Inaugural address of  Joseph B. Johnson  As it appears in the  Journal  of the  JOINT ASSEMBLY  BIENNIAL SESSION  1955   Thursday, January  6, 1955 Inaugural Address  To the General Assembly and the People of Vermont: I  undertake  my  duties  today  as  Governor  of  the  State  of  Vermont  with  a  sincere  appreciation  of  the responsibilities which have been placed in my hands by the people of Vermont. I realize the task before me will not be an easy one. In  the  two  years  which  have  elapsed  since  the  General  Assembly  met  here  in  the  Capitol,  our  country  has ended the shooting war in Korea, but is still in the “cold war” with Russia and her Red satellites. Thus we  are  spared  for  a  time  at  least  the  sad  spectacle  of  our  sons  shedding  their  blood  on  foreign  fields, and the terrible costs of all out war. Today the world is normally at peace but it is an uneasy peace, charged with uncertainty, distrust and hatred. Therefore, in order to be ready to defend our country, at a moment’s notice, the Federal government still must expend great sums for the national defense. The change from wartime to peacetime economy has had its effect on the people of Vermont. There  has  been  a  falling  off  in  state  revenue  and  in  those  cities  and  towns  which  have  keenly  felt manufacturing  shutdowns  and  layoffs,  welfare  costs  have  risen  to  high  levels.  Tax  Commissioner  Morrison believes  that  the  fall  in  tax  receipts will  reach  its  lowest point during  the  fiscal period  that  ends  June 30 of  this year, and that from then onward the trend will be upward, but that the rise will be slow. While  state  revenues  have  decreased,  expenses  of  government  have mounted  until  today  we  face  a  critical budgetary  situation  for  the  next  biennium  ending  June  30,  1957,  which  the  Legislature  must  tackle  with understanding  and  courage.  Estimates  now  show  that  on  the  basis  of  present  state  expenses  and  income,  we have a deficit for the next biennium of some $4,000,000 without any expansion of services. This  is  partly  due  to  the  fact  that  the  1953 Legislature,  rather  than  raise  taxes  to  provide  additional  income for  increased  operating  expenses,  saw  fit  to  use  $2,500,000  of  the  1953  General  Fund  Surplus  for  current expenditures  in  this  biennium.  The  greatest  increase  in  costs  during  this  period  has  been  for  personal  services. Vermont  can well be proud of  its  staff of department heads  and  employees  right down  the  line, who  are  taking care of  the State’s varied activities  loyally  and  efficiently. The  salary  increases granted under  the Griffenhagen Plan  were  justified,  but  the  cost  to  the  State  has  been  considerable.  In  the  fiscal  year  1952  the  State’s  payroll totaled about $8,000,000. Two years  later  for  the year ending June 30, 1954  the  total was about $9,500,000, an increase of $1,500,000 or nearly 20 percent. With the pay increases under the Griffenhagen Plan, the payroll continues to increase substantially. Because of greater costs of operation, and  the use of Surplus  rather  than  increased  taxes  to balance  the budget  two years ago, you and  I are now  forced  to begin our  term with commitments against our biennial  receipts, which greatly narrow the margins within which we can safely make new appropriations. I  will  discuss  this  financial  situation  at  greater  length  in  my  budget  message  but  I  want  the  people  of Vermont  to  realize  that  if  we  are  to  inaugurate  some  new  services  which  I  recommend,  we  must  increase  our revenue. The people of Vermont have shown a continuing desire for better services and better government, and I  feel  that  they will  understand  they must  undertake  some  sacrifices  if  they  are  to make Vermont  a  better  state for themselves, their children and their children’s children. INDUSTRIAL DEVELOPMENT The  very  serious  unemployment  situation  in  several  of  the  cities  and  towns  of  Vermont  and  the  need  for improvement of  state  revenues make  it  crystal  clear  that  the  first  aim of  this  administration  and  the Legislature must be to develop ways and means of providing more jobs for Vermonters.  Now,  the  state  cannot open  its own  factories  to provide  these  jobs, and  any public works projects  instituted must,  of  their  nature,  be  temporary.  Therefore  the  state  must  throw  its  energy  into  cooperation  with  the  town, city  and  regional  development  agencies  in  a  great  drive  to  secure  for Vermont  industries which,  I  am  sure,  are looking  toward  the  Northeast  as  a  profitable  place  for  establishment  of  manufacturing  plants.  Every  man  who secures  a  steady  job  becomes  a  part  of  our  tax  base  and  an  increase  in  employment  will  be  reflected  in  rising revenues, which will bring relief to the taxpayers of the state. The Vermont Development Commission can be the dynamic organization in this drive for new jobs, serving as  the  liaison  agency between  the private  community,  regional  and  state organizations  and  the prospective new businesses. To  afford  the  communities  a  more  efficient  and  aggressive  program  of  assistance  in  the  industrial development  field,  the  Commission  will  require  a  larger  appropriation  for  research  and  planning,  and  for experienced personnel who are specialists in this most competitive field. The Commission feels that a sound and productive industrial program requires a most complete inventory of facts  and  figures  relating  to  the  industrial  phase  of  our  economy  in  order  to  bring  about  the  proper  planning which  is  a  requirement  of  any  sound  development  program. Because  of  lack  of  funds  the Commission  has  not had a research and planning department for the past four years, and has had to carry out the necessary functions of  an  industrial  development  program  with  a  limited  staff.  A  program  which  will  afford  the  communities  of Vermont these services to assist their industrial procurement efforts at local level will require some additions to the  staff,  such  as  an  industrial  agent  who  will  constantly  be  in  the  field  contacting  industries  which  may  be seeking  new  locations.  