Unemployment rate falls to 2.9 percent, thousands of jobs go begging
The Vermont unemployment rate fell to 2.9 percent for September 2021. This reflects a decrease of one-tenth of one percentage point from August. The rate is based on household data collected by the US Census. The US rate was 4.8 percent, down four-tenths.
Vermont is tied for the third lowest unemployment rate in the nation (with New Hampshire, Idaho, South Dakota). Nebraska is lowest at 2.0 percent. Utah is second at 2.4 percent. And California and Nevada are highest at 7.5 percent.
All three major metrics (labor force, number of employed, number of unemployed) improved modestly. However, the labor force is still missing about 25,000 workers (down 7 percent). The number of filled jobs is down about 6 percent or 20,000 positions. VermontJobLink.com shows over 10,000 open positions currently under recruitment in Vermont.
Strength in personal income leads tax revenue results
State tax revenue collections for the month of September indicate that the General Fund, Transportation Fund, and Education Fund receipts were a combined $274.5 million, or 3.9 percent above monthly consensus expectations. However, while the vital personal income tax showed strong results in September for the General Fund, weakness in sales tax receipts led to a negative result in the Education Fund. The fuel tax receipts were also below expectations, but that result was offset by strong motor vehicle sales in the Transportation Fund.
In August 2021, the consensus revenue expectations were upgraded substantially for fiscal year 2022 as compared to the January 2021 forecast.
The comparative numbers to last year are significantly lower in the General Fund this year as income tax filings were extended because of the COVID-19 pandemic, which hit in late winter 2020 or just before the filing deadlines.
General Fund revenues collected for September totaled $195.0 million, or $14.1 million above the monthly consensus revenue target. For the first fiscal year quarter, General Fund revenues were $442.1 million, exceeding their target by $28.7 million or 6.9%.
The Transportation Fund met consensus expectations for the month, bringing in $27.6 million. For the quarter, the T-Fund brought in $75.0 million which is only $66 thousand or -0.1% below the consensus cash flow target.
The Education Fund was -$4.0 million, or -7.2%, relative to the monthly consensus target, having collected $51.8 million for the month. Year-to-date, the Education Fund received $168.1 million, ending the quarter at $1.8 million or 1.1% over target.
American Rescue Plan brings $200 million to Vermont towns
The American Rescue Plan Act (ARPA), passed in March 2021, earmarked $76.6 million for Vermont’s local governments, and another $121.2 million for county government. Because Vermont counties have limited roles, the feds redirected the dollars to towns. Towns can use money through the end of 2024 to help pay for government services; direct assistance to households, small businesses, and non-profits for COVID-related costs; premium pay to essential workers; and infrastructure investments.
Both pots of money are allocated based on population size and will be distributed by the state, with the exception of Burlington and South Burlington. These municipalities will receive non-county funding directly from the US Treasury, based on a formula for metropolitan areas.
Governor Scott hails reopening of Canadian border in November
Governor Phil Scott has applauded President Biden for reopening the land border with Canada for non-essential, fully vaccinated travelers on November 8. Vermont’s congressional delegation also commended the move by the president. The US border has been closed since March 2020 as the pandemic hit. On August 9, 2021, Canada began allowing fully vaccinated US visitors for non-essential travel. Scott said: “This is a significant step forward on the path from pandemic to endemic management of COVID-19 and will mean a great deal to many Vermonters and our communities.” Elected officials in Vermont and across the northern border have been pressing the president to reopen the border, which has been closed to land crossings since March 2020.
Castleton, NVU, Vermont Tech to rename as Vermont State University
The Board of Trustees of the Vermont State Colleges System (VSCS) has approved the name Vermont State University for the one new university unifying Castleton University, Northern Vermont University, and Vermont Technical College. They will continue to have separate campuses. The rebranding will occur in 2023. Community College of Vermont, the other VSCS institution, will retain its name. The administrative structure and leadership was not announced.
Scott presents long-term planto address homelessness
The Scott Administration has outlined a comprehensive plan to address the housing needs of Vermonters experiencing homelessness, including the need to fully fund Governor Scott’s $249 million Housing Recovery Plan which includes historic funding for permanent housing for the homeless. As part of this plan, Administration officials announced an extension to the current General Assistance (GA) Emergency Housing Program until December 31, and other meaningful actions to support Vermonters experiencing homelessness and permanent housing development.
Sun Country announces nonstop service from the Twin Cities to BTV
Sun Country Airlines (NASDAQ: SNCY) has announced that it will begin service to Burlington International Airport (BTV) from Minneapolis-St Paul International Airport (MSP) beginning June 16, 2022. As the airline’s name suggests, its year-round service from MSP is to warm-weather destinations. Most of the cities it serves, like the new BTV route, are seasonal. Sun Country’s other nearby airports include Boston, Hartford, Portland and Providence. Introductory fares are as low as $89 one-way. The announcement is part of a larger expansion by the airline, as it announced 11 new nonstop routes and welcomed seven new airports to its growing network.
