Our Middlesex Town Meeting 2012 - Middlesex Newspaper

Page 4 Middlesex Newspaper MARCH 2012
Greetings!
Update from Our State Representative Tony Klein
Town meeting break means the legislature is at what should be the half way
point of the session. It has been a very busy session so far. I believe the House
has passed more bills so far than anytime in recent history. As you all know
our issues and problems are huge. We are addressing the needs created by
Irene. We continue to have tough budget issues. Health care, as you know, is
moving forward. We have energy and Vt. Yankee issues to deal with. And we
have many more tough decisions to make, including where to put the 1800
Waterbury state employees and how big will our new state mental hospital
be. We are trying to tackle all these issues and adjourn before the end of April.
We have our work cut out for us!
The Budget
For the last 5 years, the Legislature has wrestled with a budget gap between
projected revenues and projected budget pressures brought on by the Great
Recession. Although we face a $61 million gap, it is the smallest in 5 years.
Although this gap is smaller, unanticipated challenges came forward as we
face a state ravaged by spring floods and Tropical Storm Irene.
The upward pressures on the budget include increasing caseloads in human
services; increased General Fund contribution to the Education Fund that
will relieve pressure on the property tax; funding for more state troopers and
public safety; responsible payments to retirement funds; and reduced federal
contributions to Medicaid and long term care. Thanks to good fiscal
management in the current year, we have set aside $11 million in reserves to
address some of the upcoming challenges. Better management of
Medicaid services is estimated to conservatively save $5 million while
improving health outcomes.
This year we a confident that we will be able to avoid some of the painful
decisions faced during the worst years of the recession. In that time we strove
to make cuts to balance the budget while avoiding severe harm to core state
services, these included: 600 position cuts, deferred replacement of safety
equipment, salary reductions, grants elimination, and level funding state
services even while caseloads were increasing due to the down economy.
Tax Relief in the Wake of Irene
Hurricane Irene wrought havoc on many of our fellow Vermonters, and our
town and municipal governments were on the front lines providing relief.
Before the Governor’s Budget Address on January 19, the House had passed
two pieces of legislation to support cities and towns affected by Irene. The
first bill gave municipalities an early commitment from the state to absorb the
costs of storm-related education property tax abatement. The one-time cost
of this measure will range between $2 to $4 million. The second bill enables
the state treasurer to defer the due date of education taxes to the state from
impacted municipalities -- from the normal statutory due date of Dec 1, 2011
to February 28, 2012. This allows cities and towns to maintain their cash flow
and reassess their finances during their recovery. Eleven towns have chosen
to take advantage of this deferment option.
Education Property Tax Rate
Every year the Legislature is required by statute to set the Education Property
Tax rates. The Tax Commissioner makes a recommendation in December and
these are reviewed by the House Ways and Means Committee in January.
After much testimony and discussion, the House set the residential
education property tax rate at 88 cents and non-residential rate at $1.37, with
the base education spending amount per pupil at $8,723 in bill H. 754. The
70% of Vermonters who pay by income will still begin with a 1.8% base. These
rates are a base upon which local spending choices are added. The rates are
up a penny, largely due to a reduction in grand list value and the assumption
that average school spending statewide will be up 1.7% - though the current
figure is 2.6% with over half the districts reporting.
Meeting our Recycling Needs
In 1987, the State set a goal to reduce solid waste going to landfills by 50%.
Unfortunately, this goal has fallen short, achieving only about 36%. In
addition, waste generation per capita and by volume has increased
significantly in the past 25 years. With only two operating landfills in the
state and one near capacity, it is time to act. It is time to think of waste
products not as trash, but as residual commodities with value for recycling.
Photo taken at Middlesex Town Meeting
Lt to Rt: Jeff Farber, Rep. Tony Klein & Enrique Bueno
Vermont State Employees
With the record spring flooding, many state employees had been providing
extraordinary service to Vermonters as they struggled to keep roads and parks
open. Then Irene struck. Agency of Transportation employees again stepped
up to repair roads and bridges all over the state in record time.
The state complex in Waterbury was significantly damaged, forcing the
relocation 20% of the state’s work force. 1,500 employees moved to temporary
work sites and were quickly back to work. The disruption to employees’ lives
was significant; requiring many to increase travel time, find new childcare, and
other modifications.
Health Care Exchange
Vermont is planning for the implementation of the health care exchange that is
called for in the Affordable Care Act. Every state is setting up an exchange
unless they prefer to let the federal government set one up for them. The
exchange will make health coverage more affordable to middle class
Vermonters by allowing them to access new federal tax credits and subsidies.
The exchange will allow consumers to compare insurance products with a
transparent, standardized web portal or with the help of trained navigators
who can help Vermonters enroll. Working Vermonters will have a new freedom
to choose a benefit plan that best meets their needs. Small businesses will be
freed from the burden of administrating health benefits so they can focus on
doing what they do best: growing business.
Two-thirds of Vermonters may qualify for tax credits in the exchange. That
means households making less than $92,200 (for a family of 4) will be eligible
for help paying for their premium. Additionally, there will be greater support
for households making $52,625 or less.
The exchange will offer a full range of health plans that are modeled on the most
popular health plans in Vermont in 2012. We expect there to be at least 10
different plans, ranging from high deductible plans to robust platinum
coverage.The work of the House this year advanced cost containment projects,
including payment reform and continued emphasis on prevention and
management of illness through healthy life style choices of Vermonters.
Working Vermonters will have portability when they purchase insurance in the
exchange. Insurance coverage will be continuous whether you change jobs,
reduce hours to stay home with a newborn or to start your own business. With
premium assistance available through the exchange, it will be easier for
Vermonters to maintain coverage during these big life changes.
These are just a few of the topics the House has been working on. If you would
like more information or information on any issue that concerns you, please
don't hesitate to contact me. I am easily reached by cell phone at 802 793 6032 or
by e-mail at twk@tonyklein.com.
I appreciate hearing from you! It is an honor and a privilege to represent you.
Thanks for your support! Rep. Tony Klein
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