New Irene Initiative Draws Concerns From House Speaker

(Host) A group of Senate leaders has unveiled a plan designed to help Vermonters affected by Tropical Storm Irene.

But House Speaker Shap Smith says the proposal is not well thought out and could actually hinder efforts to raise additional federal funds for Irene relief efforts.

VPR's Bob Kinzel reports.

(Kinzel) There are several elements to the plan introduced by Lt. Governor Phil Scott and Senate President John Campbell.

First, Vermont would hold a sales tax holiday for all retailers on August 28^th, the anniversary date of Tropical Storm Irene, to encourage consumers to shop at their local merchants.

The second provision calls for a week long sales tax holiday between August 26^th and September 1^st for all weatherization materials.

And the third part would implement a sales tax holiday for anyone who purchases a mobile home between last August 28^th and June 1^st.

It's estimated that the state will lose roughly $1.5 million dollars from these tax free events but Senator Campbell says it's a good use of that money.

(Campbell) "Really look at what we're doing here. We're making sure - we're enabling people to not only help rebuild after this devastating event but also to help further the weatherization effort."

(Kinzel) Grand Isle senator Dick Mazza says the plan is also a big help for local retailers.

(Mazza) "It makes a huge difference. The last time we had it, there was just an outpouring of success throughout the state. The retailers need that little boost just so get the economy back rolling again."

(Kinzel) Senate leaders may be enthusiastic about this plan but House Speaker Shap Smith definitely is not.  Smith says people hit hard by Irene need help today, not 8 months from now.

(Smith) "I have real concerns if people who have been impacted by Tropical Storm Irene are in need, they're in need now not next August. And so we're trying to figure out ways that we can help them right now and make sure that they can get back in their homes."

(Kinzel) And Smith says the $1.5 million in lost state revenue could be used to bring almost $10 million to Vermont in federal matching funds for Irene relief.

(Smith) "What I'm concerned with this idea is that we'll have less state revenue and will be unable to meet federal matches that would draw down more revenue and help communities even more."

(Kinzel) Smith says he also views the sales tax holiday concept as a gimmick that's unlikely to help many retailers in the long run.

For VPR News I'm Bob Kinzel in Montpelier