Vermont gets historic $49 million in LIHEAP funding
Vermont has received an unprecedented amount of Low Income Energy Assistance Program (LIHEAP) funding this year. The program received $49 million in LIHEAP funding, augmented by a one-time block grant increase authorized under the American Rescue Plan Act (ARPA). The Department for Children and Families typically receives approximately $20 million each year.
Scott releases ARPA funds for home weatherization efforts
Governor Phil Scott and the Department for Children and Families (DCF) has announced the approval of the use of $7.9 million in funding from the American Rescue Plan Act (ARPA) to expand the Weatherization Assistance Program. Weatherization helps eligible households reduce their energy usage, lower their utility bills, and improve the comfort and safety of their homes. About $1.6 million of the additional funding will be used to provide “one-stop” comprehensive weatherization and efficiency improvements in multi-family housing. A household is eligible for no cost weatherization services if their gross household income is below 80% of the median income in their area. A family of four with an annual income of about $67,000 would be eligible in most Vermont communities.
Scott releases ARPA funds for critical municipal sewer infrastructure
Governor Phil Scott has announced that four municipalities have been awarded $10 million in ARPA funding to accelerate efforts to eliminate combined sewer overflows in their cities and towns. Montpelier, Northfield, St Johnsbury and Vergennes will each receive a portion of this $10 million. The four municipalities selected to receive initial funding will use these funds to implement high-priority projects identified in their long-term plan for controlling sewer overflows. The governor has recommended a total of $30 million in ARPA funding to help Vermont municipalities fast-track planned sewer overflow reduction projects. $10 million was appropriated this year to support these projects, and additional funding is anticipated over the next three years.
Jay Peak receiver optimistic for ski season, resort put back up for sale
Jay Peak Receiver Michael Goldberg has issued his Ninth Interim Report. Goldberg took over the Jay Peak and Burke Mountain resorts following fraud allegations in April 2016. This report notes that he and his team have been in negotiations with several potential buyers of Jay Peak since the resort was put back on the market at the beginning of this year. No timeframe or valuation was provided. Goldberg also is somewhat optimistic for the coming ski season as recent revenue and visitation numbers have been pretty good despite restrictions. And this report was released before news that the Canadian border will be reopening November 8.
Deposits from operations for the combined resorts indicate that the recent 2020/2021 season was $38.6 million (for Year to Date ending April 2021) compared to $54.2 million (YTD April 2020). However, Jay Peak Resort’s first 4 months of fiscal operations have seen a marked increase in revenue with more than $4.6 million in topline revenue against less than $1.4 million in fiscal year 2021.
The receiver forecasts potential record EBITDA results for the fiscal year provided there is a full lift of travel restrictions, elimination of cross-border closings, and a return to typical staffing scenarios.
UVM Health Network enacts plan to address patient wait times
The University of Vermont Health Network is taking additional measures to reduce delays in patient access to outpatient and inpatient care, and help ensure access to emergency care in the face of record patient volumes and other challenges. The Network’s Access Action Plan includes new investments in staffing, technology and infrastructure, and enhanced partnerships with health care institutions outside of the Network and with state and local governments. The Action Plan addresses three main goals: hire successfully amid national staffing shortages, reduce wait times for specialty care, and improve hospital inpatient and emergency capacity.
The state is also investigating hospital and health care provider wait times across Vermont.
Auditor releases report evaluating Department of Labor job training programs
Vermont State Auditor Doug Hoffer has released a new investigative report analyzing the performance of the Vermont Department of Labor’s primary job training programs. These Workforce Innovation and Opportunity Act Title I and Title III programs receive about $7 million from the federal government. The report finds the following: Across all categories of eligible Vermonters, WIOA funds serve a relatively small percentage of potential participants. While some groups experienced increased employment and earnings, across all programs a significant portion of participants had lower earnings, lost employment, or remained unemployed when compared to preprogram status. Participants who received training services had higher quarterly earnings than those who only received general job-seeking assistance. Compared to other states, Vermont’s performance falls in the bottom half for most measures.
Secretary of Administration Susanne Young to retire
Governor Phil Scott has announced that one of the most distinguished public servants in Vermont history, Agency of Administration Secretary Susanne Young, will be retiring next month after more than 40 years of service to the State of Vermont. Among other positions, Secretary Young has served the state as deputy treasurer and legal counsel to Governor Jim Douglas, deputy attorney general to Attorney General Bill Sorrell, and now secretary of the Agency of Administration.
Scott appoints Nick Deml Commissioner of the Department of Corrections
Governor Phil Scott has appointed Nicholas (Nick) J Deml as the new Commissioner of the Vermont Department of Corrections (Vermont DOC). Deml will fill the role currently occupied by Interim Commissioner Jim Baker, who took the Vermont DOC leadership position in January 2020. At the time, Commissioner Baker was planning to serve in the role for just 90 days.
