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Keelan: How we can break Vermont’s dependency on Washington

by Don Keelan

Last month, I was the master of ceremonies at the unveiling of a State of Vermont roadside historical marker in East Arlington. The marker depicted the courageous activities of Captain Remember Baker (1737-1775).

Capt. Baker, first cousin to Ethan and Ira Allen, served in the French-Indian War; built the first gristmill in Arlington in 1764; was kidnapped by the “Yorkers” in 1772; was rescued by the Green Mountain Boys; and in 1775, in northern Vermont, gave his life in support of the War for Independence. 

At the unveiling, several of the speakers highlighted how Vermonters strived for independence then and continue to this day. It is common to hear and read how independent Vermonters are today. Really?

Not a day goes by that we read/hear about another Vermont institutional sector sounding the alarm that its sustainability is in jeopardy due to the possible lack of federal funding. The major sectors are healthcare, cultural arts, education, food distribution, environmental and preservation agencies, public safety, disaster relief, etc. The list goes on. 

Don Keelan

When Washington looks to tighten the federal transfer of funds to the states, panic sets in. Why is this so, and how did we ever come to be in such a position? 

An article in FYIVT on December 20, 2024, provided some valuable statistics in attempting to understand why there is growing concern. The article noted that Vermont’s share of the GDP is around $ 45.4 billion. Correspondingly, the State and local governments have expenditures upwards of 29.4% of the GSP, the highest in the nation. The average is 18.23%. 

Two takeaways: our State does not have a substantial economic base to fund its approximate $9 billion budget. The State needs federal funding, which amounts to about 33% annually. Thus, we are highly dependent on that one source, Washington. 

There is one concern that often keeps municipal, nonprofit, and business leaders up at night. Their entity must not rely on one large taxpayer in its community, one generous donor to its organization, or one customer to make up a vast percentage of the company’s or firm’s revenue. If so, that entity could be in troubled waters, having to accept dictates from a single source. 

Vermonters should also be concerned about another recent development. The “pork barrel truck,” that had as its teamster Senator Bernie Sanders, is no longer “on the road.” The ‘truck’ has been sidelined with Burlington and Vermont in the Senator’s rear-view mirror. His new endeavor is touring the lower 48 states and promoting what he has for decades, progressive socialism. His crusade now consumes most of his time, not Vermont.

This lack of financial independence does not have to be as dire as it has become. But first, there must be a serious recognition that it is a problem festering for decades. 

Growing the Vermont economy by encouraging commercial companies to recognize that Vermont is open for business would be a good start. It would mean that Governor Scott should declare a State of Emergency and have officials at the State and local levels fast-track projects by streamlining regulations, adopting timelines for approvals, and addressing the level of intellectual dishonesty often evident when projects are proposed, such as the NIMBY (Not In My Back Yard) syndrome.

Nonprofits are encouraged to look into affiliation, merging, or collaborating. There are too many entities looking to drink from the same well. The well’s resource, as they have now discovered, can vanish.

Businesses of all sizes and types should collaborate and encourage other entities with similar values to relocate to Vermont.  At every planning/zoning/Act 250 hearing, the potential Vermont business should not have to stand alone. 

The State Legislature is beginning to show some courage by finally addressing the extraordinary cost of education, but let’s see if such courage can stick. We will know in a few months. The State cannot be everything for everyone. It must go back to where it once was, helping those who are indeed in need.

In 1775, Capt. Remember Baker gave his life to be independent of Great Britain. I don’t think anyone would make such a sacrifice today. The enticements to be dependent are too good.

The author is a U.S. Marine (retired), CPA, and columnist living in Arlington, VT.

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