(Host) A deal between Democrats and Republican Governor Jim Douglas on an economic stimulus package has cleared the way for the Legislature to adjourn this weekend.
We have two reports from Montpelier, the first from VPR’s John Dillon:
(Dillon) The governor wants to lift the state sales tax for two days in July as a way to boost business and draw visitors to the state. But House Speaker Gaye Symington criticized the plan as bad public policy.
(Symington) “I don’t think it’s the best use of taxpayer resources. I do agree with our economist, who has stated this would have very little stimulative effect on the economy. I don’t think this is a long-term solution. I don’t think it builds on the strength of Vermont, as opposed to trying to play sort of catch up and copy cat with other states.”
(Dillon) But she told members of a special committee reviewing the governor’s stimulus plan to vote for it anyway.
(Symington) “It’s very clear to me that Governor Douglas is looking to make this the focus of the end of the session, and to turn our good work into an argument over the sales tax holiday. I will not let that happen. I will not stand in a way of a sales tax holiday.”
(Dillon) Earlier this week, Governor Douglas had criticized lawmakers for questioning the sales tax break. He accused Democrats of – quote – "coming up with excuses for not doing things."
By Thursday, however, he was praising their cooperation in quickly approving much of his stimulus package.
(Douglas) “Some said it couldn’t be done, or that it was somehow a distraction. But this is a good example of what state government can achieve when all points are considered. Strengthening the economy is the top priority and progress triumphs over partisanship.”
(Dillon) The Democrats’ decision to snatch a potentially hot political issue out of the governor’s hands has cleared the path for lawmakers to end the 2008 session.
Negotiators in the House and Senate are close to an agreement on the budget – one of the must-pass bills of the year.
They’re trying to resolve differences on the state’s transportation bill. Negotiators are also trying to find common ground on a bill designed to promote housing in neighborhoods close to downtowns or city centers.
But the decision to include the two-day tax holiday still rankles many Democrats.
Chittenden Senator Jim Condos serves on the special committee that reviewed the plan.
(Condos) “I don’t believe that the true beneficiary of the sales tax holiday are Vermonters. The people that are going to benefit the most from this are the Wal-Marts and the Best Buys of the world. They’re the ones who are going to see the increased sales and that money goes right out of state. I think that what we’ve got before us right now is a situation where the governor is more concerned about his political campaign, than he is about Vermonters.”
(Dillon) Other parts of the stimulus plan include $10 million in new bonding for transportation projects, and a special emergency loan program for businesses in areas of high unemployment.
For VPR News, I’m John Dillon in Montpelier.