Vermont unemployment rate falls to 2.9 percent
The Vermont seasonally-adjusted unemployment rate fell again and at 2.9 percent in March is back under 3 percent for the first time since just before the pandemic hit in early 2020. The rate reflects a decrease of one-tenth of one percentage point from the prior month’s revised estimate of 3.0 percent. Vermont now is tied for the lowest rate in the nation with three Western states. There are still over 28,000 filing unemployment claims in Vermont. While this about a third the number of filers from the peak of the pandemic, it is still historically high. Ongoing claims typically would be under 6,000. The pandemic numbers also include new programs like the PUA, which in recent weeks has accounted for almost 9,000 claims.
Scott reveals $1 billion economic recovery and revitalization plan
Governor Phil Scott and his Administration have presented a plan to strategically invest $1 billion in one-time federal money provided to states to jumpstart recovery from the Coronavirus pandemic and support long-term economic growth. Adhering to the principles set in his Fiscal Year 2022 budget, presented in January, the package makes historic investments in projects and initiatives to address long-standing challenges and unaddressed needs, putting communities across the state on a path for recovery and setting course for a stronger economic future in every region.
The governor has repeatedly urged that this one-time money be spent on one-time investments, many of which are very expensive. To date the Legislature has presented a somewhat scaled-back version of the spending plans (eg, $150 million for broadband instead of $250.5 million).
Through the American Recovery Plan Act (ARPA), Vermont received $1,029,500,000, which it has until December 2024 to allocate. The Administration’s plan recommends using the funds in five strategic categories:
$250.5 million for broadband and wireless connectivity;
$249 million for housing;
$200 million for climate change mitigation measures;
$170 million for water and sewer infrastructure;
$143 million for further economic development and recovery.
Speaker Krowinski tables pension reform plan
House Speaker Jill Krowinski has tabled a proposal to aggressively restructure the public employees’ pension system and retirement health plan. The Speaker had presented a plan to address the $5.7 billion unfunded retirement liabilities in the pension and retirement plans for unionized state employees and teachers. However, she announced in early April she would not move forward with that plan and instead set up a task force to address the matter. The unions and the Progressive caucus in the Legislature opposed the restructuring plan.
Audit reveals 1099G errors caused by single person
An outside audit of the Vermont Department of Labor has determined that manual procedures used in creating the print files is the likely cause of some 1099Gs to be sent to wrong addresses. Also, there were no controls in place to independently verify files that had been manually sorted and transformed.
Some 39,125 LWA and 34,042 VSTS 1099Gs were included in the files subjected to manual procedures in the initial January print run.
However, not all persons who received 1099G statements for the impacted programs were affected by the errors, as VDOL was able to recall a portion of the printed statements for the programs that were in error, prior to being delivered.
Because of the scale of the print job, the VDOL itself printed the regular unemployment and pandemic unemployment related 1099Gs, but solicited the Department of Building and General Services to print the Lost Wages Assistance (LWA) Vermont Short Term Supplemental (VSTS) forms. A single claimant could have received more than one 1099G.
Scott announces the Vermont Forward Plan
With the goal of being basically “back to normal” by the Fourth of July, Governor Phil Scott has outlined the State’s Vermont Forward Plan to methodically and safely ease mitigation measures as more Vermonters are vaccinated. The roadmap – which is subject to change based on real time circumstances like infection rates and vaccine supplies staying within parameters - offers Vermonters, municipalities, non-profits, and businesses the ability to plan with greater certainty for the months ahead. See graphics on individual steps below.
Starting May 1, up to 150 unvaccinated people can gather inside if the facility can accommodate it (one person per 100 square feet). If the space is larger than that, then within the same ratio an unlimited number of vaccinated people can join in. On June 1 up to 300 unvaccinated people can be welcomed inside if the venue is large enough. Then on May 1 outdoors, up to 300 unvaccinated guests can gather outside and on June 1, 900 guests are welcome. In both cases an unlimited number of vaccinated guests are welcome.
State bond ratings unchanged, demographic and pension challenges remain
The three major rating agencies have affirmed their ratings of the State’s General Obligation Bonds. These ratings are unchanged from the ratings assigned in 2020, which reflected a downgrade by Moody’s and Fitch from triple A status in 2018 and 2019, respectively, and the assignment of an AA+ “negative outlook” by S&P in 2020.
The rating agency reports generally cite the State’s strong financial management and fiscal discipline, consensus revenue forecasts, good liquidity, and efforts to reduce bonded debt. These rating strengths support the overall credit ratings.
Notwithstanding these strengths, the ratings also reflect continued challenges with Vermont’s demographics and workforce issues, as well as long-term liabilities related to pension and other post-employment benefit (OPEB).
The Treasurer’s Office, the governor, and the General Assembly have stated their commitment to restoring the triple-A ratings.