Vermont DOC renews out-of-state housing contract for inmates
The Vermont Department of Corrections has renewed its contract with CoreCivic for one year, the final extension allowed under the original contract signed in 2018. Vermont DOC currently houses 145 incarcerated individuals at CoreCivic’s Tallahatchie County Correctional Facility (TCCF) in Tutwiler, Miss. At its peak in August 2019, the Vermont population totaled 281 incarcerated individuals at TCCF. That number has steadily declined as more individuals returned to Vermont facilities, and out-of-state transports ceased during the pandemic.
NEFCU launches $6 million affordable housing initiative
New England Federal Credit Union (NEFCU) has launched a three-year, $6 million campaign to address the affordable housing crisis in Vermont. The NEFCU initiative will include three separate programs. One, in partnership with the Vermont Housing Finance Agency (VHFA), will devote $3 million to affordable homeownership and multi-family rental projects. The second, with Champlain Housing Trust (CHT), will commit $3 million to advance BIPOC homeownership. The third will be NEFCU’s own Home Ownership Made Easier (HOME) program to help first-time homebuyers struggling with affordability.
Marlboro campus sale: All’s well that ends well
The saga of troubles that followed Marlboro College’s 2019 announcement that it was closing may have reached its denouement, and a happy one at that.
On September 24, Democracy Builders Fund (DBF), which purchased the 533-acre campus and its 52 buildings in 2020 for a pittance in cash, conveyed the property to Potash Hill, Inc, an entity under the control of the Marlboro School of Music (MSM), popularly known as the Marlboro Music Festival.
MSM, which has staged its summer festivals on the campus since 1951, paid DBF $2.74 million for the real estate. If certain conditions are met in the future, MSM will also release DBF from paying the $1.5 million it owes to MSM for improvements to the property.
The property is assessed at $3,771,600 but was appraised at $10.4 million in 2018, the year before the college announced it would close.
DVFiber awarded $4.1 million broadband grant
The Vermont Community Broadband Board (VCBB), the new state board charged with overseeing broadband development in Vermont, recently approved DVFiber’s $4.1 million grant request. DVFiber (Deerfield Valley Communications Union District) can now move ahead with its partner Great Works Internet, Inc (GWI) of Biddeford, Maine, to secure high-speed broadband access for its 24 member towns. The funding enables DVFiber to proceed with the design and engineering of a high-speed fiber optic network that will reach all unserved and underserved homes and businesses within its 24 member towns.
Solar project brings Middlebury closer to 100 percent renewable energy goal
Senator Patrick Leahy, D-Vermont, joined representatives from Middlebury College, Encore Renewable Energy, Green Mountain Power, the state of Vermont, and the town of Middlebury on October 12 to break ground on a new five-megawatt solar project in Middlebury that will provide the college with about 30 percent of its total electricity usage. The collaborative partnership will help the college reach its climate goals while expanding local, renewable energy production in Vermont. Middlebury College will buy 100 percent of the electricity generated at the site as part of its ambitious Energy2028 initiative, which calls for the college’s use of 100 percent renewable energy by 2028.
NASA commits $28 million to US jurisdictions, Vermont $200K a year
NASA has awarded $28 million to fund the next five years of research infrastructure development across 28 jurisdictions. The Established Program to Stimulate Competitive Research (EPSCoR), a part of NASA’s Office of Stem Engagement and based out of the agency’s Kennedy Space Center in Florida, supports science and technology research and development at colleges and universities while also funding studies in Earth science, aeronautics, and human and robotic deep space exploration – all of which are disciplines critical to the NASA mission. The EPSCoR Research Infrastructure Development award further strengthens long-term research capabilities by pledging $200,000 a year to each of the 28 jurisdictions for the next half decade.
Stonyfield Organic commits to helping farmers terminated by Horizon
Stonyfield Organic, the country’s leading organic yogurt maker based in New Hampshire, has a plan to help save at-risk Northeast organic family farms by inviting a number of farms into their direct supply program during the coming months. The move comes after over 89 regional family farmers recently received notice that their contracts will be terminated by Horizon, owned by Danone North America – leaving them with no outlets for their milk. This includes 27 dairies in Vermont.
Norwich receives $18.5M grant to continue leading DoD Cyber Institute program
On September 27, 2021, Norwich University was awarded a two-year $18.5 million grant from the National Security Agency as the lead institution to continue to develop the Department of Defense (DoD) Cyber Institutes at the six Senior Military Colleges (SMCs). This grant builds upon the grant awarded in September 2020, designating Norwich University as the lead in establishing the DOD Cyber Institutes to create a pipeline of qualified cyber professionals in current and projected critical work roles. In Fall 2020, the six DoD Cyber Institutes were established at Norwich University, The Citadel, University of North Georgia, Virginia Tech, Texas A&M and Virginia Military Institute.