Governor meets with local business leaders

By NATHAN LAMB | Milton Independent Staff Writer
miltonreporter@yahoo.com

Governor Jim Douglas (left) chats with local business owners Michael Boisjoli (center) and Ron Hubert after a brown-bag lunch to discuss business issues in the state.

Workman’s comp, taxes, and the high cost of doing business in Vermont were recurring themes during a “brown bag lunch” between local business owners and Governor Jim Douglas on Sept. 28.

Douglas was in town as part of a statewide “Set the Agenda Tour,” which provides an opportunity to hear feedback on issues before the coming legislative session, he said

“This is an extra chance to chat on an informal basis with people from different parts of the state to get a sense of what the ideas are,” he said.
The meeting was held at the municipal office and attended by 10 local business owners. Much of the discussion was spearheaded by a handful of businessmen who had ideas for making the state more business friendly.

Lessening business ex- penses was an overarching topic in that discussion.

Middle Road Market owner Ron Hubert targeted the high cost of workman’s comp coverage. He listed one experience where the cost of a medical visit for an employee tripled once the caregiver discovered it was a workman’s comp case. Hubert said the cost of medical care shouldn’t be driven by how deep the insurer’s pockets are.

Douglas agreed that workmen’s comp premiums are high and are driven by such practices. Reforms of the workman’s comp law to address such issues were attempted three years ago, but were largely rejected by the legislature, he continued.

Douglas said the reforms are “ready to roll” if taken up again and expressed hope lawmakers would do that. However, he cautioned they would likely face stiff opposition once again from organized labor.

“The legislature is going to have to make a decision to be on your side or their side,” said Douglas.

Subway owner Michael Boisjoli had similar complaints with the Catamount Health program, which is intended to assist low-income workers with health coverage.

Boisjoli said he pays well over minimum wage for employees and that it does wonders for retention. At the same time, it also makes most of them ineligible for Catamount. Worse, he’s paying $6,400 into it this year and that figure will likely double over the next four years for a program that doesn’t help his business or most of his employees.

“It’s not working,” he said. “It’s not an effective plan.”

Douglas termed the “cliff eligibility” of Catamount, which cuts off all benefits over a certain threshold, as problematic. He added the associated fees that bothered Boisjoli wouldn’t have made it past his desk, if he had the power of a line item veto.

He said the program was up for legislative review in a couple years, and that exceptions are being discussed for businesses with strong seasonal or part time components.

Taxes were another topic raised by Hubert, who cited rumors of an income tax hike and asked what was being done to contain schools costs, which are often a tax-driver.

Douglas acknowledged property taxes have crept up in recent years, despite the increase of sales and meal taxes a few years back to avoid that. While there’s been talk of raising the income tax to support education, Douglas said cost containment was the way to go; he said there could be some support for consolidation or streamline school administration structure, if the commissioner of education (who he does not appoint) is willing to take it up.

“I really think containing costs has to be job one before we talk about revenue,” he said.

Elsewhere, local entre-preneur Aaron Vincelette was curious about what was being done to draw in tourism, which is a major source of revenue statewide. Douglas confirmed the state has partnerships with a number of regional businesses to promote Vermont. He also noted talks with the Canadian government designed at easing transit between the two countries; Vermont licenses will soon be acceptable in lieu of passports for those visiting Canada and the goal is to eventually have some sort of reciprocal arrangement, he said.

“Our federal government would have to approve that, but I think we could get there,” said Douglas.

The challenge of providing public transit from Franklin to Chittenden Country was also discussed, and Douglas suggested a rail line might be in the cards at some point.

While he opposed the southern bound Champlain Flyer as making no sense, Douglas said a northerly route could, citing 2,000 employees for IBM alone who work in Franklin County. However, Douglas cautioned the financials could make the project a long-term one.

“It’s on our radar screen and it makes sense,” he said.