In June, the Vermont Legislature passed, over the governor's veto, a balanced budget. This budget was built on the values that Vermonters elected us to reflect: responsibility, concern for our neighbors, and shared sacrifice.

Both the Legislature and the governor faced a $90 million General Fund shortfall. While each of us proposed solutions to this shortfall, our solutions differed from the governor's.

Our balanced budget was built on the principle that in difficult economic times everyone must be part of the solution. We asked Vermonters making over $250,000 to contribute more while at the same time providing a tax cut for those making under $250,000. We cut budgets for the people who rely on state services and asked state workers to increase their contributions. In the end we made sure Vermonters were getting value for their tax dollars.

The governor's approach was different. He asked lower-income, senior, and disabled Vermonters to bear most of the burden. The governor also solved the budget shortfall by increasing Vermonters' property taxes. He relied heavily on shifting the cost of teachers' retirement to the Education Fund, effectively raising property taxes for all Vermonters. At the same time, the governor asked nothing of wealthy Vermonters.

Legislators' values led us to conclude that sharing the pain was a better solution. We solved the same problem the administration solved with its budget proposal; we just chose to solve it differently.

The governor and his advocates like to say our budget is not sustainable. While it is true that next year's budget would have been easier to create under the governor's plan because your property taxes would have been higher, legislators didn't think Vermonters could afford such a large property tax increase. Education does need to contribute to the solution, but merely increasing property taxes was not the right solution.

The governor has also questioned the use of federal stimulus money (often referred to as ARRA money) sent to the states by the federal government to ease the pain in this difficult time. While there will be difficult decisions to be made when this money runs out, it is irresponsible not to let Vermonters benefit from the opportunities created by this federal money. There are roads and bridges being repaired, renewable energy projects being built, and workers who would otherwise be unemployed had we not spent this money wisely.

Vermont faces an extremely difficult challenge in building budgets for the next few years. Make no mistake, the budget that will pass next year will cause a lot of pain. We are facing an $80 million "hole" and an even larger one when the ARRA funds run out the following year. Things we value as a state will be cut or reduced in scope. People who depend on the state for services will suffer.

Vermonters need to engage in a conversation with the governor and their legislators about what values they want the budget to reflect. Ultimately, the real questions will be what are our priorities and who will bear the pain of our decisions.



Martha Heath, a Democrat, is a House member from Westford and chairman of the House Appropriations Committee.