Author Archives: John S. Walters

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About John S. Walters

Writer, editor, sometime radio personality, author of "Roads Less Traveled: Visionary New England Lives."

Small business should beware of joining the corporate army

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A while back, I proposed that Vermont’s small retailers ought to open their own interest group. I suggested the Vermont Association of Independent Retailers, or VAIR for short.

The idea came to me while reading about their putative Montpelier representation, the Vermont Retail and Grocers Association, helmed by the very effective Jim Harrison. One of his favorite techniques is to bring some mom-and-pop types to the Statehouse whenever there’s legislation that might touch on retail interests, such as the proposed sugary-beverage tax.

Truth is, Harrison gives a lot of lip service to the little guy, but his real clients are in Big Retail — the WalMarts, Hannafords, and Dollar Generals of the world. And quite often, the interests of Big Retail are at odds with what’s best for small business. Guys like Harrison draw a stark divide between the private sector and government; in fact, the real divide is frequently found between big retail and small. I would ask this of real independent retailers: which is the biggest threat to your existience? A change in state regulations, or the big boxes and dollar stores springing up all over the place?

This is also true in the broader business world. And in that field, there’s a thousand-pound lobbying gorilla called the National Federation of Independent Businesses, or NFIB. Which has a Vermont branch, helmed by veteran corporate lobbyist Shawn Shouldice. (Who also, I can’t help but note, does PR for Bruce Lisman.)

The NFIB sounds like a joint effort of all the mom-and-pops. It bills itself as “the voice of small business.”

Well, it’s not.

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Laff line of the year: two strong nominees

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As it usually is, the Vermont Legislature was not exactly a wellspring of humor. Especially in the tense, action-packed closing days. But adjournment brought a couple of classics, albeit of the unintentional variety, from two of Vermont’s finest unintentional funnymen: John Campbell and Peter Galbraith.

First up, Mr. Pro Tem told VTDigger:

“Sometimes it’s tough to be a leader and a statesman.”

To which my immediate thought was, “How the hell would YOU know?”

My second was that good ol’ country song:

Oh Lord, it’s hard to be humble
When I’m perfect in every way
I can’t wait to look in the mirror
‘Cause I get better looking each day.

I tell ya, for an accomplished politician, Campbell has the worst case of foot-in-mouth disease I’ve ever seen. The over/under on Erika Wolffing facepalms during this session must have been somewhere in the three dozen range.

Next up, the formerly Slummin’ Solon, Peter Galbraith. It was almost exactly a year ago that The Most Hated Man in the Senate announced he would not run for re-election, and instead devote himself to a vaguely-described Middle Eastern peace venture.

He may well be doing so, but he seems to find plenty of time to unleash Words of Wisdom about Vermont politics.

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Kremlinology: Sorrell on the outs?

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h/t Snoop Dogg.

h/t Snoop Dogg.

Poor, poor Bill Sorrell. Our embattled Attorney General faces an independent investigation by straight shooter Tom Little. His unwarranted crackdown on Dean Corren’s minuscule offense has cost him many a friend at the Statehouse.

Strike that. I don’t think he’s ever had very many “friends.” But lately it’s become acceptable to express one’s disdain for a man who ought to be a pillar of the Vermont Democratic Party by dint of seniority alone. Instead, many Dems are hoping against hope that Chittenden County State’s Attorney TJ Donovan will again challenge Sorrell in the party primary.

Indeed, it may not be too strong to say that Sorrell has become a pariah. Evidence: On two recent occasions, Governor Shumlin has held justice-related media events. In both cases, Donovan was conspicuously close to the Governor.

And in both cases, the state’s top law enforcement official was nowhere to be seen.

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2015 Legislature: Triumph of the B-sides

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When I look back on this session of the Legislature, a strange thing keeps happening: over and over again, I’m reminded of a significant bill, and my reaction is “Oh yeah, that.”

RESET bill? Oh yeah, that.

Child protection? Oh yeah, that.

The gun bill? Oh yeah, that.

Consumer protection, including limits on rent-to-own stores? Oh yeah, that.

Same-day voter registration? Oh yeah, that.

Economic development? Oh yeah, that.

The legislative agenda was so top-heavy with high-profile issues — the budget, taxes, education, Lake Champlain — that a lot of normally headline-making issues flew more or less under the radar. Or were quickly dealt with and forgotten.

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The triumph of low expectations

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Well, hooray, we got us a health care bill. It wasn’t looking like it on Friday night and Saturday morning, but Governor Shumlin and top lawmakers finally inked a deal providing a whole three million dollars more for health care reform.

“I wish there were other things we could include,” said Rep. Bill Lippert, chair of the House Health Care Committee. His Senate counterpart, Claire Ayer, called the bill “pathetic.” And single-payer advocate Dr. Deb Richter told VTDigger: “For perspective, $3 million is what we spend as a state on health care in four hours,”

How’d we wind up with $3 million? Ass-backwardly, of course.

At the eleventh hour, health care reform came in last on lawmakers’ list of reasons to raise taxes, behind closing the budget gap and paying enough for clean water that the EPA might, hopefully, get off our backs. As the Governor pushed for fewer tax hikes and more spending cuts, health care was caught in the wringer.

On Friday night and Saturday morning, there were four big bills hanging fire: taxes, spending, economic development, and health care. Health care was a distant fourth. In fact, hallway chatter had it that health care would fall from the agenda, partly because of revenue shyness and partly because any bill would be so small as to not be worth the trouble.

