WE COULD HAVE DANCED ALL NIGHT 

It was cold, squeaky snow underfoot, flurries in the air. There were stretch limousines disgorging their revelers. The long white heated awning beckoned. Cadets ushered you along, took your coats, hats and boots. The ballroom was a swirl with elegant ladies and spiffed up men. Huge heavy equipment parachutes softened the ceiling.

Islands of hors d'oeuvres were mid-floor. Chefs offered hot foods near the sides, well patronized libation stalls along the walls. There were Democrats and Republicans and the ubiquitous lobbyists. All the statewide constitutional officers were there. The Vermont Jazz Ensemble played on, rock and roll no less. So many women, no Birkenstocks, no hippie duds; graceful lines, a slow and enchanting gait, a twirl on the dance floor. Such a change from the harder edged Capital essence.

A long white satin-like gown became a happy looking Ruth Dwyer. The First Lady's classic beauty was set off by a dazzling red sparkling gown. The Governor did not have a chance to party, there were too many well wishers. He did not seem to mind. No one seemed eager to leave. Congratulations to all. 

WE’RE NUMBER ONE 

Govenor Jim Douglas said at his press conference this week, "According to the Census Bureau, Vermont has the highest per capita tax burden in the country." Totally amazing when we also have the highest second home ownership in the country, who receive very little in services while paying lots of taxes. 

NEITHER A BORROWER 

AP’s Ross Sneyd and Vermont Press Bureau’s Tracy Schmaler were pressing Governor Douglas on his refusal to raise our borrowing limit set at $39,000,000 by the Debt Affordability Committtee based in part on the recommendation by their consultants, Government Finance Associates of New York.

Douglas responded that we still have $460,000,000 of debt to pay and are 14th in debt load in the country. With a new governor, we seem to be hearing new information, steadily denied by his predecessor. Going to $500,000,000, a number seemingly recommended by Ross and Tracy would just add to the already overburdened Vermont taxpayer, said Douglas. 

DOUGLAS APPOINTS 

Governor Douglas announced at his weekly press conference, attended by a cast of thousands, Eileen Elliot from PATH (Prevention, Assistance, Transition and Health Access) to Deputy Secretary of the Agency of Human Services, Patricia House Commissioner of PATH, Steve Gold Commissioner of Department of Corrections, Susan Besio staying on as Commissioner of Developmental and Mental Health, Patrick Flood staying on as Commissioner of Aging and Disabilities, Rob Hoffman from the Chittenden Bank to Commissioner of Finance and Management, Jonathan Wood as Commissioner of Forests and Parks, former representative and Republican nominee for Auditor Bruce Hyde as Commissioner of Tourism and Marketing, David O’Brien as Commissioner of Public Service, and Abie Lewis as Director of Emergency Management.

Supreme Court Justice James Morse is stepping down from the bench at Secretary Charlie Smith's urging to become Commissioner of the Department of Social and Rehabilitation Services. Former Representative, state Senator, Congressman, and Secretary Richard Mallary is our new Tax Commissioner. And last but not least is Rutland’s former mayor Jeff Wennberg as the new Commissioner of Environmental Conservation. Jeff was quickly cornered by the press wanting to know how a conservative could have conservation credentials. 

GOING, GOING, GONE? 

Jim Haynie, President of Chesapeake Hardwood Products of Virginia, told DPR that, failing an unexpected last minute sale (one potential buyer was still undecided), their Hancock plant and its 80-100 employees would be finished "sooner rather than later." The equipment would be moved to Virginia or sold and the building would be for sale. The plant has been operating since 1927, currently working 24 hours a day, five days a week.

Haynie said that the inventory tax had been a significant thorn, that they had gone to the town on "several" occasions to discuss the tax. Their failure to eliminate the tax prompted a strategic review which concluded that "we would be better off making our products in Virginia."

Once they had announced their intentions, Haynie said "People from the state development office contacted us to say that they could do something about the tax, but it was too late."

For the Hancock plant's possible obituary, taken from Chesapeake's web site: http://www.chpi.com "Throughout the years this operation has been a consistent producer of the highest quality hardwood plywood in the industry. Quality product results from the vast experience offered by the 100 employees working together as a unified team. With the average years of experience being more than 15 years, ability and dedication to the manufacturing process is what makes Chesapeake's plywood known and requested by wood workers throughout the country." 

GOING, GOING, GONE, SOON? 