A  marketing  specialist  is  needed  to  assist  established  industry  with  product  and marketing problems In  the  past  year  there  has  been  a  decided  increase  in  industrial  development  at  community  level,  the  state now having 28  local groups organized  for  the purpose of expanding  their  industrial economy. The  research and marketing  phase  of  such  an  operation must  be  considered very  seriously because  it will  involve  studies on  raw materials,  new  products,  new  markets  and  any  other  phases  of  such  analysis  that  will  lead  to  greater  dollar income and more diversified payrolls than now exist within the state. The  Commission  must  also  lend  a  hand  to  our  present  industries  in  helping  them  expand  or  to  solve  the problems which now beset them. I am recommending additional funds to the Development Commission for this highly important job. VERMONT INDUSTRIAL DEVELOPMENT CREDIT CORPORATION In  this matter  of  industrial  development  I  am  firmly  behind  the  work  the  Vermont  Industrial  Development Credit Corporation. I urge the people of Vermont, especially our banks, to help this new agency to develop new industries for the state. ELECTRIC POWER The 1953 General Assembly delegated to the Public Service Commission full power to act for and represent the  State  in  negotiations  or  arrangements  with  the  New  York  State  Power  Authority  for  use  in  Vermont  of electric power developed on the St. Lawrence. I have felt  that since  this Commission has  long been familiar with  the power needs of  the State, and has not been  lacking  in  its  efforts  to  gain  for  Vermont  the  full  benefits  of  the  St.  Lawrence  development,  we  should continue such an arrangement. The purchase of energy from the St. Lawrence development will be an inter-state transaction  and  therefore  normally  subject  to  the  jurisdiction  of  the  Federal  Power  Commission.  This  General Assembly may wish  to consider  the  feasibility of giving broader authority  to  the Public Service Commission  to make contracts for transmission of St Lawrence power. An appropriation may be necessary for the Commission to  secure  such  additional  legal  and  engineering  assistance  as  it  may  need  in  procuring  our  share  of  the  St. Lawrence power, and arranging its transmission to Vermont. If  we  are  to  bring  in  more  industries,  expand  those  which  are  here, meet  the  needs  of  the  farmer  for  more electric power, and  supply  the  increasing domestic demand  - all at  reasonable  rates  -  the State must at all  times be ready to take advantage of those present sources of power which will provide us with electricity at the lowest possible  rates  and  to  stimulate  at  the  proper  time,  the  production  of  electric  energy  through  the  use  of  atomic power. CHAMPLAIN CUT-OFF President Eisenhower has recently issued a directive for a resurvey of the Champlain Cut-off. We will at all times exert the energy of this administration to win support of Congress for the Champlain Cut-off which when the St. Lawrence Seaway is complete, would provide Vermont with a seaport to all the world. LABOR AND EMPLOYMENT Vermont  is  most  fortunate  in  having  a  reliable,  conscientious  and  skilled  labor  force.  From  my  own experience and on the frequent testimony of other employers in the state, I know that our skilled type of labor is one of Vermont’s chief industrial assets.  I  have  proposed  certain  liberalizations  in  the  Vermont  Unemployment  Compensation  and  Workman’s Compensation programs. I am mindful that costs of both these programs are paid for directly by employers. The  maximum  number  of  weeks  for  which  a  claimant  can  receive  unemployment  benefits  in  Vermont  is now 20. All other New England states, with the exception of Maine, now provide benefits for 26 weeks. This  extended  duration  of  benefits  conforms  to  recommendations  made  by  President  Eisenhower  and  is consistent  with  his  administration’s  policy  of  leaving  to  the  states  the  determination  of  legislation  consistent with conditions and circumstances within the state. The Workmen’s Compensation  laws  should be  liberalized.  I  favor  removal of  the  time  limit  for payment of hospital and medical benefits and repeal of the so-called “aggravation clause” of the occupational disease act. To  aid  accident  prevention  in  industry  I  propose  that  the  state  establish  an  annual  State-wide  industrial Safety Conference. Our working people are, as  I have  said, our greatest asset. Our  record  is good, but we must work to further protect them from accidents at their jobs.  AGRICULTURE Vermont  farmers  are  now  confronted  with  the  alternative  of  reducing  production  either  by  government controls or the low price method – or by selling our increased production in highly competitive markets. There  can  be  but  one  choice  for  Vermont  and  that  is  to  put  into  effect  a  program  which  will  sell  all  the products  Vermont  agriculture  can  produce  efficiently.  Most  of  this  required  program  must  be  initiated  and carried out by  farmers and  farm organizations, but  the State government can be of help. Vermont dairymen, on a 12-month basis, are contributing over a quarter of a million dollars to promote the sale of dairy products. Selling  the  greatly  increased  production  of  our  Vermont  farms  depends  on  three  major  factors.  These  are first  and  most  important,  QUALITY.  Under  present  market  conditions,  it  is  hopeless  to  try  to  sell  profitably anything  that  is  not  top  quality. Second,  the  price must  be  adjusted  to meet  competition  and  to move Vermont farm products in large volume. To accomplish this, every possible means of reducing the cost of production and distribution and  increasing  farms’ bargaining power must be  employed. Third, we must  advertise  and promote the sale of Vermont farm products in every possible way. I  believe  that  today  the  supply  and  demand  factors  are  in  better  balance  in  the  dairy  products  market.  The Boston blend price of milk is higher than last year and the milk-grain price ratio is favorable. Our job is to encourage and promote the sale of our agricultural products through encouragement of farmer-owned and controlled marketing, purchasing and service organizations. Their activities should be expanded. I believe a few additions and a number of amendments to our agricultural laws are required. To  protect  our  markets  for  milk  and  dairy  cattle  the  dairy  industry  requires  a  speed  up  in  the  program  to control and eliminate Brucellosis. Substantial amounts of  federal  funds  are  available  for  the period  ending  July 1,  1956.  The  rapid,  low-cost  method  of  locating  infected  herds  by  the  ring  test  should  have  legislative authorization.  