EVIDENCE OR CARNAGE?

Only a week away and almost too much to compile. Some of our loyal liberal readers have had trouble making the link between the need to replace lost jobs and making Vermont more business friendly via regulatory and tax policy. Nevertheless, evidence or carnage, here goes:

Fanny Allen cuts 128 jobs. Doctors and executives take pay cuts. Sources suggest that more will follow. Not only is cash flow off for the obvious reason of the huge cost overruns, but surprisingly, business is off. No one knows if people are healthier, going elsewhere, or delaying treatment. The end result is less money, fewer jobs at lower wages.

This has not stopped the new nurses' union from saying that they do not believe a word of it, pay up or else. It has not stopped the nurses' union from running radio ads describing patient care as unsafe, even deadly at Fletcher Allen. That may be one reason why business is off. Come to Fletcher Allen and die needlessly.

WAY DOWN UPON THE CONNECTICUT RIVER

Life is not much easier at the Dartmouth Hitchcock Medical Center. They announced that their plans to add 600 new jobs are "no longer relevant." Or as the late and not so great Nixon Press Secretary Ron Zigler might say, "Inoperative." Story here: http://www.vnews.com/05182003/1102861.htm

They are facing "continuing financial difficulties." These were just made worse by the New Hampshire budget passed by the House, which lowers the reimbursement rate on Medicaid from 73 percent of cost to 50 percent. So who will make up the difference? No, not you again? 

DID YOUR PAYCHECK BOUNCE?

EmployAbility Inc., an employment agency in Claremont, NH with offices in Randolph, Rutland, and Brattleboro, bounced twelve paychecks before filing for bankruptcy. They employed ninety. Mack Molding of Arlington laid off 36.

Even the rich have trouble. Woodstock says that commercial vacancies are piling up. In an article in the Valley News Christina Slusit of Fossilglass said, "(The vacancies) are the kiss of death. If customers just see cardboard boxes in the window, they just stop walking." 

THE WINNER IS NORTH CAROLINA!

Infineon Technologies of Williston intends to add 400 new high tech, high paying jobs and invest $8,000,000. After consideration, they chose North Carolina over Vermont. We asked Governor Douglas why. "I was not part of all the conversations. But I have to believe that our business climate was part of it."

Across the river at IBM reports are not promising. Sources tell us that morale is low as orders are less than were expected. "They expect us to keep lowering the costs of production. Folks who leave for Fishkill, retire, or find other work are not being replaced."

The tax base is eroding. Wonder who will get the bill? No way, they will shrink government to reduce the impact. Or reduce class size to lower education costs. Or try school choice. Or maybe they will just drive us over the cliff. 

STATE JOBLESS RATE RISES

Yup, fewer taxpayers, more tax consumers. The April unemployment rate is up 13 percent over last year. Personal bankruptcies are up 5.6 percent.

As we wrote last month, income in Vermont’s government sector is up 5.2 percent while falling 5.4 percent in durable manufacturing, 3.5 percent in non-durable manufacturing, and 37.3 percent on the farm. The Department of Labor says that employment is up 2.17 percent in state and local government while down 22.51 percent in electronics, 12.24 percent in furniture, 8.02 percent in printing, and 6.7 percent in lodging.

Tell us again, who is gonna pay? 

BIZARRE

Vermont’s 2001 Small Business person of the year, Susan Dollenmaier of Anichini of Tunbridge, is trying to build a 20,000 square foot retail shopping center in Quechee. She is eager to move her tax-free West Lebanon store because "West Lebanon is not on the path of tourists."

The O’Neal Report speaks volumes about the power of the Vermont brand. Here is proof. But no permits yet of course. How long it will take we do not know. But for each year of the permit process, Vermont misses out on probably $300,000 of sales tax and $75,000 in property taxes. And of course income taxes, the construction jobs and their accompanying income taxes, the new jobs created, and so forth.

It is not that Ms. Dollenmaier complains. She is completely invested in Vermont and its methods. But others may be a bit less tolerant.

But no problem, don't worry. There is urgency in our Senate to pass permit reform and implement other ways make Vermont more business friendly. Right? 