The U.S. Environmental Protection Agency of Boston announced that Ethan Allen Inc. has agreed to a settlement for alleged clean air violations at its Orleans, Vermont facility and will pay a $73,852 penalty. The settlement stems from emissions violations in 2001.

"Recent research shows particulate pollution can have serious public health impact," crowed Robert W. Varney, regional administrator for EPA's New England Office.

We all know that the number one air pollution issue for Vermont which the EPA only worsens is the soft coal fired power plants of the mid-west. According to the former Ethan Allen property manager in Randolph, Allan Legacy, Ethan Allen is very good at remedying any environmental problem. They are good public citizens and they are financially strong, carrying no debt. We might want to encourage their presence and not try to run them off. 

DEMOCRAT’S WPA 

Ever wonder where your "energy efficiency" charges go? To handsomely compensated Democrats. According to a report in the Caledonian-Record, Efficiency Vermont employs a secretary earning, well receiving at least, almost $100,000, a director at $88,494, three program directors at $80,099, $71,300, and $70,326, and just over $65,000 for a program manager. What do you make? And do you have a great health plan? And a great retirement plan? Maybe you are in the wrong line of work. 

WHO OWNS VERMONT? 

The Free Press writes that 82 percent of Vermont is privately owned. Former Representative Ira Pike, R-Mendon, did a study which concluded that approximately 55 percent of Vermont is privately owned. Pike included in his study not just the land owned outright by the state and federal government but also highway right-of-ways, railroad right-of-ways, and other liens, obligations, or environmental and zoning rules which removed or restricted the property from private use. 

LAND TRUSTS (follow up) 

DPR wrote about land trusts in November and writers questioned whether or not land owned by land trusts is subject to property taxes. For the most part yes, but each town’s lister can develop his or her own policy.

Often the trust holds the land for only a short time before transferring it to the state, then no taxes. If the land trust buys development rights, they do not pay a property transfer tax nor do they pay a property tax on the property they just acquired. Often the value of the land is reduced when the development rights are gone. This lowers the tax base. Usually, though, the landowner must appealed his/her assessment to make this happen. 

STORMWATER 

They are coming to get you. First it was Lowes, now it is John Q. Public. New rules are going into effect. The state basically ignored the 1987 Federal Water Pollution Control act as it related to stormwater runoff. But it will not ignore you and me.

As of March 10, 2003, according to Kim Greenwood at the Vermont Agency of Natural Resources, "Projects disturbing over an acre of earth" will require a permit obtained by applying with your copy of the "erosion and sediment control plan and a fee of $250" to the agency.

Just when you thought that you had elected a Republican governor and that life would become easier, the beat goes on. Governor Douglas was hard at work on his inaugural address and uninformed about Ms. Greenwood’s plans. One engineer who attended the ANR meeting last week explained the new policy and told us "most of the stormwater runoff is caused by farms but they have an exemption. The second largest source of stormwater pollution is caused by town and state highways. But they make the rules."

To check out the new rules go to: http://www.vtwaterquality.org/stormwater/PhaseIIFactsheet.pdf

For a permit application, go to: http://www.vtwaterquality.org/stormwater/PhaseIIDraft.pdf

Take the road by our house for example. It used to be gravel. When they paved, they did not hook up the culverts and the stormwater drains to the sewer system, they just dumped the water in our fields. They dump the sand, oils, and salt with the stormwater; they don't ask, they don't compensate, they don't remediate, and it looks like they will not be required to; probably could not afford it anyway.

But you are rich, you can afford it. If you want to construct a large garden perhaps, build a house with a long driveway, build a small parking lot for your business using an acre or more, you will be required to take care of any potential stormwater and snow melt. Of course they are very concerned about affordable housing, which has just become more expensive. Our engineer concluded, "The littlest developments produce an insignificant impact on the problem. If you want to see the problem, look at the streams around St. Albans Bay in the springtime."

How many permits do you think Ms. Greenwood will have to issue? How many new employees must be hired? Or in the alternative, how long will it take to receive your permit to plant tomatoes this spring? 

ON THE BACKS OF PROPERTY OWNERS 

The Burlington City Council last week demanded that the state "take the necessary action to increase the education block grant or increase the predictable yield in an effort to reverse the trend of increasing property taxes." The Council is concerned that the state may reduce the portion of the Fund that comes from State General Fund Transfers, thereby shifting even greater burdens onto property tax payers.

