Current News

by Guy Page State officials celebrated Vermont getting a “pass” after the US EPA announced June 2 its state-by-state plan to reduce power-related carbon emissions 30% nationwide by 2030. Lacking any full-time fossil-fuel powered electricity generating plants, it is not surprising that Vermont is exempt from the new rule. While this may seem like a victory for the Green Mountain State, our energy policy has actually left us “browner,” more vulnerable to price increases from the new rule, and virtually powerless over how our electricity is generated.

Gov. Peter Shumlin joined members of the Vermont Farm & Forest Viability Program (VFFVP) on the Sizen Farm Thursday to announce $384,831 in grant awards to 17 farmers for projects to construct, expand, repair or upgrade facilities to improve herd management, working conditions, and cow health.

“These Dairy Improvement Grants are aimed at improving both milk production and the financial viability of Vermont dairy farms,” the Governor said. “With support from Ehrmann Commonwealth Dairy and the assistance and cooperation of the funding entities in securing tax credit equity, this public/private partnership is providing assistance that our farmers can use to improve the bottom line in the very competitive world of dairy farming.”

Vermont Business Magazine All the key metrics were negative last month as the Vermont Department of Labor announced today that the seasonally-adjusted statewide unemployment rate for June 2014 was 3.5 percent. This represents an increase of two-tenths of a percent from the previously reported May rate (3.3 percent). The equivalent national average was 6.1 percent, which decreased by two-tenths of a percent from the previous month’s estimate. The seasonally adjusted Vermont data for June show the Vermont civilian labor force increased by 150 from the prior month estimates. The number of employed decreased by 750 and the number of unemployed increased by 900. However, the number of employed is up 2,900 from a year ago.

Citizens Bank announced today that it will award $60,000 to six organizations in Vermont and New Hampshire as part of the Citizens Helping Citizens Manage Money initiative. Overall, the bank is donating $1.5 million to nonprofits supporting financial education across its 11-state footprint. The selected organizations were chosen in a competitive application process announced in April based on their track record of success providing financial education programs, a need for financial support and a demonstration to incorporate sustainability in their future plans.

They are:

by Don Baker, President, Vermont Market, KeyBank When we talk about the cost of college education and student loan debt, we often talk in terms of rising tuition rates and the total amount of money borrowed by recent graduates. We do this for good cause: the cost of college is becoming unaffordable for too many students, and the average amount of debt — $29,400 per borrower, according to the Institute for College Access & Success — is a heavy burden for our youngest workers. Rarely do we talk about the student loan debt shared by parents, but we should because it’s significant.

According to the Federal Reserve Bank, the average student loan related debt for borrowers older than age 50 is $22,700. In addition, more and more parents are financing their children’s education, from $700,000 in 2005 to more than $2 million in 2012.

Vermont home sales were up in June, while median prices fell slightly as the market in the state and in the region showed a modest increase. In New England, year-over-year home sales increased 1.6 percent according to The RE/MAX of New England June Monthly Housing Report. This is the first month of recorded increases following five consecutive months of year-over-year declines in 2014. Pending sales were up 33.9 percent over June 2013. Month-over-month, the warmer weather and strengthening economic outlook has helped contribute to an uptick of 21.8 percent in home sales, with pending sales up 18.9 percent. Across the region, homes are staying on the market an average of 10 fewer days, while median price is up 6 percent on average.

· In Connecticut, the number of total transactions is up 4.1 percent year-over-year and median price declined -1.3 percent. Pending sales were up 16.4 percent year-over-year.

IBM (NYSE: IBM) today announced second-quarter 2014 diluted earnings of $4.12 per share, compared with diluted earnings of $2.91 per share in the second quarter of 2013, an increase of 42 percent. Operating (non-GAAP) diluted earnings were $4.32 per share, compared with operating diluted earnings of $3.22 per share in the second quarter of 2013, an increase of 34 percent. There was no mention in the earnings release of Globalfoundries, the semiconductor company rumored to be a possible suitor for IBM's Systems & Technology Group, which includes the chip-making plant in Essex Junction, Vermont. Overall, IBM earnings were up for the quarter, but revenues were down. In the conference call that followed the release, IBM CFO Martin Schroeter was asked, among other things, about the future of its chip business and about the rumors persisting about its sale to another firm, though Globalfoundries was not mentioned directly.

People's United Financial, Inc (NASDAQ: PBCT) today reported net income of $72.3 million, or $0.24 per share, for the second quarter of 2014, compared to $62.1 million, or $0.20 per share, for the second quarter of 2013, and $53.1 million, or $0.18 per share, for the first quarter of 2014. Included in this quarter's results is a net after-tax gain of $13.4 million ($0.04 per share) resulting from the formation of a merchant services joint venture discussed below. Operating earnings were$59.9 million, or $0.20 per share, for the second quarter of 2014, compared to $62.4 million, or $0.20 per share, for the second quarter of 2013, and $56.5 million, or $0.19 per share, for the first quarter of 2014. The Company's Board of Directors declared a $0.165 per share quarterly dividend, payable August 15, 2014 to shareholders of record on August 1, 2014. Based on the closing stock price on July 16, 2014, the dividend yield on People's United Financial common stock is 4.4 percent.

Merchants Bancshares, Inc (NASDAQ: MBVT), the parent company of Merchants Bank, announced that its Board of Directors declared today, July 17, 2014, a dividend of 28 cents per share, payable August 14, 2014, to shareholders of record as of July 31, 2014. This quarter represents our 71st consecutive quarterly dividend payment and our 35th consecutive quarter at the current payout level.

Vermont Business Magazine The winners of Vermont's 2014 moose hunting permits were determined Thursday at a lottery drawing in Montpelier. Governor Peter Shumlin, standing alongside Fish & Wildlife Commissioner Louis Porter, started the computer-generated selection process that randomly picked 335 winners among more than 11,600 lottery applications. Governor Shumlin announced that the first five permits went to local veterans. There were 309 winners from Vermont. Altogether, 12 states were reprsented, from as far away as Florida and Oregon. See list below.

Vermont's gasoline prices have fallen slowly but steadily and a national report suggests prices across the US will continue to fall. Vermont's price per gallon ($3.716 average) is now lower than a week ago, a month ago and a year ago.

The US average retail price of gasoline has fallen below $3.60/gal for the first time since April 10, 2014. Prices have been on an 18 consecutive-day streak where the current price was less than the price from the previous day, and it’s the highest number of consecutive down days since the period between April 4, 2013 and April 19, 2013, when prices fell 11.8cts/ gal from $3.63 to $3.52. The US average, now $3.583/gal., has dropped by 5 cents in the past week.

The Agency of Natural Resources has launched its Web-based “Universal Recycling Materials Management Map” (Materials Management Map). Following the passage of the Universal Recycling law in 2012, ensuring consistent recycling, food scrap, and waste services statewide by 2020, the map connects residents, businesses, and institutions with collection services and food rescue agencies, haulers, and composters with sources of quality food and food scraps. The map will provide the information needed to reduce waste and increase the development of infrastructure and systems to manage food waste for beneficial uses.