Racine Supports Program Cuts, Tax Increases To Balance Budget

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(Host) Democratic gubernatorial candidate Doug Racine says he supports a package of program cuts and tax increases to balance the state budget.

Racine says it’s the approach that was taken by former Republican governor Dick Snelling in the early 1990s.

VPR’s Bob Kinzel reports.

(Kinzel) When lawmakers return to Montpelier in January, they’ll be looking at a nearly 90 million gap between available revenues and projected spending needs for next year’s budget.

Speaking on VPR’s Vermont Edition, Racine said cuts made by the Legislature last winter are having an adverse impact on essential human service programs.  He says many local communities have felt the burden of providing these services and the costs are being unfairly shifted onto property taxpayers:

(Racine) "So what the state has done in cutting its own budget the government of the state of Vermont has simply just shifted costs to property taxpayers and to those who pay for health insurance premiums by providing free care in the emergency room so I think we need to be careful and be very realistic about what’s happening."

(Kinzel) Racine says he favors an approach adopted by former Republican Governor Dick Snelling during the 1991 session when the state faced a significant budget deficit.

At that time, Snelling proposed budget cuts and a package of temporary tax increases, including a multi tiered income tax plan, to eliminate the deficit:

(Racine) "So what was good about what Governor Snelling did back in 1991 is he went to Vermonters and said look we’re all in this together we’re all going to feel a little bit of the pain and that’s not what’s happening this time around the pain has been disproportionate and I think we’re all in this as a community and we need to talk about our responsibilities to each other."

(Kinzel) Racine says he supports raising the income tax because he thinks wealthier Vermonters have emerged from the recession in better shape than many others:

(Racine) "Most of the pain has been felt by people who are the recipients of state services and the people at the higher income levels have really been immune from the pain of this budget crisis that we’re in so I think the income tax is a fair way to go it’s one that we need to look at."

(Kinzel) Racine says he realizes that his call for additional tax revenue will be criticized by some of the other Democratic candidates and Republican candidate Brian Dubie, but he argues it’s the fairest way to deal the state’s fiscal problems.

For VPR News I’m Bob Kinzel in Montpelier.

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