Inaugural address of  Joseph B. Johnson  As it appears in the  Journal  of the  JOINT ASSEMBLY  BIENNIAL SESSION  1957    Thursday, January 10, 1957 Inaugural Address  To the General Assembly and the People of Vermont: It gives me great pleasure  today  to welcome  the members of  the Legislature, who during  the months  ahead must plot  the course which Vermont will follow  in  the next  two years, and even beyond. Your  task and mine  is bound  to  be  a  difficult  one,  but with  a  determination  to  find  solutions  and with  the  co-operation  of  our  people, we will work together to make a better State. As I undertook my duties as governor two years ago, I asked the Legislature to help develop a program that would  accomplish  for  the  State  the  prosperity  and  happiness  of  our  people.  Looking  back  briefly  today  to  the accomplishments of the 1955 Legislature, I believe that we have fulfilled in some measure many of our aims. No individual nor any group of individuals can claim sole credit for these achievements. Unselfish efforts of all of us, regardless of background or political beliefs, have mainly been responsible for our gains. The progress we have made is real—and beneficial to all Vermonters. We  have  added  100  miles  of  new  highway  which  will  aid  the  future  growth  of  our  agricultural,  industrial and recreational activities.  We  have  helped more  young  Vermonters  than  ever  before  to  have  access  to  a  college  education,  and  state aid has helped our communities to erect new primary and secondary schools. A  tremendous  addition  to  our  electric  power  capacity—100,000  kilowatts  of  electricity  from  the  St. Lawrence development—will soon be available to us. Employment  in Vermont  is  at  an  all-time  high. Agriculture  has  demonstrated  it  can  and will  overcome  the burdensome  obstacles  of  revolutionary  change. Our  recreation  business  grows with  every  season.  Industry  has prospered  in  nearly  every  area,  and  new  plants  have  sprung  up  around  the  State. We  have  the  good  economic climate needed by Industry and its most valuable component, Labor. These  results  are  gratifying  to  all  of  us,  but  the  job  is  far  from  done.  Bearing  in  mind  the  needs  of  all Vermonters  and  particularly  their  ability  to  pay  for  programs  to  meet  these  needs,  we  now  must  face  the problems of the future. I  believe we  have  reasons  to  have  faith  in  this  future. We may  not  be  able  to  do  all  things  needed  at  once, but  we  can  plan  prudently  and  intelligently  for  greater  opportunities  and  a  better  life  for  our  citizens.  As members of the General Assembly you are the architects of Vermont’s future. AGRICULTURE  During  the past  two years Vermont Agriculture has made  remarkable progress. Present  indications are  that total sales of Vermont farm products in 1956 will be in the vicinity of 122 million dollars, the highest on record for peacetime. Our great dairy industry accounts for about three-fourths of this total. Agriculture  contributes  greatly  to  the  total  economy  of  our  State.  The  impact  of  technical  and  mechanical revolution  in agriculture on Vermont  farms  is  far  reaching. Our  farms are adjusting  to changes with  reasonable speed, but much more must be done and  the  farmers must have  the sympathetic understanding of all  the people of the State. Our  great  problem  is  to  increase  the  sale  of  our  own  top  quality  Vermont  farm  products  in  highly competitive  markets.  This  can  best  be  done  by  farmers  themselves  through  their  own  sales  promotion organizations,  such  as  the American Dairy Association, Dairy Councils,  June Dairy Month Committees, Dairy Festivals,  Maple  Festivals,  the  Poultry  and  Egg  National  Board,  the  New  York-New  England  Apple  Institute and others of like nature. I  commend  the Vermont  farmers  and  their  organizations  for  the  outstanding work  they  have  accomplished by  helping  themselves.  But  farmers’  bargaining  power  must  be  increased  through  better-supported,  better-coordinated marketing and service co-operatives. Maple  products,  poultry  and  cull  dairy  animals  are  the  commodities  most  in  need  of  better  marketing facilities. As these facilities are developed, additional employment will be furnished to Vermont people. While  the  solution  of  the  problems  of  agriculture  depends  chiefly  on  action  by  the  farmers  as  individuals and through organizations, the state government can do much to help. Specifically,  large  portions  of  our  considerable  volume  of  agricultural  laws  are  outdated. Obsolete  sections should be repealed. Other sections need revision to improve service and reduce costs of administration. The  brucellosis  eradication program provided by  the  last Legislature  in  co-operation with  the United States Department  of  Agriculture  is  going  well.  