Current News

Vermont Business Magazine The number of jobs created in January showed a modest increase, as the jobless rate itself remained the same as December and the same from last year. Construction and Hospitality were up, while Manufacturing and Business Services were down.

The Vermont Department of Labor announced today that the seasonally-adjusted statewide unemployment rate for January 2015 was 4.1 percent. At this level, the statewide unemployment rate held steady from the revised December rate (4.1 percent). The seasonally adjusted Vermont data for January show the Vermont civilian labor force decreased by 100 from the prior month estimates. The number of employed increased by 200 and the number of unemployed decreased by 250. None of the over-the-month changes were statistically significant in the seasonally-adjusted series.

Deringer’s commitment to employee wellness has recently been recognized with two Vermont state wellness awards. On March 25, 2015, Deringer, based in St Albans, will be presented with the Worksite Wellness Award by the Governor’s Council on Physical Fitness and Sports and the Vermont Department of Health. This is the second consecutive year that Deringer has been honored with this award, which applauds an employee wellness program that decreases absenteeism, reduces employee turnover, and lowers healthcare costs. Additionally, Deringer has received a silver status participant certificate as a Breastfeeding Friendly Employer, which recognizes Deringer’s adoption of breastfeeding-friendly policies in the workplace.

by Governor Peter Shumlin Earlier this month, Vermonters gathered at Town Meetings around the state to make decisions large and small about their communities. This year, two towns in particular made one very large decision about the future of education in their communities. As we continue the debate in Montpelier about how to address rising school spending at a time of declining student enrollment so we can reduce the burden of property taxes on hardworking Vermonters, these two Vermont communities provide an example of how we can work together to make the difficult decisions that will be required if we are to truly make progress on this issue.

by John McClaughry Crunch time is rapidly approaching in Montpelier. The pressing problem is finding at least another $112 million to fill a General Fund budget gap for 2016. This high-tension exercise requires finding new money from Washington, looting account balances within state government, and pushing spending into a following fiscal year. When those options have been exhausted, the legislature is then faced with either reducing state spending on less strongly defended programs, or even terminating programs altogether.

The first of these means either shrinking program benefits, or, more commonly, shrinking the workforce without reducing the work. The second - well, it’s hard to recall a state-funded spending program that was actually terminated.

At crunch time, these options become increasingly threatening to the affected interest groups. More and more the cry is heard to get more money from the least organized group – the taxpayers.

College Ranker has released the 50 best college towns to live in forever. Burlington, Vermont, ranked 38th. This list highlights 50 college towns around the US that can provide a permanent home for college students after they have completed their collegiate experience. Every city and town in America with a college or university was considered and weighed, and these 50 were chosen based on metrics and statistics involving strength of local schools, vibrancy of the local economy, and family friendliness.

by Wendy Wilton It is good news that Auditor Doug Hoffer has scheduled a performance audit of Vermont Health Connect this Spring. The Auditor’s work will be vitally important information for the legislature to consider as it determines the fate of the state’s health insurance exchange, Vermont Health Connect. Hopefully Hoffer will release his report before the end of the current legislative session.

Much has been said and written about the problems with development and roll-out of Vermont Health Connect and the expected $200 million cost of this poorly managed effort. However, there could be more financial costs lurking on the horizon that the Auditor needs to tell us about.

Basketball tournaments, spring break vacations and holiday festivities make this time of March an especially busy season for drinking establishments. Some cities and regions, however, are better equipped to handle long lines of thirsty patrons. Vermont ranked 7th with 2.9 bartenders per 1,000 residents. Tourism-heavy Lamoille County, with Stowe Mountain Resort and Smugglers' Notch, had the highest rate in the state at 5.6 per thousand.

According to a new analysis by CareerBuilder, there are nearly 580,000 bartenders in the US, equaling 1.8 per 1,000 residents; 381 cities and metropolitan areas have ratios that exceed the national average.

The analysis is based on data from Economic Modeling Specialists Intl. (EMSI), CareerBuilder's labor market analysis arm that pulls from more than 90 government and private sector resources.

Senator Patrick Leahy (D-Vermont) says years of work on the goal of restoring passenger rail service between Vermont and Montreal took a major step forward Monday as the United States and Canada signed a long-awaited agreement designed to improve cross border travel and security between the two countries.

US Homeland Security Secretary Jeh Johnson and Canadian Minister of Public Safety Steven Blaney signed a new pre-clearance agreement in Washington that was negotiated under the Beyond the Border Action Plan approved earlier by President Obama and Prime Minister Stephen Harper.

Today the leadership of two major statewide business organizations released a joint statement in opposition to the Shumlin Administration’s proposed payroll tax on businesses. The proposed 0.7 percent tax is intended to help pay for Medicaid, reduce the cost shift to individuals with company-sponsored health insurance, and thus reduce costs to those businesses which offer health insurance to their employees.

Davis and Hodgdon Associates CPAs conducted its semi-annual economic survey in January regarding the outlook of Vermont-based businesses. Business owners are primarily concerned about what they will face in 2015 which include health insurance costs, tax law changes, and finding qualified employees. These concerns are consistent with last year’s answers to the survey. Across the board, business owners are reporting that high taxes and rising costs of health care are making it difficult to stay competitive with neighboring states.

These businesses also believe that the US economy is doing well, while a plurality see the Vermont economy as declining. SEE TABLES OF RESULTS BELOW

Senator Bill Doyle (R-Washington) has released partial results of his Town Meeting Day survey. Because of interest in the tax-related questions, which the Legislature will be gearing up for as they make the long, hard drive toward adjournment in May, Doyle tabulated those four of the 14 questions. He said that the results were not surprising among the 5,300 ballots he has counted so far (he expects to have the full results from all 7,500 returned ballots for all the questions in about two weeks). Town Meeting goers decisively opposed the payroll tax to reduce the cost of Medicaid; weren't too sure over the carbon tax; had a strong, but-split, opinion on the sugary drink tax, and supported a one-day sales tax holiday.

Senator Doyle began conducting his poll of Town Meeting participants in 1969. See tax-related results below.

by John McClaughry The House and Senate Appropriations Committees are struggling valiantly to report a balanced General Fund budget for Fiscal Year 2016. The presently estimated shortfall is about $130 million, 8 percent of the proposed General Fund budget. This is a result of the chronic tendency of Legislatures to find ever more things to spend money on, and state revenues currently coming in well under the projections of funds available.

Raise taxes? It was eight years ago that the present governor declared, repeatedly, that “Vermont has no remaining tax capacity”. This year Governor Shumlin’s proposal for a 0.7 percent payroll tax is getting a “less than lukewarm” reception in House Ways and Means. Even some of the Legislature’s most liberal members are gun shy about levying any significant tax increases.