WHAT IS THAT SOUND?

The sound you have been hearing this spring is one school budget after another crashing to bits and pieces. Windsor whittled $5,500 off a rejected budget of $7,740,000 and alas it was defeated once again. Winooski went back to the voters with the very same defeated budget and not surprisingly it was defeated once again. Rivendale, Colchester, Mount Mainsfield Union all down to defeat. Tunbridge passed by one vote. The Times Argus headline read, "All budgets fail in Barre."

Another strange sound is the bitter words exchanged in the letters and op-ed sections of your newspapers. Thomas Gibson, guidance director in Essex, writes, "We’re teachers, not the enemy...we are the nurturers of our collective future." Not in this state’s future; there are not enough jobs now or in the future. We spend more per student then any other state just to export that product to states that have an economic engine. 

CRISP VOLLEYING FOLLOWS

Teacher Arnie Gundersen weighed in saying teachers must eat in twenty-two minutes, not like "the stress-free two martini corporate lunch". What planet does he live on? Everybody who has recently had a stress-free two martini lunch please stand up.

Inga Brown responded, "Name another profession that works 180 days a year, gets over 12 weeks of vacation, pays very little for the health benefits and makes $40,000 to $60,00 a year." She forgot to mention generous retirement plans.

Angelo Dorta, president of VTNEA, fired back that teachers average $40,518, "about the same" as Vermonters. As we pointed out in our last issue, wrong, Vermonters average $29,567 for 250 days a year with no health insurance, dental insurance, or retirement plan.

Mike McGarghan penned an op-ed entitled, "It’s time to stand up to the school unions." Terry Buehner, history teacher and president of the Burlington Education Association says that the union is not interested in renegotiating any contracts. 

MISSION CREEP

Did you know that some of your Act 60 property taxes are being used to start preschools in public schools? Most people don't, including many legislators.

Perhaps this will change. For the first time that we can recall, a brief description of this under-the-radar expansion of the property tax-funded public school monopoly appeared in the media; albeit in a reader commentary (Burlington Free Press, My Turn, 5/21/03).

"Act 60, the Vermont school financing law, currently reimburses local PUBLIC schools $2,222 per child per year for providing 10 hours or more of class time for pre-school children. About 2,000 Vermont children are now receiving these publicly funded pre-school services at a cost of $4.2 million." --Maxine Brandenburg, board member of the Child Care Fund of Vermont (emphasis added). 

COST CONTAINMENT

Act 60 reform plans contain nary a cost control item. Douglas mentions three things to help: lower the rhetoric, compile a list of mandates from the state Board of Education, and study the cost of the multiple school districts. Not half enough.

Act 60’s promise was of manna from heaven. You spend what you need, the rich towns will pay. As economists warned, when the cost is zero, demand is infinity.

Montpelier is a good example. Since Act 60's implementation, full-time instructional staff has increased 51 percent while student population has decreased 20 percent. How can that be? Their budget went down to defeat as well. 

FIRE WHEN READY

Douglas fired the Fanny Allen Board. He fired his own duly elected Republican State chair. He can surely fire a few school boards!

Each budget is passed by a school board. Each contract is passed by a school board. Each Act 60 reform comes from elected representatives or senators. The unions cannot just rob the till. Someone must let them in. One thing is clear. In mature societies like ours, public monopolies with union rights just do not work.

George Bernard Shaw had it right. "A government which robs Peter to pay Paul can always depend on the support of Paul." The teachers union endorsed no Republicans in the last elections. Guess who is robbing Peter? Peter can and does move. Look to the Vermont Fortune 100 living in tax-free Florida. Look at the companies who expand anywhere but here.

It is not that we THINK this is bad, this IS bad. Douglas says a record number of school budgets have been defeated this year. Clearly, school boards are at odds with voters. 

WE GATHER TOGETHER

Why not gather together, regional mandatory school board training sessions led by the governor. Use the emergency board method perhaps to set maximum spending formula that allows sustainable taxation only. Open up a hotline. Do something; this is a train wreck. 