But  complete  eradication  requires  100  per  cent  participation.  The Vermont Department of Agriculture should have authority to require all livestock owners to come under the test vaccination plan, when the owners of 75 per cent of the cattle in the State have signed up on a voluntary basis. The present state program for control of Dutch Elm disease has, for  the past  ten years, retarded  the advance of this disease in some of our villages. But now that the disease has spread statewide from all our borders and is likely to be found anywhere in the State, the present plan should be revised. Backed  by  the  ability  and  the  initiative  of Vermont  farmers,  the  cooperation  and  assistance of  the Vermont Department  of  Agriculture  and  Extension  Service,  and  the  Federal  agencies,  Vermont  agriculture  will successfully meet the many problems confronting it today. HIGHWAY IMPROVEMENT Highway  improvement  continues  to  be  the  very  core  of  Vermont’s  future  development.  We  have  made considerable progress in this field the last two years. In  my  previous  inaugural  message,  I  recommended  a  three-year  highway  construction  program.  Since  the start in 1955 much has been completed. The Highway Department expects that the whole program will be under construction  prior  to  July  1,  1957—in  other  words,  within  a  two-year  period.  I  believe  this  is  one  of  the  most progressive programs accomplished in Vermont’s history. Yet, there remains much to be done. The  Federal  Congress  last  summer  approved  a  gigantic  national  road  building  program  to  cost  41  billion dollars. To Vermont  this means  the construction of 343 miles of high-grade  interstate highway at a  total cost of approximately  200  million  dollars.  Vermont’s  share  of  this  would  be  roughly  10  per  cent  or  about  20  million dollars. Let  me  stress  again  that  this  is  a  long-range  program,  not  one  which  will  be  completed  or  financed overnight.  At  the  present  time  it  is  believed  it  will  take  from  13  to  15  years  to  complete  the  343  miles  of interstate highway within the boundaries of Vermont. We  cannot  afford  for one minute  to  sit back  and  let 47 other  states  take advantage of  this national highway program, while we falter because of doubt and uncertainty of our future. The importance of modern highways to the future of Vermont is much too great to risk timid or delayed action. Because  of  the  large  federal  participation,  the  financing  of  the  interstate  system  will  not  be  our  chief highway  problem.  The  big  problem  facing  us  at  this  crucial  turning  point  in  our  economic  history  is  one  of making sufficient funds available at  the state  level  to modernize  those main  trunk  lines  in  the areas of our State which will  not  be  serviced  by  the  interstate  system—but which  nevertheless will  benefit  indirectly  from  it. All sections  of Vermont must  be  provided with  good, modern  highways,  not  just  those  sections  through which  the interstate limited access road will pass. Progress  rides on wheels  today. Hopes  for our Vermont  future are closely tied  to  the use of  the automobile, the truck, the bus and other highway transport. Therefore we must have an adequate system of safe highways. I  therefore  recommend  to  this  Legislature  a  further  expansion  of  our  highway  development  program.  In 1955  I  recommended,  and  the  Legislature  approved,  a  $12,000,000  bonding  program  for  new  highway construction. I now propose an additional $25,000,000 bond issue for the same purpose. This will match federal funds  for  the  interstate  system,  match  all  federal  funds  for  other  state  highways  and  provide  several  million dollars  additional  for  construction  work  in  the  next  four  years  beyond  the  point  where  federal  funds  are available.  I  shall  have  specific  recommendations  concerning  the  financing  of  this  program  in  the  budget message. Although the present highway program has progressed faster than anyone anticipated two years ago, a great many projects have been held up by what appear  to be unnecessary delays  in our court. Vermont  law allows an appeal  of  the  necessity  of  building  the  highways,  as  well  as  the  compensation  for  taking  a  man’s  property.  