On Saturday morning and early afternoon, as lawmakers and administration officials tried to reach common ground on revenues, it became clear that health care would have to settle for whatever crumbs fell from the conference table.

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Shumlin Gets Ass Handed To Him

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Smile, though your heart is breaking...

Smile, though your heart is breaking…

The three top Democratic leaders stood shoulder-to-shoulder, smiled, and proclaimed their unity behind an agreement on taxes and health care. They praised each other and the Legislature for working hard and working together. “Everyone has given a little,” Governor Shumlin said.

Well, almost.

After a week of harsh rhetoric about how “Montpelier” (meaning his own party) had produced a tax plan that he “hated,” he accepted a slightly modified version with nothing more than a fig leaf of additional spending cuts.

After days of harsh rhetoric about how capping income tax deductions would be “a big mistake,” Shumlin accepted a deal with a slightly less restrictive cap than the Legislature had been poised to enact.

The legislature “has given a little.” Shumlin gave a LOT.

Which belies his extreme rhetoric about a plan that was very similar to the one he accepted today, and characterized as “fiscally responsible” and “ensur[ing] that we continue to grow this economy.”

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Well, there won’t be a veto.

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Lots of standing around and waiting at the Statehouse today. I just finished standing outside the Governor’s ceremonial office for about an hour, and my reward was to see the Big Three — Gov. Shumlin, House Speaker Shap Smith, and Senate President Pro Tem John Campbell come out and announce they’d reached a deal on the tax bill. And the Governor added that “There will be a health care bill.”

They wouldn’t release any details yet, but they did manage to close the remaining gap. And they all looked happy standing shoulder-to-shoulder, less than 24 hours after Shumlin’s tough talk on taxes seemed to portend a veto of his own party’s tax plan.

Well, that won’t happen. And I guess we shouldn’t be surprised. Rhetoric notwithstanding, there’s always a great deal of momentum toward deal-making at this stage. The unusual thing, really, was that the Governor’s plumage displays were aimed at fellow Democrats.

It’ll still be many hours before adjournment; the bills have to be drawn up, they have to clear the House and Senate, and there’ll need to be some suspending of the rules.

But at this point, it seems inevitable that the key bills will move and the Legislature will adjourn today.

Although the definition of “today” might get stretched a little.

Shummy’s Choice

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Oh, Anne Galloway, stop making me love you.

Shumlin has repeatedly objected to any changes to the state income tax code that could result in wealthy Vermonters paying more in taxes.

Hehehehe. Sounds like something I’d write, but it’s actually a fair summation of the Governor’s stand on taxes throughout his tenure in office. Which continued, big time, last night:

Late Friday night the House and Senate agreed to a tax package that Gov. Peter Shumlin has already said he doesn’t like and may in fact veto.

… The $30 million legislative tax package includes a cap on itemized income tax deductions. Under the plan, taxpayers can claim up to two times the standard deduction, or $25,000 for a household, for itemized deductions. Medical expenses and charitable donations are exempted. The change limits deductions for mortgage interest, property taxes, moving costs and other Schedule A itemized categories.

The plan includes a 3 percent alternative minimum tax for taxpayers who earn $150,000 or more.

Look, this isn’t a radical tax plan. It’d raise about $11 million a year, and it’s in line with what many states do. Vermont has very generous tax laws that provide plenty of breaks for top earners; the Legislature’s plan would take away some of those benefits.

I can almost hear the Governor talking about how this will hurt “hard-working Vermonters.”

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The most important thing that happened this week

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… had nothing to do with the Legislature. Well, it had nothing to do with current legislative debates.

And it went uncovered by the media except for Nancy Remsen of Seven Days.

Four representatives of Optum, the contractor working with the state to fix Vermont Health Connect, told legislative leaders Thursday that they expect to deliver an automated change-of-circumstance function as of the May 31 deadline set by the Shumlin administration.

“We are confident we will make the deadline,” Matt Stearns, vice president of external communications, said in an interview after private sessions with legislators.

This is big, assuming Stearns’ confidence is warranted.

I spend a lot of time on the ins and outs of the legislative and political process. It’s fun, it’s dramatic, and it’s a minefield of slapstickery. But I know that most of it washes out in the end. With the probable exception of the Norm McAllister saga, the world will little note nor long remember what was done here. But Optum making the deadline would be truly impactful.

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Gannett chief preps golden parachute

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Everything is awesome… when you've just made four million smackeroos.

Everything is awesome… when you’ve just made four million smackeroos.

Gracia Martore, CEO of Gannett, last seen disgracing herself in an unbelievably wrong-headed music video, must really believe in the future of her company.

Because she just unloaded more than 80% of her stock holdings in Gannett. American Banking & Market News reports that Martore sold 123,560 shares of stock in the Burlington Free Press’ parent company, leaving a mere 30,034 shares in her portfolio.

Her take? $4,312,244.

How many reporters would that buy?

Her stock dump comes just before the planned split of Gannett’s newspaper and TV/digital divisions. Gannett will retain the troubled publishing businesses, while new entity TEGNA will get all the broadcasting and digital stuff.

The spinoff is expected to take effect by the middle of this year, which is… hmm… checking my calendar… a mere six weeks away.

And where do you think the price of Gannett stock is going to go, after all its goodies are under a new corporate umbrella? I think we know how Gracia Martore would answer that question.