1. Robert Letovsky
Independent Candidate, Vermont Senate, Chittenden County
1.What is the problem?
2.What I propose to do about it:
-2012 Vermont Economic Security Act;
-2012 State Pension Security Act ;
-2012 Energy Affordability and Reliability Act ;
-2012 Vermont Economic Revitalization Act.
3. Next Steps

2. It’s a gorgeous day at the beach….what are you complaining
about? Enjoy the sun, sand, etc. etc. and stop whining!

3. What’s the problem? Losing our youth – the taxpayers of the
future!
200,000
180,000 173,940
160,000 147,523
138,959
140,000 132,372
120,000
100,000 93,442 Under 18
77,510
80,000 Over 65
60,000
40,000
20,000
0
2000 2010 2030

4. Why do grads leave VT?
(Survey data from Dyhrman, Iverson, Redmond, St. Michael’s College MSA Thesis, 2010)

5. Why is the exodus of young adults a problem?
Problem Result Example
Hostile perception of Vermont Lack of good jobs BLS/Moody’s study Where the jobs
will be 2011-2016
Lack of good jobs High rate of “export” of young Median age in Vermont
people
High cost of living High rate of “export” of young Median age in Vermont
people
High rate of “export” of young Fewer taxpayers >> - State troopers Chittenden County;
people Inadequate tax base - $3 Billion unfunded pension &
health obligations as of 2011
High rate of “export” of young Fewer families with young Vermont spends $15,475/student on
people children>>>Declining K-12 K-12 vs. $10,499 U.S. average
enrollment /rising costs
Declining K-12 enrollment/ rising Declining taxpayer support for Bolton Town Meeting March 12 –
costs public school budgets voters pass resolution to explore
school closing!

6. Vermont’s Report Card 2011-2012
• Forbes “Best States for Business
2012”: 45th
• Chief Executive Magazine
“Best/Worst States for Business
2012”: 38th
• CNBC “America’s Top States
for Business 2012”: 38th
• Tax Foundation “State Business
Tax Climate Index Rankings,
2011-2012: 47th
• Kauffman Foundation
/Thumbtack.com 2012 Small
Business Friendliness Survey:
49th

7. Why is the exodus of young adults a problem?
Problem Result Example
Hostile perception of Vermont Lack of good jobs BLS/Moody’s study Where the jobs
will be 2011-2016
Lack of good jobs High rate of “export” of young Median age in Vermont
people
High cost of living High rate of “export” of young Median age in Vermont
people
High rate of “export” of young Fewer taxpayers >> - State troopers Chittenden County;
people Inadequate tax base - $3 Billion unfunded pension &
health obligations as of 2011
High rate of “export” of young Fewer families with young Vermont spends $15,475/student on
people children>>>Declining K-12 K-12 vs. $10,499 U.S. average
enrollment /rising costs
Declining K-12 enrollment/ rising Declining taxpayer support for Bolton Town Meeting March 12 –
costs public school budgets voters pass resolution to explore
school closing!

8. 2009
8

9. Current
Expenditure Per
Rank State Pupil (FY09)
1 New York $18,126
2 Washington D.C. $16,408
3 New Jersey $16,271
4 Arkansas $15,552
5 Vermont $15,175
6 Wyoming $14,573
7 Connecticut $14,531
8 Massachusetts $14,118
9 Rhode Island $13,707
10 Maryland $13,449
U.S. $10,499

10. What am I proposing to do (1): The “I want to be able to afford to live in
Vermont but don’t want to live with my parents until I’m 40” Act
I
Problem Result of my proposed “act”
Hostile perception of Vermont Benchmark Vermont >>>> become “average”
>>>> Rebrand Vermont in the minds of job
creators!
Lack of good jobs Attract more economic activity
High cost of living Identify regulatory cost escalators -make living
in VT affordable for young people;
Fewer taxpayers by 2030 Grow tax base to adequately fund key state
services AND honor pension obligations
Fewer families with children >>> declining K- Have more young families children enrolled in
12 enrollment/rising costs K-12 school system

