(10/20/05) Not many people stop to pick up pennies anymore. But a penny here and a penny there can add up. In the state’s FY06 budget, we spend nearly 700,000 pennies for every man, woman and child. That’s real money.

Our total appropriated budget for the general fund including education, transportation and capital budgets combined is $4.2 billion for fiscal year 2006 which started this past July 1st. With Vermont’s 620,000 residents in the state, each is responsible for an average of $6,774 of spending. During the time it took to drive from South Burlington to IBM in Essex – 30 minutes, Vermont spent $32,000. That is a projected $1,065 a minute or $63,875 an hour.

Former Democratic Vice Presidential candidate Lloyd Bentsen, Jr. said “You know if you let me write $200 billion worth of hot checks, I could also give you the illusion of prosperity.” It’s no illusion that Vermont’s budget cannot be sustained by our economy.

What government gets from us in taxes is lost in trade. The $4.2 billion spending has an impact on our daily lives. We expect essential services from government that only they can provide. However, when government grows too large, it encroaches on our economic freedom.

The Tax Foundation’s report on Vermont’s State and Local Tax Burden shows Vermonters labor for 107 days (until April 17) to support government spending. This date is the average a citizen has earned to pay the cost of state and local taxes and its 6th highest in the country.

Vermont also ranked poorly in terms of economic freedom. In a 2005 report released jointly by the National Center for Policy Analysts and Canada’s Fraser Institute, Vermont ranked 38th among American states. Two principal factors considered are the size of the state’s tax burden and the size of state government in relation to the state’s economy.

At 6,774 per person, Vermont’s budget burden amounts to $1.5 million spending a day. At that rate it’s imperative to prioritize our state spending to be sure we’re focusing on the core functions of government.

The money taken in taxes by government does not come from a bottomless pit and is not free for the taking. It is limited and belongs to the people who earned it. The temptation by government to bestow it on to somebody is overwhelming and has consequences in terms of our economic freedoms and competitiveness.

Frank Mazur
South Burlington

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Frank Mazur is a small business owner and was a member of the Vermont House from 1995-2004. He’s also chair of the advisory board to FreedomWorks.com