It also provides that work on the project cannot start until these questions are settled in the courts. I  recommend  that  this General Assembly pass  legislation  that will eliminate or  reduce  the delay  in highway construction caused by court procedure  to prove “necessity.” This must be done without  jeopardizing  the  rights of the individual property owner to obtain just compensation. Failure to enact such legislation could block the expanded Vermont highway program, with resultant loss of federal aid appropriations, since there is a time limit beyond which these funds will no longer be available. I  also  recommend  that  you  give  serious  consideration  to  approval  of  a  method  of  simplification  of  the Highway Department’s accounts. Bear  in mind  always  that  the  highways  of Vermont  should  not  be  regarded  as  a  political  football. They  are much too important to our way of life. In  regard  to  keeping  the  highways  free  of  litter,  I  favor  the  recommendations  of  the  Highway  Litter Commission which you have before you. INDUSTRIAL DEVELOPMENT Work  for  the  industrial  development  of  Vermont  must  be  accelerated  during  the  next  two  years.  St. Lawrence  power,  the  possibility  of  construction  of  the  Champlain  cut-off,  development  of  four  season recreation  potential  in  every  section  of  the  state,  speeding  up  of  our  highway  construction  program,  plus  the always-recognized  fact  of  the  productivity  of  our  workers,  are  among  the  factors  which  today  make  Vermont attractive  to  industry  owners  seeking  a  new  site.  Also  these  factors  are  encouraging  those  industries  already with us to expand their factories and other operations. Two  years  ago  as  I  delivered  my  inaugural  message,  there  were  serious  unemployment  problems  in  many sections of Vermont. The picture was not good. Since  then  we  have  made  extensive  gains  in  employment  which  last  September  reached  an  all-time  high. The outlook for this year is for an even greater number of jobs for our people. These  gains  have  in most  cases  been  accomplished  through  the  activities  of  community,  regional  and  state development  programs,  plus  an  expansion  of  the  industrial  promotion  work  of  the  Vermont  Development Commission.  Since  January  1955,  28  plants  have  begun  new  operations  in  Vermont,  and  17  other  existing industries have expanded their facilities. As  I  pointed  out  earlier,  we  have  a  good  climate  for  business  in  Vermont  today.  But  only  through understanding  of  the  problems  of  business  and  industry  can  we  maintain  a  healthy  atmosphere  for  industrial expansion. You will be asked to enlarge the industrial program of the VERMONT DEVELOPMENT COMMISSION. I hope this Commission will give careful consideration to co-operation with various regions of Vermont in setting up  areas  for  location  of  industrial  plants  which  can  take  advantage  of  the  rapid  development  of  our  new highway system. The  Development  Commission  has  made  good  headway  in  setting  up  an  industrial  research  division. Already  this  division  is  able  to  report  progress  in  bringing  new  business  into  the  State.  Industrial  development does not come easy, but it can come to those who work for it. We must work for it. DEVELOPMENT CREDIT Under  present-day  conditions  bank  credit  is  needed  for  the  expansion  of  valuable  industries  now  operating in the State, or for development of new industries, and I would urge Vermont banks to operate under a forward-looking  policy  of  aiding  in  every  way  possible  to  help  in  this  development  of  our  state’s  economy.  It  is unfortunate  that  there  has  been  such  a  long  delay  in  getting  the  Vermont  Industrial  Development  Credit Corporation into operation. This Corporation, authorized by the 1953 Legislature, has not yet been organized to the point where it can function. It is hoped that the banking interests and others will get behind this Corporation, as I am sure that it will be one method of assisting in providing more jobs in Vermont. ELECTRIC POWER Electric power at a reasonable rate is a prime requisite for industrial growth, as well as being needed by our farmers, householders and recreational interests. During  the  last  two  years  the  people  of Vermont  have witnessed  the  successful  procurement  on  the  part  of the  State  of  the  contract  for  100,000  kilowatts  of  St.  Lawrence  power  from  the  New  York  Power  Authority. This  was  accomplished  by  careful,  detailed  planning  and  negotiation  by  the  Vermont  Public  Service Commission. The Commission deserves congratulation from the people of Vermont for the job it has done. The state of Vermont is involved, to the extent of being the purchaser of 100,000 kilowatts of energy which it  will  be  necessary  to  distribute, making  sure  that  the  power  is  delivered  to  Vermont  consumers  at  the  lowest possible rates, as it must be according to the contract. The members of  the Public Service Commission have  lived close to the problem of  the St. Lawrence power supply for two and one-half years. They have the authorization from the State Legislature to carry out the job. I feel  strongly  that  it  will  be  much  safer  and  in  the  best  interest  of  all  the  citizens  of  Vermont  to  leave  the allocation of the power and arrangements for distribution lines with the Public Service Commission. Our  State  now  uses  170,0000  [sic]  kilowatts.  