Ethan Allen Institute - Commentaries and Fiscal Reports As 2010 began, state government faced a General Fund shortfall of $154 million. Here are selected commentaries and analysis from the Ethan Allen Institute on how the legislature should address this important issue. The New Governor's Fiscal Challenge The most immediate challenge facing Vermont's new Governor is the projected $112 million FY12 General Fund shortfall. Last year the legislature faced a budget gap of $154 million. Thanks to the final year of federal stimulus funding and hopeful projections for Challenge for Change (CfC) savings, legislators went home believing that they had delivered a balanced budget. (John McClaughry, November 16, 2010) The Challenge for Change Dream World The vaunted "Challenge for Change" bill promises $37.8 million in General Fund savings in FY2011. The more notable outcome will be a new commission's report on what went wrong with the grand plan. The next Governor needs to create a totally independent commission to reexamine what state government is spending money on, and how much goes beyond the taxpayers' capacity to pay for it. (June 2010) Continue the Carnage! http://www.ethanallen.org/html/general.html#ContinueTheCarnage In light of the current fiscal mega-crunch, Gov. Douglas plans to terminate some 61 boards and commissions - 44 of them already defunct. That's good - but there are many more that deserve the axe. (March 9, 2010) Muddling Through the Looming Deficit http://www.ethanallen.org/html/general.html#Muddling%20Through%20the%20Looming%20Deficit The Governor and legislature are trying to close a $150 million FY2011 budget gap. They way they're going at it is, alas, not likely to make any significant changes in our overgrown government apparatus. (February 9, 2010) Crossing the State's Fiscal Chasm: the PSG Report http://www.ethanallen.org/html/general.html#CrossingTheStatesFiscalChasm The legislature hired a Minnesota-based consulting group to explain how Vermont can avoid its yawning fiscal chasm. Its inadequate report has become a fiscal fig leaf for the principal actors in the state house. (January 12, 2010) Charting a Path Away from Insolvency http://www.ethanallen.org/html/general.html#Charting%20a%20Path%20Away%20from%20Insolvency Vermont is seven years behind the power curve for a fundamental reconceptualization of the core functions of government. Revenue shortfalls now mean that we can't keep on the old way. Fortunately, some key legislators have gotten the message. (December 29, 2009) State Spending: Totally Unsustainable http://www.ethanallen.org/html/general.html#State%20Spending Vermont state government is facing $470 million general fund shortfall over the next four years - plus over $2 billion in long term actuarial deficits for benefit plans. Vermont's liberal politics has created a government spending machine that is now far outstripping the capacity of already overburdened Vermont taxpayers to keep it running. (November 17, 2009) Beyond Restructuring State Government http://www.ethanallen.org/html/general.html#BeyondRestructuringStateGovt This 15 year old commentary discusses the recurring idea of "restructuring", asking "how can government programs become more mission-driven, outcome-directed, customer-driven, market oriented and entrepreneurial?" (August 15, 1995) Special Feature: EAI's John McClaughry and PAI's Paul Cillo discuss the fiscal crunch with the editors of Seven Days. http://www.7dvt.com/2010sizing-vermont (Jan. 13, 2010) Off the Rails: Changing Demographics, Changing Economics, Accumulating Obligations: How Will Vermont Cope with a Challenging Future? This report (pdf format) appeared in 2006 and was updated and expanded in 2008. It shows how demographic change will drive state taxing and spending by 2030, and the likely effects on economic growth. http://ethanallen.org/pdf/OffTheRailsFINAL.pdf (2008)