Rep. Heidi E. Scheuermann

This week saw the return of the Vermont General Assembly for the 2012 legislative session, and there are a number of items to preview as we begin.

First, obviously, our thoughts continue to go out to our neighbors in the Waterbury area, and throughout Vermont, who have been so affected by Hurricane Irene.  It was a catastrophe unlike any most of us have seen in our lifetimes, but witnessing the remarkable recovery efforts has been an inspiration.

While the initial estimates for the cost of recovery were staggering, the cost estimates themselves have been downgraded considerably, and it looks as though federal funding will be considerable.

That said, as I look forward to the session, there are still significant budgetary challenges we are going to face.

As has been the case for the last few years, our state is facing another budget deficit for Fiscal Year 2013.  Things could certainly be worse, but the gap right now is expected to be about $75 million.  We have all heard that revenues have been steady, and some even increasing, but what hasn't been revealed is that the expense side of the balance sheet is problematic, to say the least.

From an additional $16 million needed for Medicaid and a loss of $7 million in one-time funds, to a new autism mandate that is expected to cost $10 million in FY 2013, and a $19.2 million increase in salaries, benefits, and pensions for state employees, the pressure on expenses continue to increase.

In addition to preparing for the eventual economic recovery and putting forth policies that will encourage private sector job growth, we must address state spending in a comprehensive way.  Despite the claims of spending cuts over the past few years, in fact, our state spending has increased by $240 million, or 8.4%.

Vermont families and businesses have adjusted to the world in which we now live.  They are spending within their means, saving more, and holding themselves accountable for every expense made.  We must demand that Montpelier do the same.

Our highest priority, above all else, however, must be a focused approach to economic prosperity and job creation.  Montpelier must prepare our state for the eventual, albeit unfamiliar, recovery.  But, this cannot be done in a casual way in which we do what we've always done and hope for the best.  Rather, it must be a determined and thoughtful approach to encouraging private sector job growth. 

Vermont has a great many assets at its disposal that lend themselves to job creation and prosperity, including a creative and hard-working people and a natural environment in which many would love to live, work, and raise a family.  However, our state also has significant challenges, and this is clearly evident by our modest economy - modest even in the boom times.

It is time to rethink our state's mission and to eliminate the barriers to job creation.  It's time to strengthen our educational system to provide more and better opportunities for our children; to reinvest in our manufacturing sector; to significantly increase our tourism efforts; and to open our state to new, entrepreneurial activity.  We must encourage our businesses to succeed, rather than challenging them to survive.

The tourism sector of our economy has been one bright spot throughout the last few years.  While it certainly has had its struggles, as anybody in the industry will tell you, the overall performance has been steady.  Bi-partisan support for state funding of tourism and marketing has helped the industry weather the storm, though more can always be done.

One critical development for this winter season is the agreement with Canadian airline, Porter Air, to start a non-stop service route between Burlington and Toronto.  While the idea had been explored in the past, it was never brought to fruition, so when a second-homeowner in Stowe came to me with the idea in late 2010, I brought the proposal back to the forefront in January 2011.  Throughout the winter and spring, I continued to work on the prospect, and then, this summer the Vermont Department of Tourism and Marketing and the Vermont Ski Areas Association, along with many individuals, including Stoweite, David Rocchio, worked diligently to make it happen.

While the current commitment is a Thursday/Sunday route from December 15, 2011 - April 8, 2012, the hope is that it will be successful and routes will continue to increase.  Ultimately, my hope is that this development will not only benefit our tourism industry, but that it will lead to additional economic opportunities. I am pleased to have been part of the effort to bring Porter to Vermont, and will continue to support further growth in our partnerships with our friends to the north.