All  reacting  cattle  should  be  branded  and  the  State,  through  the  use  of  funds  matching  Federal money, should encourage the removal of reacting cattle from our herds. The poultry industry, Vermont’s second largest agricultural enterprise, should be protected and promoted by clarifying  the administration of  licensing of poultry and egg buyers and by greatly  increasing  the  legal bonding limits. The industry should have study by the Department of Agriculture and the College of Agriculture. Amendments  and  additions  to  our  agricultural  laws  to  effectuate  this  program  have  been  recommended  by farm organizations. Some are now in the hands of the legislative draftsmen. Vermont  agriculture  is  changing  fast  to  meet  new  conditions.  Our  laws  must  be  kept  up  to  date  with  our needs. CONSERVATION Protection of our natural resources must always be our aim. I particularly want to stress that this Legislature and succeeding Legislatures should at all times work for the purifying of our  lakes and streams. Some good anti-pollution work has already been done  in Vermont but  there is much yet to be done. I have received word  that  the report of  the New England-New York Inter-Agency Committee  is now nearly complete.  Since October  1950  an  intensive  survey  and  study  of  the whole  range  of  natural  resources  and  their future possible development in New York and the New England States has been carried on by representatives of the  states  concerned  and  the  Federal  government.  Hearings  on  the  report  will  open  soon  for  final recommendations. I hope the Vermont Agencies concerned will do all they can to see that our interests are represented. FORESTRY The  forests of Vermont clothe nearly  two-thirds of  the  land area of  the state. These valuable  resources have a  great  multiple  use  --  as  a  source  of  raw  material,  an  unexcelled  recreation  area  in  summer  and  winter,  an equalizer of stream flow, a home for our wild life and as a tax base. We  must  protect  our  forests  from  fires,  insects  and  diseases  and  from  bad  cutting  practices.  With  more extensive  mechanization  of  our  farms,  more  and  more  land  now  pastured  will  need  to  be  reforested.  Studies have  been  made  by  the  State  and  by  a  private  Foundation  within  the  state  on  ways  and  means  to  carry  out successful reforestation. I believe the Legislature should give this matter study. In  the  last  few  years many  towns,  villages  and  cities  have  established municipal  forests.  I  hope  others will take  similar  action,  Along  this  line  may  I  recommend  that  in  those  towns  where  it  has  become  necessary  to remove roadside trees to make way for highway improvements local action be taken to plant new trees. I believe an oppressive and unjust tax on forest land can mean premature and destructive forest cutting. For  this  reason  I  request  your  careful  consideration  of  the  report  of  the  interim  Commission  on  Forest Conservation and Taxation. GEOLOGY If we  are  to  develop  industry we must  know what we  have  for  natural  resources  and where  these  resources are located. During  the  past  years  we  have  had  a  small  annual  appropriation  for  the  state  geologist.  Because  of  the limited funds progress in this department has been slow. It is time that we stepped up our activity on research of Vermont’s resources and I therefore recommend that the  basic  geology  mapping  program  be  accelerated  in  both  mineral  and  water  resources.  This  will  require  an appropriation considerably above that usually allocated to this most important department.  FISH AND GAME Fish and game are an important part of our state’s resources. We  must  protect  these  resources  and  improve  them  so  that  the  thousands  of  persons  who  are  interested  in fishing and hunting will feel they would like to visit our state and the thousands of Vermonters who yearly take out licenses are given their money’s worth.  The  last  session  of  the  Legislature  gave  certain  regulatory  powers  to  the  Fish  and  Game  Commission.  I recommend that these powers be broadened to permit the prompt handling of local emergency situations. TOURIST AAND RECREATIONAL DEVELOPMENTS Vermont today attracts visitors in all seasons of the year. For  this  reason  I believe  the State  should extend a welcome hand  to all corners of our nation  so  that people will  be  encouraged  to  come  here.  These  folks  spend  money  and  this  money  makes  jobs.  This  will  call  for expansion of our display advertising budget in Development Commission. I  particularly  want  to  stress  that  the  backing  of  this  Administration  will  be  given  to  all  efforts  to  furnish access  roads  to  developments  in  which  people,  both  from  within  Vermont  and  from  outside  the  state,  have invested  their  money.  These  people  need  our  co-operation.  They  have  asked  nothing  else  for  their  great investment in Vermont. ROADSIDE BETTERMENT We  have  been  able  to  protect  the  beauty  of  our  landscape  by  limiting  the  billboards  on  our  highways. We also  have  legislation  against  the  littering  of  our  roadsides  with  rubbish  and  other  objectionable  matter.  This problem  cannot  be  solved  merely  by  legislation,  but  it  needs  education  of  the  general  public.  A  National organization “Keep America Beautiful” has been  set up and  there  is a movement  to organize a “Keep Vermont Beautiful” committee, which through publicity and education, will endeavor to clean up our roadsides. I believe it  would  be  well  for  the  Legislature  to  authorize  me  by  resolution  to  call  a  conference  of  interested  groups  to give  state  backing  to  a  “Keep Vermont Beautiful” movement. There must  be  no  trash  or  litter  on  our Vermont roadsides. VERMONT LIFE One  of  the  greatest  pieces  of  Vermont  advertising,  either  public  or  private,  that  we  have  today  is  our  state magazine Vermont Life.  Its  standards  should  be maintained  and  I  hope  that  full  co-operation will  be  given  the editors by our people. PRIMARY AND SECONDARY EDUCATION The  last General Assembly’s major  accomplishment,  in my  opinion, was  in  the  field  of Education. While  I do  not  recommend  to  this Assembly  any  legislation  of  corresponding magnitude,  scope  and  cost  in  this  field,  I believe there are several matters requiring legislative action to continue the progress already made. The  way  is  now  open  for  legislation  which  will  enable  town  school  districts  to  join  with  neighboring districts  in  the  operation  of  elementary  schools.  Such  legislation  should  be  permissive,  not  compulsory.  