"Tough choices" were the buzz words around the Statehouse Tuesday as Gov. James Douglas unveiled his fiscal year 2009 budget.
Bureau Chief Louis Porter will have the details in his story in tomorrow's Times Argus and Rutland Herald. But, all in all, Douglas proposed a $4.3 billion budget, which includes federal dollars and education spending. That's an increase of about 3.4 percent over the current budget.
"As we begin to shape a budget for the next fiscal ear, the economic uncertainty facing our nation gives us little margin for error," Douglas said at the close of his address. "There are no easy answers."
Ninety minutes before Douglas took to the podium, Administration Secretary Mike Smith sat down with the Statehouse reporters to hit the broad beats of the budget plan. One of the biggest holes in the budget the administration had to fill was a project deficit in Medicaid and to cover the shortfall in Catamount Health after the Bush administration didn't approve a poverty level waiver.
The state essentially needed to find $35 million for those two health programs - which they did, by pulling some funds from the general fund, tobacco payback money and the Vermont Housing and Conservation Board's cash-on-hand.
Smith said this new proposed budget is based on the economic reality that the United States is in right now. When wind of the economic downturn blew through the governor's administration in October, Smith said he sent all the department budgets back with orders to cut further.
Still, he said, Vermont will be OK and back on the economic upswing in a year.
"We are in much better shape than many other states," he said. "Many of them already have deficits."
-Dan Barlow