State tax revenues exceed targets again
The personal income, corporate and rooms and meals taxes again exceeded expectations for the month of May 2022, as reported June 13. With the sales tax also well ahead of economists’ projections, the General Fund and Education Fund both exceeded targets. The Transportation Fund revenue came in slightly below target. Personal income is 37.1% over targets for the month and 13.9% over for the year-to-date. Corporate income is 246.9% over for the month and 22.7% over for the year. And rooms and meals is 21.5% over for the month and 9.1% for the year.
For the month, the state’s General Fund, Transportation Fund, and Education Fund receipts in May were a combined $206.3 million, or 17.3%, above upwardly revised monthly consensus expectations. Cumulative revenues stand at 7.4% above revised consensus expectations through the 11th month of the state’s fiscal year.
General Fund revenues collected for the month totaled $128.1 million, $26.9 million above the monthly consensus cash flow revenue target. Fiscal year to date, General Fund revenues were $1,912.6 million, exceeding their target by $185.3 million or 10.7%.
Unemployment rate falls again to 2.3 percent
The Vermont Department of Labor has reported that the seasonally adjusted statewide unemployment rate for May was 2.3%, according to household data. This reflects a decrease of 0.2% point from the prior month’s revised estimate. The civilian labor force participation rate rose to 61.5% in May, as all three major metrics showed improvement. The labor force increased, the number of employed grew and the number of unemployed fell. The comparable United States rate in May was 3.6%, which experienced no change from the revised April estimate. Vermont ranked sixth lowest, New Hampshire (2.1%) was fourth. Nebraska was lowest at 1.9% and New Mexico was highest at 5.1%.
State drops charges against Alex Choi, fourth man in EB-5 fraud case
The United States Attorney’s Office in Vermont has decided to drop 10 felony charges against the fourth defendant in the EB-5 criminal fraud case in the Northeast Kingdom. Jong Weon Choi, also known as Alex Choi, of South Korea, has remained on the run since he was indicted in Vermont with three American business colleagues in May 2019. Newport businessman Bill Stenger, the former president of Jay Peak resort, began an 18-month federal prison sentence in Devens, MA, June 7. The mastermind of the EB-fraud scheme in Vermont, former Miami businessman Ariel Quiros — the former owner of Jay Peak — has been sentenced to five years in prison. William Kelly, a Quiros business partner, has been sentenced to 18 months in prison.
Vermont’s ski Industry reports 6.5% rebound
Alpine and cross-country ski areas, supporters and friends of Vermont’s ski industry gathered at Sugarbush Resort for the Vermont Ski Areas Association’s 53rd Annual Meeting on June 8 and 9. For the first time in two years, ski area members, associate members, partners and sponsors were able to recap a successful ski season in person. Despite the lingering effects of the ongoing pandemic, this season Vermont ski areas reported an additional 230,000 skier visits, which is an increase of 6.5 % over the 2020-21 season. While the total of 3.76 million skier visits is 6% below Vermont’s 10-year average, Vermont’s rebound outpaced the Northeast region’s 4% growth.
Vermont employers to see unemployment insurance tax relief
The Vermont Department of Labor has announced that effective July 1, 2022, employer unemployment insurance (UI) contributions, or taxes, will decrease as the UI tax schedule moves from Schedule III to Schedule I. This change is part of an annual statutory calculation performed by the Department of Labor’s Economic and Labor Market Information Division. In addition, taxable employers will receive additional relief in January 2023 when the UI taxable wage base (TWB) decreases by $2,000. Effective January 1, 2023, the TWB will decrease from its current level of $15,500 to $13,500. Employers will pay UI taxes on the first $13,500 an employee makes in a calendar year. The last time the taxable wage base was near this level was in 2011, when it was set at $13,000.
Scott outlines new workforce initiatives to fill available jobs
Governor Phil Scott in Swanton highlighted initiatives and investments passed this year to help train, retain and recruit more workers to address Vermont’s workforce shortage. Through Act 183 (S.11), millions of dollars are available for workforce recruitment and training. This includes: $3M for Regional Workforce Expansion and Work-Based Learning and Training; $10M to address health care workforce shortages; and $3M for the New Relocating Worker Program.
Record high maple syrup production in Vermont in 2022
The 2022 Vermont maple syrup production totaled a record high 2.55 million gallons, up 46% from the previous year, according to Pam Hird, state statistician of the USDA’s National Agricultural Statistics Service, New England Field Office. Vermont remains the top-producing state in the nation, with more than double the US total (5.03 million gallons). Weather conditions hurt last year’s maple production, which came in at 1.5 million gallons, which was down 21% from 2020.