The Vermont League of Cities and Towns shares this concern, writing, "This has happened already this year when the state’s Joint Fiscal Committee acted in August to reduce the current transfer by $9.3 million, and Gov. Dean proposed reducing that amount by an additional $12.5 million in the upcoming budget."

The Vermont League of Cities and Towns is urging other municipalities to adopt resolutions like Burlington's, and has provided a downloadable draft resolution. For the whole story, go to: http://www.act60.org/vlct_ed_fund_01_03.htm

WORKMAN’S COMPENSATION (follow up) 

We are pleased by the attention being shown to this very difficult and business-numbing expense. Our examples two weeks ago have brought us lots of attention. General Counsel Stephan Monahan of the Department of Labor called to say that he did a keyword search of their database and could not find the cases mentioned. Attorney Patrick Biggam of Biggam, Fox and Skinner of Montpelier emailed to say that the cases, if true, "were gross abuses."

We revisited the companies. In the case of the "motorcycler", we were told that they had second hand information as the company left the arguments up to their workmans’ compensation insurance company. They are not sure what arguments were made or not made. They did lose on appeal and were stunned. As a result they replaced their workman’s compensation insurance company and instituted their own program to contain costs. No attorney represented them.

We reviewed the company files in the "hard worker" case, again the information was second hand as the argument was made by the insurance company. In the end, workman’s compensation was denied but when the insurance company asked for a refund of moneys already paid out based on fraud, i.e. collecting wage compensation while working for wages elsewhere, the claims adjuster reportedly said, "it is not fraud unless I say it is fraud and this is not fraud." No attorney represented the company.

We also reviewed the files in the "snowmobiler" case. Again much of the information was second hand. The company in this case also replaced its workmans’ compensation carrier with one believed to be more aggressive. The employee did return to work after a long and expensive rehab period, but quit during her first day. An attorney did not represent this company. Each of these companies expressed a willingness to meet with the new Labor Commissioner Mike Bertrand to talk about these and other experiences with workmans’ compensation.

We have received calls as well from businesses telling us their particular tale of woe with workmans’ compensation. It is a very difficult problem. The concept is a good one; cover the worker for on the job health risks. It has made the companies more vigilant and safety conscious and it has been a safety net for workers.

The problems with the system are extensive. Some workers clearly take advantage. Successful bogus complaints are contagious and lead to more. Employers believe that they are not treated fairly by state government, that officials are biased towards employees. Insurance companies do not represent the employer but themselves. Their "downside" to a loss is to charge a higher premium next year.

Higher rates for one appear to force higher rates for all in an industry. Once the rate goes up, the company is stuck with it for three years. Doctors often are "shopped" by the employee until he/she finds one who suggests more rest and recuperation while continuing to collect wages. Some doctors seem skeptical of "light duty" work for recovering employees.

Part of the solution is attitudinal. We hope that Governor Douglas takes the time to meet with state employees department by department to share with them his vision of service and his expectations. We hope that the legislature will do what it can to respond to the urgent need of employers. We hope that businesses learn by the mistakes of others and become more vigilant. 

FOLLOW THE MONEY 

Well in Vermont, you cannot according to Vermont's DOE's December, 2002 Audit Unit Newsletter.

"Many audits consolidate grant funds or use incorrect revenue codes and titles for grants received from this department. This method makes it impossible to identify grants advanced and the status of those funds."

Citizens' rights are abridged, to say nothing of auditors' requirements. Click here: http://www.state.vt.us/educ/new/pdfdoc/pgm_business/newsletter_02_december.pdf 

LOSING IS WINNING 

Former Senator Robert Toricelli, D-New Jersey, dropped out of his reelection campaign just weeks before the election. His move not only saved a senate seat for the Democrats, it made him a wealthy man.

According to Campaigns and Elections Magazine, Toricelli took "about $5,000,000" of campaign funds and deposited them in his personal account. This was standard practice until 1990. Representatives and Senators could build up their campaign war chest, not run and legally convert the millions to their own use. When the practice was stopped, all those then in office were grandfathered. Torricelli had been a congressman, and therefore could and did take the money and run. He remains a very corrupt and now a very wealthy man. 

GAYS ARE DIFFERENT 

This is the conclusion of a UVM study funded by the Gill Foundation of Denver and reported in Out in the Mountains. Though 90 percent of couples said that they entered into civil unions for love and all, 50 percent said that they joined in civil unions to "make a political statement."

