Inaugural address of  F. Ray Keyser, Jr.  As it appears in the  Journal  of the  JOINT ASSEMBLY  BIENNIAL SESSION  1961    Thursday, January 5, 1961 Inaugural Address  To the General Assembly and the People of Vermont: Each  of  you,  as  members  of  the  46th  Biennial  session  of  the  General  Assembly,  have  taken  your  oath  of office.  I have now  received  that  investiture of my office.  It  is a heartfelt occasion  set  in  the mood of awareness of  our  responsibility  for  guiding  the  destiny  of  our  State  in  the  ensuing  biennium. The  authority  thus  placed  in our  trust,  when  used,  may  well  be  felt  long  beyond  our  term  of  office.  In  another  sense  we  are  but  temporary residents  of  a  perpetual  office.  Our  term  is  but  one  link  in  the  unending  chain  of  history.  The  authority  and responsibility  entrusted  to  us  has  been  exercised  by  our  predecessors  since  1778  and  will  be  exercised  in  the future by our successors. Thus  the historian  studies  the action and charts  the course  that  the  role of government has  taken. You  stand on  the  threshold of history. As your predecessors’ actions have charted history,  thus will you  indelibly  inscribe the pages of history. Before stepping from this threshold, it is proper to pause and review that history, consider the basic concepts and discuss the role of government.  Indeed, that is the duty of leadership. Men  everywhere,  in  every  age,  have  lived  under  some  form  of  government.  But  they  have  very  different opinions as to the amount of control that government ought to be allowed to exert over their affairs. In  this consideration, we should keep  in mind one basic fact. Because  this  is a government whose programs and  policies  are  determined  by  the  winners  of  free  elections,  their  actions  reflect  the  demands  of  the  society which elected them. Hence the role of government in a particular period of history reflects the needs and beliefs of the society of that period. We are the masters of our own government. A  century  ago  the  structure  of  society,  even  in  the  most  advanced  countries,  was  relatively  simple.  In Vermont,  as  in  most  of  America,  large  centers  of  population,  cities,  were  relatively  non-existent,  and  the foundation of  the society  lay  in  the  farm  family. None of  the problems existed attendant  to  the gasoline engine, public  utilities,  transportation,  communications,  and  the  tensions  between  countries.  These  people,  our ancestors,  living  on  the  land were  self-sufficient,  existing  almost  independent  of  the  production  and  endeavors of others  across  the  country.  In  that  society of  individual  self-sufficiency and  independence,  little was asked of government. Government was  considered  a  practical  necessity  and  largely  confined  to  preventing  people  from injuring  one  another  and  property;  that  is,  the  role  of  government was  policeman  and  umpire.  In  this  period  of history, the concept of the role of government can be called basic government.  Thus what we know today as the Omnibus Bill, making the appropriation for the support of government, in 1860  contained  a  page  and  one-half,  only  seven  sections  and  appropriated  Fifty  Thousand  Dollars  for  the General Assembly, Lieutenant Governor, Governor’s  salary, Treasurer; Eighty Thousand Dollars  for  the Court System;  Fifty  Thousand  Dollars  for  the  salaries  of  other  state  officers;  relief  for  the  poor  at  the  asylum,  the militia,  the  Board  of  Education  and  other  miscellaneous  items;  and  Fifty  Thousand  Dollars  for  the  purpose  of paying any debts of the state not otherwise provided for. A total of two Hundred Thirty Thousand Dollars raised by one  tax of  twenty cents on  the grand  list of  the  towns and cities of  the state.   For our population of 315,116, it represented expenditure of seventy-three cents per person. On  the  heels  of  this  society  of  simplicity  came  the  Industrial  Revolution.  A  complete  utilization  and development  of  such  things  as  railroads,  telegraphs,  telephones,  automobiles,  airplanes  and  submarines. Through these new instruments, government could assert authority instantly at any distance to mobilize a nation almost  overnight,  make  war  with  machine  guns,  tanks,  submarines  and  airplanes.  It  brought  to  us  a  world  of engineers and machinists, electricians and aviators, scientists and technicians, of huge industries and businesses, professions and crafts undreamt of  in an early age and molded us  into a nation of mechanization, concentration of  population,  urbanization  and  individual  specialization.  