When Good Advice Goes Unheeded

by Chris Campion

In searching for economic development studies done by the state of Vermont, one can occasionally strike some gold.  This Strategic Plan for Economic Development was published in 2002, but it does highlight continuing challenges within Vermont in terms of growing its economy - and offers a brief outline of what's required to grow Vermont's economy:

In their 2002 update of Vermont’s economic development plan, the Vermont Economic Progress Council named ten foundational elements critical to the success of Vermont’s healthy economy –

1. Predictable, Customer-Oriented Regulatory Systems 

2. A Competitive and Stable State & Local Tax Policy 

3. Coordinated, Cost Effective Economic Assistance & Community Development Programs

4. A World-Class Workforce

5. An Exceptional Telecommunications Network

6.  A Fair, Predictable and Competitive Energy Policy

7.  A State Transportation System that Supports Economic Development

8.  Science & Technology Initiatives that Stimulate Economic Growth

9.  An Efficient and Effective State Government

10.  Affordable Housing for the Workforce

How many of these 10 elements have been created, supported, or championed by the legislatures in the last 10 years?  How many of these elements were actively blocked, challenged, or demonized by the legislatures in the last 10 years?  If I were to score each of the 10 elements above, pass/fail, I'm coming up with a 20% "pass" rating - and it's a generous rating, at that.

The most critical issue surrounds tax policy, and predictable energy and regulatory policies.  Businesses plan their long-term investments in people, capital projects, and their physical location based largely on these items, because they essentially represent costs outside of the actual product or service the firm provides.  Clearly, businesses are voting with their feet because we've lost for-profit jobs in the last decade, and the only reason net job growth is at zero percent is because of job growth in the public sector - which relies entirely upon taxes generated in the private sector.

I would argue that at least some of the recommendations from this plan become part of the legislative agenda in the next session - specifically a re-vamp of tax policy and the permitting process (which is also discussed in this strategic plan).  Without a serious and broad-based review of Vermont's current structure in these two areas, there will be no job growth.  Ten years of historical data confirms it.

Comments

[GreggB]

Seems reasonable. Political will suggests more of the same ole stuff. Nothing bad has happened yet and VT is out progressing most other states. Seems like VT should stay the course for another decade or two and give this progressive/pro-green thing a fair shake.

[Gregory J. Decker]

Chris, a critical flaw in any plan to improve the Vermont economy is the Libertarian assumption that people prefer life to death, health to sickness, nourishment to starvation, abundance to poverty. The fact is, some (most?) Vermonters prefer green-poverty over abundance. A life of subsistence for all is their objective. Thus, it it comes as no surprise the 2002 study has been ignored. Indeed, they've been ignoring studies for longer than that.

[Tom Licata]

Chris, Here's some results of (yet)another study, from the year 2000:

The O’Neal Group, a nationally recognized “Brand Identity” firm, was retained by the state of Vermont in August of 2000.

They conducted a review and analysis of the Vermont brand from the perspective of existing businesses in Vermont.

Its findings (and I quote from the report):

“There is a sense among business people that Vermonters view business growth as a threat to their quality of life.”

“This mindset underlies the obstructionist and capriciousness associated with the permitting process and regulatory establishment.”

The report found reforming the permitting process was the thing Vermont businesses wanted most from State government.

More tax breaks were next.

[G. Cross]

All this is strange. According to the Agency of Commerce and Economic Development it is all easy:

"Making the permit and regulations process easier to manage.

When you’ve got business to do, you want the permitting and regulations process to go as quickly and smoothly as possible. The Department of Economic Development can provide a "consumer friendly" source of assistance in obtaining permits or complying with regulations. If you’re not familiar with the permitting process, are new to the state or are looking to relocate to Vermont, or are experiencing difficulty communicating with the permitting authority, the Department’s staff will help you navigate the system.

The assistance provided helps you with the administrative process and is generally of a strategic rather than technical nature. We prefer an approach that identifies potential issues early in the process providing time to address them before they present process or time delays. The Department’s staff will lay out what you need to know and do in simple, easy-to-understand, user-friendly language that pertains to your industry, location, number of employees and a range of other factors."

Maybe the readers of this site should call the agency to learn how they are helping businesses.