It  can be enacted through appropriate amendments to the present union high school district law. Under  the School Building Construction Act  of  1953, more  than  two  and  one-quarter million  dollars worth of  state  funds  have  already  been  granted  to  local  school  districts  for  school  construction.  While  criticism  has been  heard  of  the  policies  of  the  State  Board  of  Education  in  administering  this  act,  these  criticisms  usually appear  to  be  founded  on  misconceptions  or  are  brought  on  by  local  conditions.  Surely,  if  money  drawn  from people  all  over  the  state  through  taxes  is  to  be  turned  over  to  any  given  locality  for  schoolhouse  construction, the state as a whole has a strong interest in seeing that the money is used to the best advantage. The  state  funds  to  aid  in  schoolhouse  construction  have  been  called  for  on  a  matching  basis  by  the  towns and cities faster than had been expected two years ago. While the funds probably will not be sufficient for a 10- year  period,  as  was  estimated  by  the  last  Legislature,  there  is  still  ample money  on  hand  to  carry  the  program through  the next  three years and  the problem of additional  funds may well be  left  to  the 1957 Legislature. This is a very important program and should be extended as needed. The money we  put  into  school  buildings, whether  from  a  state  or  local  source,  is wasted  unless we  have  a sound  and  efficient  education  program  going  on  in  the  schools  themselves.  Whether  the  buildings  are  old  or new, crowded or roomy, the thing that properly causes most concern among Vermonters is what is being taught in them and how well it is being taught. Teachers and superintendents, the teachers colleges and the state of the Vermont  Department  of  Education  have  been  working  to  improve  our  teaching.  With  more  and  more  to  be taught  and  learned,  with  many  groups  urging  more  teaching  responsibilities  on  the  schools,  it  is  not  easy  for busy teachers and overloaded superintendents to sift the more essential from the less essential. I  believe  the  state  should  have  in  its  education  department  someone  who  will  give  his  full  attention  to supplying guidance to local school systems in keeping their courses of study up to date. Good teachers make good citizens out of our boys and girls. I believe the state should do everything it can to see that the standard of living of teachers is comparable to their importance to the community and to the state. VOCATIONAL EDUCATION As  industrial expansion goes  forward  in Vermont  -- and  that  is  the aim of  this Administration  -- our  supply of  skilled  labor  must  be  enlarged.  Within  the  limits  of  the  resources  of  our  education  system  I  believe  more adequate  training programs  should be provided  to equip our young people  for  job opportunities  in  industry and agriculture. A growing pool of young Vermonters, skilled and trained in industrial techniques help us sell Vermont sites to those industries which consider locating here. A  joint  school-industry  program  at  the  local  level,  such  has  been  quite  successfully  employed  for  many years  at  Springfield,  is  one  of  the  means  of  meeting  this  problem.  I  believe  our  state  apprenticeship  programs should be encouraged and expanded. These programs enable a student to prepare for a specific job and they can be geared directly to the needs of individual industries. For  many  years  Federal  appropriations  have  been  available  to  communities  on  a  matching  basis.  I  believe that  the Legislature  should  appropriate  some  additional  funds  to  promote  and  enlarge  our  vocational  education facilities. TEACHERS RETIREMENT FUND The  State  Teachers  Retirement  law  carries  a  maximum  limit  or  ceiling  for  the  salary  average  used  in computing  prior  Service  Benefits  at  retirement.  The  state  employees  retirement  plan  carries  no  ceiling.  This ceiling  of  the  teachers  retirement  plan  applies  to  only  a  few,  who  have  been  connected  with  Vermont  schools for  many  years.  I  recommend  that  this  ceiling  be  removed  from  the  teachers  retirement  plan,  so  that  these members who taught in Vermont before 1947, and whose salary average is in excess of the present ceiling, may receive the planned for retirement benefit of one-half their salary average. HIGHER EDUCATION Senator Justin Morrill of Vermont in 1862 convinced the Congress of the United States to adopt his idea that a  good  college  education  should  be  available  to  boys  and  girls  in  every  state  at  a  price  which  anybody  could afford. So far, in Vermont, we have not completely followed his philosophy. So far our high school graduates have not found it possible to move into institutions of higher learning in as great  numbers  as  have  boys  and  girls  in  other  states.  Figures  show  that  only  22.7  per  cent  of  our  high  school graduates  today  go  on  to  higher  education,  as  compared  with  33  per  cent  nationally.  This  is  something  for Vermonters to think about. Vermont  has  been  known  as  an  agricultural  state,  but  under  present  conditions  it  hardly  seems  fair  to hundreds of  our  young  residents  for  the State  to offer  them  a  college  education  at  a  tuition  cost  of  only  $225  a year if they choose agriculture, but ask $705 if they seek training in other fields. During the past decade the University of Vermont and the State Agricultural College have become more and more  an  integral  part  of  our  educational  system.  I  believe  the  time  has  come  to  recognize  the whole  university as  “our” University, Vermont’s  university--worthy  of  all  support which  the General Assembly may,  from  time to time, feel able to contribute. The  trustees  of  the  University  of  Vermont  have  carefully  studied  the  problems  involved  in  clarifying  the status  of  the  University  as  a  fully-recognized  instrumentality  of  the  State.  They  have  recommended  certain charter amendments which they consider will most practically, safely and simply achieve the necessary result. I recommend  that  the  Assembly  give  study  and  action  to  these  plans,  which  will  help  build  a  program  of  broad educational opportunity for our boys and girls. As set up by recommendation of the trustees, the State will at all times have a majority on the University’s governing board. All major  courses  of  study  should  be  equally  available  at  the University  to  all  qualified Vermont  boys  and girls, at a price which will encourage  the continuation of  their education beyond high school.  