Robert LetovskyIndependent Candidate, Vermont Senate, Chittenden County

1.What is the problem?

2.What I propose to do about it:

-2012 Vermont Economic Security Act; -2012 State Pension Security Act ;-2012 Energy Affordability and Reliability Act ;-2012 Vermont Economic Revitalization Act.

3. Next Steps

It’s a gorgeous day at the beach….what are you complaining about? Enjoy the sun, sand, etc. etc. and stop whining!

What’s the problem? Losing our youth – the taxpayers of the future!

147,523132,372 138,959

77,51093,442

173,940

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2000 2010 2030

Under 18

Over 65

Why do grads leave VT?

(Survey data from Dyhrman, Iverson, Redmond, St. Michael’s College MSA Thesis, 2010)

Why is the exodus of young adults a problem?

Problem Result Example

Hostile perception of Vermont Lack of good jobs BLS/Moody’s study Where the jobs will be 2011-2016

Lack of good jobs High rate of “export” of young people

Median age in Vermont

High cost of living High rate of “export” of young people

Median age in Vermont

High rate of “export” of young people

Fewer taxpayers >> Inadequate tax base

- State troopers Chittenden County;- $3 Billion unfunded pension & health obligations as of 2011

High rate of “export” of young people

Fewer families with young children>>>Declining K-12 enrollment /rising costs

Vermont spends $15,475/student on K-12 vs. $10,499 U.S. average

Declining K-12 enrollment/ rising costs

Declining taxpayer support for public school budgets

Bolton Town Meeting March 12 – voters pass resolution to explore school closing!

Vermont’s Report Card 2011-2012

• Forbes “Best States for Business 2012”: 45th

• Chief Executive Magazine “Best/Worst States for Business 2012”: 38th

• CNBC “America’s Top States for Business 2012”: 38th

• Tax Foundation “State Business Tax Climate Index Rankings, 2011-2012: 47th

• Kauffman Foundation /Thumbtack.com 2012 Small Business Friendliness Survey: 49th

Why is the exodus of young adults a problem?

Problem Result Example

Hostile perception of Vermont Lack of good jobs BLS/Moody’s study Where the jobs will be 2011-2016

Lack of good jobs High rate of “export” of young people

Median age in Vermont

High cost of living High rate of “export” of young people

Median age in Vermont

High rate of “export” of young people

Fewer taxpayers >> Inadequate tax base

- State troopers Chittenden County;- $3 Billion unfunded pension & health obligations as of 2011

High rate of “export” of young people

Fewer families with young children>>>Declining K-12 enrollment /rising costs

Vermont spends $15,475/student on K-12 vs. $10,499 U.S. average

Declining K-12 enrollment/ rising costs

Declining taxpayer support for public school budgets

Bolton Town Meeting March 12 – voters pass resolution to explore school closing!

20098

Rank State

Current Expenditure Per

Pupil (FY09)

1 New York $18,126

2 Washington D.C. $16,408

3 New Jersey $16,271

4 Arkansas $15,552

5 Vermont $15,1756 Wyoming $14,573

7 Connecticut $14,531

8 Massachusetts $14,118

9 Rhode Island $13,707

10 Maryland $13,449

U.S. $10,499

What am I proposing to do (1): The “I want to be able to afford to live in Vermont but don’t want to live with my parents until I’m 40” Act

I

Problem Result of my proposed “act”

Hostile perception of Vermont Benchmark Vermont >>>> become “average” >>>> Rebrand Vermont in the minds of job creators!

