Times Argus: Human services cuts fuel concern

By Louis Porter

Cuts proposed by Gov. James Douglas for programs across the human service budget likely will result in the loss of more than 1,000 Vermont jobs if they go into place, according to a study by an economist working for the Legislature.

The proposed cuts, to programs across spending by the Agency of Human Services the largest single piece of state government, would reduce state spending by $30 million and federal spending in Vermont by another $24 million.

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“It’s exactly what is happening across the country when state governments cut back,” said Kavet, who testified before the Senate Health and Welfare Committee by telephone Thursday. “It acts as a drag on the economy.”

But with state revenues in decline Vermont has little choice but to cut spending – putting publicly financed jobs at risk – or raise taxes – which he believes does the same thing in the world of private industry, Douglas said.

“Our goal should not be to create or maintain jobs in the public sector,” he said.

Sen. Doug Racine, the chairman of the committee, said the cuts in state spending seem to be exactly what the federal American Recovery and Reinvestment Act was set up to avoid.

“It’s counter to what the federal stimulus money was supposed to be doing,” Racine said.

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