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Public Assets Institute

Update December 2012

In this issue:
-- Blockbuster videos
-- A New Year's raise in the minimum wage
-- Business as usual: Anti-tax
-- Higher premiums on the Exchange
-- Transportation's good sense


Blockbuster videos
Last session the Legislature acted to require public participation early in the governor's budget proposal process. In November, hundreds of Vermonters leapt at the opportunity, bringing moving, well-informed testimony and challenging questions to the administration. Now you can see all the action and read the survey results from the two public forums.

A New Year's raise in the minimum wage
Vermont's minimum wage will rise 14 cents, to $8.60, in 2013. Thanks to legislation signed by Gov. Jim Douglas in 2005, Vermont is one of 10 states that give minimum wage workers—about 11,000 Vermonters, most over 20 years old—an annual cost-of-living increase. The pay raise is good for Vermont's economy, increasing consumer spending by about $1.4 million.

Business as usual: Anti-tax
Business representatives on the Sales and Use Tax Study Committee voted this week to add another exemption to the long list that makes the sales tax an anemic revenue producer. This one shelters cloud computing services, which are beginning to replace the purchase of computer equipment and software, especially by larger businesses. The legislature formed the committee "to examine the sustainability of the sales and use tax in the context of Vermont's changing economy." Not a promising start.

Higher premiums on the Exchange
Many low-income Vermonters now eligible for state-supported health insurance will pay more for health care once the state sets up an Exchange in 2014—unless the state corrects the problem. Governor Shumlin claims that the state can't afford to maintain the level of health care services these families receive through Catamount and VHAP, which he says would cost $18 million. Peter Sterling of the Vermont Campaign for Health Care Security Education Fund provides an excellent analysis in VTDigger.

Transportation's good sense
Over the past two decades, elected officials have focused on revenues as they prepare the state's annual General Fund budget. They've estimated revenue at current tax rates, then squeezed state services to fit the available revenue. As Paul Cillo blogs, what's missing is something VTrans does routinely: Assess needs first.



Public Assets Institute is funded by grants and donations. Please consider making a tax-deductible contribution to support our work.




Fact: State income tax collected in 2010 amounted to 3.2 percent of Vermonters' income, down from 3.9 percent in 2008.
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With your help we
can meet our our $20,000 fall fundraising goal. Your ongoing support is critical to Public Assets Institute's work. If you haven't yet made your 2012 donation, it's not too late. Any contributions made before December 31 will be tax deductible for this year.



town2town
bringing fiscal data home

Vermont school enrollment: Equalized pupils 2003-2013
Most Vermont schools have fewer equalized pupils this year than they did 10 years ago. However, 32 towns have seen an increase in students—equalized pupils—during that period. The town2town map shows the change in equalized pupils in each town from fiscal 2003 to fiscal 2013. Take attendance in your town and others.



Calendar
2013 Legislative Session Opens
January 9, 2013
10:00 a.m.
State House, Montpelier

Governor's Inaugural Address
January 10, 2013
1:00 p.m.
State House, Montpelier

Governor's Budget Address
January 24, 2013
2:00 p.m.
State House, Montpelier




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Public Assets Institute, PO Box 942, Montpelier, Vermont 05601