I propose  that  the General  Assembly  make  it  possible  by  appropriation  of  the  necessary  funds  for  Vermont  boys  and  girls  to attend the University at a tuition fee of not more than $425, except in the College of Medicine. The  1953  General  Assembly  increased  the  number  of  Senatorial  scholarships  to  be  granted  to  students attending  the  University  of  Vermont,  Middlebury  College,  and  St.  Michael’s  College.  Each  State  Senator  had sixteen of these scholarships at his disposal. This method of distributing scholarships is not sound and should be changed. I propose  that state scholarships,  financed by  funds appropriated by  the General Assembly, be placed  in  the hands  of  a  Scholarship  Board,  appointed  in  part  by  the  Vermont  Higher  Education  Council  and  in  part  by  the Commissioner of Education and  the Governor.  I believe  that  the present grants of  funds  to Norwich University and  Middlebury  College  and  the  scholarship  funds  to  students  attending  St.  Michael’s  College,  Norwich University and Middlebury College should be continued. I believe the scholarship granted to any Vermont boy or girl for higher education should be used in whatever Vermont College the recipient chooses. We  are  now  making  reciprocal  arrangements  with  our  sister  New  England  states  for  the  education  of  our boys  and girls  in  the  specialized  courses  of  their State Universities,  and  admitting  students  from  those  states  to our  University  for  the  study  of  subjects,  such  as  medicine.  This  is  an  arrangement  which  will  benefit  all concerned. Vermont,  New  Hampshire  and  Maine,  for  example,  each  have  too  small  a  population  to  justify  trying  to support courses  in all  the  fields of modem education  and  technology, which  their  young people may  justifiably desire.  It  is  out  of  the  question  to  compete  financially  and  for  qualified  personnel with  each  other  and with  the larger  universities  of  the  area  and  the  nation.  Several  concrete  steps  have  been  taken  during  the  past  two  years by  the  six  New  England  Land-Grant  Universities  to  implement  the  program.  New  Hampshire  has  already appropriated  funds  for  a  large  portion  of  the  cost  beyond  the  tuition,  of  students  from  that  state  attending  the Vermont  College  of  Medicine.  We  can  expect  further  programs  to  be  developed  in  the  future.  However,  the process  can  be  materially  strengthened  and  speeded  by  the  adoption  by  all  other  New  England  states  of  the legislation passed by  the Commonwealth of Massachusetts  last year. The  legislation was written during several workshops  attended  by  state  officials  of  all  the  New  England  States.  It  proposes  the  establishment  of  a  New England  Board  of  Higher  Education  whose  purpose  “shall  be  to  provide  greater  educational  opportunities  and services  for  the  persons  residing  in…  New  England…”.  The  Board  will  undoubtedly  encourage  the development of professional colleges, such as Dentistry or Veterinary Medicine by one or  the other of  the New England  States.  The  development  of  such  colleges  will  increase  the  opportunity  for  Vermont  youth  to  obtain professional education. The potentialities of such a board are great for the youth of Vermont and I urge your favorable consideration of legislation ratifying the proposed compact.  SOCIAL WELFARE I  am  convinced  that  the  time  has  come  for  the  State  to  accept  a  measure  of  responsibility  in  the  matter  of providing hospital  care  for  the medically  indigent.  I believe  that  it  is generally  accepted  that  every  citizen,  rich or poor, should have access to the latest and best developments in surgical care and medical treatment if needed. It  seems  imperative  that  our  smaller  communities  be  relieved  of  a  share  of  the  heavy  burden  of  the  cost  of hospitalization of those unable to pay for it. Many  towns  have  not  been  able  to  pay  their  hospital  bills  and  the  hospitals  have  been  forced  to  absorb  the cost  of  caring  for  the  indigent  by  imposing  higher  charges  to  paying  patients  and  by  operating  at  financial deficits. Vermont’s  hospitals  are  not  heavily  endowed  and most  of  them  are  seriously  affected  by  unpaid  bills. Our hospitals cannot curtail their facilities, therefore we must go to their aid. The  time  has  come  to  adopt  a  state-town  plan  of  financing  a  program  of  hospitalization  for  the  indigent. Such  a  program  would  receive  approximately  one-fourth  of  its  cost  from  the  Federal  Government’s  matching funds.  Each  town  could  plan  and  budget  for  its  share  of  the  program.  Each  town  would,  in  effect,  be  insured against  excessive  hospital  bills.  Such  a  program  on  a  state  level  would  depend  to  a  great  extent  on  the  advice and  recommendations  of  the  Overseers  of  the  Poor.  The  program  should  be  designed  and  administered  to  pay the cost of hospitalizing those citizens who are sick or injured, and who can be helped by treatment in a hospital or nursing home, who  cannot meet  the  full cost  from  their own  resources or  the  resources of  those upon whom they are legally dependent. I am confident  that a plan can be devised which will  take care of  these hospitalization costs more equitably from  the  pooled  payments  of  all  towns  and  cities  and  from  the  Federal  aid  available.  It  should  not  be  a  heavy drain on the State treasury. Vermonters  have  accepted  the  obligation  of  caring  for  our  senior  citizens  who  lack  financial  resources  in their  old  age;  have  financed  methods  of  strengthening  the  family,  and  building  future  good  citizens  through services  and  support  for  dependent  and  neglected  children;  and  have  given  aid  to  the  blind  and  to  the permanently and totally disabled. The  current  extension  of  Social  Security  to  additional  groups  and  increases  in  benefits  will  help  to  relieve the disparity now existing between Vermont and the more highly industrialized states.  