Married heterosexual women attend church more frequently than lesbians, gay men had fewer children than heterosexual men, 79 percent of married heterosexual men believed that adultery was wrong, only 50 percent of men in civil unions did. However, 82 percent of lesbians said that monogamy was important. 

WHAT IS A TAX CUT? 

"It's another loss of revenue for cities, which are getting hit, hit and hit again with more inopportunities to collect money," Susan Gaffney of the Government Finance Officers Association said of the President's plan. --New York Times, January 8, 2003.

There you are... A tax cut is an inopportunity to collect money. 

WHO IS HOWARD DEAN? 

An ultra-liberal on social issues who is out of the mainstream and wrong for America, says the Republican National Committee. The Republican National Committee now has a whole section dedicated to Dean on its web site; go to http://www.rnchq.org/Newsroom/RNCResearch/research011003.htm. The Dean section predictably finds nothing of value in Dean's eleven-and-a-half years of governing Vermont. Dean may say that America should be more like Vermont, but clearly the Bush team that runs the RNC disagrees.

They take him to task for civil unions and wanting to make it the law of the land. The criticize him for proposing a national health service, for opposing the Bush tax cut, and for opposing the bipartisan No Child Left Behind educational reform. But mainly, they take serious note of him. Who would have guessed a year ago. 

HOWARD, ARE YOUR LISTENING? 

"If Americans see the tax debate as being waged between the economic elite, led by President Bush, and the cultural elite, led by Barbra Streisand, they are going to side with Mr. Bush, who could come to any suburban barbershop and fit right in... Every few years a group of millionaire Democratic presidential aspirants pretends to be the people's warriors against the overclass."

--David Brooks, author of "Bobos in Paradise: The New Upper Class and How They Got There." 

POWER BILLS 

Last month, the Free Press and the Times Argus ran an Associated Press story on electricity costs. The Free Press headline was "Vermont Power Bills Close to United States' Average." The Times Argus headline was "Complaints about Vermont electric rates debatable."

The Free Press did not print the details, the Times Argus did. For residential use, the national average is 8.72 cents per kilowatt-hour; Vermont is 12.9 cents according to the article, not "debatable" or close to the national average but 48 percent higher.

The industrial rate was even worse. According to the AP the national average is 5.04 cents and Vermont’s average is 7.8 cents or 55 percent higher. The article reports "Top officials at Ethan Allen have cited high energy costs as threatening the future of their plants in Orleans and Beecher Falls... Steve Costello of Central Vermont Public Service said "Vermont electric bills tend to run very close to the national average." Clearly they do not.

Rick Grant, former manager of Ethan Allen in Randolph said that their electric rates averaged 12.5 cents per kilowatt-hour, lots higher than the average of 7.8 cents cited by AP. In contrast Grant said, "Our New York plants contract for power at three cents per kilowatt hour."

Even 12.5 cents is low for one Vermont manufacturing company. Because of demand charges, service charge days, and energy efficiency charges, here are its actual monthly kilowatt charges per hour:

August, 2001       23.8 cents
October, 2001      23.6 cents
December, 2001     21.0 cents
February, 2002     13.6 cents
May, 2002          16.4 cents
August, 2002       17.9 cents
November, 2002     16.5 cents

NEWSPAPERS TELL HALF THE STORY 

"The National Democrats will continue to play the race card as long as the national press corps buys their act. The people of Texas elected three African-Americans to statewide offices this past November. That would be three more African-Americans elected to statewide office than, say, New York, home to many of the national press... All three African-Americans elected statewide in Texas are Republicans" --Rich Galen, Mullings Report, January 13, 2003

"Whenever I pick up a newspaper, I see articles about the dismal state of race relations in America...no one dares speak of anything positive? The truth is, relations among the races are far better than many thoughtful and concerned Americans give themselves credit for." --African American Professor Wes Carter, Newsweek, January 13, 2003 

THE EMPERORS TIP THEIR HANDS 

»» Robert Maynard, Williston: I found your brief summary of Governor Douglas's address to the legislature, along with the response he got to certain lines, to be quite illuminating. The most important line of the whole speech was one that received NO applause, only murmurs. That line was:

"The first Vermont government met in March, 1778. At that time, there were no laws, no taxes, no agencies or department, just people determined to live free and by their own values..."