Lack of good jobs Attract more economic activity

High cost of living Identify regulatory cost escalators -make living in VT affordable for young people;

Fewer taxpayers by 2030 Grow tax base to adequately fund key state services AND honor pension obligations

Fewer families with children >>> declining K-12 enrollment/rising costs

Have more young families children enrolled in K-12 school system

Vermont’s Report Card 2011-2012

• Forbes “Best States for Business 2012”: 45th

• Chief Executive Magazine “Best/Worst States for Business 2012”: 38th

• CNBC “America’s Top States for Business 2012”: 38th

• Tax Foundation “State Business Tax Climate Index Rankings, 2011-2012: 47th

• Kauffman Foundation /Thumbtack.com 2012 Small Business Friendliness Survey: 49th

Vermont’s Current Positioning – Taxes (Time, May 2012)

What am I proposing to do (2): The “ I want to be able to retire in dignity and not have to work as a Wal-Mart greeter unless I want to” Act.

I

Problem Result of my proposed “act”

$3 Billion unfunded pension & health obligations as of 2011

Transparency for taxpayers and retirees re: current and anticipated obligations under various scenarios

Within 90 days, a report on how VT will fund pension and health obligations.

Protect commitments made to retirees: NO changes to current retirees or anyone within 5 yr. window of retirement.

Avoid unacceptable choices between honoring commitments to retirees or funding key state services.

Example of Scenarios regarding VT Pension Obligations

What am I proposing to do (3): “The “I don’t want to have to huddle over a fireplace wearing 5 sweaters and reading by candlelight, then wait two hours for a

bus to get to work because I can’t afford an electric car” Act.

Problem Result of my proposed “act”

High energy costs - VT 39th in avg. retail electricity prices

Identify why energy costs in Vermont are where they are.

40% of VT electricity from Hydro Quebec @ avg. price $67.91 per MW - 29% higher than the avg. price Hydro Québec charges all its other American customers.

2012: Green Mountain Power, Central Vermont Public Service, and majority of VELCO ALL owned by units of the government of Quebec (sole owner of Hydro Quebec)

Give Vermonters an idea of the true impacts of the takeover of Vermont’s utilities by the government of Quebec

Dec./2011 Shumlin administration “Comprehensive Energy Plan” 90% renewables by 2050 – no indication of costs/ subsidies/taxes required.

Show Vermonters what 90% Renewable Energy mandate will cost and how it can be paid for;

Develop an energy plan that addresses economic, environmental and security of supply issues rather than just one of these.

Annual Average Electricity Price Comparison by State (National Avg. 9.83 cents/kw hr.)

• Rank State Average Electricity Rate for

• 1 Wyoming 6.20• 2 Idaho 6.54 • 3 Washington 6.66• 4 Kentucky 6.73• 5 Utah 6.94• 6 North Dakota 7.11• 7 Arkansas 7.28• 8 West Virginia 7.45• 9 Nebraska 7.52• 10 Oregon 7.56• 11 Oklahoma 7.59• 12 Iowa 7.66• 13 Indiana 7.67• 14 Missouri 7.78• 15 Louisiana 7.80• 16 South Dakota 7.82• 17 Montana 7.88• 18 Kansas 8.35• 19 New Mexico 8.40• 20 Minnesota 8.41• 21 S. Carolina 8.49• 22 Mississippi 8.59• 23 Tennessee 8.61• 24 N. Carolina 8.67• 25 Virginia 8.69• 26 Georgia 8.87

Factors to Consider re: Renewables• NIMBY (e.g. Lowell Mountain)

• Intermittent energy vs. base-load demand.

Factors to Consider re: Renewables (2)Source: U.S. Department of Energy

• Subsidies? Who pays?

What am I proposing to do (4): The “Why don’t we do something to boost the successful businesses we already have?” Act.

I

Problem Result of my proposed “act”

Relative Lack of good jobs Support continued growth in already successful industrial clusters in Vermont:- Design/Graphics (incl. web design)- Energy efficiency- Food- Furniture- Higher education

Promote public policies that can jump-start emerging industrial clusters:- Aerospace- Medical equipment/supplies

Will You Help Me Fight for Vermont’s future?

• Contacts: Others who share my/your concerns;

• Time? • Contact the media: Why is this issue

being ignored? • Other support?