News in Brief, Vermont Business Magazine
Lawmakers override Scott’s veto of property tax ‘yield bill,’ five others
The Legislature on June 17 overrode Governor Phil Scott’s veto of the property tax “yield bill” (H.887). The House voted 103-42 and the Senate voted 22-7, both comfortably exceeding the two-thirds requirement. With the bill now becoming law, property tax bills will increase by an average of 13.8%.
In the “veto session,” lawmakers also overrode the Renewable Energy Standard bill (H.289) and the Act 250/Housing bill (H.687), as well as the restorative justice legislation H.645, the bill banning the use of neonicotinoid pesticides H.706, and H.72, an act relating to a harm-reduction criminal justice response to drug use. They failed to override H.121, an act relating to enhancing consumer privacy and the age-appropriate design code. While business organizations opposed H.121, members of the Senate sustained the veto in part because of the complexity of it.
Vermont’s unemployment rate held at 2.1 percent in May
The Vermont Department of Labor has reported that the seasonally adjusted statewide unemployment rate for May was 2.1 percent. This reflects no change from the prior month’s revised estimate. The civilian labor force participation rate was 65.6 percent in May, an increase of one-tenth of one percentage point from the prior month’s revised estimate. The comparable United States rate in May was 4.0 percent, an increase of one-tenth of one percentage point from the revised April estimate. The seasonally adjusted Vermont data for May show the Vermont civilian labor force increased by 655 from the prior month’s revised estimate. The number of employed persons increased by 663 and the number of unemployed persons decreased by 8. The May unemployment rates for Vermont’s 17 labor market areas ranged from 1.7 percent in Burlington-South Burlington, Middlebury, and White River Junction to 2.9 percent in Derby. Vermont has the third lowest unemployment rate in the nation, behind the Dakotas at 2.0 percent.
Vermont ski areas boasted over 4 million skier visits despite weird weather
Vermont’s alpine and cross-country ski area members joined industry partners, supporters, and friends at the Vermont Ski Areas Association’s (VSAA) 55th Annual Meeting at Jay Peak Resort in June to recap a challenging but successful ski season. Despite facing many weather challenges Vermont’s alpine ski areas reported 4.1 million skier visits for 2023-24, down less than half a percentage point from the 2022-23 season. Visitation this season remains 4 percent above Vermont’s 10-year average and outpaces a 6.2 percent decrease in Northeast region visits (12.4 million) and a 6.6 percent decrease in national “skier days” (60.4 million).
Maple syrup production rebounds to 3.1 million gallons
Vermont maple syrup production was up for 2024. Vermont leads the country in production with 3.1 million gallons. Production was up 19% from 2023’s 2.6 million gallons and just below 2022’s 3.3 million. Vermont produces 53% of all the maple in the United States from 8.4 million taps. New York is by far the second largest producer of maple syrup at 846,000 gallons and Maine is third at 701,000 for a United States total of 5.9 million gallons.
Treasurer announces $3.7M in savings as ratings hold strong
State Treasurer Mike Pieciak has announced that Vermont’s credit ratings were affirmed by the major credit rating agencies, S&P Global Ratings (AA+), Fitch Ratings (AA+), and Moody’s (Aa1). Leveraging this fiscal strength, Pieciak and his office successfully refinanced outstanding higher-interest bonds, resulting in savings of approximately $3.7 million. The ratings reaffirmed that Vermont’s financial outlook is stable, as the state earned the second highest ratings that an entity can receive. The ratings will ensure that borrowing costs for state projects remain modest, reducing costs to Vermont taxpayers. After receiving the updated credit ratings, the state issued two sets of bonds, including over $70 million of Series A bonds which generated over $77 million for new capital projects. Over $36 million of Series B bonds were also issued to refinance bonds from 2014.
