YCQM - Jeb Spaulding - July 1, 2012 - WCAX.COM Local Vermont News, Weather and Sports-

YCQM - Jeb Spaulding - July 1, 2012

July 1, 2012 -- Vt. Administration Secretary Jeb Spaulding joins Kristin Carlson to discuss the state budget and the economy.

TRANSCRIPT:

>>> FROM VERMONT'S MOST TRUSTED NEWS SOURCE, WCAX BRINGS YOU YOUR NEWSMAKERS, YOUR NEIGHBORS. THIS IS "YOU CAN QUOTE ME."

>> GOOD MORNING, EVERYONE. THANKS FOR JOINING US. OUR NEWSMAKERRER THIS MORNING IS ADMINISTRATION SECRETARY JEB SPAULDING. THANKS FOR BEING HERE.

>> KRISTIN, IT'S MY PLEASURE. GLAD TO BE WITH EVERYBODY.

>> FIRST, LET'S TALK NUMBERS. BECAUSE WE'RE ENDING THE FISCAL YEAR FOR STATE GOVERNMENT. THE LAST FEW TAX REVENUES SURGED ABOVE EXPECTATIONS FOR THREE-STRAIGHT MONTHS. ON PACE TO FINISH WITH EXTRA SURPLUS MONEY. HOW IS THE STATE DOING?

>> WELL, THE STATE IS DOING PRETTY WELL. YOU KNOW, ONE THING I JUST HAVE TO SAY, WHEN IT COMES TO OUR ECONOMY AND OUR REVENUES, WE ALL NEED TO KEEP IN MIND THAT THE LARGEST SINGLE FACTOR THAT INFLUENCES HOW WELL WE'RE DOING IS THE REST OF THE WORLD. SO WE'RE VERY DEPENDENT UPON WHAT HAPPENS OUTSIDE THE STATE BORDERS. AND THINGS ARE PRETTY VOLATILE OUTSIDE OUR STATE BORDERS. WHILE WE'RE DOING VERY WELL RIGHT NOW, YOU KNOW, THINGS -- IT'S KIND OF FUNNY. IN MY POSITION WHEN YOU HAVE MONTHS THAT ARE BELOW EXPECTATION, I TEND TO GO WELL. DON'T READ TOO MUCH INTO IT. WHEN THEY'RE ABOVE THE EXPECTATION, YOU GO DON'T READ TOO MUCH INTO THAT BECAUSE IT COULD CHANGE AT ANY TIME. BEFORE I LEFT THE OFFICE, I SAID HAPPY NEW YEAR TO A LOT OF PEOPLE IN THE OFFICE. THAT'S BECAUSE THE STATE IS ON A FISCAL YEAR. IT RUNS FROM JULY 1 TO JUNE 30th. SO AS YOU HE MENTIONED, JUST FINISHING UP OUR FISCAL YEAR. AND JUNE REVENUES HAVE NOT BEEN TOTALLY COUNTED. BUT I'M NOT SURE THEY'RE GOING TO BE AS ROBUST AS THE TWO OR THREE PREVIOUS MONTHS. SO, YOU KNOW, WE'RE LIKELY TO FINISH THE YEAR WITH A SMALL SURPLUS.

>> BUT I DON'T THINK IT'S GOING TO BE VERY BIG. AND YOU KNOW ONE OF THE THINGS THAT PEOPLE SOMETIMES -- A FEW LEGISLATORS SOMETIMES SAY, MAN, YOU FINISHED. WE WERE WORKING ON THE EXPECTATION THAT YOU WERE GOING TO FINISH ON THE NOSE AND NOW IT LOOKS LIKE YOU MIGHT HAVE A $10 MILLION, $15 MILLION SIR PLUS. OR IN THE OTHER DIRECTION IF WE GO HOW COULD YOU MISS BY 10 IS MILLION DOLLARS, $15 MILLION AND YOU'RE UNDER. WHEN WE'RE LOOKING AT A, YOU KNOW, $1.2 MILLION OR NEXT YEAR $1.3 MILLION BUDGET, $10 MILLION IS LESS THAN 1%. SO IT'S PRETTY AMAZING TO ME IF WE FINISH WITH A SMALL SURPLUS. WE PROBABLY WILL. SMALL. PROBABLY SINGLE DIGIT. THAT WE'RE -- A YEAR AGO WE COULD HAVE PREDICTED WITHIN 11% OF WHAT WAS GOING TO BE TAKEN IN IN THE WHOLE YEAR. IT'S SOPHISTICATED AND ACCURATE AS IT IS.

>> ALL RIGHT. WHEN YOU SAY THAT WE'RE GOING TO END IN A SURPLUS, YOU MEAN MILLIONS NOT SINGLE DIGIT LIKE $5?

>> RIGHT. I'M USED TO USING A LOT OF ZEROS.

>> GENERALLY BIG NUMBERS. I KNOW THAT.

>> A FEW MILLION DOLLARS.

>> A FEW MILLION DOLLARS. WHAT'S THE STATE GOING TO DO WITH THAT?

