The Legislature's Top Ten for the New Biennium

With the beginning of a new biennium a new legislature faces some real opportunities to do something useful for the people of the state. Fiscally, the state is in excellent shape, with the rainy day funds full and a modest surplus accumulating once again in FY 2001. It is clear that the lightning rod legislation of 2000, civil unions, can not be repealed, and any significant reversal would incur a veto by Gov. Howard Dean. Leaving that controversial issue aside, as well as electric deregulation which is now playing out in two other forums, here is the Ethan Allen Institute's top ten list of smart things for the Legislature to do in the coming biennium.

10. Judicial Restraint: Nothing can be done directly to rein in the Five Supreme Legislators until 2005, when the Justices face legislative reelection. Nonetheless the 2001 legislature should begin to reexamine the process for the nomination of judges generally. It should consider holding an advisory referendum in 2002 on the question of amending the constitution to undo the extra-constitutional Baker (gay marriage) decision. A statute redefining "common benefit" to its original constitutional meaning might give the Five Supreme Legislators some pause before they indulge in another law-making adventure.

9. Transportation: It is becoming apparent that the state's highway transportation planning, construction, and maintenance programs are drawn-out and unduly expensive. The long-sought Shelburne Road reconstruction through South Burlington, for example, has been planned since 1985. The "final plan" was completed in 1999, but nothing serious has been accomplished except one bridge replacement (which had to be separated from the rest of the project). Rutland businesses in particular are in agony over truck traffic limitations. It's time for a hard look at the efficiency of the agency, and an exploration of the potential benefits of privatization.

8. Welfare Reform: Vermont's very liberal 1994 welfare "reform" waiver expires in July, and the state will then have to meet tougher new welfare-to-work standards. In anticipation of this, the legislature passed Act 147 in 2000. Unfortunately the new act has countless loopholes that can be used to avoid what should be the main focus of welfare policy: getting able-bodied people back to work. The act should be replaced with a Wisconsin-style reform that places unemployed people in jobs. Any such bill would be unlikely to receive Gov. Dean's approval, since he declined to sign even the feeble Act 147. But that's no reason for not sending a thorough-going reform bill to his desk.

7. Redistricting: this legislature will redraw house and senate districts to conform with the 2000 census. One enormous service to democracy would be to create 100% single member districts for both bodies. That way challengers and incumbents can square off on the issues one on one, instead of taking part in an unfocused public relations carnival that rarely deals with real issues.

6. Taxes: The one tax that ought to be repealed is the 4.36% sales tax on everyone's phone bill. This is not only a regressive sales tax, but also inhibits the growth of telecommunications-based businesses in the state.

5. Regulatory Reform: It's high time legislators acted to put the brakes on agency rule making powers. The impending ANR rules requiring zero emission vehicle sales may provide the necessary stimulus. A regulatory accountability act which allows concerned legislators to force a ratifying vote on agency rules is long overdue.

4. Act 250: Some modest relaxation of Act 250 requirements are worthwhile, but the 30 year old act, cobbled together in 48 hours by two lawyers who had little idea of what they were doing, is sorely in need of stem to stern revision. One needed reform, for instance, is factoring in the economic benefits of a proposed development, which are presently considered to have zero value. Another is requiring a district commission to accept a town's interpretation of what its own town plan means.

3. Education: For years the House Education Committee has been a virtual subsidiary of the NEA teachers' union. With new members the door is now open for some much needed reforms. A strong charter school law, a serious toughening of the Department's flabby education standards, teacher testing, and educational freedom districts ought to be high on the agenda.

2. Health Care: This legislature must act to restore a viable health insurance market in Vermont, or else the state will continue its steady descent into a Canadian single payer clone. Important reforms include repeal of community rating, allowing healthy lifestyle discounts, creation of a high risk pool for the uninsurable, encouragement of medical savings accounts, and full payment to providers for care given to Medicaid patients.

1. Education Finance: Act 60 is on the way to its terminal fiscal crash. If the legislature wants to retain the fiscal equity mandated by the Supreme Court, and also avoid creating one big centralized school district run from Montpelier, it has little choice but to return tax dollars to parents to allow them to purchase the education they want for their kids. This reform will be vigorously fought by the teachers union and the school boards association, neither of which can abide the idea of having to appeal to consumers (parents) to earn the money to keep their enterprises in business. Halfway measures like "buying out the sharing pool" can only work so long as there is a huge surplus. A slowing economy, burgeoning Medicaid liabilities, and pressing transportation needs are likely to eat up any excess revenues that may appear in the next few years. If Act 60 isn't fixed in this biennium, it will assuredly face a crisis soon thereafter.

There are many more useful things that could be done, but this list is a useful start. A start toward what? Toward recreating a Vermont of frugal but effective government, mindful of the liberties of its people, reaffirming the merits of personal responsibility, and preserving opportunity for enterprising wealth creators.

December 2000