11. Vermont’s Report Card 2011-2012
• Forbes “Best States for
Business 2012”: 45th
• Chief Executive Magazine
“Best/Worst States for
Business 2012”: 38th
• CNBC “America’s Top States
for Business 2012”: 38th
• Tax Foundation “State
Business Tax Climate Index
Rankings, 2011-2012: 47th
• Kauffman Foundation
/Thumbtack.com 2012 Small
Business Friendliness Survey:
49th

12. Vermont’s Current Positioning – Taxes (Time, May 2012)

13. What am I proposing to do (2): The “ I want to be able to retire in dignity
and not have to work as a Wal-Mart greeter unless I want to” Act.
I
Problem Result of my proposed “act”
$3 Billion unfunded pension & health Transparency for taxpayers and retirees re:
obligations as of 2011 current and anticipated obligations under
various scenarios
Within 90 days, a report on how VT will
fund pension and health obligations.
Protect commitments made to retirees:
NO changes to current retirees or anyone
within 5 yr. window of retirement.
Avoid unacceptable choices between
honoring commitments to retirees or funding
key state services.

14. Example of Scenarios regarding VT Pension Obligations

15. What am I proposing to do (3): “The “I don’t want to have to huddle over a
fireplace wearing 5 sweaters and reading by candlelight, then wait two hours for a
bus to get to work because I can’t afford an electric car” Act.
Problem Result of my proposed “act”
High energy costs - VT 39th in avg. retail Identify why energy costs in Vermont are where
electricity prices they are.
40% of VT electricity from Hydro Quebec @ Give Vermonters an idea of the true impacts of
avg. price $67.91 per MW - 29% higher than the the takeover of Vermont’s utilities by the
avg. price Hydro Québec charges all its other government of Quebec
American customers.
2012: Green Mountain Power, Central Vermont
Public Service, and majority of VELCO ALL
owned by units of the government of Quebec (sole
owner of Hydro Quebec)
Show Vermonters what 90% Renewable Energy
Dec./2011 Shumlin administration mandate will cost and how it can be paid for;
“Comprehensive Energy Plan” 90% renewables
by 2050 – no indication of costs/ subsidies/taxes Develop an energy plan that addresses
required. economic, environmental and security of supply
issues rather than just one of these.

17. Annual Average Electricity Price Comparison by State (National Avg. 9.83 cents/kw hr.)
• Rank State Average Electricity Rate for
• 1 Wyoming 6.20
• 2 Idaho 6.54
• 3 Washington 6.66
• 4 Kentucky 6.73
• 5 Utah 6.94
• 6 North Dakota 7.11
• 7 Arkansas 7.28
• 8 West Virginia 7.45
• 9 Nebraska 7.52
• 10 Oregon 7.56
• 11 Oklahoma 7.59
• 12 Iowa 7.66
• 13 Indiana 7.67
• 14 Missouri 7.78
• 15 Louisiana 7.80
• 16 South Dakota 7.82
• 17 Montana 7.88
• 18 Kansas 8.35
• 19 New Mexico 8.40
• 20 Minnesota 8.41
• 21 S. Carolina 8.49
• 22 Mississippi 8.59
• 23 Tennessee 8.61
• 24 N. Carolina 8.67
• 25 Virginia 8.69
• 26 Georgia 8.87

18. Factors to Consider re: Renewables
• NIMBY (e.g. Lowell Mountain)
• Intermittent energy vs. base-load demand.

19. Factors to Consider re: Renewables (2)
Source: U.S. Department of Energy
• Subsidies? Who pays?

20. What am I proposing to do (4): The “Why don’t we do something to
boost the successful businesses we already have?” Act.
Problem IResult of my proposed “act”
Relative Lack of good jobs Support continued growth in already successful
industrial clusters in Vermont:
- Design/Graphics (incl. web design)
- Energy efficiency
- Food
- Furniture
- Higher education
Promote public policies that can jump-start
emerging industrial clusters:
- Aerospace
- Medical equipment/supplies

21. Will You Help Me Fight for Vermont’s future?
• Contacts: Others who share my/your
concerns;
• Time?
• Contact the media: Why is this issue
being ignored?
• Other support?