This line underscores the essence of our Vermont heritage, a heritage that is ignored or scoffed at by too many members of our current political class. I hope our new Governor intends to continue to remind all Vermonters this special, but dying, heritage. It is past time to reflect on the fact that "people, determined to live free and by their own values" do not need recourse to yet more laws, taxes, agencies or departments, to solve the vast majority of their economic or social problems. 

LEARNING TO LEAD 

»» Rep. Kathleen Keenan, D-St. Albans: I think if you are going to make an issue over the Markowitz errors you should also mention the Dubie miscues and multiple mispronunciations while running the joint session including his error in announcing the Governor.

Editor's note: Thanks for your note. I did notice Dubie's errors but this was his first day on the job while it was Deb's 1,462nd day on the job.

FOLLOW THE MONEY 

»» Karen Kerin, South Royalton: At the risk of spoiling blaming a lot of the other culprits that have cost jobs and opportunity in Vermont, I offer you the biggest villain. EPA Region I, aka the Boston banditos, has fined Vermont businesses unmercifully. I have spent several years tracking them and it is incredible just what a problem this renegade federal agency is, while posing as the good guys. The President has proposed that EPA grant money be transferred in the upcoming budget to another group and EPA is fighting to get the money back in their budget. The point is, my friend, the grants go to extremists that support the Region I and liberal causes. It is campaign funding that never shows up on the radar. It is where the incredible money is coming from for the liberals. I have tried to track where the fine money goes, but it seems that is not traceable. I am left with only suspicions. 

DID THEIR PUMPKIN BREAK DOWN? 

»» Mary Mazur, South Burlington: A friend who could not attend the Governor's Ball on Saturday called me on Sunday to ask if it had been called off because there was no article or picture about it in Sunday's Burlington Free Press. I told her that they probably didn't get the copy or pictures back until after Saturday's deadline and she should look for something in Monday's paper. Well, I looked in Monday's paper and there was still no word or picture to be found about the Ball.

The attendance at the Ball was the highest in history and the number of dignitaries present deserved a story of its own. The fact that the Vermont Food Bank received more donations in food and money than at any other fund raiser also deserved some mention.

Editor's note: Free Press subscribers can read about the Ball in the Rutland Herald...: http://rutlandherald.nybor.com/Search/Categories/Article/59002 

SUFFRAGE 

»» Don Beattie: I find it very disturbing that some of the legislators didn't vote for the Governor and Lieutenant Governor. 

THEY LIKE US 

»» G. Lester Corwin II: South Royalton: Thanks for your report on the swearing in of our new Governor. I trust your facts and wish the leftist media would be more like you.

»» David Hale: I look forward to getting your work.

»» Leigh and Leisa Pfenning, Greenville, SC: Thanks for your great reporting and for keeping us informed. We are excited about the political changes in Montpelier. This comes from another exiled family now living in South Carolina. We were driven out by low pay, high cost of living and high taxes. Keep up the good work. 

PERMIT REFORM 

A man says, "Quite frankly Father, I find it hard to believe that the world was created in just six days."

The Padre answers, "Amazing what you can do when you do not have to wait for a building permit." --Jeff MacNelly's Shoe 

NOT A HISTORY STUDENT 

"The January 18th state-wide peace rally is our opportunity to take action and be counted. The last rally on October 26th, biggest in Vermont history, which many of you were a part of, was more than 1,000 strong." --Sarah Caufield, UVM senior from Collinsville, CT 

OBLIGING DOLTS 

"Lenin had a phrase for the Western liberals who took the side of the Soviets in political debates. He called them 'useful idiots.'

"Today we have a new and improved version of useful idiots. These are citizens of the United States and Europe who deliberately put themselves between the U.S. military and Saddam Hussein...in order to stop America from its 'war of aggression.'" -- Columnist Jonah Goldberg 

"Unless the UN inspectors find something before January 27, this will be a war without even the flimsiest of pretexts: an unprovoked attack whose purpose is to enhance the wealth and power of an American kleptocracy. Far from promoting peace, it could be the first in a series of imperial wars." --George Monbiot, ZNet, January 13, 2003 

BUT WHO WILL BE PAYING TAXES? 

The Ontario Daily Bulletin reports California's Democrat Governor Gray Davis is criticizing President Bush's economic-stimulus plan on the following grounds: "Bush should invest money in public projects like roads and Amtrak instead of relying on the private sector for job growth, Davis recommended." 

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