When  one  realizes  that  projections  predict  the  demand  for electric power  in Vermont  in 1985  at  over  one million kilowatts,  it  is  hardly  necessary  for me  to  point  out  that we must be  looking  for new  sources of power. Thus Vermont will watch with  interest  the work now underway in development of electric power from atomic energy. LABOR AND EMPLOYMENT The  labor  and  employment  picture  in Vermont  is  tied  directly  to  further  progress  in  the  fields  of  industrial development  and  an  ample  supply  of  power  at  lowest  cost  possible.  Right  now  employment  conditions  in Vermont are good and we expect them to continue so. The  1955  General  Assembly  approved  several  measures  to  liberalize  Unemployment  and  Workmen’s Compensation benefits,  all of which have helped our working people  considerably. Liberalization of  such  laws pertaining  to employees’ welfare should continue, ever having  in mind  the ability of  industry  to absorb  the cost and with due regard to the success of the program as related to the morale of the worker. Specifically,  I believe  the occupational disease benefits under  the Workmen’s Compensation Act  should be liberalized  to  allow  increased  disability  benefits  beyond  the  present  $300  maximum.  The  possibility  of increasing the maximum weekly Workmen’s Compensation benefit should be carefully considered. I  recommend  that  the  Legislature  review  the  Unemployment  Compensation  Act  and  if  there  are  certain inequities in its present disqualification and eligibility provisions, that they be eliminated. I  also  propose  that  an  amendment  permitting  municipalities  to  have  local  control  over  coverage  under  the Unemployment Compensation law be enacted.  RESOURCES I  believe  it  will  be  helpful  to  the  future  development  of  Vermont  that  the  Assembly  approve  the establishment  of  a Vermont Resources Committee, which will make  a  study  of  our  state  resources  in  all  fields and make recommendations for their use and development. Our water resources could easily prove to be a valuable key to future development. Today many areas of our country are suffering from a shortage of water and are forced to go long distances for an adequate supply. We still have an abundance of water. But because of this abundance, many persons have felt that the supply was  inexhaustible  and  have  used  it  carelessly. We  should  conserve,  clean  up  and  develop  this  natural  resource so that it can be used to its fullest extent. We must continue to give attention to our streams to provide needed protection against the ravages of flood, as we are now doing in many sections of the state in cooperation with other New England states and the Federal Government.  The  recent  destruction  in  southern  New  England  warns  that  floods  are  an  ever-present  threat  to this region. The  GEOLOGICAL  studies  of  the  resources  below  the  surface  of  our  earth  have  been  stepped  up considerably during the last two years, as the result of approval by the 1955 Legislature of my recommendation for  expansion of  this work.  I  strongly  recommend  that  the Legislature  continue  to  support  this work  so  that we may be able  to  issue a complete geological mapping of  the state by 1961,  the 100th anniversary of  the  issuance of our last geological map. The State should also co-operate to the fullest with private individuals and organizations, in determining the value of certain minerals which we know exist within our boundaries. TOURIST AND RECREATION BUSINESS Our  fast-growing  tourist  and  recreation  business,  whose  income  rise  yearly  is  measured  in  millions  of dollars, must have the co-operation of every department of the State able to extend assistance. We must  continue  to give  co-operation  to people both  inside Vermont and  those  from outside, who wish  to help us develop recreational sites. I have asked for expansion of the activities of the Vermont Development Commission in helping to develop this valuable source of state income. The  STATE  PARKS  of  Vermont  are  an  integral  part  of  this  tourist  and  recreational  development.  During the  last  two  years we  have  continued  our  extension  of  state  parks  and  recreational  areas.  