ONE JUDGE IN, ONLY 51 TO GO

The Wall Street Journal summed up the state of Bush’s judicial nominations. The Democrats have added a woman, Justice Priscilla Owen, to their filibuster of Hispanic Miguel Estrada. If only they would then add an African American and an Asian American, the Republican tent’s growth would surge. 

IMITATION IS THE MOST SINCERE FORM OF FLATTERY

"The state is increasingly hostile toward businesses, taxpayers and freedom... The Democrats believe that this is such a great place that people will come here and create jobs no matter what we do... They lean sharply to the left and do not show an understanding of the most basic economic principle: all the goodies legislators toss to constituents are paid for thanks to jobs created by business. They believe that government creates everything...

"Business owners are getting tired of being taxed, regulated, punished and sued. As one senator joked, 'This is still the best place for a small business. Unfortunately you have to start with a big business.'"

Orange County Register on California’s treatment of business. 

WE’RE NUMBER 51!

Even the District of Columbia beats us. ALEC, the American Legislative Exchange Council, has assembled data to show which states receive the most for their the education dollars. It is called the Report Card on American Education, the Education Spending Effectiveness Index.

It is calculated by multiplying SAT scores times teachers per student. A Higher Index means getting the most out of a higher pupil to teacher ratio. A Lower Index means getting the least out of a lower pupil to teacher ratio. Vermont ranks 51st, getting the least bang for the buck. Go to http://www.alec.org/meSWFiles/pdf/Education_Report_Card.pdf 

MY FLYING DAYS ARE OVER

Thanks to all of you for your emails, notes, cards, calls, cookies, cakes, prayers, and visits. Some of you I had never met, others I had not seen in years. Cakes and cookies were delicious. Prayers held and healed me. You are too many to mention by name, but thank you. Thanks also to the elves who put together the last DPR.

Flying off Ruby dislocated my hip and fractured my wrist, sent bone chips and cartilage in different directions, and caused bumps, bruises, and black and blue. Hopefully, rehab, care, caution, and rest will return me to almost anyplace but the saddle. If not, then the future is plastics, hip form at least. 

THE EAGLE HAS LANDED

The Addison Eagle has been sold to New Market Press, Inc. Ed Coates, president of New Market says, "It fits perfectly with Vermont Times and the Rutland Tribune which I also own. It gives us continuos coverage from St. Albans to Ludlow, larger than any of the dailies in the market." 

BROOKLYN BERNIE

The Vermont GOP this week questioned why Congressman Sanders was promoting himself on talk radio Monday when he was supposed to be with his subcommittee discussing ways to reduce the threat of biological terrorism. He says that with his seniority he is now really, really important and powerful in Washington. Nonetheless, Bernie prefers to give testimony rather than listen to testimony. As one political friend told us:

"The thing that struck me the most was the fact that he rants about talk radio and how conservatives have taken over what we hear in this country. He doesn't seem to mind that Hollywood has been completely taken over by liberals; that television has a 90% liberal slant. What slant does the West Wing have? What about Will & Grace? Then there's the music world our teens listen to. Look into our classrooms, our college professors and school teachers. All about 90% liberals. Then lets talk about the written press! God Lord!

"So here's Bernie kvetching that there are no diverse views on radio but he doesn't mention television, music, the press, our college class rooms our high school class rooms or Hollywood--all bastions of liberalism." 

HORSE POOP

»» Governor Jim Douglas, Montpelier: I'm sorry to hear of your mishap. We missed you at the press conference. Hope you're up and about soon. 

»» Senator Pat Leahy, Washington: Marcelle and I wanted to wish you a speedy recovery from the injuries you suffered recently during a fall while horseback riding.

Having been injured myself in a similar accident several years ago, I understand how painful your injuries are. Clearly, the results of a fall from a horse know no partisan bounds.

It hurts but eventually heals.

»» Jack McMullen, Burlington: I was sorry to learn from yesterday's DPR of your riding accident. I was particularly alarmed to read the phrase "many broken bones".

I hope all of your injuries are ones from which a complete recovery is a virtual certainty -- and wanted to send my best wishes for a speedy recovery.