NEFCU and VSECU announce EastRise Credit Union as new name and brand
When New England Federal Credit Union (NEFCU) and Vermont State Employees Credit Union (VSECU) merged in 2023, the two legacy organizations came together with the singular vision of expanding financial services access for members and enabling them to create impact—both in their own lives and in the lives of others. Now, after a year of planning and preparation, the credit union is excited to announce a new name and a unified brand in support of that mission. EastRise Credit Union represents a bright new day for the credit union’s members.
Scott lets cannabis, community education and ethics bills become law
Governor Phil Scott has allowed three bills to become law without his signature: H.612, An act relating to miscellaneous cannabis amendments; H.630, An act relating to improving access to high-quality education through community collaborations; and H.875, An act relating to the State Ethics Commission and the State Code of Ethics. In the cannabis bill, he noted that the bill closes some loopholes, but is concerned about higher potency medical cannabis getting into the hands of people who are not medically qualified to receive it. Scott has generally been concerned with the legalization of cannabis for, among other reasons, the potential for kids getting a hold of such products and for creating more opportunities for people to drive impaired.
Berlin takes owner of trailer park to court over floodplain construction
The town of Berlin has taken legal action against the owner of a manufactured home park hit by catastrophic flooding last summer. The property was devastated by July 2023 flooding and the new structures are being set on the same parcel, which the town said is in violation.
Brendan Krause named Director of Health Care Reform
The Agency of Human Services (AHS) has appointed Brendan Krause as the new Director of Health Care Reform. Krause brings a wealth of experience in health systems and policy, with a distinguished career spanning government roles and health technology. Most recently, Brendan served as Head of International for Health at Uber, where he worked directly with global health systems to eliminate transportation barriers to health care access. Prior to his role at Uber, he spent 12 years at Optum, collaborating with the United Kingdom’s National Health Service to enhance population health management.
Options to be presented for hospital transformation and health system revitalization
Options for hospital transformation and health system revitalization will be presented at in-person community meetings across Vermont’s 14 hospital regions throughout the month of July. Feedback and input will be solicited from community members. The options are the culmination of a monthslong process of collecting input from Vermonters across the state, including through public community and provider meetings, outreach to over 100 community organizations, visits to each hospital in Vermont, and analyses of healthcare data from multiple sources. In fiscal year 2023, nine of Vermont’s 14 hospitals had negative operating margins.
Homelessness in Vermont increases
Statewide, this year’s census recorded 3,458 people experiencing homelessness, a nearly 5% increase over the number tallied in January 2023, Vermont Public reported. Those are the results of the 2024 point-in-time count, an annual, federally mandated report to count every person experiencing homelessness on a single night each January. This year’s census recorded 3,458 people experiencing homelessness, a nearly 5% increase over the number tallied in January 2023.
Nurses at UVM Medical Center hold strike vote
Nurses of Vermont Federation of Nurses and Health Professionals announced that their union held a strike authorization vote from June 17 to June 23. After a few months of bargaining, the nurses and UVM Medical Center administration are still far apart from reaching a deal before their contract expires on July 9. Among the issues the two sides cannot reconcile are wages, benefits and working conditions that fall short of cost-of-living benchmarks and contribute to constant staffing holes that are only filled by travel nurses.
Vermont Senators sue the governor over Ed Secretary appointment
Two state senators have filed a lawsuit alleging that Governor Phil Scott violated state law and the Vermont Constitution by naming Zoie Saunders to serve as interim education secretary even after Senate voted against her confirmation. The failed confirmation of a cabinet post is likely the first in the state’s history.
AG announces $3.1 million settlement with Johnson & Johnson over talc
Attorney General Charity Clark has announced that Vermont will receive $3.1 million over the next four years from Johnson & Johnson to resolve allegations related to the marketing of Johnson & Johnson’s baby powder and body powder products that contained talc, which often contained asbestos. The settlement is the result of a four-year, multistate investigation involving 42 other attorneys general. The total nationwide settlement amount is $700 million. “Johnson & Johnson marketed their baby powder and body powder products as safe—when it knew they were not,” said Attorney General Clark. “I will continue to use the authority of my office to hold companies accountable for misleading consumers about the safety of their products.”