Six  summer  camping and picnic  areas have been  started or  considerably  improved. Five  ski  areas have been provided with  approach roads, parking areas, warming huts or a combination of these facilities. As our recreation business grows, there is an increasing demand for camping space at these state park areas, and we must increase these facilities. This can be done through the receipts taken in from our state parks. FORESTRY Our  forests  are  of  tremendous  importance  to  the  farmers  and  other  citizens  of  Vermont,  both  present  and future. During the past two years, more and more land owners have co-operated with the Department of Forests and  Parks  in  the  practice  of  selective  cutting  of  their  timberlands. Many  large  companies  have  put  their  forest lands under sustained yield management. The question of equitable  forest  taxation  still  remains  to be  solved,  and  I hope  this Legislature may be able to come up with the solution. I have approved  the state’s co-operation with  the U. S. Department of Agriculture under  the Soil Bank Act. In  two  years  the  annual  production  of  seedlings  for  reforestation  of  our  idle  lands  will  be  increased  from  2 million to 12 million trees.   FISH AND GAME Fish and game are a valuable part of our natural resources, providing our own citizens with food and recreation and also attracting thousands of visitors from out of state who are interested in fishing and hunting. In  this  respect,  I  caution  against  any  move  to  raise  non-resident  hunting  and  fishing  licenses  simply  to retaliate against our neighboring states. More than 55 per cent of our license funds comes from the non-resident group,  and  I  believe  that  by  leaving  the  license  fees  at  their  present  rate  we  can  encourage  thousands  more visitors to come into Vermont. I also believe that the Legislature should give careful consideration to the Fish and Game Service’s program of acquiring public access to our lakes and ponds, and that an expansion of this program would be justified. EDUCATION The  needs  of  Primary  and  Secondary  Education  in  Vermont  will  be  among  the  vital  issues  facing  this Legislature. Nothing is more crucial for the future well-being of the State than the education of its citizens. While  education  is,  in  strict  legal  terms,  ultimately  the  responsibility  of  the  State,  the  vigor  of  our  school system  requires  a  large  measure  of  local  initiative  and  responsibility.  It  is  proper,  therefore,  that  our  laws delegate a considerable degree of both of these to the local school districts. The people of  the State,  through  their  legislators,  specify orderly ways  for  school business  to be carried on, and provide  for broad minimum standards. The educational  level  in each community  is properly  the concern of the State as a whole. But  I  am  concerned  by  the  trend  of  events  in  which  more  and  more  local  school  districts  are  needlessly allowing  the  State  to  take  over  school matters, which were  once  pridefully  claimed  as  the  responsibility  of  the local  community.  Now  we  hear  the  cry  for  more  federal  participation  in  our  school  problems,  especially schoolhouse  construction. Any move  in  this  direction  should  be  taken  only  after most  careful  consideration  of all  factors  involved. We  should  remember  that  the growth and maintenance of our  individual  freedoms and our development  as  a  nation  can  be  attributed  in  large  measure  to  local  interest  in,  and  local  management  of  our schools. The key element in any school is the TEACHER. We have in our Vermont schools, on the whole, a corps of devoted  and  effective  teachers,  but  we  are  fast  losing  them  to  other  states.  The  pace  of  our  loss  is  quickening because of the widening gap between Vermont salaries and those paid in the rest of the Northeast. The  only  way  to  check  this  loss  is  by  paying  higher  salaries  ourselves.  I  recommend  revision  of  the minimum salary law to put these principles into effect, and I shall cover this recommendation specifically in the budget message. In  the  three  and  one-half  years  since  the  SCHOOL  BUILDING  aid  law  was  passed,  nearly  50  Vermont towns  have  erected  new  school  buildings  with  state  assistance.  Others  still  need  them,  and  construction proposals  are  in  the  process  of  being  studied  or  prepared  for  a  vote.  If  recent  rates  of  building  continue,  the original authorization of  funds will be used up before  the next Legislature meets.  I  therefore  recommend added bonding be authorized to take care of this important need during the next few years. Our  laws  relating  to  the accounting  for  school  funds by  local districts have  for many years been difficult  to interpret and have from time to time caused embarrassment and misunderstanding among local school officials. It is essential that all moneys allocated to schools be used for school purposes and that a clear understanding be possible  among  all  officials  concerned.  