Koffee Kup, Vermont Bread close, 247 jobs lost
Koffee Kup Bakery in Burlington, which also owns Vermont Bread Company in Brattleboro, announced abruptly before the night shift on April 26 that it was closing both plants immediately. American Industrial Acquisition Corporation, which acquired a majority of the shares of Koffee Kup on April 1 filed a WARN notice with the Vermont Department of Labor on April 26. As reported by the Brattleboro Reformer, Koffee Kup could not meet its obligations to lenders and was in default. The lenders then took possession of the assets. According to VDOL, they received notice from Koffee Kup that 91 workers in Brattleboro and 156 in Burlington had been terminated. Koffee Kup was established in 1940 and is known for its donuts and crullers. Vermont Bread was established in 1978 and produces high-end breads. Both are widely distributed in the state and throughout the region.
Vermont Johnson & Johnson vaccine clinics resume
The Vermont Department of Health has resumed use of the Johnson & Johnson vaccine during the week of April 26. The decision was made following an announcement by the FDA and Centers for Disease Control and Prevention that it has studied and confirmed the Janssen/Johnson & Johnson vaccine is recommended for people 18 years of age and older, and that the pause on its use since April 13 can be lifted. The J&J vaccine was paused because of very rare but serious blood clots found in handful of women under 50.
PUC extends utility disconnection moratorium through May 31
On March 29, 2021, the Public Utility Commission issued an order extending the temporary moratorium of natural gas, electric, and traditional landline telephone service through May 31, 2021. Water service is presently covered by an involuntary disconnection moratorium, which will remain in effect for the duration of the state of emergency as declared by the governor, currently April 15, 2021. They expect to extend it month-to-month for the foreseeable future.
Community Health Centers get $33 million investment
Vermont’s federally qualified health centers have received $33.37 million in emergency funding that is coming to the state’s 11 health centers as a result of the American Rescue Plan. Serving 155,000 people, the state of Vermont has the highest per capita participation in the nation in the federally qualified health center program. Today, nearly one-in-three Vermonters rely on community health centers because they know they will get high quality health care, dental care, mental health counseling and affordable prescription drugs at the 11 health centers and 66 sites throughout the state.
Montpelier hotel, parking deck project scrapped
The parent company has opted out of a project to bring a new Hampton Inn hotel and parking deck to Montpelier. Hilton Corp used its option to back out of the long-anticipated development over concerns with ongoing legal delays. Opponents of the plan said it did not fit in with the historic nature of the capital city. The project would have been behind what is now the Capitol Plaza hotel along the railroad tracks in front of the Winooski River. Opponents had appealed a DRB permit approving the project to the Environmental Board. With no construction timeline, Hilton backed out. The original deal between Hilton and the owners of the Capitol Plaza was agreed to in 2017. The City says it has spent over $1.1 million on the project and will need to cover that ultimately with property taxes instead of parking fees as originally intended.
FEMA provides over $9.6 million to The University of Vermont Medical Center
The Federal Emergency Management Agency (FEMA) has awarded $9,609,431 to the University of Vermont Medical Center for its COVID-19 response efforts March 1-June 30, 2020. This Public Assistance (PA) grant funding is awarded for the development of testing sites, leases for sites and quarantine facilities, use of equipment, paying medical and technical support, and tracking procurement and distribution of supplies. The funds are reimbursed 100% through the PA program.
More economic grants for sole proprietors
As the COVID-19 pandemic continues to impact revenues for small businesses across the state, Brattleboro Development Credit Corporation and Two Rivers - Ottauquechee Regional Commission have announced a second round of the Vermont Community Development Block Grant (CDBG) economic relief program to support sole proprietors. $1.6 million is available to fund grants between $1,500 and $10,000 to qualifying sole proprietors on a first come, first served basis.
American will begin service to Dallas from BTV on July 3
American Airlines will be offering service to Dallas/Fort Worth International Airport (DFW) from Burlington International beginning in July 2021. The new service complements American’s service between Burlington and its hubs in Philadelphia (PHL), Chicago (ORD), Charlotte (CLT) and Washington National (DCA). Service to Dallas/Fort Worth provided by American will be seasonal, with weekly Saturday service beginning July 3rd, 2021.
BTV will have direct service to Boston Logan starting April 29
Boutique Air will begin flight operations from Burlington International Airport (BTV) to Boston Logan International Airport (BOS) on, April 29, 2021. The new route will offer one daily round-trip.
University of Vermont research sets new $191 million record
In the pandemic, University of Vermont research expenditures hit record levels in 2020—up 41% to $191 million—to provide a crucial boost to Vermont’s economy during COVID-19. The total was reported in UVM’s annual 2020 National Science Foundation Higher Education Research and Development survey and is the largest in the university’s history. It eclipses the previous record of $136 million by a wide margin, and is a key contributor to UVM’s overall $1.3 billion annual economic impact.
