Rainy Day Or Rock Bottom Fund?

Crossposted @ www.greenmountaindaily.com

So I guess I have a different opinion of what to with the State Of Vermont's Rainy Day fund. The total I've heard tossed around is like $60 million, but I could be wrong. That's a lot of money when social programs and jobs are being slashed because of budget shortfalls. Should we use up this reserve? I really don't think it's time yet.

If the state needs to dip into the fund to do some triage work, that's one thing. Options and plans are what we need most right now. Some of that money could be used, and wisely so, to keep the state, and some programs running in the interim. But I think to exhaust the fund would be a grave mistake. We have not hit rock bottom yet, and that is when we'll need the rainy day fund the most!

Maybe make a quarter to a third of the fund available for the next year, but preserve the rest intact. Our turmoil right now is a result of Vermont's broken system. How we tax, build revenue and provide money to programs and run the state needs to be overhauled. This is obvious, but no one seems to want to take the lead and provide some good foresight. This is why I say use at most only a portion of the fund as a crutch to limp us along into the next year.

We can't raise the tax burden on people already struggling to get by. At the same time I don't think we should have to bail out every jerk that's decided to live beyond their means. It's no fault of the rest of us. There has to be some sort of balance. I chose to go to college, I chose to hang that noose of of loan payments around my neck. I accept that. Other people with their expensive new cars and enormous homes need to accept they did that to themselves as well.

We as an American, and Vermont society are at an impasse. Free market capitalism has been replaced with social capitalism, as we all shoulder the burden of irresponsible people and their failed American Dreams. I've heard so many people say that they make all their payments on their mortgages, and live within their means, why not just stop paying the mortgage and get bailed out as well? I totally see their point.

So getting back to the rainy day fund, I think we need to have some foresight and look beyond the budget shortfalls of 2009, to 2010, 2011, and 2012. If we use all the money now, there will be none for the future shortfalls. As a state, Vermont needs to tighten it's belt, and reduce spending. But at the same time, address how we will fund the state of Vermont in the future as obviously what we have been doing does not, and will continue not to work.