VLS to change name, become graduate institution, gets $8 million gift
Vermont Law School has announced that on July 1 it will become Vermont Law and Graduate School (VLGS). It will add three master’s degree programs and expand in Burlington. This is part of a major restructuring and long-term growth plan that will see the school double down on its public interest mission and transition to a graduate institution housing two schools – law and graduate. The new vision is bolstered by an anonymous $8 million donation to the school. The creation of a new graduate school on par with the existing law school and resulting name change are part of a new strategic plan developed by faculty and staff and approved by the board of trustees, and reflects the growing interest from students for cross-disciplinary approaches to social justice and an all-in commitment to public interest law and policy.
Champlain College receives $1 million donation
Champlain College, a private, non-profit institution and recognized leader in career-forward education in Burlington, has received $1 million from an anonymous donor. The gift is a demonstration of confidence in the incoming tenth president, Alex Hernandez, and supports the college’s new strategic plan: R/Evolutionary 2030 Strategic Plan. Champlain College, known for its innovative, experiential, and interdisciplinary approach to higher education, prepares students to succeed in high-growth, high-demand careers. Hernandez started his term on June 6.
UVM gets $5.5 million to launch integrative health center
The University of Vermont has announced a broad, new initiative that will deliver innovative, transdisciplinary, evidence-based healthcare practices to our region. Funded by a $5.5 million grant from the Bernard Osher Foundation, the Osher Center for Integrative Health at UVM will dramatically advance whole patient care, research, education, and health policy centered on treatments that incorporate proven methods from a variety of fields complementing allopathic (conventional) medicine.
Governor Scott appoints Susanne Young Attorney General of Vermont
Governor Phil Scott has appointed Susanne Young, a former deputy attorney general and secretary of administration, to be Vermont’s attorney general. Young will fill a vacancy created when TJ Donovan stepped down on June 20 to pursue other opportunities. She will serve out the six months remaining in the term. Governor Scott said Young is uniquely qualified to serve in the post, having recently retired after 40 years of extensive and dedicated service to the State of Vermont. Most recently, she served as secretary of the Agency of Administration. Prior to that, she was deputy attorney general under Democratic Attorney General Bill Sorrell. In her decades of public service, she also served as deputy state treasurer and governor’s legal counsel.
PUC to cut new net metering compensation as ‘costliest’ renewable program
The Vermont Public Utility Commission has issued its required update of the state’s net-metering program. As a result of the adjustments, most existing net-metering systems will see a small increase in their compensation. Future systems that apply for permits on and after September 1, 2022, will see a small net decrease in compensation compared to existing systems. The trend toward many more net-metered projects ultimately increases rates for Vermonters who do not or are unable to participate in the net-metering program. Commercial and community-level solar facilities provide and better financial return to the state, the PUC stated.
BED rates increase nearly 4 percent
The Burlington City Council has approved a 3.95 percent rate hike. Rates increased 7.5 percent last year, which was the first increase since 2009. BED said the rate hike was necessitated by increased costs of the regional transmission grid. Low-income ratepayers will get a 12.5 percent discount. The PUC must approve the rate increase, which will go into effect with August bills.
Governor signs massive $8.1 billion state budget into law
Governor Phil Scott on June 10 signed into law the state budget, H.740, an Act Relating to making appropriations for the support of government. H.740 appropriates $8.126 billion across all funds, and with $178 million allocated in related bills, state appropriations for Fiscal Year 2023, which begins on July 1, total $8.304 billion. This is the first time total appropriation has surpassed $8 billion.
Scott signs Vermont’s largest-ever Transportation Bill into law
Governor Phil Scott has signed into law a record-setting Transportation bill (H.736, An act relating to the Transportation Program and miscellaneous changes to laws related to transportation) with the largest-ever state transportation budget, totaling more than $868 million.
Scott signs historic housing bills into law
Governor Phil Scott gathered with members of the Legislature and local housing partners at the Salisbury Square, a planned affordable housing neighborhood, in Randolph on June 7, signed two historic housing bills. The bills, S.226 and S.210, dedicate substantial state investments to bolster Vermont’s housing stock. The two bills are funded with both state funds and federal American Rescue Plan Act funds and will deliver more than $45 million to housing programs. These funds add to the $200 million allocated last fiscal year and in the Budget Adjustment Act, as part of the Governor’s $250 million housing package. The bills will provide additional funding for downtown and neighborhood revitalization and reforms to Act 250, all of which will pave the way to more housing of all types across the state.