Amtrak service to return on July 19
Amtrak passenger rail service and inter-city bus service in Vermont will resume effective July 19, 2021. Service was suspended in Vermont at the beginning of the pandemic last year. The Vermont Amtrak routes are among the last to restart.
Amtrak’s Vermonter train runs between Washington, DC, and St Albans. Its other Vermont stops are Brattleboro, Bellows Falls, Windsor, White River Junction, Randolph, Montpelier, Waterbury and Essex Junction, in addition to a Claremont Junction, NH, stop that serves the Ascutney area. The Ethan Allen Express operates between New York City and Rutland, with a stop in Castleton. Plans call for that service to be extended north to Burlington late this year or early in 2022, with intermediate stops serving Middlebury and Vergennes.
The resumption will include two long-distance bus routes that are subsidized by the state: the Colchester-Albany Airport service and the so-called Shires Connector, which runs from Manchester to the Amtrak station in Rensselaer, NY, directly across from downtown Albany.
BETA inks deal to secure first 20 passenger Electric Aircraft for Blade
BETA Technologies and Blade Urban Air Mobility has announced a binding agreement through which Blade will secure up to 20 BETA Electric Vertical Aircraft (EVA), becoming the company’s first passenger service customer. The news comes on the heels of last week’s announcement by UPS that it would buy up to 150 BETA EVA aircraft, plus charging stations, as part of that company’s long-term solution to reducing greenhouse gas emissions.
VHCB awards $3.4 million for 30 homes, 270 acres of farmland
The Vermont Housing & Conservation Board has awarded $846,500 in state funding and $2,588,327 in federal funds for projects in Windham, Windsor, and Lamoille Counties. The VHCB awards will help to create and rehabilitate 30 homes and apartments affordable to low- and moderate-income Vermonters and will conserve 270 acres of farmland.
North Star Leasing now a division of Peoples Bank of Ohio
Peoples Bank of Marietta, OH, has entered into an Asset Purchase Agreement dated March 24, 2021, with NS Leasing, LLC, which is headquartered in Burlington, Vermont, and does business as North Star Leasing Company. The Asset Purchase Agreement calls for Peoples Bank to acquire assets comprising NSL’s equipment finance business and to assume from NSL certain specified liabilities for total consideration of approximately $47.5 million, plus a potential earnout payment of up to $3.1 million. North Star Leasing’s business operations will remain in Burlington. North Star Leasing has 42 employees.
Maine firm acquires Vermont Coffee Company
Award-winning specialty food producer Stonewall Kitchen has acquired Vermont Coffee Company based in Middlebury, Vermont. Vermont Coffee Company is the best-selling brand of bagged organic coffee in grocery stores across the Northeast. The company sources and blends high quality, certified organic arabica coffee from all of the leading coffee regions around the world, slow-roasting them in small batches to make coffees with big bold flavor. Vermont Coffee will remain in Middlebury and plans to open a new cafe later this year.
FEMA provides over $46.6 million for the Vermont hotel/motel program
The Federal Emergency Management Agency has awarded $46,669,040 to the Vermont Agency of Human Services for the state’s Hotel/Motel Vouchers Program for individuals who were high risk populations and required non-congregate medical sheltering. The approved participants in the state program were able to stay in hotels and motels statewide.
$11 million for housing construction from ARPA
Vermont has received more than $11 million in additional funding for affordable housing construction, under the American Rescue Plan Act, through the Department of Housing and Urban Development’s HOME Investment Partnerships Program (HOME).
United Way to distribute $1.7 million in community funding
United Way of Northwest Vermont—an organization dedicated to improving lives in Chittenden, Franklin and Grand Isle counties—announces its plans to distribute $1.7 million in community funding in 2021, raised through a combination of United Way’s annual community campaign, federal grants and United Way’s COVID-19 response and recovery funds. The new funding distribution begins in June.
Norwich gets $2.9M federal contract for transportation simulations
Norwich University Applied Research Institutes (NUARI) has been awarded a three-year $2.9 million contract from the U.S. Department of Homeland Security (DHS) Science and Technology Directorate (S&T) to expand the Distributed Environment for Critical Infrastructure Decision-Making Exercises (DECIDE) cyber training platform. DECIDE was initially developed in tandem with and transitioned to the financial services sector; this new effort will build similar simulation-based scenarios and exercises specific to the transportation sector.
FEMA awards over $1 million to Vermont for COVID-19 response
The State of Vermont has received a grant totaling over $1 million from the Federal Emergency Management Agency (FEMA), awarded to help reimburse expenses associated with ongoing COVID-19 response efforts. The grant of $1,397,762 is given to the Agency of Commerce and Community Development, to pass through to Southern Vermont Community Action (SEVCA), for food distribution to high risk populations. Work performed under this grant occurred from January 18 to February 14.