You will be in my thoughts and prayers.

»» Karen Kerin, South Royalton: I wanted to get over to Gifford to see you, but figured you would be mobbed with well wishers and probably I would have to stand in line for hours just to say hello. Get well soon my friend. We need you.

»» Robert Skinner, South Hero: So sorry to hear about your accident James. You really took a rough fall and I hope you are managing the pain as well as possible. Your family must be worried as hell as are your friends. Take care and mend quickly. You are surely needed out here on the trail of misrepresented and half truths. God Speed.

»» Jeff Chapple: You finally con me into sending you $50.00 and the you go and fall of a horse. Hope your feeling better, looking forward to having you back in the saddle.

»» Airell Jenks, Hartland: Very sorry to hear of Mr. Dwinell's injuries--best wishes for a speedy and complete recovery!

»» G. Lester Corwin II, South Royalton: Hopefully you'll be back on deck soon and good as new. Sorry for the tumble.

»» Margaret Sunderland, Bridport: Just a note of encouragement. I pray that your healing is speedy and that God will bring unexpected blessings to your life!

»» David D. Demar, Georgia: I'm very sorry to read in the DPR about your unfortunate accident regarding your fall from a horse. I hope that your injuries will heal quickly, and that there are no lingering side effects from them. I wish you a very speedy recovery, and will pray to that end. Will be looking forward to your next DPR, whenever that might be.

»» Bob & Karin Hardy, Vergennes: Sorry to here about the horse fall. Hope they pieced you all back together. In one way you were probably lucky to come out as well as you did. Maybe try alpacas. As they say they can't keep a good man down as you dictated the newsletter in a prone position. Nice going! All the best and speedy recovery. 

EMPTY STOMACH

»» Jim Daley, Colchester: An otherwise very pleasant first Saturday in May was ruined last week by our undistinguished permanent politician James Jeffords and his response to the President's radio address.

Seeking to drive more wedges, Jeffords is described by Gannett Gazette news service writer Ellyn Ferguson as defending "moderate GOP lawmakers fighting the White House" over its plan to return taxes to taxpayers. She said he was referring to Senators Snowe and Voinovich when he said they were being vilified for taking "stands of conscience."

Jeffords asked: (presumably with a straight face) "When did standing on principle, speaking your conscience and representing your constituents become unacceptable in certain Republican circles?"

That's when I went for the barf bag. 

DEATH BY TAXES

»» Ned McElroy, West Dover: I am a recent full-time resident of Vermont having retired here in 2000. However, I have owned a "second" home in Southern Vermont since 1981.

Currently, I serve as Chair of my town's Planning Commission. Here are some observations I have made since relocating here:

1) Act 60 is killing this state. Not only are "locals", many of whom have lived here for generations, being unfairly taxed, Act 60 also discourages anyone to move here. Commercial businesses under current "reform" proposals will be hit even harder than up to now.

2) Those of us who have moved here to enjoy our retirement years are finding that our overall costs of choosing Vermont as a place to live are fast rising out of control: In addition to Act 60, health insurance premiums are rising at rates well in excess of inflation.

3) Drug abuse is prevalent. It is the number one problem confronting our local law enforcement agencies.

4) Employment opportunities for our younger residents are virtually non-existent. Past and present state government policies and tax laws discourage small entrepreneurial businesses from being started. Economists will tell you that it is small business that creates jobs in this country. There is no incentive to do this in Vermont.

COST CONTAINMENT

»» George Cross, Winooski, Vice-chair,House Education Committee: I thought your readers might be interested in these figures. The Vermont Department of Education web site provides the following data:

School districts with fewer than 100 equalized pupils include 2.3% of Vermont's student enrollment and expend 1.6% of the state's total above block spending, $1,977 per equalized student. Above block spending is the amount expended over the state block grant of about $5,600 per pupil.

School districts that operate a complete K-12 system include 28% of Vermont's student enrollment and expend 23% of the state's total above block spending, $1,935 per equalized student.