It  made  each  individual’s  life  dependent  on  and affected  by  the  lives  of  others.  There  sprang  a  society  with  a  complexity  of  economic,  social  and  moral problems. The  effect  of  the  evolving  new  society  was  to  open  to  government  not  only  great  international responsibility,  but  an  ever-widening  domestic  realm  of  novel  obligations,  duties,  tasks  and  challenges.  Society demanded  of  government  a  wide  variety  of  controls  applying  to  industrial  production,  agriculture,  trade, transportation, communication, banking,  insurance and what-not; and  thus evolved a broadening concept of  the function of government. It has been called regulatory government. It would serve no purpose here  to detail each of  the acts and amendments  thereto, embracing  the new  fields into  which  government  ventured  with  controls  and  regulations.  Suffice  it  to  say,  they  were  numerous  and included making  the Public Service Commission a  full department  in 1923.  In 1910  the “Act  to Provide  for  the Support  of  the  Government”  had  risen  to  one  Million  Nine  Hundred  Twenty-three  Thousand  Dollars  or  Five Dollars  Forty  cents  per  person with  our  population  at  355,959.    It  contained  two  pages  and  twelve  sections.  In 1925  it  contained  twelve pages  seventy-eight  sections  and appropriated,  including highways, Five Million Five Hundred  Eighty-two  Thousand  Seven  Hundred  and  Sixty-three  Dollars  or  Fifteen  Dollars  Eighty  Cents  per person with our population at 352,956. We  are  all  acquainted  with  the  tremendous  impact  of  the  depressed  30’s  on  our  society.  The  problems  of mere  existence  during  those  times  are  still  vivid  in  the  minds  of  men.  Those  were  drastic  times;  society demanded drastic measures. You are aware of the actions taken as recorded in the pages of history. Collectively they  show  the  great  broadening  in  the  concept  of  the  function  of  government  in  the  development  of  measures designed to meet the tremendous economic problem of the nation. On the heels of the 30’s came World War II of the 40’s. Unification and mobilization of all our resources to produce  the products and means by which we  could preserve our nation  resulted. This meant  the unavailability of  necessary  funds  for  domestic  needs  such  as  education  and  highways.  Hence  at  the  close  of  the  war  we emerged a nation of prosperity facing many domestic needs neglected during the war effort. These events resulted in a new concept of the role of government. The experiences of our times gave birth to the  belief  that  government  should  take  systematic  and  continuous  measures  to  promote  and  protect  the education,  health,  comfort,  security,  general  well  being  of  the  mass  of  people.  Implicit  in  today’s  view  of governmental  function  are  newer  ideas of  social  justice,  strongly  tinged with humanitarianism.  In pursuance of them we find steadily widening public provision for education on all levels, public owned and operated utilities, multiplied facilities for public recreation, compulsory sickness and accident  insurance and retirement plans, old age pensions, maternity and child welfare  legislation, unemployment  insurance, social security and  the  recently enacted limited hospitalization, nursing home and medical care for the aged, to mention a few. A  major  tendency  of  government  in  our  generation  has,  indeed,  been  to  become  less  purely  political  and more socio-economic. This has resulted from the demands of the electorate on their elected representatives. The  impact  of  the  taxpayer  is  indicated  by  the  fact  that  in  1947  biennial  appropriations,  exclusive  of highways,  was  Twenty-One  Million  Dollars,  in  1959  Fifty-Four  Million  Dollars.  In  1961  I  will  be recommending Sixty-One Million Dollars; or Seven Million more. This  latter  concept  of  government  is  relatively  new,  still  in  the  stage  of  development.  It  envisions government  as  an  active,  aggressive,  expanding,  regulating  force  ever  seeking  new  ways  not  merely  of protecting  people,  but  of  advancing  their  economic,  social  and  moral  well  being.  The  extent  to  which government  can  go  within  that  concept  is  unlimited.  It  embraces  every  area  of  our  existence.  I  welcome  this concept of  the  role of government as necessary  to  the preservation and progress of our way of  life. Yet  implicit within  that  welcome  is  the  knowledge  that  no  greater  period  of  history  demands  leadership  in  development  of the means and methods by which  that concept  is exercised.  