Grace Cottage Hospital names Olivia Sweetnam CEO
The Board of Trustees of Grace Cottage Family Health & Hospital have announced the appointment of Olivia Sweetnam to the position of Chief Executive Officer, effective July 1, 2024. Sweetnam is replacing Doug DiVello, who announced his plans last December to retire when a replacement was hired. A graduate of Queen’s University in Ontario, Canada, with a Bachelor of Science in Nursing, Sweetnam received her Master of Nursing Science and Master of Public Health from Yale University in Connecticut. The Chief Nursing Officer at Grace Cottage Family Health & Hospital since February, Sweetnam was the Vice President of Hospice Quality and Clinical Practice at Amedisys (2021-2023), and held multiple leadership roles in quality, operations, and medical staff management at Ochsner Health in Louisiana from 2013-2021.
Amy Spear named president of the Vermont Chamber of Commerce
The Vermont Chamber of Commerce Board of Directors has announced Amy Spear as the incoming President of the organization. Spear was selected from a robust pool of applicants following a six-month search committee process that leveraged the expertise of Burlington-based Hawley Consulting Services. The committee’s recommendation was ratified by the full board at a June 6 meeting. Spear has been part of the Vermont Chamber leadership team since 2019, serving as the Vice President of Tourism. She was named to the Vermont Rising Stars Class of 2023.
Galvion to pay $2.5 million to resolve False Claims Act allegations
The Office of the United States Attorney for the District of Vermont has announced that Galvion, Ltd has agreed to pay $2,495,000 to resolve allegations that it violated the False Claims Act through the knowing sale of non-conforming parts to the United States Department of Defense. Galvion is headquartered in Montreal, Canada with three production facilities located in the United States, including one in Newport, Vermont. Galvion manufactures protective head systems for use by law enforcement and military personnel, including the United States military. Among the company’s products is the modular suspension system (MSS), a helmet insert.
Federal judge sides with Okemo, rejects latest claim for paralyzed skier
A federal judge in Burlington has dismissed a claim by a New York skier that he had accepted a multi-million dollar out-of-court settlement minutes before a jury in February rejected all the legal claims he made about an accident that left him paralyzed at Okemo Mountain. The injured skier, Richard Grajeda of Westbury, N.Y., was unhappy with the ruling from the bench by U.S. District Court Judge Christina Reiss in Burlington after she heard legal arguments last week. “They accepted it,” Grajeda yelled at the judge as he stepped back from his walker and slumped into his wheelchair. “You can’t do that,” Reiss said as she adjourned court after about a 75-minute hearing. As Reiss left the courtroom, Grajeda continued, “I don’t understand.” The Long Island man held his head in his hands.
iSun files for bankruptcy, is delisted from NASDAQ
Williston-based iSun Inc filed for Chapter 11 bankruptcy on June 3. Also, the SEC delisted iSun as a publicly traded stock. This comes after a significant financial loss in 2023, multiple shakeups in leadership in April, which included the hiring of a restructuring officer, and the canceling of a reverse stock split. The assets, if approved by the court, would be acquired by an affiliate of Texas-based energy investment firm Siltstone Capital. The iSun subsidiaries include SolarCommunities, which does business as SunCommon, the solar panel installer based in Waterbury. iSun is the former Peck Electric, which has grown into a firm that reported to VermontBiz in 2023 that it has 275 employees on $95.7 million in revenues. It also reported a 2023 net loss of $19.4 million.
State releases $5.6 million for manufactured housing communities to improve stormwater
Governor Phil Scott and the Department of Environmental Conservation (DEC) have announced the availability of $5.6 million in American Rescue Plan Act (ARPA) funding to help manufactured housing communities improve stormwater practices. DEC is seeking proposals – due July 5, 2024 – from organizations interested in helping targeted communities access this funding. Vermont’s regulations require sites with impervious surfaces of three or more acres to get a 3-Acre Permit. These sites must treat stormwater runoff from hard surfaces – like roof tops, roads, and parking areas – to reduce pollution entering waterways. DEC aims to help as many manufactured housing communities as possible build the stormwater controls that are required for this permit.
