(Roundup of news from last month)
Hickok & Boardman Insurance to receive 2022 Outstanding Business of the Year Award
The Vermont Chamber of Commerce and VermontBiz have announced that the recipient of the 2022 Outstanding Business of the Year Award is Hickok & Boardman Insurance Group. Hickok & Boardman will accept the award at the upcoming Vermont Economic Conference, which will take place on January 30, 2023, at the University of Vermont Dudley H Davis Center. The Outstanding Business of the Year Award is presented annually to the Vermont business that demonstrates a commitment to community, workforce well-being, environmental stewardship, and growth in sales or employment. Award recipients have been based in Vermont for at least 10 years.
Favorites win big in 2022 General Election
Results of the General Election held November 8 indicate that all the statewide favorites won by comfortable margins: Governor (Phil Scott), lieutenant governor (David Zuckerman), secretary of state (Copeland Hanzas), treasurer (Pieciak), auditor of accounts (Hoffer) and attorney general (Clark), as well as US Senate (Welch) and US House (Balint) and the two statewide ballot items regarding Amending Article 1 (Slavery prohibition) and Adding Article 22 (Reproductive liberty), were supported by wide margins (see full results at sos.vermont.gov).
Tax revenues continue on strong pace despite inflation
Secretary of Administration Kristin Clouser has released Vermont’s revenue results for October 2022. All three major funds - the General Fund, the Transportation Fund and the Education Fund - ended the month with revenue above target. Year to date, the General Fund and the Education Fund remain ahead of target while the Transportation Fund is slightly behind. The crucial personal income tax showed continued strength to lead the revenue results. Meanwhile, the rise in interest rates is starting to show its effects on other data points.
VSECU members approve merger with NEFCU
The proposed merger of Vermont State Employees Credit Union (VSECU) and New England Federal Credit Union (NEFCU) was approved by VSECU members who voted during a period that began on September 20 and concluded November 8 at a VSECU Special Meeting held at the Barre Opera House. The VSECU membership vote was the culmination of a months-long process that began in February 2022, when both credit unions’ Boards of Directors unanimously supported the agreement to merge. Although the merged credit union is effective January 1, 2023, uniting the two credit unions will be a gradual process over several months and a new name will be created and announced later in 2023 for the merged credit union. The merged entity will be Vermont’s largest credit union with 165,000 members, 460 employees, 17 local branches, and $3 billion in assets. The final vote was 7,622 in favor and 7,304 opposed.
Vermont’s unemployment rate increases to 2.3% in October
The Vermont Department of Labor has reported that the seasonally adjusted statewide unemployment rate for October was 2.3 percent. This reflects an increase of two-tenths of one percentage point from the prior month’s revised estimate. The civilian labor force participation was 61.7 percent in October, a decrease of one-tenth of one percentage point. Meanwhile, all three major metrics showed sluggish and negative performance with the Labor Market falling by 72 and Employed fell by 594, while the number of unemployed rose by 522. The upcoming holiday season typically brings wild swings in hiring and firing.
Vermont Electric Cooperative files 8.19% increase in 2023 rate request
On November 15, 2022 Vermont Electric Cooperative (VEC) filed a request for an 8.19 percent rate increase to apply to VEC member bills in the new year. The primary driver for the increase request is the significant upward pressure on the cost of wholesale power, primarily driven by the worldwide shortage of natural gas. Since sixty percent of VEC’s operating budget is spent on power supply and the transmission system to deliver it, and because we are a small part of a regional grid and worldwide market, it is challenging to mitigate these increases. VEC’s 2023 power supply cost is projected to increase by $4.8 million over 2022.
Worker Relocation Incentive Program application now open
The Agency of Commerce and Community Development (ACCD) has officially launched the Worker Relocation Incentive Program, which will provide incentive grants to defray moving costs for out of state people relocating to Vermont. The program and $3 million in funding were passed as part of ACT 183 by the Vermont Legislature during the 2022 session. The Worker Relocation Incentive Program will provide grants of up to $7,500 to both new workers (moving to Vermont to take a Vermont job) and remote workers (moving to Vermont and bringing their job with them). This new program has expanded to include all occupations to better serve employers needs across all sectors. The program also includes a pre-approval process for those who have not yet moved to the state. The pre-approval process informs applicants prior to moving if they are eligible to receive a grant once they relocate, and it reserves funding to pay their grant once they complete their move and submit the required verification documentation.
CityPlace construction begins in Burlington
After years of delays and waiting, the long-anticipated development of CityPlace in Burlington began site work at the demolished downtown mall. The lot has been bare since 2018 after it was first announced in 2016 that a gleaming new commercial and housing space, would rise behind Church Street. While the new begins the process of digging and pouring concrete, the scale of the first phase of the development still includes about 425 units of housing, a parking garage, ground floor retail and restaurants. That building will begin in the spring. The finished product will also reconnect Pine and St Paul streets, which were truncated when the original mall was built in the 1970s. This is the first phase that will later include the Church Street side to the east and the Macy’s building, now housing the Burlington High School, to the west.
VCBB expands town match grant to bring broadband to all Vermonters
The Vermont Community Broadband Board (VCBB) will match town Local Fiscal Recovery ARPA fund contributions dedicated to broadband in an expanded town match program as part of the VCBB’s Act 71 Broadband Construction Grant Program. To be matched, the funds must be pledged to the Communications Union District (CUD) serving the town or to an eligible provider committing to build out to all underserved locations in a community if the town is not a member of a CUD. The goal of the program is to accelerate the build-out of 100/100 Mbps broadband while decreasing its cost and providing affordable service for town residents.
