Markowitz, who has been Vermont Secretary of State for 12 years, told committee members that, in contrast to the other candidates for governor, she had experience running a state office. “I’ve actually built a budget, defended it, and implemented it,” she said.
Before serving as secretary of state, Markowitz worked for the Vermont League of Cities and Towns. At the time, she says, she saw a secretary of state’s office that wasn’t serving Vermonters. “Phones weren’t being answered,” she says. “There was a backlog of three years in professional licensing. So I ran and beat the incumbent. And I found out that a lot of people don’t know what the secretary of state does. One woman called me and said she had a skunk under her porch, and was wondering if I could get it out for her.”
Markowitz said Vermont needs to change its economic development focus if the state is to be successful. “The current administration has focused on poaching the next IBM from another state,” she said. “But we’re not going to be able to compete with New Jersey or New York (because of their labor and housing pool). I will focus our economic development efforts on existing businesses to help them succeed.”
Markowitz also noted that there has been a general focus on attracting traditional manufacturing jobs, but she would work to encourage entrepreneurship in developing industries. “Textiles are made in China now,” she said. “We need to develop the things we need for the future. Some of the leading green energy development companies in the nation are in Vermont.”
Governor Jim Douglas has been criticized for saying that “Vermont is bad for business,” and Markowitz said that, as governor, she would spread the word that Vermont is a great place to live and raise a family. But she acknowledged that a lack of telecommunications infrastructure in the state could keep some companies from choosing Vermont. “Nobody is going to come to Vermont to do high tech work when, at their home, they have no cell service or high speed Internet,” she said.
During her travels around the state, Markowitz said the concerns she hears most often from businesses are the tax situation in the state, and regulation. Markowitz said that she inherited a secretary of state’s office ruled by a “culture of bureaucracy and red tape” and molded it into a model of customer service, and that’s what she would do with the state’s regulatory process as governor. She compared the state’s tax system with a rambling farmhouse that has been added onto so many times that house and barn are spanned by a series of sheds and shacks. She said she would develop a comprehensive tax policy that would encourage entrepreneurship. “I believe in a progressive tax system,” she said, “and I want to make sure there are incentives for success in it.”
Markowitz said that although Act 68 had been successful for some communities, it was time to revisit it. “As secretary of state I’ve had a civics education program that has brought me into almost every school in Vermont,” she said, “and I saw a real difference after Act 60. The ‘have-not’ schools were brought up to the standard of the ‘have’ schools. But we’ve had this funding mechanism in place for 10 to 12 years, and it may be time to re-evaluate it. How do we make sure there is equal opportunity for education but we don’t have communities that are paying a lot of money but still can’t fix their roof?”
Markowitz said education was key for economic development, not to provide competent employees, but to attract people who want to start businesses and attract new employees. She noted that one business found that it couldn’t expand in Bennington because “Bennington’s high school isn’t rated very well nationally.” The company was unable to attract the employees they need because families were concerned about the quality of education.
Responding to a question from TTEDC facilitator Bob Rusten, Markowitz said one of her top priorities would be to free up capital for Vermont businesses. Thanks to the economic downturn, many Vermont businesses have been hobbled by a lack of operating capital. One business Markowitz visited recently told her that their line of credit had been cut from $8 million to $1 million. The credit enabled them to float expenses through their business cycle. “They’re still a leading company in their sector, but they may not be for long,” she said. “We bailed out Wall Street, but it’s not trickling down to the local banks.” Markowitz said the state could invest in business loan funds, and put pressure on banks to supply capital for Vermont businesses.
Markowitz said she’d also like to pursue a broader marketing policy, marketing that doesn’t focus specifically on tourism. “The Vermont brand is so incredibly valuable, and we don’t market it,” she said. “We need to make sure we’re marketing Vermont as a place that makes quality products.”
Rusten asked if people in the Deerfield Valley could feel confident that the ideas Markowitz proposed would be instituted around the state. “It’s a good question,” she said. “Past administrations have focused on Chittenden County. But I’ve been doing the right thing as secretary of state for 12 years, and I’m going to do the right thing as governor. I’m going to serve all parts of Vermont, not just the noisiest parts of Vermont.”
Markowitz said she was ready to work with communities that are ready to take control of their economic future. “It’s got to be done from the ground up,” she said, but with partnership. It takes a leader that’s not saying this is a horrible place to do business, but one that’s saying this is a great place to start a business.”


