By Rick Zimmerman, Executive Director
One of the most significant responsibilities of state legislators is to create and pass a spending plan that addresses the needs of the people. These complex documents, and the convoluted budget making process, can consume much of the state legislative session. The great demands for state dollars, accelerated by huge COVID spending, have in some cases created large budget deficits. The perennial debates over increasing taxes and/ or spending cuts are intense and the result is supposed to be the culmination of compromise on spending priorities for the state. At least that is what it’s supposed to reflect.
This year the COVID-19 pandemic has thrown a huge curve ball into the budget mix. Interestingly, the impact on state coffers varies among states. In New York, which was the epicenter of the pandemic outbreak beginning last February, the financial impact has been devastating. Health care system demands, including COVID tests and testing infrastructure, PPE, ventilators, emergency hospitals and hospital beds, health care personnel, emergency morgues, all contributed to a 15-billion-dollar state budget deficit. In addition, millions were spent on emergency feeding programs. Nourish New York was a God send to hungry families who had no means for food and upstate farmers who had no markets for their produce, meat, and dairy products.
In Vermont, the picture is similar. Even though the state has kept positivity rates relatively low throughout the pandemic, and federal funds have helped to offset impacts to businesses including farms, COVID-19 has contributed to a $25 million deficit. This reality will be factored into next year’s budget.
COVID has set the stage for the next fiscal year and governors are working hard to advance spending plans to address the state’s overall needs. The agriculture lobby is watching carefully to assure that agriculture programs are appropriately supported. New York Governor Cuomo’s budget was released January 19th and he is anticipating federal funds to offset at least some of the $15 billion deficit. In this light, Cuomo offered two budget proposals depending on the amount of federal funds appropriated to New York. Despite the fiscal strain, the Governor does recommend funding for essential agricultural programs such as PRO-DAIRY, Integrated Pest Management, NY FarmNet, Animal Diagnostic Lab, Ag Nonpoint Source Pollution Control, among others. The agriculture lobby will be encouraging the legislature to supplement funding for some of these programs, but generally we are off to a good start. The budget is due by April 1st.
In Vermont, NEAFA’s lobbyist Margaret Laggis reports that legislative committees are getting their new members up to speed on relevant issues. As of this writing, Governor Scott has not introduced his executive budget however a few initiatives have been floated out of the Agency of Agriculture including considering eliminating the Vermont Pesticide Advisory Council. In addition, legislation creating a right to repair law was introduced to allow equipment repairmen, not affiliated with a specific brand, gain access to repair manuals that deal with the electronic aspects of machinery. Last Friday’s Agency of Natural Resources’ State of the Lake Report cast a positive light on all the good work farmers are doing for water quality. The report states that 95% of the phosphorus reductions have come from the good work of agriculture, making the industry the best investment for a positive impact on the lake.
All in all, we are off to a good start and agriculture remains a priority within state spending plans.