It will be determinative of  the  truth or  falsity of  the communist world’s charge that our grandchildren will live under socialism. During the historical development of government to date, we continued to maintain as the foundation of our economy  the  free  enterprise  system,  capitalism.  This  economic  philosophy  holds  individual  freedom  inviolate and  has  its  roots  sunk  in  the  incentive  of  individuals  to  attain  financial  success.  The  ownership  of  the instrumentalities of producing and distributing goods rests in private business. I am convinced  that no other economic system would have attained such rapid  technical advance as has our free enterprise system.  I am equally convinced  that no other system holds  the hope  for progress  in  the  future as does  that  system.  This  is  becoming  of  greater  and  greater  importance  because  of  the  necessity  to maintain  the capacity  to defend ourselves and  to remain  the progressive picture of hope  if we are  to maintain our position of world leadership. Our society must be more progressive and dynamic than that of communism. To  date,  our  concept  of  the  role  of  government,  has  remained  generally  consistent  with  our  economic foundation of  free enterprise. The broadening of  the  role of government has been chiefly  to  refine and  improve our economic system by social and stabilizing economic legislation. The  future  development of  this newest  concept of  the  role of government  is of great  concern  to me. Proper development  based  upon  an  irrevocable  dedication  to  consistency  with  the  free  enterprise  system  can  lead  to new  horizons  for  Vermont  and  America.  Development  which  does  away  with  private  ownership  of  the instrumentalities  of  producing  and  distributing  goods  with  the  eventual  installation  of  the  state  as  owner, employer and manager,  thereby  turning government  into a veritable colossus of managerial authority, would be disastrous. That is one possibility, that is socialism. This concern does not spring solely on the basis of patriotism or that the word “socialism” is associated with something  bad.  I  use  it  in  its  theoretical  meaning.  Rather  I  fear  it  as  a  system,  incompatible  with  individual liberty, incompatible with maximum incentives hence maximum progress, incompatible with human nature. But I  fear  it most  because  it would mean  death  to  the  free  enterprise  system. A  system  compatible with  individual liberty,  compatible  with  maximum  incentives—in  short—the  only  economic  system  by  which  we  could  have obtained the standard of living and position of world leadership which we now enjoy. This  is  the  greatest  ideological  and  practical  problem  facing  this  nation.  The  problem  of  what  course  the development  of  the  role  of  government  will  take.  It  must  take  a  course  consistent  with  free  enterprise,  its development must be to refine and improve that system, not to destroy it. You  now  embark  upon  your  deliberations  which  will  determine  the  role  of  government  for  the  next  two years,  and  even  perchance,  beyond. We  deal  with  practical  problems  whose  solutions  should  embrace  broader thoughts that new horizons be not dulled. We  meet  in  an  age  of  revolution.  Humanity  is  restless,  moving.  It  sits  on  the  powder  keg  of  international relations  and  scientific  discoveries.  It  gropes  for  a  moral  and  spiritual  life  among  the  atoms.  Vermont  has  the basic ingredients in its way of life to satisfy the hunger of humanity. We can hang  in  suspension or move ahead. We can paint a picture of quaintness or a picture of pioneering. There  is  but  one  choice.  We  must  create  a  true  national  vision  of  Vermont  reflecting  ideas,  imagination  and action. We must be bold and adventuresome to meet the challenges of both the present and future. We must and will  venture  beyond  our  borders  with  the  finest  weapon  --  a  briefcase  full  of  ideas  and  methods  of accomplishment. It  means  nothing  to  say  that  Vermont  is  entitled  to  a  share  of  this  great  nation’s  wealth.  We  must  earn whatever gains we seek. We must admit that we have no rightful place in the ranks of greatness unless we think optimistically  and  positively  about  ourselves.  Our  tradition  is  not  something  to  merely  bask  in.  It  is  the foundation upon which to build. Let us continue  the deep-bred  tradition of responsible  ideals, reliable goals and a better  life with  leadership, imagination, action and hard work. Let this be the image of Vermont. Our immediate concern is to underwrite the specifics of a program during this legislative session which will mean  that  type  of  progress  for  Vermont.  