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ext of Gov. Howard Dean's 2002 budget address, Jan. 22, 2002By The Associated Press
Ten years ago, as I stood at this podium, we faced Vermont's most serious economic crisis since the Great Depression.
My speech that day was about opportunity.
That year, we focused on both -- crisis and opportunity.
We made some very difficult financial decisions. We cut programs that we cared about, yet we fought to protect the people and the causes we valued. We committed ourselves to the notion that social justice and environmental protection must be built on strong financial management.
It was in that economic environment that I asked this General Assembly to start Success by Six, and today we have cut our child abuse rate in half.
It was in that economic environment that I asked lawmakers to expand the Healthy Babies program, and today we are among the best in the nation for childhood immunization rates.
It was in that economic environment that I asked you to expand Dr. Dynasaur, and today virtually every child in Vermont has health care coverage.
We have done some remarkable things.
In my 10 years as governor we have been able to reduce the income tax -- twice -- and eliminate the sales tax on most clothing. We have reduced our borrowing, securing the best bond rating in New England.
Ten years ago I stood at this podium and said: "This administration and this Legislature cannot turn back a national recession, but we can see opportunity where others see despair."
Today, coping with another recession, I am once again asking you to build opportunities on a solid financial foundation.
Four times -- last January, last July, this past November, and just last week -- the Emergency Board lowered Vermont's revenue projections. As we started deliberation on the budget last year, we expected General Fund revenues to be just over $916 million. Today we can expect only $866 million for 2002 -- $50 million less than we expected.
At that same time last year, we also established a forecast for 2003 of $950 million. Today we can expect only $893 million of General Funds to support the budget I present to you.
For a lot of Vermont families, this is not news. As more Vermonters struggle to find work, we too must struggle to maintain the financial discipline that will allow us to move through this recession and get people back to work. While we are sympathetic to the plight of those who will receive fewer state services, we must also do our best to help people who have lost their jobs get through these difficult times.
Because of Vermont's hard work and good fortune we meet this recession in much better shape than we did the last. We know how to weather this type of storm: Discipline must be maintained and hard choices must be made
(snip)
The Medicaid budget will present significant challenges this year. Every Vermonter deserves to have access to health care, and I will continue to fight for that principle. But we cannot afford to provide all the services that we currently offer.
In this budget I once again ask that you modify Medicaid to ensure the state-covered plan resembles insurance packages offered in the private sector.
In addition, pharmaceutical costs are eroding the budget of every state in the union. In 1998, Vermont's Medicaid program spent $40 million on prescription drugs. In 2002, we will spend just under $100 million -- a 150 percent increase.
Last year I recommended an increase of 67 cents in the cigarette tax. The Legislature declined to raise this tax, leaving our rate at only 44 cents a pack. In Washington State, the tax is $1.50 per pack, and just last week New York state agreed to increase their cigarette tax by 39 cents to $1.50 per pack.
Smoking is a public health emergency, and the lack of an adequate cigarette tax is an emergency for all Vermonters who depend on the state for health care.
This budget does not include revenue increases -- such as the cigarette tax -- that the Legislature has previously opposed. Therefore, I regretfully recommend to you that we eliminate the expanded VSCRIPT program in its entirety, which is 100 percent funded through state dollars.
I also ask that we impose a 50 percent co-payment on pharmaceutical benefits through both the Vermont Health Access Plan and the remaining VSCRIPT program. These pharmaceutical programs are among the most expensive and rapidly growing parts of the Human Services budget.
If the Legislature does not raise revenues, we have no choice but to reduce the programs. (snip)
There is opportunity in this budget.
Ten years ago we began building a network of programs for children that we have carefully expanded year by year. Today I ask you to protect programs like Dr. Dynasaur, Healthy Babies and Success by Six.
And I ask you to continue your support for affordable housing and land conservation.
We learned difficult lessons from the September 11th attacks.
While state agencies and the National Guard responded promptly, the people Vermonters count on in an emergency are those in our local communities. For this reason, I am asking for an additional $200,000 for police and fire emergency training programs.
