Vt officials push for wide ranging stimulus package

October 23, 2008
Bob Kinzel, VPR     Click here to listen
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Montpelier, Vt. - (Host) Momentum is growing in Vermont for Congress to pass a second economic stimulus package in a lame duck session next month.

A diverse group of state officials and economists is urging Congressman Peter Welch to support a package that includes a wide variety of projects.

VPRs Bob Kinzel reports:

(Kinzel)Welch told a group of financial and business officials meeting at the Statehouse that there's a good chance that Congress will consider a second stimulus package when it returns to Washington two weeks after the election.

While the first stimulus package included rebate checks for many taxpayers, Welch says it's likely that the second one will target projects that boost employment.

Tom Kavet is an economic consultant for the Legislature. He says a second package should provide money for road and bridge repairs and should also include new funds to help states maintain essential programs in these tough economic times:

(Kavet) "Further fiscal stimulus is also essential it's not sort of an optional thing...and it shouldn't be small and it should include state aid because there are many cutbacks that are occurring right now across all the states that have to balance their budgets their revenues are tanking and so you're getting a piling on effect which is the exact opposite of what you need."

Paulette Thabault is Vermont's commissioner of Banking and Insurance. She says money spent on the state's transportation infrastructure could have a positive impact on Vermont's rising unemployment rate:

(Thabault) "It should include some funds for infrastructure development bridges, roads, schools projects that are ready to go that can be funded and the only thing that's stopping them is the funding those are going to put Vermonters back to work and anything we can do to support infrastructure growth is going to help Vermonters."

State Treasurer Jeb Spaulding wants Congress to include renewable energy projects in a second package in case the short-term drop in oil prices reduces demand for alternative energy sources:

(Spaulding) "That's an area where it makes a lot of sense for the country but especially for Vermont we've got a head start on other states we've got a reputation but to the extent that we can look for ways to really really keep the momentum going to develop clean sustainable and renewable energy and conservation efforts I think that will not only help the country but Vermont as well."

Spaulding also told the panel that he's beginning to see a loosening of credit markets since the passage of the $700 billion bail out bill earlier this month. That's a development he says is essential for any economic recovery to occur.

For VPR News I'm Bob Kinzel in Montpelier.