I  therefore  recommend  that  the  laws  governing  local  school  funds  be amended so that they are more clear and realistic. Vermont  TEACHERS  COLLEGES  have  shown  a  marked  growth  in  enrollment—37  per  cent  in  the  past three years. These institutions serve their own regions in valuable ways as well as the State as a whole. Until we have a clear-cut, long-range program for improvement of our over-all teacher training system, I do not  feel we  should make  any  large  capital  expenditures  at  any  of  the  present  teacher  colleges.  This  long-range program should be formulated as soon as possible. The  VERMONT  SCHOOL  OF  AGRICULTURE  at  Randolph  Center  has  trained  Vermont  farm  boys  for many  years  and  has  done  a  good  job.  The  times  are  changing,  however.  Enrollment  has  dropped  off considerably  at  this  school  in  the  past  three  years,  and  now  there  are  35  boys  attending  this  institution,  25  of these from Vermont. We  still  need  trained  young  men  on  our  farms,  but  we  also  need  trained  workers  in  industry.  Until  such  a time as a program can be developed  for greater use of  the facilities of  this school, not only  in agriculture but  in other  fields,  I  would  recommend  its  closing.  This  proposal  is  to  be  taken  as  no  reflection  on  the  school,  its faculty or its administration. We  have  made  considerable  progress  in  the  last  few  years  in  the  fields  of  SPECIAL  EDUCATION  and vocational  rehabilitation.  I urge  this Legislature  to carry on  these  important projects, which  include  the  training in their own communities of many of our retarded children. Turning  to  HIGHER  EDUCATION,  it  has  been  nearly  two  years  since  the  action  of  the  Legislature provided  lower  tuition  at  the  University  of  Vermont  for  all  qualified  Vermont  boys  and  girls.  Whether  this lower tuition has been effective is perhaps best shown by a brief comparison of enrollment figures. In  1954-55  when  Vermonters  enjoyed  tuition  preference  only  in  Agriculture,  Medicine,  Elementary Education and Junior High School Education, the number of Vermonters in undergraduate and graduate college courses at the University totaled 1047 students. This figtire was  increased  to 1204 during  the 1955-56 school year, and  to an estimated average of 1320  this school year. It will be gratifying to many to know that this increase is NOT at the expense of other Vermont colleges, but represents instead—as was the hope of the 1955 Legislature—an increase in the number of Vermonters going to college. It also means that fewer of our young people are going out of state to acquire an education. The  lowering  of  tuition  for  Vermonters  and  the  increase  in  the  number  of  Vermonters  attending  the University has, of course, meant a sharp  reduction  in revenue  from  tuition payments. This  loss of  revenue must be made  up  somehow,  and  I  shall  recommend  that  the  Legislature  study  this matter  carefully  in  order  that  the State may assume the share of this responsibility which can be justified without too great a tax burden. Again,  I  recommend  that  state  scholarships  paid  out  of  the General  Fund  be  placed  in  the  hands  of  a  State Scholarship Board, to be used by the recipients at whatever Vermont college he or she chooses. I am in favor of continuing the present grants and scholarships to the other institutions of higher learning in the State. PUBLIC SAFETY All of you know that Vermont has had a terrible record on the highways the past few months. The mounting highway death toll was in spite of many measures taken to curb this trend. I  urgently  request  this Legislature  to  give  this  subject  its most  careful  attention. There  is  no  single  panacea which  will  stop  traffic  deaths.  It  is  a  nation-wide  problem  which  has  reached  the  proportions  of  a  national disaster. We  cannot  ignore  the needless  loss of human  lives.  I  recommend  that  this Legislature  amend  the  laws relating  to  driver  license  suspensions  so  as  to  provide  for  longer  suspension  periods.  I  also  urge  that  stiffer penalties  be  enacted  for  major  violations  of  the  traffic  laws.  I  suggest  a  review  of  driver  education  in  our schools with the object of expanding the program. I  recommend  that  the  STATE  POLICE  force  be  maintained  at  its  present  strength,  which  includes  10 additional  troopers  approved  last  fall.    I  also  believe  this  Legislature  should  give  careful  consideration  to  the setting  up  of  a  permanent  state-wide  Safety  Council,  in  co-operation  with  private  organizations  to  work  on  a long-range educational program of highway safety. The  MOTOR  VEHICLE  DEPARTMENT  also  should  be  given  the  right,  I  believe,  to  inaugurate  a  driver improvement  program  whereby  drivers  could  be  re-examined  to  determine  if  they  are  still  fit  to  retain  the privilege of having an operator’s license.  