In addition I have asked you to approve money to pay for five positions in the Department of Public Safety to work on a regional basis to coordinate and train for emergency responses.
We must also recognize that more can be done to anticipate an emergency associated with the Vermont Yankee power plant. To that end, I am asking that the plant double its $400,000 share of the Vermont Emergency Response Plan. Vermont and the communities surrounding Vermont Yankee must have more resources to cover these costs.
Finally, I also ask you to reduce our dependence on foreign oil by increasing conservation, efficiency and renewable energy programs.
Last year I asked you to approve $230,000 for heroin interdiction in our local communities. It is clear from my conversations with families across Vermont that we have a long way to go. Today I ask for $230,000 in our base budget to make these grants to our local police departments permanent.
In the area of human services, I am asking for an extra $1.5 million for the Department of Disabilities and Mental Health Services. This money will cover the caseload increase in the coming year, and provide an additional $500,000 for the inflationary pressures of the mental health agencies.
I am also asking for an additional $2.8 million for the Agency of Natural Resources. In recent years, we have not provided adequate support for our environmental agency. In fact, the Agency's budget was just over $12 million in 1991, and last year you approved a $13 million figure -- an increase of less than 1 percent per year for 12 years. The increase I seek today would be used to speed the permit process and help retain Vermont's national reputation as an environmental leader.
Finally, I ask that you support $100,000 in the base to continue the "2+2" program to assist students who want to work on our farms.
It's hard to put a price tag on a college education, but many Vermont families are finding that the cost of college -- and the debt that comes with graduation -- is simply too high. We don't know how many high school graduates steer away from the application process because resources are too thin.
Today I ask you to help make a college degree a possibility for every Vermonter who will work for one.
I am asking that in 2003 you restore the money cut from the higher education budget as a result of the rescission, and approve an additional 2 percent increase. Combined, these changes would mean a 4.6 percent increase in funding for higher education in Vermont.
I would like to do more, particularly to offset the under-funding of higher education in the early '90s. But this level of support to the University of Vermont, the Vermont State Colleges and the Vermont Student Assistance Corporation is a critical increase.
This is a down payment on a better opportunity for our children in the economy of the coming decade.
Two years ago we were all marveling at the "new economy." A year ago we were wondering about the "new economy." Today we know the "new economy" is like the old economy; it is going to go through cycles. By carefully matching budget growth to the growth of revenues -- as we have for the past 10 years -- we can mitigate the effects of those cycles.
This is the last budget I will present to this Assembly, and I know it will be a challenge for you to pass, just as it was a challenge for me to build. I will defend the principles of this budget vigorously. But together we can meet the financial challenge and set Vermont on a sound path through the next decade.
Our budget must be balanced. But we can accomplish this without ever losing sight of the values that we -- as Vermonters and as a nation -- are committed to preserve.
Jimmy Carter outlined these principles in 1977: "Our commitment to human rights must be absolute, our laws fair, our natural beauty preserved; the powerful must not persecute the weak, and human dignity must be enhanced."
My goal in this budget is to strengthen our commitment to social justice by building a strong financial base for our future. If we are to preserve human dignity, fair laws and Vermont's natural beauty, we must not abandon the financial principles that have guided Vermont for generations. Thank you.
http://www.burlingtonfreepress.com/specialnews/leggie/deanbudg02.htmDean: What I did try to do was get a cigarette tax past the Republican House.
They wouldn't pass them. I told them if they didn't pass a cigarette tax to pay for our health care program, then they wouldn't be able to fund seniors' prescriptions.Gov. Dean's statment last night is entirely consistant with what he said in his address to the Legislature. He had recommended a cigarette tax increase the previous year, and the Legislature declined to pass it. He is a fiscal conservative, and has never wavered from that position. He gave the Legislature a choice: pass a cigarette tax, as he had previously recommended, or face cuts in a program that would be politically unpleasant. They did what he said they needed to do. They passed a cigarette tax. He knew when faced with that choice they would do it. It's called governing.