(Host) A budget showdown between Governor Jim Douglas and Democratic leaders at the Statehouse could take place soon.
That’s because the Democrats plan to have both the House and the Senate vote on their budget package tomorrow.
If no changes are made to the plan, the governor has made it clear that he will veto the bill.
VPRs Bob Kinzel has more:
(Kinzel) While there’s been a lot of attention focused the state budget, there are also major differences between the Republican governor and the Democrats on a number of other bills including a renewable energy plan and legislation dealing with the decommissioning fund of the Vermont Yankee Nuclear Power plant.
Douglas says passage of the budget and these other bills will hurt many working families:
(Douglas) "It’s about this coming year and the other bills that are going through the Legislature that increase the cost of living or the tax burden of the state and it’s about sustainability of state government for the long term."
(Kinzel) The Democrats are backing a $26 million revenue package. It includes higher alcohol and tobacco taxes, capping the amount of capital gains exempt from state taxes and capping other state tax deductions. It also lowers state income tax rates for all people. Senate President Peter Shumlin:
(Shumlin) "I think the extraordinary thing about current events is that the governor proposed a $63 million property tax increase to balance his budget, when the Speaker and I go out with $24 million of broad based fair tax increases and an income tax cut. He’s trying to suggest that we’re raising revenue – he’s the one that proposed the big revenue increase package. It’s 3 times the size of ours."
(Kinzel) Douglas says he’s taking a tough stand on future spending because he’s concerned that the state will face a massive budget crisis when federal stimulus money is no longer available – next year’s General Fund budget relies on roughly $140 million of new federal money:
(Douglas) "We can’t use those dollars as this budget does for ongoing expenditures because the money goes away in a short time. We have to use one time money for one time purposes, so I’m very concerned about the 2011 and 2012 budgets and have difficult they might be."
(Kinzel) But Shumlin says the passage of the renewable energy legislation will help spark an economic revival in the state:
(Shumlin) "What we see is a much brighter future for Vermont in terms of jobs and economic activity than what this governor sees I firmly believe that if we play our cards right Vermonters will get jobs because of renewable energy because of the new economy that’s going to be created and he’s stuck in the past he wants to relicense Yankee and cut another deal with Hydro Quebec pretend that renewable energy isn’t happening."
(Kinzel) Democratic leaders say they are seeking quick action on their budget package because they are intent on adjourning this weekend.
For VPR News I’m Bob Kinzel in Montpelier.