Scott signs $84.5 million workforce and economic development legislation into law
Governor Phil Scott has signed into law S.11, An act relating to economic and workforce development, which contains a comprehensive package of workforce and economic development initiatives first proposed by the Scott Administration and passed by the Legislature this session. The bill invests $84.5 million of both state and federal American Rescue Plan Act (ARPA) funding to address Vermont’s workforce shortage and provide local businesses and municipalities with resources to grow in the years ahead.
Champlain Parkway construction resumes after 35 years in limbo
Construction on the Champlain Parkway – after 35 years since initial site work was halted – has now resumed; site preparation has begun. Following a federal judge’s ruling June 17 to lift the temporary restraining order on the Champlain Parkway, construction activities on the Champlain Parkway Project began on June 21. The Court gave the go-ahead to start construction while the legal challenge is pending. The City hopes to agree on a schedule resolving that legal challenge before the next construction season.
North Springfield manufacturer to close plant, layoff 80 workers
A North Springfield manufacturing business has announced it is closing and laying off dozens of workers, according to WCAX. The Jeld-Wen window and door plant in North Springfield informed workers June 22 that it was closing and consolidating in Ludlow, resulting in 90 employees losing their jobs.
VDH: COVID cases, hospitalizations, deaths fall
The Vermont Department of Health reported June 22 that COVID-19 cases and hospitalizations continue to decline and are considered “Low.” Levels are at their lowest since a surge in cases that began last August. Deaths attributed to COVID-19 stand at 682. There have been 10 deaths in June attributed to COVID so far after 32 in May. May saw an increase in fatalities from April and March. Vermonters are reminded that all state COVID testing sites closed by June 25. Take-home tests will be available through doctors’ offices, pharmacies and via mail from the federal government.
Amtrak service to begin July 29
The Vermont Agency of Transportation (AOT) has announced that the Amtrak Ethan Allen Express train will begin the highly-anticipated expanded passenger rail service to Burlington, Vergennes, and Middlebury from New York City on July 29, 2022. This service culminates the Agency’s extensive planning and infrastructure work to upgrade the tracks between Rutland and Burlington to accommodate higher speed passenger rail.
Air service grows at BTV
The Burlington International Airport (BTV) has welcomed seasonal service to Minneapolis-Saint Paul International Airport (MSP) on Sun Country Airlines. The MSP market is the seventh largest market currently not being served by a direct flight from BTV. Not only will Sun Country Airlines be servicing MSP on Thursdays and Sundays this summer season, but Delta Air Lines has begun serving MSP from BTV on Tuesdays, Wednesdays and Saturdays as well. The addition of MSP as a direct destination assisting in achieving a 12-year high in the number of seats available departing from BTV over the next four summer months, which is the highest number of seats ever offered from BTV. Further air service includes the return of direct Miami (MIA) service via American Airlines in November, as well as daily service being offered to Denver (DEN) this summer.
Turtle Fur sold to Camano Capital
Venture 7 Advisors has announced that private equity firm Camano Capital has acquired a majority stake in Turtle Fur of Morrisville. Richard Sontag, owner of Turtle Fur, will retain partial ownership of the company. Venture 7 Advisors served as Turtle Fur’s exclusive advisor in this transaction. Turtle Fur will remain in Vermont. Turtle Fur was founded in 1982 by Millie Merrill, who designed the first fleece neck warmer in the basement of her children’s apparel store, the Yellow Turtle, in Stowe. The Merrills sold it to Richard Sontag in 2000.
Killington Tax Increment Financing District application approved by VEPC
The Vermont Economic Progress Council (VEPC) has approved Killington's application for a Tax Increment Financing (TIF) District for Killington Road and the Killington Village area. The VEPC board voted on Thursday to approve Killington’s application, which will allow the town to install new water infrastructure, resolve water contamination, mitigate road hazards, and enhance transportation capacity and accessibility.
State House vandalized, threats made
Lieutenant Governor Molly Gray issued the following statement June 25 in response to vandalism and threats at the Vermont State House following Supreme Court ruling the day before: “As Vermont Capitol Police reported this morning, the Vermont State House was vandalized last night. The unknown vandals broke seven windows across the front of the building, including my office window. They also spray-painted the front portico, stating, ‘if abortions aren’t safe, you’re not either’.”
Big beer news, shot of whiskey
Mass. Bay Brewing Company (parent company of Harpoon Brewery) has reached an agreement in principle to acquire Long Trail Brewing Company, producers of award-winning hand-crafted ales under the Long Trail, Otter Creek, and Shed brands. As part of the agreement, Mass. Bay Brewing Company will continue to operate the Long Trail facility in Bridgewater Corners, but will begin brewing Long Trail, Otter Creek and Shed beers in its own brewery in Windsor. WhistlePig Whiskey, based in Shoreham, will assume ownership of the Otter Creek and Shed brewery in Middlebury. After a transition period, WhistlePig will convert production capabilities to bottling and distilling and continue to use the extensive brewing capabilities in Middlebury.