GlobalFoundries acquires Tagore Technology’s GaN technology
GlobalFoundries (Nasdaq: GFS) has announced that it has acquired Tagore Technology’s proprietary and production proven Power Gallium Nitride (GaN) IP portfolio, a high-power density solution designed to push the boundaries of efficiency and performance in a wide range of power applications in automotive, internet of things (IoT) and artificial intelligence (AI) datacenter. As the digital world continues to evolve with technologies like Generative AI, GaN stands out as a pivotal solution for sustainable and efficient power management particularly in datacenters.
Northwest Fiberworx receives $20.2M for construction grant
The Vermont Community Broadband Board (VCBB) on May 13 awarded Northwest Vermont Communications Union District d/b/a Northwest Fiberworx (NWFX) a $20.2 million ARPA grant that will allow the Franklin/Grand Isle County company to begin building out a fiber internet network. Northwest Fiberworx is a nonprofit special purpose municipality that has 22 member towns as part of its communications union district that will benefit from this build. The communities in Franklin & Grand Isle Counties of Vermont that NWFX represents are, Alburgh, Bakersfield, Berkshire, Enosburgh, Fairfield, Franklin, Fairfax, Georgia, Grand Isle, Highgate, Isle la Motte, Milton, Montgomery, North Hero, Richford, Saint Albans Town, Sheldon, South Hero, Swanton, Village of Alburgh, Village of Enosburg Falls and Village of Swanton.
Colorado and Vermont enter partnership for retirement savings programs
The Colorado SecureSavings Program has announced a partnership with Vermont’s public retirement program, Vermont Saves. The new partnership adds Vermont to the Partnership for a Dignified Retirement, an interstate consortium including Delaware and Maine. With more assets and accounts under management, the consortium will increase returns through economies of scale and reduce costs for savers. The partnership will also enable Vermont Saves to launch faster than anticipated, with an expected launch by the end of 2024.
New non-stop service to Fort Myers from Burlington International Airport
Breeze Airways and Patrick Leahy Burlington International Airport (BTV) have announced the launch of new non-stop service to Fort Myers through Southwest Florida International Airport (RSW). This marks an exciting milestone for both travelers and the Burlington community, providing Vermonters with more direct options to Florida. The inaugural flight from Fort Myers to Leahy BTV is scheduled to run October 4, 2024.
Governor announces $1.7 million in downtown transportation fund grants
Governor Phil Scott and the Vermont Downtown Development Board has announced $1,787,989 in Downtown Transportation Fund Grants to support projects to improve safety, access, and transportation in 11 Vermont downtowns and villages across seven counties. “Revitalizing our downtowns is important to strengthening communities across Vermont,” said Governor Phil Scott. “These grants will support projects to improve pedestrian and bicycle access to public spaces, improve ADA access, and spruce up downtown areas for Vermonters and our visitors to enjoy.” Alex Farrell, Commissioner of the Department of Housing and Community Development and Chair of the Downtown Board, said that these investments are vital to drawing people downtown, supporting businesses, and enhancing Vermont communities.
$2.3 Million in Grant Funds to Support Working Lands Businesses
The Working Lands Enterprise Board (WLEB) has announced 51 awards to Vermont farm, forest, and food businesses and organizations in 2024. The $2,329,561 in awards will support those who are earning a living off the land.