The  objectives  of  the  Congress  are  ultimately  to  shift  the  support  of  the  aged  from Old Age Assistance  on the basis of need, to Social Security as a vested right. Although  total  caseloads  have  not  increased  for more  than  four  years,  total  expenditures  to meet  the  needs have  increased $800,000 annually. Our Department of Social Welfare has administered  its affairs at an expense below those of neighboring states. I  believe  the  problems  of  juvenile  dependency  and  delinquency  can  best  be  aided  at  this  time  by  more extensive  case work  service,  family  counseling, work on  adoptions  and  closer  and more  frequent  contacts with the Aid to Dependent Children Service. I recommend provision for additional social workers in the Department of Social Welfare. CHRONICALLY ILL AND AGED The  Interim  Commission  on  the  Chronically  Ill  and  Aged  has  submitted  an  outstanding  report  to  the members of this General Assembly and I trust you will give it careful consideration. AID TO HANDICAPPED War  injuries,  industrial  and  public  accidents  make  it  impossible  each  year  for  many  of  our  citizens  to continue  at  their  jobs  or  to  enter  their  chosen  profession.  These  disabled  persons  ask  only  that  they  be  given opportunity to work, following suitable preparation. This is a program on which the President has taken suitable action. At a recent meeting with  the President’s Committee on Employment of  the Physically Handicapped Mr. Eisenhower said: “There must be an  increase  in  the dedicated volunteer work of many citizens now serving our State  and  local  committees  on  employment  of  the  handicapped.”  I  hope  to  expand  the  present  Governor’s Committee  on  Employment  of  the  Physically  Handicapped  so  that  government  and  private  agencies  now engaged  in  this work may  be  capable  of  carrying  out  their  fine work  of  finding  jobs  for  disabled  veterans  and handicapped people. Several  state  agencies  are  helping  handicapped  people  to  become  self-supporting  and  more  self-respecting through  making  useful  and  attractive  articles  by  hand.  There  appears  to  be  a  need  for  a  marketing  outlet  for these  products.  I  believe  we  can  establish  a  Vermont  State  Shop  for  Handmade  Articles,  operated  under  the joint  auspices  of  the  state  agencies  most  concerned,  Provision  must  be  made  for  suitable  quarters  and  a necessary staff. In the long run I believe it will pay for itself. VERMONT ASSOCIATION FOR THE BLIND There  are  many  private  voluntary  associations  which  are  unselfishly  and  devotedly  doing  fine  work  for groups  of  our  people.  Among  these  are  the  Vermont  Association  for  the  Blind,  which  should  have  some additional funds made available by the State. PUBLIC HEALTH The Vermont State Department of Health has  steadily expanded  in  recent years.  It  is  supplying outstanding service  to  the  people  of  Vermont.  There  are  many  worthwhile  ways  in  which  the  program  might  be  extended and  certain  inadequacies  corrected.  I  believe  the  state  must  improve  its  psychiatric  services  but  I  cannot recommend any great expansion of our Health Department at this time. DEFENSE In a world which could be at war  tomorrow, we must be  strong enough  to  repel attacks by our enemies and to protect our citizens. It is gratifying to know that we have a strong Vermont National Guard, supported by an efficient Air Army. These units have over 2500 members and are constantly growing.  I commend the officers and men of our National Guard for their conduct and attainments. There is a need for more armories to house our military units. The Federal government is co-operating in the building  of  armories  on  a  75  per  cent  Federal  and  25  per  cent  State  basis.  Under  this  formula  one  armory  has been  built  in  Ludlow.  Another  at  Winooski  is  nearing  completion.  Many  of  our  units  are  crowded  in  rented facilities which  are  inadequate.  I  recommend  the  building  of  two  armories  in  this  biennial  period;  I  believe we should, thereafter, build one armory a year until our military units are properly housed. The  State  of  Vermont  owes  a  vote  of  thanks  to  Brigadier-General Murdock  A.  Campbell,  who  retires  this year as Adjutant-General after a long period of faithful service. PUBLIC SAFETY The maintenance of a strong and alert State Police Force is essential to the well being of our state. The State Police have helped Vermont maintain an enviable national low crime and accident rate status. The  continuance  of  the  present  State  Police  Force,  and  its  eventual  strengthening  when  funds  permit,  will insure  that Vermont  is able  to  take care of  its own people on  the highways and  in  their homes, and also protect those hundreds of thousands of persons from outside the state who each year partake of our hospitality. FIRE PREVENTION I  am  in  favor  of  an  appropriation  of  reasonable  amount  for  fire  prevention  law  enforcement.  Such  an appropriation should allow for the employment of sufficient additional fire investigators and building inspectors to enforce state laws pertaining to fire prevention. CIVIL DEFENSE New weapons of war today bring Vermont to the edge of the battlefield. We must be ever ready for the test. For  that  reason  I believe  that we should continue a strong Civil Defense Organization, financed by  the state and  participated  in  by  the  municipalities.  The  Civil  Defense  law  should  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. To  those  good  citizens  of Vermont, who  faithfully  stand  by  their  posts  to  help  protect  us  against  an  enemy attack, I say: “Well done.” VERMONT STATE PRISON The  majority  of  the  Legislative  Commission,  appointed  to  study  the  Vermont  State  Prison  situation,  has recommended  a  new  prison  to  be  built  at  the  prison  farm  three  miles  from  Windsor  village.  Since  extensive repairs are necessary at  the prison and we must act  to solve  the serious problem of associating young offenders against  society with hardened  criminals as  is now being done,  I believe  it would be wise  for  this Legislature  to make provision for the construction of a modern prison, financed by a bond issue. I  believe  that  rehabilitation  of  a  prisoner  is  the  important  factor  the  State  must  seek  in  its  carrying  out  of justice. Without separating minor offenders from more hardened criminals this cannot be done. Our state prison today does not permit this separation. HIGHWAYS To survive economically Vermont must have better roads. With  the  decline  of  railroad  service  we  in  Vermont  have  become  more  and  more  dependent  on  the  use  of trucks, busses and private cars to carry on our every day way of life. The result has been the use of our highways far beyond the expectations of our early planners. This  situation  is  not  peculiar  to  Vermont.  