[Chris Campion]

George, you *have* looked at the job growth numbers for the last decade, correct? If no net job growth equates to "helping", perhaps the state should simply get out of the way.

[Tom Licata]

George, Your role as antagonist is becoming tiresome.

As President Obama has stated, "elections have consequences."

Vermont is experiencing what it deserves and is deserving of it.

Thomas Jefferson is credited with saying “The government you elect is government you deserve.”

Sit back, George, and enjoy the show.

You are deserving of it.

[Vermont Woodchuck]

The first step is call the Department of Economic Development for a "consumer friendly" chat.

Second, bring Lots of money for taxes, fees, postage, lawyers, court papers, notary witnessing, return trips and refiling after multiple run-ins with the Conservation Law Foundation of Massachusetts.

Third, open the business in New Hampshire and save yourself time and grief while working in a tax friendly state.

[G. Cross]

Gee Tom, I find the constant barrage of Vermont is a bad place to do business, the Democrats are all nuts and WE all have the key to success a little tiring also. All I am trying to do is offer just a bit of a different opinion so the readers of this site will not all get as bored as I do reading this stuff over and over and over again. Furthermore, the Governor who ran on JOBS has apparently produced none. Of course, I am sure there will be several posts about how this void of job development has been totally caused by the legislature. Well, leadership is the ability to fulfill your promises.
Now, if this site is designed only for conservative comment so that you can all feel comfortable in your little spot on the web, let me know, I will stop reading and go away.

[Tom Licata]

George, No, I do not want you to "stop reading and go away." I believe your input is valuable, as it acts as a reflecting pond - a mirror if you will - on the diseased culture of our state.

Various definitions of "Groupthink":

•A type of thought exhibited by group members who try to minimize conflict and reach consensus without critically testing or analyzing; avoidance of individual responsibility.

•A process of reasoning or decision-making by a group, especially one characterized by uncritical acceptance or conformity to a perceived majority view.

•Is a mode of thinking that people engage in when they are deeply involved in a cohesive in-group. Group members, in striving for unanimity, override their motivation to realistically appraise alternative courses of action.

This is Vermont, George. It is your Vermont.

George, you kid yourself if you believe you "offer just a bit of a different opinion [to readers of this site]." Readers of this site understand your opinion. This site was created because of your opinion; because your opinion has been the overwhelming opinion.

Vermont Tiger isn't designed for conservative comment as much as it is designed as an alternative to the "groupthink" opinion that has brought this state to its knees.

“Freedom and Unity” is Vermont’s 1778 motto.

I believe this site is dedicated to the kind of freedom your opinion so distains, even while this distain subjugates the Vermont citizen to the very kind of impoverishment that your opinion claims as its nemesis.

It’s quite a gig, isn’t it George?

[Chris Campion]

George, Douglas vetoed an unsustainable budget last year, and the veto was overturned - which caused much rejoicing amongst legislators, some of whom are now running for his seat. So yes, I'm comfortable blaming those in the legislature who would rather not address the catastrophic issues facing the state - quite comfortable, in fact, since they have done almost nothing to address the issue.

There has been a great deal of pro-active suggestions on this site as to address the long-standing issues facing the state, yet the bulk of what we do here is discuss the issues, and your feedback is part of that. I welcome opinion, as long as it has some basis in fiscal reality, a reality that has not been readily found in the halls of our Capitol building much this past decade.

The state's demographics tell a lot about what's happened in VT. We would do well to understand what's happened, and why, and how best to change it. For those who support expansive gov't, the answer is always "more gov't" - missing the point that the gov't cannot be funded in perpetuity by taxes and borrowing, in that the dollars have to come from somewhere. Without a thriving economy, meaning thriving for-profit businesses, we will have no tax base.

A declining tax base and populace is how we've been trending for over a decade now. The answer to our challenges is not, and never will be, more of the same.

[Paul]

I'ts not just the permitting process that Vermont has a problem with. Trying to run a business when you have to deal with State employees is a real pain. Why do they have to have an "attitude"? It's seldom trying to help. It normally starts with threats. I've dealt a bunch in Florida and I can tell you there is a huge difference. It feels like Florida tries to help your business and Vermont tries to put you out of business.