(07/20/02) Vermonters have always prided themselves on being self-sufficient and independent. However in Montpelier, some people are more interested in seeing how many Vermonters they can push into a costly government program than in creating an environment where those same Vermonters can have a good paying job. The result is a massive social welfare system that is growing out of control and cannot be sustained for long without large tax increases for the middle class.

The goal of Vermont’s human services programs is to help families achieve self-sufficiency. In FY03, over 15,000 people will benefit from a program called Reach Up, formerly known as welfare, which provides intensive, individualized case management services and furnishes a housing allowance. Federal welfare reform stipulates a 60 month time limit for Reach Up but it can still continue with only state funding.

The average monthly Reach Up benefit is about $266 a month with the maximum payment for a family of three being $638, which is the highest in New England and New York. Recipients are also eligible for a renter’s rebate that averages $58 a month.

Vermont’s Medicaid program’s focus is state health insurance safety net for those who can’t afford it. Almost one out of four Vermonters receive assistance, the second highest percent in the country. The total state and federal costs for Medicaid coverage including administrative, development disabilities and mental health is around $700 Million. For a family of three, state health care benefits are worth $364 a month.

Vermont distributes foodstamps that average over $300 a month to for a family of three. Foodbanks provide free food with no commitment to work.

About 12,750 families receive fuel assistance welfare for oil, propane and kerosene. The value to a recipient on a monthly basis is $49. There’s also an $11 a month telephone lifeline allowance that is paid through customer phone rate charges.

Vermont’s General Assistance security program provides aid to individuals and families who have experienced a catastrophe. It’s also available to households whose incomes are very low, whose assets are drained and who are ineligible for aid from other state assistance programs. The projected FY03 enrollment is 2,300 people and $4 million is budgeted for this line item.

Vermont provides a childcare subsidy on average of $382 a month for low income working parents and those participating in activities to meet their 20-hour per week work requirement. This can vary depending on the child’s age or childcare provider. As long as an adult is complying with the work requirement, current law allows benefits to be extended using state funds until the family’s income eligibility changes.

No doubt the families receiving these welfare benefits would rather have the dignity of a paycheck and a living wage. So why don’t we do something to increase economic growth and attract more jobs? Let’s create an environment of economic opportunity that gives people hope and create a tax base that makes social programs for the truly needy sustainable. We only have to look to New Hampshire to see the results.

New Hampshire’s income is 25% higher than ours but it’s poverty rate is 35% lower and the number of people requiring Reach Up assistance is about 7% lower. Vermont’s economic growth has been below average for years with no revitalization evident to show it’s improving while New Hampshire’s has been vibrant and their economy, with twice our population, is 157% greater.

Both states score very high on social policy accomplishments. Unemployment, children programs, poverty, child abuse, education outcomes etc. are ranked above average compared to other states. However, Vermont’s tax burden is 7th compared to New Hampshire’s ranking of 47th.

A quality job creation environment doesn’t consist of government-subsidized loans and other forms of corporate welfare, or so called economic development schemes. Instead, the best policy for job creation that provides living wages are low taxes, limited government, restrained regulations, and a good infrastructure of roads, airports and telecommunications. New Hampshire has followed that governing policy and has experienced faster economic growth and increased job creation.

You can’t give people a living wage by giving them government programs but you can give them the enthusiasm to succeed by providing an opportunity for a good paying job.

When we have a strong economy, it eases the need for welfare, a health safety net, heating assistance and food stamps. It provides money for aid to education, property tax relief and infrastructure investment. Progress will be measured not on how many people receive Reach Up, but how many people do not need it.

Frank Mazur can be reached at 658-3975 (home), 228-2228 (State House) and via e-mail: Rep. Frank Mazur