The award categories are: American Rescue Plan Act (ARPA) Primary Producer Impact Grants - $812,991 awarded to 6 farms to support businesses after being negatively impacted by the COVID-19 pandemic. Business Enhancement Grants - $558,343 awarded to 14 businesses to support market development, infrastructure, equipment costs, and workforce development. Small Farm Diversification & Transition Grants - $150,000 awarded to 12 farms to support them in diversifying farm products, transitioning to a new form of farming, processing farm products, and/or developing an accessory on-farm business. Supply Chain Impact Grants - $788,159 awarded to 6 businesses and nonprofits to support critical supply chain infrastructure investments that create new opportunities for multiple businesses in their respective supply chains. Trade Show Assistance Grants - $59,968 awarded to 13 businesses to support attendance at trade shows to bring Vermont products to out of state markets.
RAISE Grant will support transportation repairs and address stormwater issues
$25 million in federal funding is targeted for the Town of Killington through the Rebuilding American Infrastructure with Sustainability and Equity (RAISE) grant program.
Funded by the Bipartisan Infrastructure Law, which Sanders and Welch helped pass in 2021, the RAISE grant program helps communities rebuild their aging and unsafe transportation infrastructure. The Killington grant is awarded to help complete pedestrian safety and accessibility projects, road reconstruction, and the installation of new stormwater infrastructure to address runoff issues.
The project includes the construction of approximately 2.7 miles of shared use path, 1.4 miles of new sidewalk, new crosswalks with pedestrian warning signs, and new intersection safety improvements. New stormwater infrastructure will be installed in addition to a complete, full-depth reconstruction of the roadway. The funds will also address stormwater runoff issues and treat 100% of runoff before it enters waterways. Construction is estimated to start June 2026.
$7.9 million in northern border regional commission grants for Vermont Communities
Governor Phil Scott, Senator Bernie Sanders, Senator Peter Welch, and Congresswoman Becca Balint, along with the Northern Border Regional Commission (NBRC), have announced the Vermont grantees for the NBRC 2024 Catalyst Spring Competition. Eight projects in seven towns spread across six counties will share $7.9 million in funding.
Awarded projects in the 2024 Catalyst Spring Competition include construction of a new childcare facility in Alburgh, transforming the former Bennington High School into commercial and community space, increasing water storage capacity in Middlebury, and restoring and renovating South Hero’s historic 1816 Old White Meeting House.
VEDA unveils new forestry loan program
The Vermont Economic Development Authority, or VEDA, has unveiled a new loan program available to businesses in the state’s forest economy. Three million dollars in total financing can be provided in the form of loans up to $500,000 with subsidized interest rates for loggers, foresters, log haulers, biomass producers, sawmills, firewood producers and wood product manufacturers, for working capital, equipment and refinancing. According to the Vermont Forest Futures Strategic Roadmap, the forest-based economy in the Green Mountain State accounts for about $2.1 billion annually and more than 13,800 jobs. The wood products industry has a rich history in Vermont’s economy and ecology alike — and it is a world known for high operating costs, variable markets and one heavily impacted by outside factors.
Springfield area Revolving Loan Funds approve $155,000 in financing for area businesses
Springfield Regional Development Corporation (SRDC) has announced the approval of $155,000 in financing for two area companies through the Springfield Area CARES Act Revolving Loan Fund and Springfield Area Revolving Loan Fund. Both loan funds utilize grants from the Economic Development Administration (EDA) to assist businesses in Southern Windsor County.
WRJ celebrates the grand opening of 42 new affordable apartments
The White River Junction community celebrated the official grand opening of 42 new affordable apartments downtown with a ribbon cutting and an apartment tour June 26. The apartments, named Riverwalk Apartments, were developed by DEW Braverman with an agreement to sell the building to Twin Pines Housing and Evernorth. The apartments will remain affordable forever.
VTrans announces qualified providers for public Electric Vehicle charging projects
The Vermont Agency of Transportation (AOT) has announced the list of electric vehicle (EV) charging providers that are capable of building Vermont’s charging network to federal and state specifications. Through a Request for Qualifications (RFQ) process, the Agency selected eight providers that will be invited to bid on forthcoming Requests for Proposals (RFP) for the design, construction, ownership, operation, and maintenance of public charging infrastructure along key routes and funded through programs included under the Infrastructure Investment and Jobs Act: Burlington Electric Department; EvGateway LLC; EVgo Services LLC; FLO Services USA Inc.; Global Montello Group Corp.; Gridwealth EV LLC; Norwich Technologies Inc.; ReVision Energy Inc.