To  do  this  we  will  have  to  look  well  to  the  programs,  total expenditures, the resulting taxes, and the areas in which these programs strike. The  budget  for  the  next  biennium will  be  our  greatest  concern.  The  amount which  is  appropriated  requires you,  as  it  has me,  to make  an  educated  guess  as  to  the  probable  revenues  from  taxes  during  the  period  July  1, 1961  to  June 30, 1963.   Based  on  those  estimates  it will  represent  a 13%  increase  in  expenditures over  the  last biennium. No new general fund taxes are recommended or needed under my budget. You  will  be  beset  by  many  persons  advocating  spending  beyond  a  progressive  budget  which  will  be presented. Totaled it can only mean new taxes -- none of which is required in my budget. As a guide to your determinations and deliberations, you should keep in mind: First;  Vermont’s  population  has  risen  only  slightly  and  if  we  are  to  provide  job  opportunities  whereby people  may  live  here—your  children,  my  children—a  favorable  business  climate  must  be  created  and maintained. Secondly;  presently  Vermonters  are  third  in  the  nation  in  the  amount  of  taxes  paid  per  thousand  dollars  of income. Where this fact may attest to the willingness of Vermonters to maintain needed services, the conclusion is  inevitable  that  any  increased  taxation  will  have  a  stagnating  influence  upon  new  job  development  and creation of a favorable business climate. Thirdly;  refusal  to  impose  new  taxes  will  be  done  in  the  knowledge  that  your  state  government  will  be providing a vast and varied program of service of which you can be proud. Fourthly;  experts  tell  us  that  we  are  in  a  period  of  mild  recession  and  unemployment,  our  action  should encourage the forecasted recovery. This  information  should  lead  you  to  the  conclusion,  as  it  has  me,  that  no  program  including  new  general fund taxes can be considered progressive. New taxes will stagnate and could destroy our potential development. The  budget  which  will  be  presented  to  you  was  not  lightly  considered.    It  involves  each  department  filing their  request  for  funds,  the  Budget  Division  of  the  Department  of  Administration  holding  lengthy  preliminary hearings  to  substantiate  the  requests  and  a  second  period  of  almost  three  weeks  of  budget  hearings  which  I personally  conducted.  Only  after  these  extensive  considerations  were  decisions  made.  I  am  convinced  that  it represents  a  financial  plan  of  progress  for  the  ensuing  biennium.  I  am  satisfied  that  the  needed  services contained within  it are consistent with  the economic welfare of  the people of Vermont.  I am equally convinced that increased taxation would be disastrous to the overall economic progress of Vermont. The budget I shall present  to you will not require any new general fund  taxes. I will present  it in detail later but now urge its eventual adoption. It is a plan of progress and of fiscal responsibility. The program this administration proposes has four main objectives: One, to effectively use the Department of Administration, the Reorganization and other recommendations of the “Little Hoover” Commission to make our state government organizationally sound and the most economical and efficient possible. Two, to create and maintain a favorable business climate, to actively solicit new business and  to  satisfy  needs  of  existing  business.  New  jobs  will  be  the  first  order  of  the  day.  Three,  to  make  capital investments  in  projects  best  calculated  to  develop  the  economy  of  the  state  and  thus  provide  new  jobs  and higher incomes. Four, to be humanitarian in its approach to social problems. May now I turn to a discussion of the means of accomplishment. No.  329  of  the  Acts  of  1959  popularly  known  as  the  re-organization  bill,  takes  effect March  1,  1961.  The purpose of the delayed effective date was to give you an opportunity to review the act. I most strongly urge that any review be done early in the session and that this reorganization take effect as scheduled. The new Department of Administration has been operating  since  July 1st. Already policies  instigated by  its personnel  have  resulted  in  substantial  savings  to  the  state.  There  is  much  yet  to  be  accomplished.  The management  function  of  the  department  has  not  yet  been  activated.  