PC Construction to begin next phase of development at Spruce Peak in Stowe
PC Construction has been selected by Spruce Peak Realty to complete the next phase of development at Spruce Peak in Stowe. This latest round of work, which includes construction of a new luxury condominium building and a parking garage, builds on the success of prior PC-built projects at the resort, including the One Spruce Peak residential building, the Spruce Peak Village Center, and the Spruce Peak Performing Arts Center, among others.
Scott lets system of care for disabled bill H720 become law despite errors
Governor Phil Scott has let H720, An act relating to the system of care for individuals with developmental disabilities, become law without his signature because of a “significant error” in what he views as an important bill. While he hopes and expects this to be corrected next January, he took lawmakers to task for many “egregious” errors in various pieces of legislation. He said the Legislature pushed through bills, many at the end of the session, in a rush to adjourn. H720 ultimately could help develop a system to provide expanded living opportunities for adults with disabilities.
Governor vetoes Act 250 bill
Governor Scott on June 1 vetoed an Act 250-related bill, saying, “I am returning S.234, An Act Relating to Changes to Act 250, without my signature because this bill moves us in the wrong direction on Act 250.
“From my perspective, this bill makes Act 250 even more cumbersome than it is today and it will make it harder to build the housing we desperately need. These concerns were raised by elected leaders on both sides of the aisle, though were not addressed by the Legislature.
“Fortunately, the pieces of this bill that will make some modest improvements were added to another bill, which I plan to sign.”
Mike Del Trecco steps in as interim president and CEO of VAHHS
Mike Del Trecco has stepped in as interim president and CEO of VAHHS. For nearly 18 years at VAHHS he has been leading efforts to support Vermont hospitals. Del Trecco takes over from Jeff Tieman who previously announced he was leaving for a similar post in Colorado in June.
Homeownership equity program
The Champlain Housing Trust has announced a suite of initiatives and financing options to help Black, Indigenous and people of color (BIPOC) become homeowners through its signature shared equity program. One notable component is $25,000 in down payment assistance designed as a 0% interest, forgivable loan after three years for buyers who are BIPOC. CHT, a licensed lender, has developed the loan as a Special Purpose Credit Program, and the result will make homeownership more accessible and will help buyers build equity faster. This program is likely one of the first of its kind in the nation.
Vermont joins the House America initiative at the groundbreaking for apartments in Colchester
Governor Phil Scott, US Department of Housing and Urban Development (HUD) officials, and other federal and state officials celebrated Vermont joining the House America initiative at the groundbreaking in early June for the Stuart Avenue Apartments in Colchester. In joining the House America effort, the Scott Administration has pledged to continue leveraging available resources to address homelessness.
OnLogic breaks ground on global headquarters in South Burlington
Global industrial computer hardware manufacturer and solution provider, OnLogic, has begun construction of their new $60 Million, 140,000 square foot global headquarters in South Burlington, Vermont. Governor Phil Scott and Congressman Peter Welch joined members of the OnLogic team, officials from the City of South Burlington and representatives from ReArch Company, Wiemann Lamphere Architects, and VHB for the groundbreaking ceremony May 31.
Annual Point in Time Count of homelessness in Vermont shows continued increase
Every year, shelter and service providers count sheltered and unsheltered people experiencing homelessness on a single night in January. All regions of the state participate in the point in time count on the same night.
The sheltered count is of people living in emergency shelter including hotels and motels through the General Assistance Emergency Housing Program, as well as transitional housing, and Safe Havens. The unsheltered count is of people experiencing homelessness who are living in a place not meant for human habitation such as outdoors or in a car.
The Point in Time Count in January 2022 found a 7.3% increase in persons experiencing homelessness in Vermont compared to the prior year, from 2,591 individuals to 2,780. This comes on the heels of a 133% increase from 2020 (pre-pandemic) to 2021.
Bennington College receives Hans Hofmann painting from Norman Lear
Bennington College has received a major gift of art from renowned television and film writer and producer Norman Lear to benefit its Art for Access program. Lear has gifted The Breakers, an important Abstract Expressionist painting from 1962 by Hans Hofmann, a key figure of postwar American art. The donation advances the dual aims of the Art for Access program: to invite gifts of art to enrich and enhance the campus and teaching, and to generate scholarship funds for talented students through the sale of select works at regular intervals. Known for his exuberant, color-filled canvases, and renowned as an influential teacher for generations of artists, Hans Hofmann (1880-1966) played a pivotal role in the development of Abstract Expressionism.