OneCare Vermont designated as a 501(c)(3) organization
OneCare Vermont has been recognized by the Internal Revenue Service (IRS) as a 501(c)(3) organization operated for non-profit purposes. OneCare filed an application with the IRS seeking 501(c)(3) status, in recognition of its commitment to supporting Vermont’s health care delivery and payment reform efforts. This designation by the IRS that OneCare and its provider partners are acting in furtherance of non-profit purposes is a major milestone for the organization, and a testament to the organization’s commitment to transparency and value based reform efforts.
VEDA approved $14.4 million in business development financing
During the most recent quarter ended March 31, the Vermont Economic Development Authority (VEDA) approved over $14.4 million in new financing to support commercial, agricultural, small business and renewable energy projects across Vermont. VEDA also closed over $25.4 million in new loans, including $14.5 million in Paycheck Protection Program (PPP) forgivable loans for over 300 businesses and farms.
Shuttered Venue Operators Grants application portal opened April 24
The US Small Business Administration (sba.gov) reopened the Shuttered Venue Operators Grant application portal April 24, 2021, for operators of live venues, live performing arts organizations, museums and movie theaters, as well as live venue promoters, theatrical producers and talent representatives to apply for critical economic relief.
CFES Brilliant Pathways offers $1.5 million college readiness
It’s well known that low-income students in urban schools face significant challenges in attending college. But rural students go to college and remain there at even lower rates than their urban counterparts. A new $1.5 million initiative, the North Country Brilliant Pathways Program, aims to address this under-recognized gap for students at 20 elementary, middle and high schools in rural Vermont and northeastern New York by providing them with a multi-faceted, comprehensive college readiness program.
Sara King named CEO of VNA & Hospice of the Southwest Region
The VNA & Hospice of the Southwest Region, (VNAHSR), one of the state’s largest providers of skilled home health and hospice services, has announced that its Board of Directors has appointed Sara C King as Chief Executive Officer she will replace Ron Cioffi, RN, CEO who is retiring in June. King assumed the leadership role as of April 5, 2021.
Shelburne Museum will reopen June 2
Shelburne Museum will reopen on June 2 with a full slate of new exhibitions and programs, Director Thomas Denenberg announced. Closed since the fall due to the COVID-19 pandemic, the museum’s 45-acre grounds along with select exhibition buildings, will be open four days a week, Wednesdays through Sundays, through October 17. Buildings that will be open include: the Pizzagalli Center for Art and Education, Pleissner Gallery, Webb Gallery of American Art, and the 220-foot steamboat Ticonderoga.
Imaging technologists at UVMMC join union
Imaging Technologists at Vermont’s largest Hospital, the University of Vermont Medical Center, have voted overwhelmingly to join the Vermont Federation of Nurses and Health Professionals-AFT-Vermont. The final vote count was 123-32 in favor of unionizing. The 230 technologists include sonographers, cardiac technicians, interventional radiologists, and technologists working within CT Scan, MRI, Diagnostic Xray, Nuclear Medicine, and Mammography. This group joins the other 2,400 nurses and technicians currently members of the VFNHP-AFT Vermont, the largest and fastest-growing healthcare union in the state.
VHCB Healthy & Lead-Safe Homes Program protects children
If your home or apartment building was built before 1978, chances are lead paint was used on exterior and interior surfaces. Opening and closing windows and doors or using a power sander can create enough lead dust to poison a child, and children under age 6 are especially at risk. Hundreds of Vermont children are identified each year with too much lead in their blood, which can cause learning and behavior problems and impair hearing.
10-digit dialing for VT, NH begins, will be required in October
The Federal Communications Commission through Order (FCC 20-100) has ordered that seven-digit local dialing will transition to 10-digit dialing in Vermont and most parts of the nation. It began April 24 but will not be required until October 24, 2021. The transition to 10-digit dialing is being implemented in order to establish a three-digit National Suicide Prevention Lifeline by July of 2022. The lifeline, similar to the way 9-1-1 works, will allow callers to dial 9-8-8 for suicide prevention assistance. The ten digits include area code and telephone number.
USCIS withdraws prior decision to terminate the EB-5 Vermont Regional Center
The State of Vermont received a positive decision from the United States Citizenship and Immigration Services (USCIS) granting the state’s motion for USCIS to reconsider its July 3, 2018, Notice of Termination. USCIS had terminated the Vermont Regional Center (VRC) and put the immigration status of hundreds of EB-5 foreign investors in jeopardy. This followed the revelation in April 2016 of a $200 million fraud perpetrated by the owner of the Jay Peak resort. Ariel Quiros has pleaded guilty and faces eight years in prison. Two others involved, former Jay Peak President Bill Stenger and Quiros associated William Kelly, are expected to go to trial this summer.