injected into American political consciousness.”

We’ve lost that belief. It’s way past time we got it—and populism—back.

When is a tax not a tax?

The mantra in Montpelier is No New Taxes (except on working people). The proposed fix to the Unemployment fund would establish a whole new tax on every employee in Vermont. The fund has always been seen in the past as the responsibility of employers, especially seasonal employers, who benefit from an available seasonal work force.

In 1983, the average annual Vermont wage was $16,000. VT businesses were required to pay unemployment on the first $8,000 of wages per employee per year. The reason the State Unemployment fund is in so much trouble is that the base wage ($8,000 per employee per year) has not gone up SINCE 1983! Vermont businesses have been getting a break a on their unemployment payments for 27 YEARS!

The idea that businesses and unemployed workers and employed workers should now share the pain equally ignores the history.

The U.S. Dept of Labor reports that 66% of VT Employers paid UI Payroll taxes equal to or less than .5% (1/2 of one percent) of total wages in 2008. 63% of VT employers paid the statutory minimum tax rate of .8% of taxable wages (that is $64 per employee per year) in 2008. The average paid by VT Employers in 2008 was $278 per employee. This is NOT a major expense to employers.

The average weekly benefit amount in VT is $304 per week, which ranks 25th in the US. The benefit amount is based on a formula that replaces a about 41% of the worker’s wages prior to layoff. The maximum benefit amount in VT now is $425 (because the state has already cut it from the $438/wk that it was prior to the recession). This makes us last in New England. And, unlike some other states, VT does not increase your benefit based on the number of children you are supporting in your household

The solution under consideration in the legislature has 3 parts:

  1. Cut the amount received by an unemployed worker even more from now until 2013.
  2. Employers would pay on the first $10,000 of pay per employee in 2010. That amount would increase to $16,000 in 2013.
  3. Employees would begin to pay unemployment insurance out of their pay while they are working.

Rather than ask businesses to pay their fair share, the Governor and VT legislators are willing to cut benefits to unemployed workers and add a new tax to every employee currently working. That seems fair, doesn’t it?

Racial Profiling

Governor Brewer signed the Arizona immigration bill into law Friday. What do you think, does this bill legalize racial profiling?

Legislative Update: T-Bill

The Transportation bill came back from the Senate and my committee voted unanimously not to concur.

One issue of contention concerns the Scenic Preservation Council, a group of citizens and one or two appointed legislators with various areas of expertise (i.e. planners, etc.) who statutorily advise the state planning director in the Agency of Transportation (AOT) on scenic road and scenic by-way designations. AOT wanted to get rid of this council, along with some other advisory councils, stating that there was someone in the Agency who did this work. However we heard testimony supporting the importance of this advising group from various people who serve, or have served on it.

The overwhelming testimony was that this is an opportunity for people in local communities to bring ideas and knowledge to the Agency regarding aesthetic and historical aspects certain roads and the desire of the communities to designate them as such. Because of the testimony we took out the section abolishing the scenic preservation council.

The Senate kept the councils in their bill but designated a different composition of membership and removed the provision giving the Speaker and the Pro Tem the authority to appoint a member each from the House and Senate. The Senate version also stated that the Secretary of Transportation shall call the meetings. These last provisions seemed an attempt to weaken the power of the scenic preservation council. They represent one strong reason that the House Transportation committee voted not to concur with the Senate version of H. 784. We will see what happens once the bill comes out of conference.

There appears to be an intention in general from AOT to want to dispense with advisory councils. AOT also recommended doing away with the rail, aviation, and public transit councils. These councils are made up of volunteer members who receive, in some cases, only a small per diem for their attendance at meetings, so the issue is not one of financial savings. The committee rejected these latter proposals as well, believing that citizen voices are an important aspect of transportation planning and aesthetic consideration.

Legislative Update: Legislative Christmas Trees

As the biennium draws to a close, there is an irresistible temptation to add pet ideas onto bills that are already moving toward passage. The resulting bills are known as “Christmas trees,” and they are unfair both to legislators and to the public.

