McClaughry: Holding down legislative expenses

By John McClaughry

One interest group fared extraordinarily well during the just-completed legislative session. That’s the interest group comprised of representatives and senators. Unlike other interest groups, who have to lobby legislators for the benefits they want, the legislators themselves get to vote on their own benefits. This was an opportunity not to be missed.

This year’s legislative compensation bill (S.39) prescribes a 100% increase from today’s $14,616 per year salary to $29,766 in 2027. It also allows legislators to enjoy state employee health insurance. The state’s 80% contribution for a $27,300 family plan comes to $21,840.

John McClaughry

John McClaughry is vice president of the Ethan Allen Institute.

One new proposal in the package would credit each legislator with one day a week pay when the legislature is not in session. This was a big issue for former House Speaker (1985-1994) Ralph Wright (D-Bennington). In South Boston, where Speaker Wright had been introduced to politics, this was known as “walking around money”. He was not however successful in getting it enacted in his day.

Back then, one popular way for legislators to feather their own nests was budgeting for sixteen weeks in session, discovering at the end of that period (early May) that much needed legislative work had fallen short of completion, then rushing through a budget adjustment bill adding two or three more paid weeks. One year when I was there I blocked a last minute extension and made the legislature work two weeks for free.

That didn’t improve my standing with a lot of legislators, of both parties. No wonder they didn’t buy my amendment to make meal reimbursement for traveling legislators ($35 a day) be the same as for state employees ($21.35 a day). Legislators felt they needed 62% more than state employees to survive on out of state trips.

To be sure, there is a good case for tracking legislative compensation to allow for dollar depreciation, just as the per gallon gasoline tax rate has to be increased from time to time to bring in enough to maintain the highways. Some legislators seem to believe they deserve more, the more they spend and the more tax dollars they bring in. I would rather give them a performance bonus based on how well they restrain spending and ease the burden on taxpayers who provide the tax dollars.

In 2004 the Ethan Allen Institute proposed a Vermont version of the Taxpayers Bill of Rights. That constitutional amendment provided that whenever annual revenues exceeded an index based on population growth plus an inflation rate, all excess funds must be returned to the taxpayers. This year Colorado returned $2.7 billion to taxpayers. If the legislature wants to keep and spend more than the formula allows, the people have to approve the spending proposal via state referendum. (It doesn’t have the bonus feature.)

Another solution to shrink legislative spending on themselves is to constitutionally limit the length of the sessions. Proposal 10, that I introduced in 1991, provided that “Any session of the General Assembly which convenes in January shall adjourn for such year no later than April 30. If by such adjournment date the General Assembly has failed to approve appropriations for the support of government for the ensuing fiscal year, the Governor is authorized… to allocate expenditures among such funds and accounts as he or she may find to be in the best interest of the people of the state. In such case, the amount of such expenditures shall not exceed the revenues available during the fiscal year or the amount appropriated for the previous fiscal year.”

It never got a hearing, of course, but Gov. Scott has recently favored a three month (12 week) legislative session. It clearly will not get any hearing before the present legislature, for which no amount of spending is enough to meet all the needs that they find pressing.

Another proposal, revived by Rob Roper, is to reduce the size of the House to a much smaller number. This was hotly debated in 1965 when the old 246-member House was reduced to the present 150.

A single member House district in Vermont represents about 4,000 people. At the other end of the spectrum the California Assembly has only 80 members, each representing 465,000 people. Larger House districts do however reduce citizen access to their representative.

Another incentive I have suggested from time to time is paying the legislators half of their 16 week salary on Day One, and the other half on the day of adjournment. The neediest members, having spent their first half salary, would then put pressure on the leadership to finish legislating, collect their checks, and go home. Needless to say.

John McClaughry is vice president of the Ethan Allen Institute.

Images courtesy of Public domain and John McClaughry

5 thoughts on “McClaughry: Holding down legislative expenses

  1. The solution is simple. Stop feeding the beast. If a majority of taxpayers revolted and stopped paying, what could they do? The avalenche of paperwork and lost revenue would throw a big wrench in their corrupt corporation. If Bud Light lost billions in a few weeks from a simple product boycott, the government would suffer exactly the same consequence. Unfortunately, taxpayers can’t seem to find the resolve to challenge authority and win.

  2. So let’s see, the state is in deep debt, frivolous spending continues and now these same
    legislators want a pay increase…… why !!

    If these clowns worked for any other company they would be fired for either being inept
    or crooked, so Vermont workers, ask yourself as you go off to work…… why ??

    Wake up people, no matter who you work for, they’ll pay you for your performance, not
    your inability to perform…………..

  3. This is pretty good pay for a part time month and a half job. It’s really overboard with the health ins. package. How many on SS get 30k and health ins in two months? Just more of the screwing we’re all getting from this most naziesq legislature ever. They just love rubbing it in our face. I agree with pay per performance too. If they make living here more expensive cut, if they find money making without taxes raise. It should be a totally flexible income.

    • BINGO! You got it. the key was HEALTH INSURANCE…gold plated union one for whole family. I know people that stay at a job soley for health insurance. Same with Unions. SO, if a legislator can now work a few months and qualify for upwards of $30k in Union insurance, that makes being a legislator now a CAREER move…because most every liberal non profit hasn’t the number of people or money to afford large group gold plated insurance. INSURANCE was/is the third missing “leg” to lock up Dem Progressives making the “part time citizen” legislature into a career! They got huge insurance benefit, largely State paid….they just increased large their legislature pay $….the last bit is uber Liberal funded non profits will step up and hire them after the Legislative season is over. The three pillars…giving all but free insurance, raising Leg pay was key to locking in Dems & Progs taking over the legislature. It is now a Progressive’s career…it is no longer a part time “citizen” legislature – as in the olden days. VT is toast now. Progs will control all.

  4. Few people think it, what I see. By raising the compensation & benefits for Legislators, it becomes to be a “Career” choice! It used to be thought a citizen – part time. And, I mean CAREERS now for Progressives, Democrats & Socialists. Republicans don’t make it a “career.”..they “serve in” the citizen legislature. They have good jobs or firms. I will guess that most Repub’s take a CUT in pay to serve….but it is a jump UP for many Dems & Progressives (esp now). Dems & Prog’s will thus solidify their legislative control – as a career move now….and all the other leftist, Eco, Enviro, & WOKE “non profits” all over VT will hire them during the “off season”. Done…..and backed by Liberal entities $$$$$$ (think: Shelburne Farms) Repub/s are not like that. They are too busy producing for VT, creating jobs, running businesses, and paying taxes 🙂

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