We  have  under  consideration  the establishment  of  central  data  processing,  both  of  which,  it  is  my  hope  will  be  commenced  early  during  my administration. It will be my purpose as Chief Executive to devote all needed time to the administrative responsibility of the office. A  state  may  possess  all  of  the  essential  ingredients  creating  the  desire  of  people  to  want  to  live  there;  yet without  a  job  this  becomes  an  impossibility.  A  state  may  possess  the  finest  educational  systems;  yet  without jobs  its  youth  will  necessarily  leave  the  state.  The  happiness  and  the  welfare  of  its  citizens  are  related  to  the ability to earn a fair standard of living. In  this space age Vermont’s potential  is  the greatest ever. Our endeavors  in development should be directed to  the  attainment  of  growth  in  all  areas  of  our  economy.  Vermont  wants  industry,  Vermont  wants  recreation, Vermont wants farming, Vermont wants all associated business. Not one but all. The  problems  of  spearheading  economic  development  are  many  pronged.    It  involves  restoring  natural assets  which  we  have  abused  on  the  one  hand,  and  developing  those  which  we  possess  undeveloped  on  the other.  In  some  cases  it  even  means  creating  natural  assets.  It  comprehends  creation  of  a  favorable  climate  in which  to do business,  a modern  transportation  system  and good  schools.  It demands  competitive  solicitation  to sell business and tourists on Vermont. In  short,  it  means  an  interwoven  dynamic  program  given  coordination  and  direction  from  the  Governor’s chair. This I promise to do. The  underwriting  of  the  cleaning  up  of  Vermont  streams;  a  million  dollar  bond  issue  for  state  funds  for sewage  treatment  plants;  a  million  dollar  bond  issue  for  park  improvement  and  expansion;  increasing  non-resident hunting license fees to provide an expansion of stocking access areas, creation of ponds; a new program in  overall  state  research  and  planning;  enactment  of  a  State  Industrial  Building  Authority  to  provide  financing for  plant  construction;  balancing  the  general  fund  budget  without  new  taxes;  matching  all  available  federal funds  to  continue our dynamic highway program;  a $375,000 bond  issue  for Airport  construction; providing of the  funds  for  the  eradication  of  brucellosis;  amendment  of  the milk  bonding  laws;  approval  of  increases  in  the V.D.C. appropriations are a part of such a program. They are needed as the basis of an interwoven vital program of total development. To these I pledge, as your Governor,  to  give  coordination  and  direction  and  to  personally  and  actively  solicit  business  for Vermont. Thus the new horizons and potential can become actuality. We  have  assumed  no  greater  responsibility  than  the  responsibility  to  our  youth.  Not  only  to  each  as  an individual  but  collectively  to  the  generations  which  will  lead  our  state  and  nation  in  the  future.  Meeting  that responsibility focuses on superior educational opportunity. To  discharge  our  obligation  we  must  act  in  the  knowledge  that  we  have  provided  the  physical  plants, teachers and comprehensive and broad educational program to meet the many and varied talents of youth. That we may do so there will be submitted a Four Million Dollar bond issue to provide funds for elementary and high school classroom construction.  A four million dollar bond issue for construction at U.V.M., to include a  gymnasium,  engineering  building  and  remodeling  of  the  Billings  Library.    I  am  told  this  will  conclude  the construction needs at U.V.M., for at least 10 years. In  addition  I  recommend  construction of  a gymnasium at  Johnson Teachers College and a men’s dormitory and  dining  hall  at  Castleton  Teachers  College.  The  latter  being  the  beginning  of  a  long  range  development  of Castleton  to  accommodate  one  thousand  students. The  new Vermont Agricultural  and Technical  Institute  is  an expanding and valuable program and construction of new classrooms is recommended. I  endorse  the  recommendation  of  the  Teacher  College  Study  Commission.  The  recent  accreditation  of Castleton was a most welcomed event. Appropriations for teacher education contemplate further accreditation. A  study of  the budget  to be presented  to you will  reveal  it provides  expansion of  comprehensive  and broad educational opportunity. It will provide Vermont youth with  elementary  and  secondary  education, higher education,  a growing State University,  accredited  teacher  college  education,  education  in  agriculture,  electronic,  highway  and  mechanical technology;  on  the  job  apprentice  training  programs  leading  participants  to  certification  as master  electricians, plumbers, and other skills. In special education, schools for retarded children, unfortunates at the State Hospital, the blind and the home bound. Thus we can provide superior educational opportunity, the soundest investment in the future.   