Montpelier, Vermont - April 21, 2011
Vermont lawmakers are looking for ways to shore up a $176 million budget shortfall. They wanted to go with a cigarette tax hike to raise $9 million. The governor doesn't like that plan and today stopped it dead in its tracks.
It's crunch time. With just weeks to go before adjournment, leaders met behind closed doors to sort out differences.
One issue-- a cigarette tax. The House passed a 27-cent increase, the Senate was considering a $1 hike. The governor doesn't like either, saying a higher tax will send business to New Hampshire.
"A dollar is too high, 50 cents is moving in the right direction, 27 cents is closer to the right place. Where the magic number is I don't know, but we have to be careful to protect those markets and those revenue sources," said Shumlin, D-Vermont.
The governor pulled lawmakers into his office to call for changes.
Reporter Kristin Carlson: What was the governor's message on the cigarette tax?
Sen. John Campbell, D-Vt. President Pro Tem: I think the message from the governor is clear and always has been clear. He doesn't like the cigarette tax.
A typical end of the session back and forth but a difference this year; Democrats control the House, Senate and governor's seat, and the governor used to serve as the Senate leader-- a close relationship some question.
"He does wield a lot of influence that I don't think it's healthy for Vermonters," said Rep. Patti Komline, R-Dorset.
Republicans point to not just the cigarette tax but several other bills, including one that preliminarily passed the House with a 55-cent tax on electric bills. But when the governor nixed that plan the bill was quickly pulled by Democrats.
"I think it's very frustrating there are 150 people here they were elected by their constituents and they are not getting a voice," Komline said.
"I think it's much ado about nothing," Campbell said.
Democratic leaders maintain they are independent but sometimes priorities collide.
"Don't forget we have democratic principles that we do agree on, so for anyone to say they agree on that, so the governor is getting his way-- no, what it probably means is we are Democrats and we probably see things in a similar fashion," Campbell said.
Carlson: Do you think in the end it will be a dollar tax?
Campbell: Unfortunately I didn't bring my crystal ball today, so we'll have to wait until later.
But the governor remains confident.
"You get more with maple syrup then vinegar," he said. "We're working with them and I think we are going to come together on a budget agreement."
The governor had good reason to be confident. That $1 cigarette tax was debated by senators and defeated on a vote of 16-14. There are more negotiations going on now and it seems like a lower tax on smokes-- one the governor can support-- may emerge as the compromise.
To make up for that $9 million shortfall in the state budget, the governor instead favors a tax on dentists. Lawmakers had not initially liked that approach, so we'll see if he's able to persuade them on that point as well.
Kristin Carlson - WCAX News
