VPR is reporting that Vermont State Treasurer Jeb Spaulding is recommending immediate investment in Vermont’s roads and bridges… real economic stimulus that would help keep Vermonters working, create demand for goods and materials, and repair our broken transportation system. Oh, yeah, and it’s paid for!
For years Jim Douglas has failed do anything about our ailing infrastructure and instead simply puts a band-aid over the problem. Our bridges are falling down, our roads are pockmarked and crumbling. Yet, the Governor does nothing. Why? Well, making those repairs costs money.
Jeb’s plan sounds great, right? Fix our roads and bridges and provide jobs for working Vermonters. So, what’s the catch? The catch, is how you pay for it. Treasurer Spaulding has suggested a 5-cent per gallon increase in the gas tax to bring in about $20 million annually. The total cost of repairs is closer to $120 million or more, so the state could get all the money up-front by bonding it and using the tax to pay it back over time. Then, the state could either retire the tax after about six years, or continue it to pay for other needed infrastructure improvements. Typically, Jim Douglas is going into political pounce mode and is likely to declare this “high taxes” that Vermonters cannot afford.
But is that really true? First of all, gas prices have dropped dramatically over the last few months. We were paying $4 and more per gallon. Gas is now about half that (I’ve seen it for $2.19. A nickel increase would only raise it to $2.24. Now obviously, gas prices are volatile and the cost will likely continue to go up and down for awhile. Still, why not take advantage of the opportunity while prices are low? In the meantime, we’re facing a terrible recession and Vermonters need the work. And, they really need good roads and bridges to support people getting to work, our tourism trade, the distribution of goods and services and to save the wear and tear on our vehicles.
Second, pumping money into the economy that goes directly into creating demand for construction materials and that creates jobs is classic economic stimulus – precisely the kind that may create more economic opportunity than it costs. People use their paychecks (which is taxable income) to buy goods and services locally, which in turn puts money in the pockets of local shopkeepers, etc. and adds to the total gross receipts for the state. This is exactly the kind of activity we should be encouraging right now.
Finally, here is someone with a plan. An actual honest-to-goodness plan(!) to not only fix our infrastructure, but to invest in our communities and our people and actually do something about the economy. We’re still waiting for Jim Douglas’ plan. Unfortunately, a plan does not appear to be forthcoming. The Gov’s position appears to be that we cannot afford to do anything, so the only thing to do is cut the budget, cut services to low-income people who need them now more than ever. It’s hard to know if that is part of an actual strategy, or if it is simply the political equivalent of pulling the covers up over your head and hoping these problems will just go away. But, a plan it is not.
The Governor and the legislature should consider Treasurer Spaulding’s plan carefully. Vermonters should get behind this. It is time to do something about our economic situation. This is a worthy plan.
Crossposted at http://mulishbehavior.blogspot…