>> WELL, THAT'S A GOOD QUESTION. AND WE HAVE BEEN -- OVER THE LAST SEVERAL YEARS WE'VE BEEN TRYING TO MOVE AWAY FROM A PERIOD WHERE WE KIND OF -- I'M NOT GOING TO SAY SPENT OUR UNANTICIPATED REVENUES AND WHAT PEOPLE USED TO CALL DOWN IN MONTPELIER BELTWAY A WATERFALL. WE SAY THE FIRST 2 MILLION IS GOING HERE, THE SECOND $2 MILLION IS GOING THERE AND SO FORTH. AND, YOU KNOW, SOMEBODY WOULD BE LEFT OFF THE WATERFALL WHEN NOT THAT MUCH CAME. IN RECENT YEARS WE'VE BEEN TRYING TO PUT IT INTO RESERVES. BECAUSE WE KNOW WE'RE IN UNCERTAIN TIMES AND THE FEDERAL GOVERNMENT COULD BE DOING SOME SIGNIFICANT THINGS ANYTIME. WE'RE TRYING TO MOVE AWAY FROM THE WATERFALLS AND BUILDING UP THE RESERVES. IN ADDITION TO WHAT PEOPLE THINK OF AS THE RAINY DAY FUND, ADDITIONAL RESERVES.

>> THIS WOULDN'T GO IN THE RAINY DAY FUND. YOU'RE PROPOSING THIS GOES INTO WHAT THEN?

>> WE'RE DOING SOMETHING A LITTLE DIFFERENT THIS YEAR. WHAT I'M TRYING TO SAY, NORMALLY PUT THEM IN RESERVES, ONE TIME OR ANOTHER. IN RECENT YEARS. THIS YEAR AS A RESULT OF TROPICAL STORM IRENE, THE GOVERNOR PROPOSED AND THE LEGISLATURE AGREE THAT THE FIRST $15 MILLION OF UNANDERSON REVENUES AT THE END OF F.Y. '12 WOULD BE RESERVED TO HELP US RECONSTRUCT STATE FACILITIES THAT WERE DAMAGED BY IRENE. WATERBURY STATE OFFICE COMPLEX. IT COULD BE OUR NEW STATE PSYCHIATRIC HOSPITAL OR THE AG AND NATURAL RESOURCES LAB, THE STATE COMPLEX. PROBABLY HAVE TO BE MOVED SOMEWHERE ELSE. SO THE FIRST $15 MILLION WOULD BE BASE RESERVED FOR IRENE, REHABILITATION AND AFTER THAT IT GOES INTO A SURPLUS RESERVE, WHICH IS ON TOP OF OUR BUDGET STABILIZATION RAINY DAY FUNDS. AND THE GOVERNOR HAD ASKED FOR THE LEGISLATURE TO INCREASE THE RAINY DAY FUNDS FROM 5% TO 8%. HE PROPOSED A FEW MILLION DOLLARS. REALLY IT WAS ONE QUARTER OF A PERCENT ADDITION. WE'RE GOING UP TO 5.25%. THE LEGISLATURE AGREED WITH THE GOVERNOR THAT WE OUGHT TO BE PUTTING MORE MONEY IN RESERVE. BUT INSTEAD OF PUTTING IT INTO THOSE RAINY DAY FUNDS, FROM THEIR PERSPECTIVE, I THINK A LOT OF VIEWERS WOULD UNDERSTAND WHAT I'M ABOUT TO SAY. IT'S NOT NECESSARILY MY PERSPECTIVE. BUT A LOT OF PEOPLE SAY, YOU KNOW, YOU PUT IT INTO THE RAINY DAY FUND AND NEVER LET US SPEND IT. SO IF THE RAINY DAY FUNDS ARE GOING TO BE FUNDED AT THE FULL STATUTORY 5% LEVEL, THIS IS AN ADDITIONAL SORT OF SURPLUS RESERVE FUND ON TOP OF THAT. WE ALSO HAVE ADDITIONAL FUNDS IN SOMETHING WE CALL A HUMAN SERVICES CASE LOAD RESERVE. AND, YOU KNOW, EMERGENCY RELIEF AND ASSISTANCE FUND, WHICH STILL HAS ABOUT ANOTHER $13 MILLION IN IT. SO I GUESS WITHOUT DRAWING ON IT TOO MUCH, THE LEGISLATURE AND THE GOVERNOR ARE WANTING TO MAKE SURE WE GIVE OURSELVES ADEQUATE PADDING.

>> OKAY. WHEN YOU TALK ABOUT, YOU KNOW, AGAIN THESE NUMBERS ARE MOVING TARGETS RIGHT NOW. STILL WAITING FOR JUNE'S TAX COLLECTION. YOU'RE TALKING $4 MILLION TO $10 MILLION OF SURPLUS. THE LEGISLATURE SAID IF IT'S UP TO $15 MILLION, WE'LL SET THAT ASIDE FOR THE STATE GOVERNMENT BUILDING. YOU KNOW, REBUILDING AFTER IRENE. SO IT LOOKS LIKE YOU'RE GOING TO COME UNDER THE $15 MILLION.

>> YES, I THINK THAT'S -- I'LL BE SURPRISED IF WE HIT THAT $15 MILLION.

>> DOES THAT MEAN THE STATE IS NOW SHORT IF IT COMES IN AT $4 MILLION?