One unknown factor exists,  the probability of a new educational program at  the Federal  level,  its extent and effect  on  Vermont.  I  will  maintain  close  contact  with  our  Congressional  delegation  and  recommend  that  our final  considerations  in  the  field  of  primary  and  secondary  education  be  had  later  in  the  session  when  Federal action becomes determined. I anticipate that you will be called on to consider revision of the State Aid to Education Formulae. Much has been  said  about  the  inequalities  of  the  present method  of  distributing  this  aid.  There  will  be  distributed  in  this biennium  $10,270,000.  I  am  recommending  $11,020,000  for  the  ensuing  biennium,  an  increase  of  $750,000. This  is both  a  liberal  and  substantial  sum of money;  it  represents 18% of our  total general  fund budget  and  the total  of  one  year’s  collections  from  the  income  tax.  I  strongly  oppose  any  revision  which  calls  for  an appropriation  over  that  recommended. Any  revision must  be  tailored  to  fit  the  sum  recommended  or  it will  be your  task  to  raise Vermont  to  first  or  second  in  total  taxes  paid  per  $1000  of  income. This would  be  a  dubious distinction.  It  would  dramatically  encumber  our  drive  for  an  expanding  economy  and  hence  our  ability  to provide financing of educational programs in the future. I  have  previously  discussed  the  impact  of mechanized,  specialized  and  urbanized  society  on  obligations  of government.  Vermont  is  no  exception.  Our  programs  to  advance  the  welfare  of  our  citizens  have  become  and are  a  vital  part  of  government.  Pressure  will  develop  on  you  to  greatly  expand  or  embark  on  new  programs. Here,  as  in  all  areas,  decisions  must  be  made  on  degree,  that  is,  the  extent  of  old  programs,  need  of  new programs and the taxation resulting therefrom. Within  my  budget  recommendations  you  will  find  provisions  for  public  assistance  involving  poor  relief, child welfare services, aid and services for the blind, aid to dependent children, children committed to the State, nursing  and  limited hospital program,  the  state hospital, Brattleboro Retreat, Brandon Training School, Weeks, Vermont Sanatorium, retarded children, Community Mental Health, various vocational rehabilitation programs, alcoholic  rehabilitation,  aid  to  the  permanently  and  totally disabled, old age  assistance, multiple  services  in  the Department  of  Public  Health.  This  review  is  not  intended  to  be  entirely  comprehensive.  It  does  fairly  indicate the multiple and excellent social programs to be provided for in the ensuing biennium. One of the important problems facing us today is that of our senior citizens. This has resulted from the great medical  achievements  adding  years  to  our  life  span  on  the  one  hand  and  society  on  the  other  drawing  the arbitrary  line of old age at 65. There are 40,000 persons over 65  in Vermont, and  I am  told  this  increases 2,500 annually.  Many  are  able  and  willing  to  work  and  remain  self-supporting;  many  should;  all  must  have  the opportunity,  help  and  encouragement  to  work  and  remain  active  beyond  the  “legal”  retirement  age.  This  is  of concern  to  all  of  us  because  shortly  each  working  person  will  be  supporting  himself  and  a  retired  person.  I recommend and will draft introductive legislation to meet this need. My budget provides for the appropriation. I  strongly  urge  the  adoption  of  the  social  program  listed  in  my  budget  so  Vermont  can  continue  its outstanding work in this important area. Vermont’s greatest asset is her people. Here  then  lies  a  course  of  progress.  It  is  broad,  it  is  optimistic,  it  is  ambitious.  Let  these  words  be  the eventual description of your actions. In  recommending  a  course  and  concept,  I  am mindful  that  our  partnership was  patterned  by  the  framers  of our Constitution. By  that  pattern,  if  the  programs  and  ideals which  I  have  discussed  are  to  live,  then  you must give  them  birth  by  legislative  breath.  I  do  not  propose  to  trespass  upon  your  legislative  prerogative,  yet  I  look forward to working closely with you in these common goals for the common good. May  we  forever  assemble  as  free  men  governing  ourselves.  May  our  actions  make  us  worthy  of  that privilege and responsibility.