Because the new ideas often have little connection to the original bill, the bill title gives no hint that one should search for new language. For example, last week a bill entitled “An Act Relating to Recounts In Elections For Statewide Offices” included a new provision that would have barred the count of write-in votes for any person who had not already filed a formal “declaration of candidacy” by the Friday before election day.

This new provision was proposed by a House committee after its review of S.122, which had passed the Senate with a single sentence regarding statewide recounts. It’s unclear how much testimony the House committee took on this issue, but it’s certain that the Senate has had none. With just a few days remaining in the session, the Senate would have no time to do its own evaluation of the proposal. Happily, after many House members questioned the wisdom of the new provisions, the bill was ordered to lie, and the committee chair has promised to remove the proposed new obstacle to counting write-in votes.

This whole process needs reassessment. Although there may be worthy proposals that should not have to wait another year to become law, we need (1) much greater transparency when the “Xmas tree” process is used, (2) additional time to evaluate the proposal before any floor vote and (3) a very clear means for citizen input. Without such changes, the entire legislature will continue to be attacked for being arrogant and out of touch with the concerns of ordinary Vermonters.

Legislative Update: Safe Passing

H. 540, or the Safe Passing Bill, passed the House and Senate and will now go to conference because of minor language discrepancies. This bill gives legal protection to bicyclists and other "vulnerable users" and represents an important step in recognizing that Vermont roads are a shared public resource and not just built and maintained for automobiles. I am the lead sponsor of the bill, and have been appointed to the conference committee.

Coincidentally, U.S. Secretary of Transportation Ray LaHood caused a minor firestorm recently by acknowledging the importance of walking, biking, rail, bus, trolley, streetcars, etc., in transportation planning and policy. La Hood said that the development of livable and sustainable communities is a major component of the Obama Administration's policy and so-called "alternative" modes of transport are central to that vision.

Legislative Update: Complete Streets

A bill on the theme of transportation and livable communities (which I co-sponsored with Rep. Zuckerman among others) came before the House Transportation Committee earlier this session but was voted down by the majority of the committee because of concern about costs. Rep. Burke was the only committee member to vote in favor of the bill, H. 741, which would require the Agency of Transportation to adhere to "complete streets" principles. This means integrating all modes of transportation to provide for a system which is accessible to all users, of all ages, in an environmentally sound and resource-efficient way. The bill would also require the Agency of Transportation to co-ordinate with the Vermont Climate Change Oversight Committee and regional planning commissions.

This bill was being promoted by AARP in recognition of the aging of Vermont's population and the need for a variety of transportation options. Environmental groups also lobbied on behalf of the bill. It is likely that it will be introduced again next year.

Challenges and Cuts

The Challenges for Change bill passed the house Friday on a voice vote after much debate over the past couple of days.

Though I think government should be as efficient as possible, and manage taxpayers dollars in the best manner possible, I believe that Challenges for Change is a process that should not have been necessary, and has not realized the full $38 million in savings.

Efficiency, streamlining, and long term planning in State government is an ongoing job function of our highly paid Commissioners, Secretaries and Deputies and should be happening. For me, Challenges for Change is about “right-sizing” and “down-sizing” state government, all without a good plan.

Legislative Update: Challenges for Change

As a part of the Challenges for Change committee process, House Committees looked at Administration proposals for the $38 million in savings and placed them in "buckets:" buckets defined as "No," "Needing More Work," or "Yes." The House Institutions and Corrections committee voted to put the Department of Buildings and General Services (BGS) proposal to become a Charter Unit into the "No" bucket. Charter units agree to meet challenge targets of reducing spending or generating entrepreneurial revenue of $2 million (total of all Charter Units) in general funds in FY 2011 and $4.5 in general funds in FY 2012. All with the idea that a combination of flexibility and rule or statute changes would enable the "charter unit" to reach their target.

As a Charter Unit, one of the outcomes that the Administration and Commissioner of BGS proposed was to sell 500,000 sq ft of state office space (a combination of almost all state assets outside of Montpelier and Waterbury complex) to receive one-time revenue, then leasing those assets back.

The BGS Commissioner touted that this proposal would:

  • Save the state dollars because he would only be leasing the type of and office space size needed to provide administrative program services;
  • Get him out of the rental business; and
  • Generate one time dollars by selling state assets.