>> NO. NO. NO. IT'S JUST -- WE JUST THOUGHT THAT, YOU KNOW, IN THE NEXT TWO OR THREE YEARS, THE CAPITAL BILL, WHICH IS OUR BONDED MONEY THAT'S USED FOR BUILDINGS AND OTHER FACILITIES, IS GOING TO BE UNDER A LOT OF PRESSURE AS WE BUILD THE WATERBURY STATE OFFICE COMPLEX. AS WE BUILD A NEW STATE PSYCHIATRIC HOSPITAL. AS WE BUILD TEMPORARY PSYCHIATRIC HOSPITAL UP IN MORRISVILLE. WE HAVE A MAJOR $28 MILLION TO $30 MILLION HEALTH LAB PROJECT THAT'S BEEN UNDERWAY IN COLCHESTER FOR THE LAST SEVERAL YEARS. AND IT'S NOW STARTING TO HIT ITS STRIDE. SO THERE'S GOING TO BE A LOT OF PRESSURE ON THE CAPITAL BILL. THAT'S, YOU KNOW, OTHER THINGS LIKE SCHOOL CONSTRUCTION AND THINGS IN THE CAPITAL BILL AS WELL. LOOK, IF WE GET UNANTICIPATED CASH, LET'S USE IT TO TAKE THE PRESSURE OFF.

>> SO RELIEVE PRESSURE WHEN IT COMES TO PROPOSALS NEXT YEAR?

>> YEAH. YEAH, THAT'S BASICALLY WHAT IT IS. YOU'RE TALKING ABOUT A HUGE ISSUE FOR THE ADMINISTRATION IS RE-ORGANIZING STATE GOVERNMENT, POST-IRENE. REBUILDING AFTER POST-IRENE. LET ME GET TO AN ISSUE THAT'S BEEN IN THE NEWS RECENTLY, WHICH HAS TO DO WITH THE WATERBURY FLEA MARKET AND THE IDEA OF USING THE SPACE TO HOUSE POSSIBLY SEVEN PAINTS -- PATIENTS OR HOUSE. WHY DISPLACE A FLEA MARKET FOR SEVEN PATIENTS, WHEN THE STATE HAS A LOT OF PROPERTY AND LAND OUT THERE?

>> WELL, WE COULDN'T FIND ANY OTHER PROPERTY THAT WAS AS SUITABLE. YOU KNOW, WE DID LOOK HARD AND WE LOOKED, FOR EXAMPLE, AT THE WINDSOR CORRECTIONAL FACILITY, WHERE WE DO OWN A LOT OF LAND. WE LOOKED IN ST. JOHNS, ST. ALBANS. SOME PEOPLE SAID, WELL, YOU USED TO OWN THE STATE FARM PROPERTY IN WATERBURY, JUST BARELY IN DUCKS BUREAUY. WHY DON'T YOU USE THAT? ONE THING OR ANOTHER, GETS IN THE WAY. ON THAT ONE WE ARE IN THE FINAL STAGES OF SELLING THAT PROPERTY. AND WE HAVE BEEN DOING THAT FOR A WHILE. HAPPENS TO BE RIGHT NEAR THE CROSS HILL MIDDLE SCHOOL. AND IT DIDN'T SEEM LIKE, YOU KNOW, BASED ON OUR PREVIOUS EXPERIENCE OF LIKE IN BERLIN WHEN WE WERE LOOKING AT A COUPLE OF PROPERTIES FOR THE PERMANENT HOSPITAL, THE RESIDENTS WERE AMAZINGLY VERY ACCOMMODATING TO HAVE THE NEW PERMANENT STATE HOSPITAL IN BERLIN. BUT THEY WANTED IT AS FAR AWAY FROM THEIR ELEMENTARY A SCHOOL AS THEY COULD. SO, YOU KNOW, THE FLEA MARKET PROPERTY -- BY THE WAY, YOU KNOW, THE PEOPLE THAT OWN THE PROPERTY ARE THE ONES THAT, AS I UNDERSTAND IT, RUN THE FLEA MARKET. AND WE HAVE BEEN TALKING TO THEM FOR MONTHS. SO THERE WAS NO SURPRISE TO THE FOLKS THAT WERE OPERATING THE FLEA MARKET. WE HAVE OFFERED THEM, YOU KNOW IF IT WOULD BE HELP FOR YOU IN THE INTERIM TO FIND AS GOOD OR BETTER SPOT TO USE THE PROPERTY GRATIS. YOU KNOW, I GUESS THE BOTTOM LINE AGAIN WE LOOKED FOR BETTER SITES AND COULDN'T FIND ONE. THE OWNER OF THIS PROPERTY WAS INTERESTED. WE TALKED TO A LOCAL OFFICIALS IN WATERBURY AND THERE WAS NO SURPRISE THERE. THEY'VE BEEN AWARE OF THIS FOR THE LAST MONTH OR TWO. THE LOCAL REPRESENTATIVES WERE OPEN AND WILLING TO, YOU KNOW, AS LONG AS WE COULD WORK OUT THE DETAILS TO HOST THIS FACILITY. AND I DO FEEL BADLY FOR THE PEOPLE THAT ARE USED TO GOING TO THAT PARTICULAR SITE FOR A FLEA MARKET. BUT PLEASE KEEP IN MIND THAT WE ARE STILL IN CRISIS AS FAR AS OUR MENTAL HEALTH SYSTEM. I SAW AN ARTICLE IN THE NIGHTTIMES THIS PAST WEEKEND -- IN THE "THE NEW YORK TIMES" THIS PAST WEEKEND, THAT OVERDRAMATIZED THE SITUATION WE ARE IN. THE GOVERNOR CALLS THEM, MORE VULNERABLE PEOPLE IN PLACES WHERE THEY SHOULDN'T BE.

