Socialism In One City

Burlington Is the Future and It Doesn't Work
by
Rich Tarrant

(ed. note: This essay first appeared here last summer.  It seems Senator Tarrant [that has a nice ring, doesn't it?] pretty much called it.  He may, if anything, have been too soft on the city and, especially, on BT.)

Recent editorials relating to the City of Burlington finances point to a larger issue – the results of 25 years of progressive/socialistic governance and what it has produced.

For those Vermonters curious about the future if the state’s gradual slide into Burlington type socialism continues, it would be instructive to examine the present state of affairs in the city.

First of all, despite Jonathan Leopold’s protestations, the city is a financial train wreck, the most visible signs of which are the streets crumbling before our eyes. Less visible but equally decrepit are the water and sewer systems below those streets, systems crucial to the health and safety of citizens.  Also, we know that the pension fund for city retirees has been underfunded for many years and we now read that the city has been underpaying its workers.

The city’s taxes are maxed out with a 10% premium for commercial property taxes and an extra 1% sales tax. The city owns an airport that should be a cash cow and the waterfront is a great natural asset. You’d think that with a world-class medical center and two prestigious colleges within its borders, it would be difficult to manage the city into such a hole. 

Further evidence of inadequate financial governance can be seen in Burlington Telecom, the city-owned telecommunication company that will be a money pit for many years, if not forever. Did the powers that conceived of Burlington Telecom not realize that such a tiny company would not be able to compete in the fast changing technology world? Among other developments, Google, AT&T and others are investing billions in a wireless internet that could obsolete Burlington Telecom in short order.

Yet another example of bankrupt thinking is Mayor Bob Kiss’ plan for the Moran Generating plant that calls for spending $21 million – $7.3 of it from the city – to house a museum, a restaurant and an ice-climbing wall. In hyping the project the Kiss administration stated the project would generate $122,000 in tax revenue. That’s less than 2% return on the $7.3 million investment. But, undaunted by such numbers, they proclaim, “It’s going to really strengthen the local economy”.  A museum, a restaurant, and an ice-climbing wall?

It goes on. Some time ago, the city engineered a coup to prevent a grocery chain from locating a store in Burlington, claiming the store would not cater to lower-income people. Instead, the city greased the deal for the socialistic Onion City Coop to slide in as owners of what is now City Market. Anyone who has shopped at City Market knows that its prices are geared to upscale shoppers to the exclusion of the low-income residents it was supposed to help. Of course, City Market is unionized and has just negotiated a sweetheart deal for the workers giving them, among other benefits, 100% medical coverage. Try passing those costs along to low-income shoppers. The contract also includes a profit-sharing plan based on sales, not profits, since, of course, the union workers should profit from a profit plan that is not based on profits.

This is how socialism works in Burlington and it foreshadows what will happen to the entire state if Vermonters continue to support politicians who embrace this philosophy.

Our kids and grandkids will pay dearly for ill-conceived governance that is ideological in nature and impractical in fact.

Comments

[Ed G. Mann]

Ooooh, Rich! Such language!

Compete! Profit! Return on Investment (ROI)! Maxed out taxes! You've been hanging out with those no-good individualists.

Get me the yellow soap and then off to reeducation camp for you!

[Richard]

Thank you, Rich. You're dead-on.

The facade built up over the years will come off to expose the rot beneath; both at the state and municipal level.

It's only a matter of time, only now it will be sooner, rather than later.

[Richard]

"Can the party of Howard Dean, the Daily Kos and Keith Olbermann remain relevant?"

Great and relevant read...

http://bighollywood.breitbart.com/lscott/2009/07/24/has-liberalism-jumped-the-shark/

[Sheldon Katz]

As others have said, this is direct, truthful, and right to the point. Not a criticism, Rich, but I wonder if you had been so plain spoken in 2006, you would be helping to stem the socialist tide in D.C. today. Just a thought.

Thank you for this

[greenmtnpunter]

Nice to see Rich Tarrant back on the scene. Hope he will run again in 2010- how about Jim Douglas for Senate and Rich Tarrant to the corner office in Montpelier?

[Glenn Eno]

If out of state students were to vote absentee in their home state instead of residents of Vermont the Socialist movement in Burlington may have been avoided. You reap what you sow.

[d_2]

is the point about the city market a fact, or just hearsay? i am curious if there is any documentation about the city preventing a chain grocer from locating downtown -- i can walk into the city market can see that the prices are obviously higher.

[Ed G. Mann]

d_2, That was done by limiting the square footage the store could build. Chains have that down to a science, needing 50,000 sq ft ± a couple of inches to make a profit. Prevent that and they go away, thin margins in that business.

City market "said" they'll be for the little man but you can see the results. The hoi polloi can leg it up to Price Chopper and Shaw in So. Burlington, thank you.

[Burlington native]

Rich is right and it is very unfortunate for the low income/ medium income shoppers. Burlington has a history of higher priced grocery stores. This pratice especially takes advantage of those without transportation.

[rod hill]

Rich TarrantIf is right on the target,as usual.If only Vermonters would get off their Liberal horses for a moment we would stand a chance. Rod Hill,Grand Isle,Vt

[Paul]

Former Mayor Clavelle even had the gaul to accept awards for Burlington being a sustainable city. When he left office the truth came out. The only question is whether the City or the State will sink first.

[Brattleboro Landlord]

Rich, thanks for your words. I agree with the others, we need you in either our state or federal government.

Although off topic, isn't it interesting that Sen. Shumlin hammers Entergy regarding the potential shortfall in the decommissioning fund which is under federal control, but does nothing about the shortfall (and underfunding) of our state teachers' and state employees' pension funds which he could have influence over.

