For the week ending Friday, January 12, 2001
Organization of the House and Senate is complete, now that House Speaker Walter Freed (R-Dorset) has made the much-anticipated appointments to the 14 standing committees of the House of Representatives. The Speaker's appointments were widely well received among editorial page writers, State House observers, and other legislative leaders. Most agree that the Speaker's appointments were well balanced both politically and geographically.
With the organization of both chambers now complete, legislators will settle down to the business of their committees, receiving overviews of their committees' jurisdictions, overviews from state agency and department commissioners and secretaries and setting legislative priorities for the session. Health care costs will be the focus of both the House and the Senate Committees on Health and Welfare.
Finally, on Thursday, Gov. Howard Dean (D) delivered his annual budget address to a joint assembly of the House and Senate. This budget represents the largest increase in state spending presented by Gov. Dean during his ten-year tenure in office, with an overall proposed spending increase of 5%. Much of this increase is devoted to health care and one-time spending initiatives
Governor's Budget Address
Governor Howard B. Dean gave his 10th budget address to members of a Joint Assembly on Thursday morning. Touting his solid reputation for fiscal restraint and sustainable spending, the Governor delivered a budget with an overall increase of 5%, larger than the budgets of the last several years, which were held to 3% increases. On the revenue side of the budget, the Governor is supporting a 150% increase in the state excise tax on cigarettes, raising that tax from 44 cents per pack to $1.11 per pack. The Governor stated that this tax increase would be used to increase state funding for Medicaid programs and address the current cost shift to the private sector. The tax raises approximately $22 million and a preliminary look at the budget suggests not all of this revenue will be used to increase Medicaid reimbursement levels. In fact, in his budget address, the Governor suggested reducing the cost shift over a four-year period.Republicans in the House are giving this proposed tax increase a chilly reception. Concern over the national economy and the slowing stock market will play an important role in this year's review of the state budget. Members of the tax and spending committees will need to keep a watchful eye on national economic trends in order to craft a spending plan that is sustainable into future years. Vermont has benefited from the strong economy both in terms of state job growth and revenues received from the robust state income tax, which is reflective of Vermonters earning in stocks and bonds.
The House Committee on Appropriations will now begin their work on the budget, using the Governor's recommendations as a guideline. Generally, the budget is the last bill to pass in the legislative session with many hurdles along the way.
House Committee Assignments
Speaker of the House Walter Freed announced committee assignments on Tuesday paving the way for Representatives to begin legislative work in earnest. As expected with the change in majority from the Democrats to Republicans most of the chairs and vice chairs of committees changed with two notable exceptions: Rep. Dick Pembroke (D-Bennington) continues to chair the House Committee on Transportation and Rep. Bob Wood (R-Brandon) continues as chair of the House Committee on Institutions. Rep. Tom Koch (R-Barre Town) chairs the House Committee on Health and Welfare. The House Committee on Appropriations is chaired by Rep. Rich Westman (R-Cambridge).