Big round of state of Vermont worker layoffs seen possible

The Burlington Free Press reports:

Top aides to Gov. Peter Shumlin warned Thursday that Vermont's unionized state labor force could see more than 400 layoffs if the union does not agree to re-open its contract and negotiate pay cuts.

Meanwhile, the chairwoman of the House Ways and Means Committee gave voice to the expectation that a 0.7 percent payroll tax increase sought by Shumlin to pay health care costs likely will die in the committee.

"I think it will be pretty hard to get it out of my committee, based on the questions people are asking," said Rep. Janet Ancel, D-Calais.

The two pronouncements reflected a fiscal crunch in Vermont that has worsened in the past month and has various sides digging in their heels.

Lawmakers began their session in early January facing an estimated $94 million gap between projected revenues and needs for fiscal 2016, which starts July 1. The picture grew cloudier Jan. 22, when two economists who forecast revenues for the state downgraded their projections by $18.6 million, raising the budget gap to more than $112 million out of an expected $1.4 billion general fund budget.

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