The  National  Congress  has  recognized  the  serious  situation  and has increased the appropriation for federal aid for highway construction. Highway  transportation  occupies  a  place  of  ever-increasing  importance  in  the  economy  of  Vermont.  The development  within  the  past  few  years  of  the  four-lane  freeway  type  of  highway  has  opened  up  a  new conception of what long distance motor travel may become. The President has asked the governors of the states to  present  plans  whereby  an  extra  50  billion  dollars  may  be  spent  in  the  next  ten  years  by  the  Federal Government  to  make  the  nation’s  highways  adequate  for  today’s  needs.  It  is  expected  that  the  Congress  will early  in  this session authorize a national  road building program, which will  include a series of  throughways  for Vermont.  It  has  been  announced  that  this  program  concerns  the  Interstate  highway  system  and  fits  in  with National defense plans. Whatever  action  the  Congress  does  take, Vermont  should  be  prepared  to  take  fullest  advantage  of  this  and any  other Federal  aid  for  highways. To  this  end  legislation  should  be  enacted  to  enable  the  state  to  acquire  the full control of access on rights-of-way for such highways and wherever else in the state it is needed. The importance of the arterial highway should not warp our judgment as to the needs of our highway system as  a whole. We  have main  highways  other  than  Interstate  to widen  and  straighten,  gravel  gaps  to  fill, State  aid highways to construct, and two highways to improve. I  propose  a  $22,000,000  program  of  highway  construction  in  Vermont,  to  be  carried  on  in  the  next  three years.  $3,000,000  of  these  funds would  be  used  for more  rapidly  closing  gravel  gaps  on  the  secondary  system. This is a modest beginning of what I hope will be a continuing program of improving Vermont’s roads. I  recommend  that  the  Legislature  approve  a  $12,000,000  bonding  program  to  finance  this  construction, which will take advantage of all matching Federal funds. Current  highway  revenue  is  not  sufficient  to  maintain  the  present  program  and  also  finance  this  proposed bond  issue.  There  will  be  some  increase  in  highway  funds  due  to  the  presence  on  our  roads  of  more  vehicles using  more  gasoline.  But  this  normal  growth  of  tax  income  will  not  suffice.  At  least  a  half  million  dollars  of additional revenue annually will be required to meet the problem on a businesslike basis.  AVIATION The Vermont Aeronautics Commission has done well in keeping the state abreast of aviation developments. We now have air passenger and freight service in Burlington, Rutland and at the Montpelier-Barre field, and soon Northeast Airlines will add Newport to the list of its summer stops. Airports in Springfield, Bennington and other towns have been improved for private flying, including use by many business planes. With other transportation methods decreasing their service to Vermont, we must continue to develop the use of aircraft to assist our people in solving their transportation problems. RAILROADS Railroads  are  still  an  essential  means  of  transportation,  both  for  freight  and  passengers.  Their  interests should be considered in any legislation affecting transportation. PERSONNEL At  the present  time  the expenses of  the Personnel Department are pro-rated among other departments of  the state.  I  recommend  that  this  procedure  be  changed  to  simplify  the  accounting  and  that  we  follow  the  same procedure as  for other departments.  I also  recommend  that  the Personnel Director’s  term of appointment be  for six years rather than for two years as at present. On  July  27,  1953  the  Personnel  Board  and  the  Governor  made  effective  the  recommendations  of  the Griffenhagen  Associates  relative  to  salary  adjustments  for  employees  whose  positions  are  classified  under  the Personnel Act,  or  substantially  so.  These  recommendations were made  in  a  report  to  the Governor  prior  to  the 1953  Session  of  the  Legislature.  During  that  session  some  adjustments  were made  in  salaries  of  Departmental Heads  but  such  salaries  were  not  adjusted  to  the  extent  recommended  by  the  Griffenhagen  Associates. Consequently certain state salaries continue to be on the low side.  In  view  of  these  circumstances  the  Legislature  may  wish  to  give  consideration  to  the  Griffenhagen recommendations  heretofore made,  regarding  salaries  for Department  Heads.  This  would  be  no more  than  fair in  view  of  the  favorable  action  previously  taken  by  the  Governor  and  the  Board  in  adjusting  salaries  of classified employees. RECREATION Vermont has been most  fortunate  in being  able on  a  state  level  to  assist  in  the development of  a number of successful local community recreation programs. I believe that this work should be continued. Recreation  in  a  community  helps  our  young  people  to  attain  self-expression  in  normal  and  healthy  ways. These same youths, deprived of such a program, grow restless and sometimes turn to bad habits or crime. Boredom  also  weighs  heavily  on  our  senior  citizens.  It  is  encouraging  to  note  that  many  Vermont communities are providing recreation for them in their leisure hours. The  state  provision  for  services  to  the  communities  through  our  Recreation  Board  is  broad  in  functional coverage.  It  pays  off  in  dividends  from  citizen  participation  in  recreation  activities--health,  education,  physical and mental fitness, good citizenship and character building. I regard it as an important part of our Vermont way of life. HISTORIC SITES I believe we should continue the good work of the Historic Sites Commission. Our  biggest  responsibility  is  the  Bennington  Battle  Monument,  now  badly  in  need  of  repair.  This monument, once privately supported and maintained, must not be neglected.   VERMONT SYMPHONY ORCHESTRA The State of Vermont can well continue to encourage those things which help to raise the cultural standards of our way of  life. The state has received wide  recognition  for  the accomplishments of  the Vermont Symphony Orchestra. I hope that the financial support to this worthy endeavor may be increased to meet rising expenses. STATE BUILDING COUNCIL PROGRAM The  State  Building  Council  has  included  in  its  report  for  the  two  years  ending  December  31,  1954  a recommendation  to  the  Legislature  that  funds  be  provided  for  17  projects  with  a  total  estimated  cost  of $1,819,000. There are 20 additional projects listed for consideration by the Legislature, which are not so urgent, whose combined estimated cost is $1,783,000. Since 1947, over $9,000,000 has been appropriated for new construction or additions to existing structures. I believe  that  it  is  important  that  the  State  of  Vermont  continue  a  sound  forward-looking  building  program financed  by  a  bond  issue.  