Withington Fund at the VT Community Foundation surpasses $1 million in Brattleboro
The Vermont Community Foundation has announced that the Withington Fund has given more than $1 million to recreation and projects that benefit the public in Brattleboro, a milestone reached this year as the fund celebrates its 20th birthday. A permanent resource managed by the Vermont Community Foundation, the fund has distributed more than 30 grants to support the development and refurbishment of parks, trails, and public amenities ranging from basketball courts and playgrounds to a popular skate park and disc golf course. Brattleboro business leader and recreation enthusiast Nelson Withington decided to create the fund at the Vermont Community Foundation before his death at the age of 97 in 2002, so as to keep giving to the town he loved. The donor advised fund, also known as a giving account, opened in 2004.
ACLU client settles case against Vermont State Police over unconstitutional arrest
The ACLU and the Foundation of Individual Rights and Expression (FIRE) have settled a lawsuit against the Vermont State Police on behalf of Gregory Bombard, whose First Amendment rights were violated after an unnecessary traffic stop and retaliatory arrest in 2018. The terms of the ACLU and FIRE’s settlement include $100,000 in damages paid to Bombard and $75,000 in legal fees.
United Way of Northwest Vermont announces $748,000 in partner funding to 30 organizations
United Way of Northwest Vermont (UWNWVT) will distribute $748,000 in 2024 to 30 local organizations that are meeting an array of interconnected needs in our community. These grants represent one piece of United Way’s community funding. Last year, United Way invested $2.7 million into our community thanks to the support of generous donors and volunteers.
Girls on the Run Vermont Celebrates 25th Anniversary 5K to wrap up 2024 spring season
Girls on the Run Vermont (GOTRVT), a statewide nonprofit organization for girls in 3rd-8th grade, has wrapped up its 25th anniversary season that served 1,683 girls across the state. Twenty-five years ago, 15 girls at Vernon Elementary School enrolled in the Girls on the Run program. Twenty-five seasons and 39,000 girls later, Girls on the Run Vermont is thriving and celebrating its 25th anniversary.
Weekly UI claims fall to low summer levels
Weekly unemployment claims fell for the week ending June 15, 2024, as new claims have fallen to their usual summer lows. The Service industry accounts for the vast majority of claims with 55%. For the week, there were 256 claims, down 22 for the week and 50 fewer than this time last year. Meanwhile, the state unemployment rate remains near historic low levels as employment and the labor force have increased (2.1 percent in April 2024). Vermont has the third lowest rate in the nation, behind North and South (2.0%) Dakota. California (5.3%) has the highest rate. The comparable United States rate in April was 3.9 percent, an increase of one-tenth of one percentage point from the revised March estimate.
Vermont, NH get more than $1.26M to implement, improve energy efficiency through REAP grants
USDA is partnering with rural Americans on hundreds of clean energy projects to lower energy bills, expand access to clean energy and create jobs for U.S. farmers, ranchers and agricultural producers. In Vermont and New Hampshire, 17 small businesses received $1,260,113 in combined funding through USDA’s Rural Energy for America Program.
Boyden Valley Winery in Cambridge, Vermont, will use a $12,989 REAP grant to purchase and install energy-efficient heat pumps, which will save the business approximately 28,400 kilowatt hours (kWh), equal to $1,000 annually in utility bills.
NE-DBIC $1.2 million grant program invests in Northeast U.S. dairy processing
Dairy processors across the Northeast United States can now apply for the Dairy Processor Modernization Grant through the Northeast Dairy Business Innovation Center (NE-DBIC). With a total of $1.2 million in funding, this grant will fund specialized equipment to help processors expand capacity, increase efficiencies, and improve packaging.
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