>> IN JAIL.

>> IN JAIL. CERTAINLY WE ARE -- YOU KNOW, IT CHANGES BY THE DAY. BUT, YOU KNOW, TWO OR THREE I THINK AT THE MOMENT TAKING UP A WHOLE WING AT THE SPRINGFIELD CORRECTION FACILITY, BECAUSE THEY CAN'T BE INTERMIXED WITH THE CORRECTIONAL POPULATION. WHICH MEANS WE ARE SHIPPING MORE TRADITIONAL INMATES OUT-OF-STATE. SO WE REALLY -- YOU KNOW, DON'T HAVE A LOT OF CHOICE BUT TO TAKE AGGRESSIVE ACTIONS HERE. THAT REALLY HONESTLY SEEMED TO BE THE LOCATION WHERE PEOPLE WERE WILLING. IT'S A GOOD SITE FROM THE STATE'S PERSPECTIVE. IF WE DECIDE IN TWO, THREE YEARS WE DON'T NEED THE SITE, IT SHOULD BE VERY MARKETABLE PROPERTY. WE'RE NOT THINKING, YOU KNOW, TAXPAYER DOLLARS INTO SOMETHING WE CAN'T GET OUR MONEY BACK OUT OF.

>> ALL RIGHT. SO THAT PROJECT IS MOVING FORWARD. WHEN DO YOU HOPE TO BREAK GROUND? IT SOUNDS LIKE THE GOVERNOR IS ONBOARD. OFFICIALS ARE ONBOARD. WE'RE HEARING CONCERNS FROM RESIDENTS WHO USE THE MARKET, OTHERWISE IT SEEMS LIKE IT'S MOVING AHEAD FAST.

>> I THINK IT DOES. AGAIN WE HAVE BEEN WORKING WITH THE LOCAL OFFICIALS AND LEGISLATURE. THE MOST URGENT FACILITY WE'RE TRYING TO GET OPEN IS THE NEW TEMPORARY PSYCHIATRIC FACILITY. YOU KNOW, IT'S A TEMPORARY HOSPITAL IN MORRISVILLE. WE'D LIKE TO HAVE THAT OPEN, YOU KNOW, WITHIN TWO MONTHS. WE'RE HOPING FOR ABOUT SEPTEMBER 1st OR SOMETIME IN THE MONTH OF SEPTEMBER. SO THAT'S THE MOST URGENT. THE SECURE RESIDENTIAL FACILITY, YOU KNOW, I THINK IT WOULD BE FORTUNATE IF WE COULD GET THAT UP AND RUNNING BY THE END OF THE YEAR. BUT WE'RE SHOOTING TO MOVE AS FAST AS WE CAN.

>> WHEN WE TALK ABOUT REPLACING THE WATERBURY STATE OFFICE COMPLEX, IS THE TIMELINE STILL THREE YEARS?

>> IT IS RIGHT NOW.

>> IS THAT REALISTIC?

>> I THINK IT IS REALISTIC. YEAH. IT IS. I MEAN, WHO KNOWS WHAT WE'RE GOING TO -- MY BOSS -- ONE OF THE THINGS I LIKED ABOUT GOING TO WORK FOR MY BOSS, IS THAT HE HAS GOT AN ENTREPRENEURIAL SPIRIT. SO HE DOESN'T -- WHEN SOMEBODY SAYS THREE YEARS, HE SAYS WE'LL DO IT IN TWO. AND I DON'T KNOW IF WE CAN DO THAT. WE'RE GOING TO GO AS FAST AS WE CAN. YOU KNOW, THE VIEWERS SHOULD KNOW THAT I DON'T THINK THE STATE OF VERMONT HAS EVER HAD AS MANY MAJOR AND COMPLICATED, YOU KNOW, BUILDING PROJECTS THAT HAPPEN SOONER THAN LATER GOING ON IN ANY PERIOD IN OUR HISTORY. THAT REHABILITATION PROJECT IN WATERBURY IS CRITICAL TO HAVE HAPPEN AS SOON AS WE CAN. BECAUSE THERE ARE, YOU KNOW, WELL OVER 1,000 STATE EMPLOYEES THAT ARE SCATTERED HITHER AND YON FROM IBM TO GRANITEVILLE. AND MANY OF THEM ARE IN THE SAME AGENCIES OR DEPARTMENTS. AND THEY'RE NOT IN THE KIND OF THE SITUATIONS THAT ALLOW FOR GOOD COLLABORATION AND PRODUCTIVITY. SO WE WANT TO MAKE IT AS -- GET DONE AS QUICKLY AS WE CAN. ON THE OTHER HAND, WE ARE BUILDING A FACILITY THAT'S GOING TO BE THERE FOR 20, 40, 60, 80 YEARS. AND WE'RE REALLY TRYING HARD TO MAKE SURE THAT WE MAXIMIZE FEMA FUNDING AS MUCH AS WE CAN. AND THAT IS INCREDIBLY COMPLICATED, KRISTIN. I MEAN, IT'S -- I WISH I COULD SIT HERE AND TELL YOU THAT AFTER, YOU KNOW, SEVERAL -- MANY MONTHS OF WORKING CLOSELY WITH FEMA TO UNDERSTAND EXACTLY WHAT THEY WILL FUND AND WHAT THEY WON'T, WE STILL DON'T HAVE A DIRECT ANSWER ON THAT. AND SO, YOU KNOW, THERE ARE A LOT OF PROJECTS. THEY'RE BIG. THEY'RE COMPLICATED. YOU WANT TO MAKE SURE WE'VE GOT THEM DONE RIGHT AS SOON AS WE CAN, IN ORDER OF PRIORITY AS I MENTIONED. THE TEMPORARY HOSPITAL. I THINK THE GOVERNOR IS PUTTING A LOT OF PRESSURE ON BUILDINGS AND GENERAL SERVICES TO GET THE PERMANENT PSYCHIATRIC HOSPITAL BUILT QUICKER THAN THEY ORDERLY -- AND THEY'LL THEY CAN ACTUALLY CAN. WE HAVE TO BUILD A NEW AG RESOURCES LAB. THERE'S A LOT GOING ON.

