January 6, 2012

Governor Peter Shumlin presented his State of the State on Thursday, and pronounced it "Vermont Strong."

Much of the speech focused on the state's inspirational  response to Tropical Storm Irene, and he rightly recognized the incredible work of the state employees, local municipalities, the Vermont National Guard, the private sector, and the countless volunteers throughout the state who came together to bring our state through.

Governor Shumlin's speech also focused on his goals for job creation.  First he expressed his opposition to any increase in board-based taxes.  Unfortunately, his permanent reduction last year in the General Fund transfer to the Education Fund will inevitably lead to increases in property taxes on Vermonters - and it will be significant.

He also made clear that his job creation plan focused on two things: the creation of his single-payer health care system, and a a singular focus on renewable energy.  Unfortunately, they are two very big bets - and ones in which supporters are ignoring the very real risks and the very real costs.

In fact, with regard to the newly released Vermont Energy Plan, the renewable portfolio standards being called for by the Administration will cost a minimum of $300-$400 million in increased electricity costs over the next 20 years.  This is not a job creation plan.  It is the exact opposite.

I am hopeful the Governor realizes this and modifies his focus accordingly.