[Mark Shepard]

Rich,

Thanks. Exceptional example, but not just of where the state is headed, but the nation as well ... if we don't find a way to stop the one-party rule in DC. Too bad so many DC Republicans destroyed the fiscal reputation of the GOP.

If I might, I would like to challenge part of your last paragraph: "Our kids and grandkids will pay dearly for ill-conceived governance that is ideological in nature and impractical in fact."

I do not think the problem is so much that the governance is ideological as it is based on an illogical ideology.

Our nation was founded on an ideology. It was just that the ideas of our founders were thought out and proven in human experience.

The ideology that put Burlington in the mess it is in was at best wishful thinking. Most certainly there were no examples of these ideas working in the long term.

Thanks again for making your excellent points.

[GreggB]

If Mr. Tarrant ran for office in VT again and lost would folks still stick around VT waiting to be saved?

[Tom]

I was looking at the supermarket price comparator in the Free Press on (I think it was) Sunday and City Market's prices were right in there with Shaw's and Price Chopper's. Sometimes a bit higher, but also often a bit lower.

Also remember that the chain supermarket wanted the taxpayers to build it a parking garage. From the report (http://www.cedo.ci.burlington.vt.us/legacy/strategies/supportdocs/05-org-supermarket-a.doc)

"Parking: The parking needs for each proposal varies. Without the Public Market, Macs and the Onion River Co-op would need no additional parking at this site. Shaws would need to build a 186 space underground parking garage. If the Public Market builds on this site with either the Onion River Co-op or Macs, additional structured underground parking or surface parking would probably need to be built at additional expense. (The need would be less than the Shaws proposal).

Subsidies: All will utilize the $650,000 federal grant. For Macs and Onion River, the need for additional parking subsidies varies depending upon the final building size (see above). Shaw’s would need an additional $800,000 subsidy."

And "tiny" companies can compete - I love my service from Champlain Valley Telecom. I had DSL in Bolton years before anyone else around here.

[Chris Campion]

I still recall the preaching Chittenden County residents received about the need for an accessible grocery store near the North End, after the only one shut down. Years later, we're still missing an accessible grocery store near the North End, but those who love government intervention in markets proudly thump their chests in triumph over City Market - a market that does not cater to the lower-income demographic once so loudly touted as the reason for locating a grocery store in downtown Burlington.

I found it outrageous when the idea was floated. The market turned out exactly as predicted by many - an upscale market that caters to bigger wallets, with a cursory nod at a couple of the staples the lumpen proletariat might be lured in to the store to purchase. The store's not much different than some of the yuppified chains that are routinely derided by those who see fit to put the same type of upscale store in their own backyard. The only thing that's different is the name on the door.

Burlington often gets what it deserves. When the foolish and inexperienced are repeatedly elected, the results speak for themselves. Can't wait to bolster the local economy by paying to scale an ice climbing wall. I can feel the money multiplier kicking into overdrive right now.

And then congratulate themselves for doing so.

[Ed G. Mann]

Gentrify the Old North End and do wonders for Burlington's tax base. Immediately the schools improve, food prices won't matter, a host of problems including graffiti diminish.
Let Milton and Colchester have the problems.

Urban planning the slow but sure progressive way. A by product of such creative planning makes the Moran plant sensible.

[Paul F]

Agree with Rich's comments. Burlington has become a joke. The liberals complain about lack of affordable housing and then drive landlord property taxes to astronomical levels. Stupid is what stupid does.

[Ed G. Mann]

Seems that Mayor Kiss solved all of Burlington's major problems since they're moving on to banning smoking outdoors on Church St.

This will improve the budget bottom line as they get rid of those pesky restaurants and bars. The pushcart vendors add much more local color. The only question one would have is, "Does that color include income replacement green?"

[Raoul Grayson]

FAHC is NOT a world-class medical center.

[Bob McCafferty]

I think Rich Tarrant is great. He just ran for the wrong office.
Time to jump into the race for governor!

[Bill]

One sign Burlington voters may be tiring of the Prog socialist machine will be if instant runoff voting or IRV goes down to defeat in the city elections in March. I see from yesterday's Freeps that the elected Proggys and their hacks are concerned and trying to wake up the troops. Will they bring in Martha Coakley for a big rally on the Sunday before? Thanks to Rich Tarrant for speaking out against the socialists.

[Dennis Lukas]

Why socialism works. I re financed my home in Randolph, due to lack of work and in the hope of selling it in 2006, it did not sell. The house I bought in 2001 at $85,000.00 was assessed in 2008 at $244,000.00. Taxes 2001,$1,900.00 taxes 2003 $6,200.00.In 2008 my mortgage was held by Country Wide, the Mortgage was then bought by Deutsche Bank who sold the mortgage to Fredie Mac. Today the house was sold at auction to the bank, Deutsche bank, the ??? mortgage holder. Now thats a win,win. The government buys the worthless mortgage and the middle man bank keeps the house.So if you think Burlington is bad you better keep a eye on Washington. The kick is with interest and penalties Deutsche bank received $340,561.05 from the government to buy the mortgage. I kid you not.The government offered me a bail out, 3% for 5yrs, 6% after that and a balloon payment of $155,000.00.So I know who bought the paper, you the tax payers.

[Dennis Lukas]

I would like to ad a PS. I worked hard for 30 years to be able to move to Vermont.After moving to Vermont it was a shock to see that a once self sufficent state had turned into a tax and spend state.Gone was the real beauty, financial freedom from being over taxed.

[CarbonPenguin]

Agree with most of this except the take on City Market - the dividend check I got in the mail more than off-sets any price-differential with the major chain groceries. Co-ops are honestly more libertarian in my book than joint-stock corporations, as they have a harder time generating externalities...