BUILDING PROGRAM A number of  state departments  find  they  are  faced with  the problem of  the  lack of working  space. Some of them are occupying rented space, which in the long run is costly to the taxpayers of Vermont. The State Highway Department is badly in need of additional space and is now renting outside quarters. The Social Welfare Department also occupies considerable rented space in Montpelier. The  Unemployment  Compensation  Commission  had  completed  plans  this  past  summer  to  erect  a  building for  its  own  use,  to  cost  approximately  a  half-million  dollars.  Efforts  have  been  made  in  several  of  the  past sessions of  the Legislature  to provide for an addition  to the State library, to take care of  the expanding needs of the  Library,  the  Free  Public  Library Commission,  the  Public Records Commission  and  the Vermont Historical Society—the cost of this addition being estimated at close to $700,000. Now we believe we have a feasible, economical solution to this critical problem.   The National Life  Insurance Company  needs more  office  space  for  its  growing  business  and  is  considering the construction of new  facilities  in Montpelier,  in which case  its present building, adjacent  to  the State House, would be available. Their proposal to sell this building to the State for the sum of $850,000 is considered to be a fraction of  the value of  the structure and a  fraction of  the cost  to erect a similar building.  I also might point out that the price is not much greater than the estimated cost of an addition to the State Library. The  Unemployment  Compensation  Commission  has  agreed  to  rent,  in  the  event  of  purchase  by  the  State, approximately 40 per cent or two floors, of the space in the National Life Insurance Building. The Commission, in  turn, will  pay  out  of  funds  derived  from  the  federal  government  40  per  cent  of  the  heat,  lights, maintenance and other expenses incidental to the occupancy of the building. The  State  Building  Council  is  unanimous  in  the  opinion  that  the  State  should  acquire  the  National  Life Insurance Company Building. As  governor  I  have  given  this  proposal  many  hours  of  study  and  recommend  that  the  State  purchase  this building;  also  that  the  Unemployment  Compensation  Commission  be  housed  in  it,  along  with  certain departments  now  occupying  the  State  Library  Building  and  the  present  State  Office  Building.  It  is  important that the Legislature consider and act on this proposition as soon as possible. Also before you is a list of recommended proposals for new construction from the State Building Council, to which I urge you to give careful consideration. WELFARE Vermont continues to give careful consideration to the welfare of all of its citizens. Under  present  economic  conditions  and  the  extension  of  Social  Security  coverage  and  benefits,  public assistance caseloads are on the downward trend, especially in Old-Age Assistance. During this administration, I am proud  to  say  there has been  the greatest  improvement  in  the  assistance programs  since  their  inception more than twenty years ago. Payments  in  Old-Age  Assistance,  Aid  to  the  Blind  and  Aid  to  Dependent  Children  have  all  been  raised during  the  last  two  years  and  are  all  above  the  federal  maximums.  I  believe  the  Legislature  should  approve  a similar increase in the Aid to the Permanently and Totally Disabled program.    PUBLIC HEALTH Public  health  and  the  care  of  our  chronically  ill  and  aged  are  again  fields  where  the  State  must  accept  a reasonable  portion  of  responsibility. The  value  of  the  services  rendered  by  the  State Department  of Health  can never be measured in dollars, but we know it is of immense importance to all of the people of the State. During  the  last  year  and  a  half  since  the  program  started,  Vermont  has  been  one  of  the  leaders  in  the vaccination of young people under the Salk polio program. I believe the necessary money should be provided to carry on this program and that the public should take full advantage of it. Another  noteworthy  achievement  in  the  field  of  Public  Health  is  the  establishment  of  the  State Rehabilitation Center at the DeGoesbriand Memorial Hospital, which will soon be under construction. This will serve as a pilot center for possible future expansion of the program. The  entire  field  of  chronic  illness  and  the  aging  is  one  which  deserves  the  most  careful  consideration  and study. I recommend that the State Department of Health should explore the extent of the state’s responsibility in this matter.  