Also in this playlist...
This transcript is automatically generated
Washington working to get the economy back in -- and spur hiring but local and state governments are still plagued by budget woes.
Tax hikes spending cuts layoffs.
All problems on the plates of many states to what's being done at the state level.
To remedy budget problems and economic -- joining me now is Vermont governor Jim Douglas governor it's great to say you're going to be -- an office.
In a matter of days but I know you talked to other governors around the country and what are you working on specific -- Two explorer employment -- economic growth what -- do as you trying cut at the same time.
Well I think states can do a lot and we've certainly done it in Vermont -- -- There are two major areas of expenditure K through twelve education and health care principally Medicaid.
And a couple of years ago -- 05 to be exact I went to the federal government and said I'll make you deal.
I'll take -- less federal Medicaid dollars over the next five years if you give me more flexibility on how we spend those dollars and they agreed.
And over the past five years we've spent about a quarter billion dollars less on Medicaid in Vermont -- small state.
Then we would have otherwise.
And in K through twelve education -- -- if we can get some more flexibility.
In how federal dollars are allocated I think the states can really get the job done and be creative.
So in a word flexibility is what governors would like to see from our federal partners in Washington.
And did that residents of your -- end of other states want to see lower taxes and you were able to lower taxes even on.
High in com -- errors in your state at what's been the result of that and do you think.
That was one of the reasons that your unemployment rate has fallen and -- significantly lower than the national average.
Our greatest traditionally been below the national average and we certainly have welcomed that success in relative terms during this recession and recovery.
I think we have a number of strengths here one is the diversity of our economic base we don't.
Rely -- a single sector or industry we have a risk that spread across a variety of sectors.
And secondly I've worked hard in the last eight years to moderate the tax burden to develop a regulatory structure that is not too onerous.
To provide some incentives for job creation and we have some programs that accomplish that so I think it's a variety of approaches that we've taken.
We were as you noted able to reduce the taxes earlier this year on the states and capital gains.
I think that's important to keep -- on a competitive place to encourage people to come here to stay here and create jobs.
What about -- Europe success our democratic would Democrat Peter Shumlin -- worried that the reverse happens taxes go up.
Goes up -- will help.
It's going to be a challenge we still have a budget shortfall that he in the next legislature will have to deal with.
It's interesting that for months kinda goes against the grain the nation moved away from one party rule and Vermont embraced that this year.
So we'll see how that works but it's gonna take a lot of courage and leadership on the part of the Democrats who now have all the marbles -- Montpelier our State Capitol.
To rein in spending to avoid tax increases and keep the progress we've made going in the right direction.
With the new congress coming end of Republicans controlling the house come January.
What can day due to help the states.
Well I've thought I've spoken with a number of congressional leaders over the last a couple of years especially during my time as chairman of the National Governors Association.
And my message should continues to be we're in this together.
Your constituents are our constituents it's the same taxpayers across the country.
So we have to find ways to be good partners to address the fiscal and economic challenges that Americans are facing.
And I think we can do that we've had a lot of bipartisan success in Vermont in efforts to reform health care and permitting for example.
And the fact that the congress is now one showing in the senate overwhelmingly bipartisan vote to two embrace.
I think as a positive sign.
So what I'd like to say to the congress' work together that's what the American people are counting on you to do.
And make sure that you -- make some of those tough decisions to rein in spending to reduce the deficit -- not pass a huge debt onto our kids.
Governor -- is great to -- thank you so much for being here governor Jim Douglas.
Filter by section