NFIB/VT is disappointed that the House of Representatives
willingly saddled Vermont’s small businesses with a heavier burden caused by
overspending. Governor Shumlin’s agenda and the House passed tax bill and
general fund budget strains small businesses, and impedes growth and the
ability for a business to add jobs in this high cost state’s increasingly
anti-business climate.
The Vermont General Fund Budget continues to grow at an
unsustainable rate (year after year between 4 and 5 percent while our economy
is growing at less than 3%), and this year is no different. The past reliance
on one-time federal funds continues to create a serious problem as the Governor
and legislators continue to grow the General Fund Budget to replace these
one-time federal funds. JFO informed legislators last month that the Medicaid
boost would soon go away as well as the Master Settlement Agreement (MSA)
tobacco revenue. The expiration of the MSA revenues paid by the tobacco
companies has been known for years. Vermont’s reliance on federal dollars and
other one-time funding sources has been inappropriately managed, resulting in
year-over-year 5 percent increases in state spending, even as federal funding
diminishes. And to those who argue that the Vermont budget is only growing
at 1.8 percent; it’s disingenuous not to acknowledge the state’s share of this
budget is growth at 4 to 5 percent while the federal share diminishes,
resulting in an overall increase of 1.8 percent. The federal funds growth rate
is on sustainable funding while the state funds growth rate continues on a
reckless path.
National Federation of Independent Business/Vermont
(NFIB/VT), since early January, has discussed matters of affordability and
urged the Governor and the legislature to be mindful of the consequences being
placed on small businesses when dealing with their self-inflicted $120 budget
deficit. We have repeatedly urged lawmakers to bring spending in line
with the growth of our economy. Vermont cannot sustain general fund
budget growth of 4 to 5 percent year-after-year when the economy has grown at
less than 2 percent. Now is not the time to raise an excess of $30 million by
eliminating and/or capping itemized deductions on Vermont’s middle-class
taxpayers and small business owners.
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