This  should  enable  us  to  work  out  a  definite  program  in  this  most  important  field  of  health  in  co-operation with the communities, voluntary agencies and the medical profession. STATE EMPLOYEES Our  state  employees  are  giving  fine  service  to  the  people  of  Vermont,  and  we  must  always  be  concerned with keeping their salaries and other benefits in line with what is fair and what our economy can support. There is, I believe, one critical group of employees whose salaries and working hours must be adjusted if we are to continue to carry out important programs for the people of Vermont. These are the employees of our state institutions. Faced with shortages of experienced technical and professional personnel,  the staffs of our  institutions have thus far responded to demands of the public for increased services by working extra long hours regularly. In our plans for expansion of treatment and corrective programs, we must realize the need for reducing the work week of institutional employees along with additions to the staff. I therefore will recommend that funds be provided to allow these institutions to cut down the working hours of employees and to add the additional employees needed to cover this cutback in the work week. While  inequities  should  be  eliminated,  I  do  not  believe  that  the  State  can  afford  at  this  time,  nor  can  it justify, any across-the-board salary increases for all state employees. I believe such an across-the-board increase would  be  unfair  and  is  unwarranted.    I  have  already  approved  the  upgrading  of  many  positions  within  our regular classification plan, resulting in pay increases for a considerable number of employees.  Also, many more employees  have  received  salary  increments  within  the  classification  plan.  In  a  three-year  period  from  1953  to 1956  our  state  payroll  has  increased  by  2  million  dollars.  I  will  speak  further  on  this  subject  in  the  budget message. NATIONAL GUARD The Vermont National Guard has  attained  an outstanding  record during  the past  two years.  It has  increased its unit strength and, as a  result of  legislation approved  in 1955,  five new armories have been built or are  in  the process  of  construction.  The  Air  National  Guard  has  increased  its  facilities  at  Burlington.  This  last  summer  at Camp  Drum  the  Vermont  National  Guard  was  given  the  highest  rating  of  any  defense  group  in  training  there. We have every reason to commend the officers and men of our National Guard for their fine performance. CIVIL DEFENSE I believe it most important that the State continue to support a Civil Defense organization. Also, I recommend that the Civil Defense law be revised to include a clause which will make it possible for this organization to be ready and able to act in case of natural disasters.  I  thank  all  those  Vermonters  who  are  giving  of  their  time  to  keep  a  good  Civil  Defense  organization  in being. AVIATION The  requirements  of  aviation  in  Vermont  must  be  given  increasing  attention.  The  fact  that  about  60,000 persons  traveled  to or  from  the State  last year on  the  airlines alone  is a matter of great  importance.  In  addition, the  small  plane  is  rapidly  coming  into  everyday  use  as  a  mode  of  travel  for  business  purposes.      We  must continue improving and developing airports and air navigational facilities within the State. LOOKING FORWARD Our  course  for  the  future  is  set.  To  follow  this  course  we  must  steer  straight  ahead,  for  only  by  going forward  can  progress  be  attained.  In  these  days  of  dynamic  growth  throughout  the  nation,  Vermont  must  stay abreast of the times or sink into the doldrums. Yet we must proceed with caution lest we be caught up in the swirl of high and unjust taxation which could bring disastrous consequences to our economy.  I therefore caution you to move steadily but at a safe pace. There are many programs which will be presented to you for consideration during this Legislature. Some of these  I  recommend  for  your  approval.  However,  it  is  for  you  to  decide,  as  representatives  of  the  people  of Vermont, what we can afford in the next two years. If,  in  your wisdom,  you  feel  it  is  necessary  to  step  up  the  rate  of  expansion  beyond  the  point which  I  shall recommend in my budget message, then it is for you to decide also how to finance this additional expansion. For the welfare of our people and the future of the State we cannot, and I shall not, attempt to attain progress under  the  disguise  of  long-term  deficit  financing. We must  pay  our way wherever  possible  so  as  not  to  burden our children and our children’s children with an insurmountable task. We must have  the  courage of our  ancestors  to proceed with determination  and vigor. We must  also have  in mind the ability of our people to pay for the programs which we adopt. Acting with  the  independence  and  prudent  foresight which  is  our  heritage,  and with  faith  in  the  future, we shall march forward to build a richer and more glorious Vermont for all of our people.