When asked if this could privatize the work of state employees:

  • The Commissioner's answer was "yes", it could displace custodial staff and possibly others;
  • The Commissioner highlighted that they would not need to manage the space as they currently do with the fee for space; and
  • The Commissioner said that though the custodial and maintenance services could be outsourced, he thought that it might be possible through the lease arrangement to allow state employees to continue to provide those services

Several committee discussions lead to the decision to move the proposal to the 'No" bucket, including:

  • There was little time to consider the consequences and issues due to lack of established criteria and strategies to make sure that this proposal would be for the long-term public good of government and not just done to fill the short term budget gap.
  • The underlying proposal could be about privatization of public assets, employees and services.
  • This could put the state in competition with private real estate business.
  • There was not enough information on which state assets the Commissioner was proposing to sell, or the market value of those assets. The BGS Commissioner did not offer a way to determine this either.
  • Whether it is wise to sell long-term assets to fund short term needs, especially if the state needs the assets in the future when the economy improves.
  • In these tough economic times, whether the state could get the best price for the assets.
  • Serious concerns about accounting. After all, this proposal would allow BGS to count the proceeds from the sale of the assets as current revenues and then disregard the cost for renting back the same assets.
  • The increase to future governmental expenditures in the form of lease payments.

This is something we will need to keep a watch on as the Challenges for Change bill moves through the Senate. The selling of state assets has been done in other states as a short term budget fix. Politicians eyeing the next election might think only of the immediate resources needed for short-term budget relief rather than the long term needs.

Vermont's Health Reform Fiasco

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How sad that I'm writing again, at the end of April, about health care reform. I thought we would have something to hang our hats on by now considering legislators showed their interest by holding a public forum as soon as the session started in January. But this week the hopes I had for something that would help us move toward a single payer system were foiled once again. S.88, our health care reform bill, left the Senate as something I could accept. It wasn't the study on how to implement single payer that I had worked for but I thought it could help us get there. It called for three studies, one had to be of a single payer system, and it focused the studies so we would know what the net economic impact of each of them would be. It allotted funds to pay for a consultant and specified s/he had to have experience in system building. And it placed the process of gathering information and defining what would work under a health commission so it would be more focused and less political. My hope was the information would be clear enough to get the business community on board and to appease the fears some have of the cost of making this change. This week S.88 debuted in the House Health Committee and they took the 21-page straightforward bill and turned it into a 104-page disaster. In a typically political move they attached everything they have been working on this session to S.88, because that bill had momentum. What they have done is ensure we end up with nothing and I have to agree nothing is better than what they are proposing. My main issues are:
  • It is too complex. With so much included it will be impossible to get support for this bill.
  • They have combined a plan for studies (as laid out in S.88) with a plans for implementation. This will effectively render all studies useless because we will have to hold them while we wait and see how the implementation goes.
  • They have missed the point regarding they type of reform we need in Vermont and focused on quality of care and delivery instead of costs and accessibility. I want to see a high quality but Vermont is one of the leading states. We need to find an affordable way to pay for this.
  • Embedded in the Blueprint for Health are too many regulations that are worrisome and that doctors do not support including serious issues of patient confidentiality.
So once again I'm left waiting and hoping. The bill is scheduled to leave the House Health Committee this week and will likely head to the Appropriations Committee. Maybe we will have luck there, as we did with the Senate Appropriations Committee, and they will remove the excess and ensure the bill is defined and useful. If not it will have to head to a Conference Committee (made up of members of both the House and Senate) and we will have to work to support and educate them to ensure this bill will deliver something useful to Vermonters. There is still time and a glimmer of hope that Vermont will pass meaningful legislation that moves us to create a system that provides affordable health care to all Vermonters. Stay tuned for the finale, coming by the end of the month!

Efficiency and Transparency

Efficiency and transparency in Government are the latest buzzwords out of the mouths of politicians, especially during election times. Imagine if the candidates had to wear the logos of their corporate sponsors. That would be a new level of transparency! Can you imagine a candidate giving a speech about our need for financial reform while wearing a J.P. Morgan jump suit and a Bank of America hat?
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