Campaign 2010: Peter Shumlin, Democrat, Vermont

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The Chronicle recently asked the major-party candidates for governor in 37 states to answer a series of questions about how they would influence the work of nonprofit groups in their states if they are elected. Below is the response offered by Peter Shumlin, a Democratic state senator, who is running for governor of Vermont.

Please describe any involvement you have had personally with nonprofits (as a board member, volunteer, staff member, etc.).

As a nontraditional learner, I am particularly proud of the role I played as one of the founders of Landmark College, the nation’s foremost college for students with dyslexia and other learning challenges. Some of my other nonprofit efforts include serving on the boards of the Windham Regional Commission, the Putney Grammar School, the Yellow Barn Music Festival, and Putney Family Services.

If you have held elective office before, please describe any policies or practices you put into place that particularly benefited nonprofits.

Over 14 years in the Vermont State Senate—10 of them as president pro tem—I have taken a leadership role in the support of our nonprofit community both legislatively and personally.

Please highlight those parts of your platform for governor that you think will most help nonprofits in your state.

Fund them. State government has tended to off-shift services to nonprofits, and not always with a clear definition of the division of labor. But if we expect nonprofits to do the work of government, then we must fund them appropriately. The tax cuts for the rich that [my opponent] Brian Dubie proposes will further strain these relationships and will make this all the more challenging. We must not threaten these public/private partnerships. But we also must be sure that these organizations are well managed and hold staff accountable, with an emphasis on improvement and excellence.

We need to be creative. For example, are there ways that nonprofits in a region could all chip in on the core things that every business has to have and do? Can we pool some of those costs? Can state government help facillitate that sort of effort?

Does your state have a government position, office, or cabinet seat that is dedicated to helping nonprofits or promoting volunteerism? If yes, please describe it and say whether you would keep the office or position or make changes to it. If no, would you consider creating such a position or office?

My business is Putney Student Travel, an organization that sends young people all over the world to do community service, building schools and low-income housing. I understand how important that sort of service is to building stronger communities. Vermont should be more active in encouraging our youth and all Vermonters to reach out to their neighbors in a generous, coordinated, and effective fashion.

The Vermont Commission on National and Community Service already exists but has been pushed aside by the current administration. I would use that office to enhance volunteerism and promote public/private partnerships.

Many nonprofits have lost revenue because of state budget cuts during the recession. Do you have any proposals to help nonprofits that rely on state-government grants and contracts weather the bad economic times?

Some of this has been addressed [above]. The most important policy change is to create an atmosphere where our partnerships with the nonprofit community are valued and where they are funded at levels which are appropriate and possible. We must sto p attacks on effective nonprofits. An example is the Vermont Housing and Conservation Board, a target of Republican administrations. VHCB is a national model for conservation and affordable housing and a great partner with government. Under my leadership, we have protected their budget, but it has been a battle. It should not be a battle. In exchange for our support, nonprofits need to demonstrate their commitment to lean and effective operation.

Do you expect that as governor you will have to propose budget cuts to balance the state budget in 2011? If so, please explain.

As senate president, I have a long record of having to balance budgets and still protecting our most vulnerable citizens. And we need a governor who can hit the ground running. My opponent has never had to write, negotiate, or vote on a budget.

Two years ago we cut $168-million while striking a balance between fiscal responsibility and compassion. This past year we had to cut $158-million. We were the only state to accomplish comparable cuts while reducing broad-based taxes. We face $112-million in cuts next year. We will accomplish this with the same commitment to compassion and good judgment.

States are responsible for ensuring that nonprofits and fund raisers register before they solicit charitable contributions through such means as telemarketing and direct mail. Do your state regulators have an adequate budget to perform this task? Are there any areas where you think state regulation of charities needs to be strengthened?

In Vermont the regulation of paid or “outside” fund raisers falls within the purview of the attorney general. Only paid fund raisers (not employed as staff) must register—not the nonprofit. I have always felt that the attorney general did not pay much attention to the charitable sector—and that is probably due to the allocation or availability of funds.

Please add any other observations you may have about the relationship between the state government and nonprofits in your state.

Our nonprofits are one of the biggest job creators in Vermont. We need leadership which recognizes that. The last time the economic contribution of nonprofits in Vermont was calculated, our charities generated $2.8-billion in revenues, $2.5-billion in expenses, and had fund balances (asset reserves) of $3.1-billion. Charitable organizations contributed approximately $1.9-billion to the Gross State Product.

Most of Vermont’s nonprofits are small, and roughly 36 percent in Vermont are run entirely by volunteers. Ninety percent have revenues less than $1-million. Approximately 12 percent of the total number of jobs are in the nonprofit sector.

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See responses from other candidates on our Campaign 2010 Web page.

If you have information about how the governor’s race could affect nonprofits in your state, or would like to encourage your state’s candidates to complete our survey, please contact Suzanne Perry at suzanne.perry@philanthropy.com or (202) 466-1228.