School districts that operate an elementary school or schools and belong to a union high school district include 47% of Vermont's student enrollment and expend 53% of the state's total above block spending, $2,637 per equalized student. If these 108 school districts expended about the same amount as the very small districts or the districts that operate K-12 systems the total savings would exceed $30,000,000.

Thus, those who are looking for ways to make Vermont schools more cost effective need to take a long, hard look at these 108 school districts to learn how and why they spend their money. The Department of Education has substantial data which can be analyzed in many different ways to complete such a comprehensive review. Until this is done, we are simply guessing at why schools cost what they do and speculating about how this cost might be 'contained.' Vermont's children deserve more than simple guesswork and speculation.

Editor's note: Those interested in cost containment might also want to look at merit pay, allowing community volunteers to teach, and of course, full school choice.

FAVORS THE "AVERAGE" BENCHMARK

»» Tom Halnon: The recent article "Dorta’s Distortions" left me with just more questions. What is the average educational level of Vermont teachers? How many years experience does the 'average Vermont teacher' have as a teacher? Once we have that information, the next question that needs to be answered is: What is the average salary for other professionals of similar education and experience both nationally and here in Vermont? Are teachers over-paid? Under-paid? Who knows! Nobody on either side of the squabble is telling all the relevant facts. Once we can compare apples to apples we might have a fair chance to spot which is the bad one. 

ACT 60 "PSEUDO" REFORM

»» Robert Maynard, Williston: In a recent column John McClaughry, of the Ethan Allen Institute, has this to say about the so-called Act 60 "reform" bill coming out of the Vermont House:

"The core of the bill is new taxes: increasing the sales and use tax from 5 to 6%, extending the sales tax to beer and soft drinks, increasing the property transfer tax from 1.25% to 1.75% on nonresidential property; jacking up the tax on everyone's phone bill; and setting a $1.59 state property tax rate on business and second home property. ... The bill's advocates estimate that the bill's $70 million in new taxes ...."

There is one more point to add. According to the May 2nd Free Press article on this subject, "The bill also would increase the telecommunications tax to six percent ..." If I am not mistaken, when Act 60 was passed in 1997, it introduced a 4.36 percent tax on telecommunication services. Not surprisingly, Vermont ranks 48th out of 50 states in Broadband high speed Internet access. It is no secret in the IT industry that our telecommunication infrastructure is archaic. This is one of the biggest factors holding back a rapid expansion of the "Telecosm" driven economy. George Gilder has written about this on the national level, (it seems that we are being passed up by places like South Korea when it comes to high speed Internet access: http://www.gilder.com/Gilder.comNews/GGWSJ02.19.03.htm) but the situation is even more dire here in Vermont.

As your readers probably know, the IBM plant in Essex Junction is a 200mm plant and the future of Microelectronics clearly lies in 300mm plants like the one in Fishkill, NY. The plant here in Vermont may not be abandoned any time soon, as was initially feared, but it is likely to face a gradual decline into obsolescence. The future of Vermont's economy lies more in small entrepreneurial startups than in large manufacturing plants. That being the case, raising the telecommunications tax is NOT the way to go.

The frustrating part of it all is that, if Vermont would simply reduce its educational expenditures to the national average, it would save the taxpayers $155 million (see the May issue on the Ethan Allen Institute News Letter). Another $230 million in savings for the beleaguered Vermont taxpayers could be had if Vermont reduced its spending on public health and welfare to the national average. That's $385 million in savings to the Vermont taxpayer merely by bringing our spending on health, education and welfare in line with the national average. We are not talking about a libertarian utopia here folks, merely that Vermonters seek to become a normal state. (There once was a time when Vermont was on the more libertarian end of the spectrum when it came to government dependency on the part of its citizens.) When will our Republican "leadership" wake up and realize that "real" Act 60 reform means a reduction in overall spending, not playing a shell game with various taxes so as to make it appear that the problem is being addressed. 