>> ALL RIGHT. BRIEF BREAK AND WE'LL CONTINUE OUR TALK WITH JEB SPAULDING.

>>> WELCOME BACK. WE ARE TALKING TO ADMINISTRATION SECRETARY JEB SPAULDING ABOUT THE BIG ISSUES FACING THE STATE. THANKS FOR TAKING TIME. I KNOW YOUR SCHEDULE IS VERY PACKED THESE DAYS

>> IT'S A PLEASURE.

>> LET'S TALK ABOUT A LITTLE BIT ABOUT HEALTH CARE. A LOT OF PEOPLE WERE TALKING ABOUT THE BIG RULING. IT SEEMS LIKE FOR VERMONT, AS FAR AS IT GOES, WE'RE STILL ON TRACK WITH THE ADMINISTRATION'S PLAN TO TRY TO MOVE TOWARDS SINGLE-PAYER SYSTEM. WHAT WILL VERMONTERS LEARN HOW THE ADMINISTRATION PLANS TO PAY FOR IT?

>> THE LEGISLATURE HAS PUT IN STATUTE THAT THE ADMINISTRATION IS TO PRESENT TWO PLANS NEXT YEAR. ONE WOULD BE FOR FULL IMPLEMENTATION OF THE CARE, WE YOU CALL SINGLE PAYER. THAT'S FINE. UNIVERSAL, YOU KNOW, NOT TIED TO EMPLOYMENT. AND NOT --

>> EVERYONE COVERED?

>> EVERYONE COULD HAVED. SO, YOU KNOW, THE GOVERNOR HAS SAID HE HASN'T BACKED OFF. HE'S BEEN VERY CLEAR. WE WANT TO GET THERE AS SOON AS WE POSSIBLY. GO I WANT EVERYBODY TO KNOW WHERE I'M GOING. I BELIEVE THAT EVERYBODY OUGHT TO BE COVERED. IT SHOULDN'T BE TIED TO EMPLOYMENT. AND WE OUGHT TO BE ABLE TO SQUEEZE SAVINGS OUT OF THE SYSTEM WITH PAYMENT REFORM, WITH CONTINUING OUR EFFORT ON PRIMARY CARE. SOMETHING THAT WAS, YOU KNOW, THE BLUEPRINT WAS HEALTH WAS STARTED DURING THE DOUGLAS ADMINISTRATION. TRYING TO TAKE THAT TO A NEW LEVEL. USING TECHNOLOGY BETTER. AND SO THAT'S WHERE WE'RE GOING. WE'RE TRYING TO GET THERE AS QUICKLY AS WE CAN. WE HAVE TO DEAL WITH THE REALITY THAT THERE IS A CONGRESS AND THERE IS A SUPREME COURT. OBVIOUSLY FOR VERMONT IT WAS A REAL SHOT IN THE ARM THAT THE SUPREME COURT DIDN'T OVERTURN THE AFFORDABLE CARE ACT. THAT'S GOING TO PROVIDE NOT ONLY, YOU KNOW, SOME SUSTAINED MOMENTUM, BUT MILLIONS -- HUNDREDS OF MILLIONS OF ADDITIONAL FEDERAL FUNDS IN THE COMING YEAR THAT WILL MAKE OUR JOB EASIER.

>> THE HEALTH CARE.

>> FOR THE HEALTH CARE EXCHANGE.

>> AS FAR AS THE PAYMENT GOES, THAT'S THE BIG QUESTION MARK FOR A LOT OF PEOPLE.

>> RIGHT. AND WE WILL BE PRESENTING PLANS NEXT YEAR.

>> IN JANUARY?

>> IN JANUARY. YEAH.

>> WHAT'S ON THE TABLE?