I  would  especially  recommend  for  your  consideration  at  this  time  the  long  needed addition  to  the  State  Library  and  the  Auditorium  and  Cattle  Showroom  for  the  State  School  of  Agriculture  at Randolph. This Building Council Report will be discussed further in the Budget Message. BUDGET For nearly two months as the Governor-elect I have had the responsibility of working out a financial budget for the next biennium. In recent years the business of the State of Vermont has multiplied to such an extent, and the expenditures of the State have mounted to a point where it is unwise to leave the preparation of the biennial budget  to  a  few weeks’  effort  on  the  part  of  the Governor-elect. This  has  become  a  stupendous  task. This  year with  the  fine  co-operation  of  the  State  Departments,  and  the  help  of  our  experienced  state  officials,  the  State Treasurer,  State  Auditor  and  Tax  Commissioner,  we  present  a  budget  which  we  hope  will  meet  with  your approval, and which we trust will be for the best interests of the people of Vermont. However, a better job could be  done  if  a  practical  way  could  be  found  to  have  the  necessary  detailed  information,  needed  in  budget planning,  ready  for  the  Governor-elect  immediately  after  the  election.  I  plan  to  present  a  recommendation relating to this matter for the consideration of this Legislature. LEGISLATIVE PROCEDURE The Legislature  has  before  it  a  report  recommending  changes  in  legislative  procedure  designed  to  expedite the  work  of  this  and  future  sessions.  I  commend  the  Commission  to  Study  Legislative  Procedure  for  its accomplishments. In  this connection  I appreciate  the efforts of Legislators and Department Heads  to get bills  in early  so work can  be  started  at  once.  To  further  this  cause  I  plan  to  deliver  the  Budget  Message  to  the  General  Assembly  a week from today, which will be earlier than usual. THE FUTURE The  State  of Vermont  has made  sound  progress  through  the  years  but  it  is  not  yet  as  prosperous  as we  can make it. Far  too many of our young people  still  leave Vermont  to give  their quick minds and vigorous energy  to  the rest of the Union.  So  far we have not been able  to  influence establishment within our boundaries of a considerable number of industries, able to give our people employment and keep our youth at home. Too many  farms have gone back  to  the woods. Too many of  our  streams  and  lakes are polluted. Too many of our trees are being carelessly forested. Too few of our resources are being properly developed. I urge you, as representatives of the people of Vermont, to help me shape a program which will improve this situation. We  are  a  small  state  and our  income  is not what other  states have, but we must move  forward  in  this age of progress. If we expand or increase the state’s services, we must get the money to pay for them. Let us do it wisely and well. There  are  some  among  us  who  at  the  first  sign  of  economic  slowdown  seem  to  lose  courage  and  show  no faith in the future. The pioneers who settled among these hills met hardships and adversity and yet did not falter or  become  downcast. They  continued  in  spite  of  all  obstacles  to  look  upward  and  forward,  and  they  kept  clear vision of a better and more abundant future. We should do no less. The present may seem uncertain and at times even grim. But Vermont, established on a solid foundation, is not a poor state and we need not be discouraged. I believe  that  we  are  on  the  threshold  of  vast  material  developments.  We  must  plan  with  prudence,  act  with courage and with boldness build  for  the  future. We need  the  faith of our  fathers and  the willingness  to sacrifice for that faith. To  those  whose  memory  of  government  affairs  goes  back  a  generation,  or  even  less,  the  growth  of governmental  expenditures on  the national and  state  levels cannot help but be astounding.  I am opposed  to any unnecessary  centralization  of  government,  believing  that  controls  should  be  kept  as  close  to  the  people  as possible.  But  this  modern  industrial  age  has  brought  vast  changes,  with  new  problems  in  government.  Many services  which  the  people  need  and  demand,  are  now  beyond  the  capacity  of  the  individual  and  the  local community  to  provide. The  state with  its  broader  authority  and  taxing  power  is  called  upon  to  regulate  or  take over more activities. This appears  inevitable but even big government has  the obligation  to operate  for  the best interests of the individual citizens, with prudence and economy. It  is  impossible  in  these  few minutes  to  cover  all  the details  and  ramifications of our  state government. But in these closing sentences I have tried to express something of my basic philosophy. Even  under  a  system  of  liberty  and  free  enterprise  such  as  we  still  enjoy,  there  will  always  be  failures, misfortunes and sorrow. But whether we have generations of American citizenship back of us, or have but recently come to this land of promise and of plenty,  the beacon of hope for people  the world over, we must  remember  that we cannot  live merely  for  the present. We all owe a great debt  for  the heritage which we enjoy, and we can do no  less  than do our best  to  try  to pass on  to  those who  follow us, opportunities  for better health, broader  education  and  a  fuller life, spiritual as well as material. Let  us, working  in  harmony  as  true Vermonters,  develop  a  program  here  that will  accomplish  for  the  State the Prosperity and Happiness of Our People. We  can  approach  nearer  these  goals,  but  it will  take  the  combined  and  earnest  planning  and  labor  of  all  of us. The citizens of the State, you the duly chosen representatives of the people, and I elected as Chief Executive of  this  proud  State  of  Vermont,  working  earnestly  together  for  the  common  good,  ever  remembering  the importance  and  power  of  spiritual  values,  with  a  real  trust  and  faith  in  God,  can  overcome  the  obstacles  and accomplish much for the present, but more important we can build well for the future.