VIEWPOINT 

»» David D. Demar, Georgia: Mr. Jim Peden, Chair of Shoreham Republican Caucus wrote in the 4/21/03 issue of DPR that: "...The reason why we can't win at the local level is we have lost a lot of women voters who once sided with our original core principles. By constantly beating the dead horse of abortion and gay rights issues, we have driven our moderate female voters away from our camp..." He continues"...Issues which have been firmly settled by the appropriate Supreme Courts, we cannot change, so why dwell on them?..."

To start, our most fundamental "core principle" is the Right to Life as defined in the Declaration of Independence and the Preamble to our Constitution. It was the courts that made abortion and "gay rights" issues in the first place, and no one can argue the courts are not political. It seems to me the only people who want the abortion and "gay rights" issues to become dead horses are those who favor both. Secondly, court "opinions" can be reversed. Why do you think Patrick Leahy has been stonewalling President Bush's judicial appointments for so long? If the courts aren't political, what would be the point?

Fifty-two percent of U.S. women are Pro-Life. Nearly sixty percent of Vermonters oppose Civil Unions. Why should society discount all the political, moral and social ramifications of these issues, and remove them from political discussion just to cater to a few "moderate" women voters?

If, as you say, the appropriate supreme courts have "firmly" settled the matters of abortion and "gay rights", that implies courts can never err in any decision they make. If that's the case, why do we need legislators and governors? Why not just elect judges? Why not? Because we all know that many judges are social manipulators and political activists. That's why.

The abortion issue isn't just about abortion. It's about bigotry in its purest form. Read Margaret Sanger's books, (founder of Planned Parenthood) "The Pivot of Civilization" and "Woman and the New Race". Does her statement "...more of the fit; less of the unfit" sound like someone striving for equality, or dominance? Why do Planned Parenthood abortion clinics (who receive state and federal money) get a "free ride" from the Vermont Attorney general regarding the "mandatory reporting law."

Visit the website "Just say YES/The Coalition for Positive Sexuality". See how youth in this country are being seduced into thinking that deviant sexual behavior is normal. Also notice how they favor abortion and give kids information so they can circumvent parental consent and parental notification laws regarding abortion.

Finally, if moderate female voters are pro-choice and pro "gay rights", then they're not really "moderate" at all. Whether these women stand with us or against us is irrelevant. We should never trade our own core beliefs or convictions for anyone's vote. If we do, we lose our own identity. As has been said, "You either stand for something, or you'll fall for anything". Perhaps it's not that we've changed our core values, Mr. Peden, but that some women have abandoned theirs. More's the pity. 

THEY LIKE US 

»» James Nickerson: I enjoy reading your newsletter every week. Thank you for providing such an excellent resource. ......heal and get well soon!!! 

Oops. The commentary in the last issue was not written by the Captain America. We apologize. We experimented in using his/her nom de plume to assist another who wished to contribute anonymously. 

SHOW ME THE MONEY 

"Teaching is a demanding profession that requires skill development on par with doctors and engineers. The public should not expect teachers to work for the low wages paid to previous generations of educators who relied on charity to get by. It is a calling, but it's not a calling like you're a nun." --Laurie LaPlant, a teacher in Essex, quoted in the Burlington free Press. 

WALDEN II 

"Chip Chaffee, a 13-year-old student at Vermont's Walden Elementary School, was excited last fall when he learned of a 'narrative writing project' that would be assigned this spring:

"He closed himself into a room over Thanksgiving and wrote a fictional war story inspired by current events and his father and grandfather's military experience. Chip spent three days working on the tale which featured his father, step-father, grandfather and himself as main characters involved in military action in Afghanistan. . . .

"Chip said when he tried to turn the story in, his teacher refused to accept it because it contained violence. 'I didn't get a chance to hand it in. She asked me what it was about, and I told her it was about the war,' he said, 'I wrote that whole story and worked really hard.'

"The teacher, Kendra Armitage, likes 'organic bananas' and has 'protested against clear cutting the redwoods in California,' according to the school's Web site." http://www.waldenschoolvt.org/dir.html

--Opinion Journal "Best of the Web" 05/09/03 http://www.opinionjournal.com/best/?id=110003477 

COMMON SENSE 

"We contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle." --Winston Churchill, quoted in Campaigns and Elections, June 2003 

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