>> NO, I DON'T. WHAT WE'VE DONE IS A VERY COMPLICATED EXERCISE. AND ACTUALLY WE REALLY -- I THINK PEOPLE CAN UNDERSTAND WE MIGHT HAVE NEEDED SOME EXPERTISE ON THIS. WE HAVE CONTRACTED WITH SOME HEALTH CARE AND ECONOMIC EXPERTS AT THE UNIVERSITY OF MASSACHUSETTS TO HELP DEVELOP THE TWO PLANS. THE TWO PLANS THAT THE LEGISLATURE ASKED US TO DEVELOP WAS, ONE FOR BASICALLY FOR THE HEALTH CARE EXCHANGE, PERHAPS SOME EXPANSION OF MEDICAID OR SO FORTH. AND IN MEDICAID WE'RE ALREADY, AS YOU KNOW, PRETTY AGGRESSIVE STATE IN MEDICAID. BUT THERE ARE THOUSANDS OF VERMONTERS THAT ARE ACTUALLY ELIGIBLE FOR MEDICAID THAT AREN'T TAKING ADVANTAGE OF IT. SO FOR US IT'S MORE OR LESS DOING BETTER OUTREACH TO MAKE SURE EVERYBODY ELIGIBLE IS TAKING ADVANTAGE OF HA THEY'RE ELIGIBLE FOR. ONE PLAN IS FOR A MORE MODEST. BUILT AROUND THE HEALTH CARE EXCHANGE. AND THE OTHER WOULD BE FOR FULL IMPLEMENTATION. AT THIS MOMENT, UNLESS CONGRESS PASSES A STATUTORY WAIVER, THE FULL AMOUNT OF CARE CANNOT GO INTO EFFECT UNTIL 2017. AND, YOU KNOW, SO ONE THING -- ALTHOUGH WE'LL BE PUSHING TO GO AS FAST AS WE CAN, IT'S NOT CLEAR AS WE'RE TALKING RIGHT NOW, KRISTIN, WHETHER WE CAN IMPLEMENT THE FULL BOAT THAT THE GOVERNOR IS CLEAR ON WHERE HE WANTS TO GO IN 2014. SO IT'S UNLIKELY THAT THE LEGISLATURE WOULD OR THE GOVERNOR WOULD ASK THE LEGISLATURE TO PASS A FULL FINANCE PLAN, THAT, YOU KNOW, WON'T GO INTO EFFECT FOR ANOTHER COUPLE OF YEARS. SO IT MAY BE NEXT YEAR THAT, YOU KNOW, THAT WE WILL -- WE WILL BE SUBMITTING A PLAN TO FULLY IMPLEMENT. WHETHER WE'RE ASKING THE LEGISLATURE TO PASS THAT PLAN NEXT YEAR, IS ANOTHER MATTER. AND THE GOVERNOR IS ALSO MADE IT VERY CLEAR THAT FOR HIM, THE UNIVERSAL COVERAGE AND BENDING THE COST CURB GO HAND IN HAND. IF WE CAN'T DEMONSTRATE TO YOU KNOW, OURSELVES AND TO THE LEGISLATURE AND TO THE PUBLIC THAT WE ARE, INDEED, GOING TO BE ABLE TO BEND THE CARVE, THAT -- BEND THE CURVE, WE WILL NOT PULL THE TRIGGER. IT'S OUR BELIEF THAT WE CAN SAVE MONEY. AS I MENTIONED, BY CHANGING HOW WE PAY, BY USING INFORMATION TECHNOLOGY, AND REALLY FOCUSING ON PRIMARY CARE. CONTINUING THE GOOD FOCUS ON PRIMARY CARE. THAT'S BEEN WORKED ON IN VERMONT FOR YEARS NOW. SO I DON'T KNOW IF THAT'S CLEAR OR NOT. WE WILL BE PRESENTING TWO PLANS. IT IS NOT CLEAR YET WHETHER WE'LL BE ASKING THE LEGISLATURE TO IMPLEMENT THOSE TWO PLANS. I THINK THERE IS SOME QUESTION ABOUT WHETHER WE CAN BUY FEDERAL LAW IMPLEMENT GREEN MOUNTAIN CARE IN 2014.

>> IN 2017?

>> YEAH. UNLESS CONGRESS -- CONGRESS DECIDES TO CHANGE THE LAY OF THE LAND. YOU KNOW, THE GOVERNOR THIS WEEK, WHEN HE LEARNED OF THE SUPREME COURT DECISION, LAID OUT I THINK A VERY PLAUSIBLE CASE WHERE THERE MAY BE OTHER STATES FOR DIFFERENT REASONS THAT ARE LOOKING FOR FLEXIBILITY FROM THE FEDERAL GOVERNMENT. MAYBE THEY DON'T ACTUALLY WANT TO DO AN EXCHANGE OR GO AS FAR AS THE AFFORDABLE CARE ACT AND THE ASKING FOR FLEXIBILITY. THAT MAY IN TURN ALLOW US THE OPPORTUNITY TO ASK FOR, YOU KNOW, OUR WAIVER.

>> YOU'VE BEEN AROUND OBVIOUSLY FOR A LONG TIME. YOU SERVED ON THE LEGISLATURE. YOU WERE THE STATE TREASURER. YOU KNOW THE STATE AND THE OTHER MEMBERS VERY WELL. YOU'VE BEEN AROUND, YOU'VE SEEN THE PUSH FOR SINLE PAYER. IT WAS DERAILED UNDER GOVERNOR TEEN. ARE WE ON THE SAME PATH?

>> I DON'T BELIEVE WE ARE.

>> WHAT'S DIFFERENT?

>> YOU KNOW, I THINK -- FIRST OF ALL, I THINK ON A VARIETY OF ISSUES, WHETHER, YOU KNOW, -- WHETHER ANYTHING FROM HOW WE THINK ABOUT EDUCATION OR CIVIL RIGHTS, TENDS TO EVOLVE IN PEOPLE'S MIND. I THINK MORE VERMONTERS RECOGNIZE TWO THINGS, THAT IT DOESN'T MAKE SENSE FOR THE UNITED STATES OR VERMONT NOT TO OFFER GOOD HEALTH CARE AS A BASIC PREMISE FOR ALL VERMONTERS. AND, TWO, WE CAN'T AFFORD TO KEEP DOING THE STATUS QUO. SO I THINK THERE'S A HIGHER LIKELIHOOD OR A GREATER UNDERSTANDING BY THE PUBLIC, THAT WE NEED TO DO THIS. THAT WE CAN'T AFFORD TO KEEP DOING WHAT WE'RE DOING. ALL VERMONTERS DESERVE TO HAVE ACCESS TO QUALITY HEALTH CARE. SO I THINK THAT'S VERY DIFFERENT. WE ALSO I THINK HAVE A GOVERNOR WHO AS I MENTIONED EARLIER, IS A HARD DRIVER AND A GOOD SALESMAN. AND I THINK, YOU KNOW, WE WILL BE ABLE TO SUCCEED AS WE MOVE ALONG. THE TIMING IS NOT EXACTLY CLEAR RIGHT NOW. YOU KNOW, WE ARE DOING EVERYTHING WE CAN TO MAKE SURE THAT WE HAVE THE EXCHANGE OPERATIONAL BY JANUARY 14th. WE'RE HOPING TO ADD SOME ADDITIONAL ENHANCEMENTS, EVEN IF THERE ARE NO ADDITIONAL FEDERAL WAIVERS. IF THERE ARE WAIVERS, WE CAN MOVE UP OUR SCHEDULE EVEN QUICKER.

>> I WANT TO ASK YOU QUICKLY ABOUT SOMETHING ELSE, SWITCHING TOPICS TO THE WHOLE DEBATE OVER CABOT AND THE LABELING CHANGE. THEY NO LONGER HAVE VERMONT. THE GOVERNOR IS TIS POUND -- DISAPPOINTED. HE SAID DURING AN INTERVIEW, THAT HE WAS WORKING ON SOME KIND OF A SOLUTION TO GET VERMONT BACK ON CABOT. AND THAT IT WOULD BE COMING OUT SOON. DO YOU KNOW WHAT THAT SOLUTION IS?

>> IT'S STILL BEING WORKED ON, KRISTIN. I'M NOT GOING TO BE COY. ONE THING I WANT TO TELL YOU AND THE VIEWERS, THE SECRETARY OF THE ADMINISTRATION DOES HAVE A LOT OF RESPONSIBILITIES. I LIKE TO SAY --

>> WERE YOU SURPRISED WHEN THE GOVERNOR SAID THAT?

>> I WASN'T SURPRISED. ACTUALLY I WAS WITH HIM WHEN HE MET WITH THE C.E.O. OF CABOT AND SAID IT WAS A VYING SHAME. HE SEES CABOT AS A VERMONT COMPANY. HE THINKS THEIR CHEESES ARE GREAT. THE ISSUE WAS THE BUTTER, WHICH IS MANUFACTURED IN MASSACHUSETTS. AND NOT MAJORITY OF VERMONT PRODUCTS. I MEAN, IT'S A DIFFERENT QUESTION. CABOT ITSELF IS A COMPANY THAT WE FEEL VERY STRONGLY IS ABSOLUTELY COMPATIBLE WITH THE VERMONT VALUES AND ASPIRATIONS AND, YOU KNOW, HE WANTED TO DO WHAT HE COULD TO HELP THEM OUT. I THINK HE WAS STATING HIS, YOU KNOW, HIS EMOTIONAL FEELINGS. AND, YOU KNOW, AT THE SAME TIME HE'S ALSO SAID WE DO HAVE TO MAKE SURE THAT WE DON'T MISLEAD THE PUBLIC AND HAVE A PRODUCT THAT, YOU KNOW, IS LABELED AS VERMONT WHEN IT REALLY ISN'T. OUR HOPE IS THAT, YOU KNOW, AS I UNDERSTAND IT. THE SECRETARY OF ADMINISTRATION -- MY JOB IS TO KIND OF MAKE SURE THE RULES OF STATE GOVERNMENT ARE HEADING IN THE SAME DIRECTION AS SMOOTHLY AS THEY CAN IN THE DIRECTION THE GOVERNOR WANTS TO GO. SOME OF THE POLICY AREAS LIKE WHAT WE'RE DOING ON THE LABELS, I'M NOT INVOLVED WITH ON A DAILY BASIS. WHAT I KNOW IS THAT THE SECRETARY OF AGRICULTURE AND THE SECRETARY OF COMMERCE ARE. THEY'RE TRYING TO WORK WITH INTERESTED VENDORS AND PRODUCERS IN VERMONT AND THE ATTORNEY GENERAL'S OFFICE TO ESSENTIALLY REINSTATE A SEAL OF QUALITY-TYPE OF LOGO THAT COULD BE ON PACKAGES THAT MEET MINIMUM STANDARDS. YOU KNOW, HIGH MINIMUM STANDARDS AND THAT WILL THEN HOOK UP TO AN INTERNET WEB SITE, SO THAT INTERESTED CONSUMERS CAN FIND OUT EXACTLY WHAT'S IN THEIR FOOD. SO THERE THEY'RE STILL WORKING THROUGH THE DETAILS. IT'S AN ATTEMPT TO MAKE SURE WE CAN ALLOW GOOD COMPANIES THAT ARE VERMONT COMPANIES TO, YOU KNOW, PUT SOMETHING ON THE PACKAGE. THEY'RE VERMONT ORIENTED. IT ALSO ALLOWS CONSUMERS THE AND TO FIND OUT WHAT'S IN THEIR FOOD.

>> FEW MINUTES LEFT. LET'S GETS TO THE F-35. THE GOVERNOR UNDERSTANDS THEY'RE LOUDER, LOUDER FOR SHORTER PERIODS OF TIME. THE NEW INFORMATION HAS COME OUT, WHICH I'M SURE YOU'RE FOLLOWING. THE PRESIDENT SAID THAT HE WAS INFORMED BY THE AIR FORCE THAT THERE WERE, QUOTE, GRAVE MISTAKES MADE IN THE SELECTION PROCESS AND THAT VERMONT SHOULD NOT BE A FINALIST TO HOST THE F-35. DO YOU THINK ANYTHING ABOUT THAT?

>> I'VE SEEN IT IN THE PAPER. WE ARE NOT AWARE OF THAT BEING THE CASE. YOU KNOW THE GOVERNOR IS SUPPORTIVE OF HAVING THE F-35 COME TO VERMONT. HE DOES ALSO RECOGNIZE THAT THERE WERE QUESTIONS RAISED IN THE ENVIRONMENTAL IMPACT STATEMENT THAT NEED TO BE ADDRESSED. AND THAT THE ANSWERS HAVEN'T TOTALLY BEEN FORTHCOMING YET. THERE ARE STEPS THAT COULD BE MITIGATED TO HELP WITH THE SIGNIFICANT PROBLEMS THAT WERE IN THE ENVIRONMENTAL IMPACT STATEMENT. BUT WE ALSO BELIEVE, YOU KNOW, THE CITIZENS HAVE A RIGHT TO KNOW THOSE ANSWERS. SO, YOU KNOW, WE ARE SUPPORTIVE. BUT ALSO SUPPORTIVE OF THE NEED TO GET INFORMATION TO ASSURE PEOPLE THAT THERE'S NOT GOING TO BE THE SEVERITY OF THE PROBLEMS THAT SOME PEOPLE FORESEE. YOU KNOW, THE GOVERNOR I KNOW HAS LET HIS STAFF KNOW THAT, YOU KNOW, HE IS INTERESTED IN MEETING WITH SOME OF THE LEADERSHIP OFFICIALS IN SOUTH BURLINGTON TO TALK TO THE ISSUE TO MAKE SURE WE KNOW WHAT'S ON THEIR MINDS. WE DO BELIEVE THAT WE CAN AND WE BELIEVE THEY'RE OWED A FULL EXPLANATION OF THE STEPS THAT COULD MITIGATE THE SEVERE PROBLEMS. BUT WE'RE CONFIDENT THAT CAN BE DONE. SO, YOU KNOW, WE WANT TO MAKE SURE THAT, YOU KNOW, THAT THAT INFORMATION IS FORTHCOMING. I DON'T -- I AM ABSOLUTELY NOT AWARE OF THE VALIDITY OF THE STATEMENT THAT WAS MADE THERE THAT YOU READ. I SAW IT IN THE PAPER. BUT I'D BE SURPRISED IF THAT WERE ACCURATE. BUT I DON'T KNOW ONE WAY OR THE OTHER.

>> VERY QUICKLY. AT SOME POINT THE GOVERNOR WAS GOING TO ACTUALLY START CAMPAIGNING. A ES TRYING TO HOLD OFF SINCE LABOR DAY. THERE'S BEEN INTERNAL DEBATE ABOUT THAT. WHAT DO YOU THINK WILL BE THE BIG MESSAGES OF THE CAMPAIGN FOR HIM?

>> WELL, A LOT OF IT IN THE CAMPAIGN, WHEN WE GET THERE, IS GOING TO BE, YOU KNOW, -- I THINK ONE OF THE REASONS PETER SHUMLIN ACTUALLY WON A YEAR AND A HALF AGO. IT'S AMAZING. STILL WORKING ON THE FOUR-YEAR TERM. THAT'S GREAT. OKAY. HE WAS VERY CLEAR ABOUT WHAT HIS PRIORITIES WERE. AND I DON'T THINK THEY'VE CHANGED. THEY ARE JOBS AND THE ECONOMY, HE BELIEVES THAT HEALTH CARE REFORM IS KEY TO ACTUALLY -- AS OPPOSED TO SOME PEOPLE THAT THINK IT'S AN ECONOMIC NEGATIVE. IT'S AN ECONOMIC POSITIVE. HE WANTS TO BE IN THE EDUCATION GOVERNOR AND KEEP PUSHING THE BROADBAND AND MOBILE CONNECTIONS AND QUALITY OF LIFE IN VERMONT. THANK YOU VERY MUCH.

>> ALL RIGHT. I FOLLOWED THE CAMPAIGN, TOO. ADMINISTRATION SECRETARY JEB SPAULDING, THANK YOU VERY MUCH FOR YOUR TIME.

>> THE TIME WENT BY FAST.

>> IT SURE DID. THANK YOU AT HOME FOR WATCHING. HAVE A GREAT SUNDAY, EVERYONE. CAPTIONING PROVIDED BY CAPTION ASSOCIATES, LLC WWW.CAPTIONASSOCIATES.COM