Scott announces $228,000 apprenticeship grant at GS Precision
Governor Phil Scott and the Vermont Department of Labor visited GS Precision in Brattleboro to announce a more than $228,000 grant, which will support the establishment of a new Registered Apprenticeship Program with the company. The announcement comes as a part of Vermont’s efforts to promote apprenticeship programs in the state, before National Apprenticeship Week, which takes place November 14 – 20, 2022. GS Precision has been granted $228,061.33 of state funds appropriated to support advancing apprenticeship programs. The grant to GS Precision establishes a machinist apprenticeship program, the first Registered Apprenticeship Program in the company’s history. With the funds, G.S. Precision will add training staff, as well as update educational facilities and equipment to support the program.
Leahy, Sanders, Welch announce $25.4 million for home heating
Senate Appropriations Committee Chairman Patrick Leahy (D-Vermont), US Senator Bernie Sanders (I-Vermont), and US Representative Peter Welch (D-Vermont) have announced that Vermont will be receiving $25.4 million in funding for the Low Income Home Energy Assistance Program (LIHEAP). This includes: $19,146,884 from the traditional LIHEAP block grant funding; $5,716,220 in new supplemental funding from the Continuing Appropriations Act; and $571,341 in funding appropriated for Fiscal Year 2023 from the Infrastructure Investment and Jobs Act.
Claudio Fort resigns as president and CEO of RRMC
Rutland Regional Medical Center Board Chair, Mark Foley, Jr has announced that president and CEO Claudio Fort has resigned his position and will leave the hospital at the end of December. Fort joined Rutland Regional in April 2018 and led the hospital and the Rutland community through the unprecedented response to the Covid-19 pandemic. In an internal email to staff, Claudio Fort said, “I have come to a personal decision that I need to make some definitive changes, which includes stepping down from my role as CEO to take some extended time off and focus on my health.”
Brattleboro Savings & Loan names Stephenson president
After a search that stretched across states and regions, Brattleboro Savings & Loan is happy to welcome Deborah Stephenson to the position of president. Deb is joining us, most recently, from Berkshire Bank, but she brings a rich history in banking and a deep appreciation for the communities of Southeastern Vermont. Dan Yates, BS&L’s president for the past 17 years, is preparing to enter a well deserved retirement at the end of this year.
Governor announces seven additional brownfield cleanup awards totaling $2.15 million
Governor Phil Scott and the Agency of Commerce and Community Development (ACCD) have announced that seven additional awards and another $2.15M have been committed to remediate brownfields sites across the state. Since the Brownfields Revitalization Fund (BRF) - State Program opened in October 2021, more than $6.8 million in cleanup funding has been awarded to 20 projects in seven counties (Caledonia, Chittenden, Franklin, Washington, Windham, Windsor, and Orange). The projects combined are anticipated to clean up more than 35 contaminated acres and create 540 jobs, 288 units of housing, and 115 new hotel rooms.
VEDA sees 244 percent growth in new financings
Unveiled at its annual meeting and luncheon last week, the Vermont Economic Development Authority (VEDA) reflected on the 2022 fiscal year with its annual report. VEDA CEO Cassie Polhemus said the agency, in its 48th year, approved $160.9 million in new financings from July 1, 2021, through June 30, 2022. This equates to a 244 percent growth from the previous year, which was heavily impacted by the COVID-19 pandemic.
Vermont to get $4 million settlement with Google over location tracking practices
Attorney General Susanne Young has announced that Vermont will receive $4 million from a multistate settlement with Google over its location tracking practices related to Google Account settings. The settlement also requires Google to be more transparent with consumers about its practices, including giving users detailed information about the types of location data Google collects and how it’s used. The multistate settlement was negotiated by a coalition of 40 attorneys general and totals $391.5 million. It is the largest multistate privacy settlement negotiated by attorneys general in history.
New England experienced slight increase in unhealthy air quality days during the 2022 ozone season
The US Environmental Protection Agency’s (EPA) New England regional office has confirmed that New Englanders experienced a slight increase in the number of unhealthy air quality days this year, compared with 2021. Based on preliminary data collected between March and September 2022, there were 24 days when ozone monitors in New England recorded ozone concentrations above levels considered healthy. By contrast, in 2021 there were 23 unhealthy ozone days in New England. There were no such days recorded in Vermont this year or last.
Vermont adopts rules for cleaner cars and trucks
Vermont moved forward with two key regulations to address pollution from transportation in the state: the Advanced Clean Cars (ACC) II program and the Advanced Clean Trucks (ACT) regulation. The Legislative Committee on Administrative Rules has held a hearing for the final review of the rules and officially approved both. The Rules will not go into effect until after California officially files the ACT rule on Nov 30, 2022.
Pacific Group Resorts completes purchase of Jay Peak Resort
Pacific Group Resorts, Inc (PGRI) has completed the purchase of Jay Peak in Northern Vermont from the court-appointed receiver, Michael Goldberg. PGRI’s prevailing bid was approved by the United States District Court in Southern Florida, and the State of Vermont approved the assignment of leases for ski terrain allowing the sale to close on November 1, 2022, six and a half years after the resort entered receivership. Jay Peak becomes the sixth ski resort in PGRI’s portfolio including properties in New Hampshire, Maryland, Virginia, Colorado, and British Columbia.
New first generation homebuyer program available
Vermont Housing Finance Agency (VHFA) announces the launch of the First Generation Homebuyer Program, with a goal of helping more Vermonters afford their first home. This program provides a grant to eligible homebuyers whose parents or legal guardians were likely unable to pass on the generational wealth homeownership can provide. This pilot program is modeled after a federal proposal and provides a $15,000 grant for down payment and closing cost assistance. To be eligible, all borrowers and non-borrowing spouses must be true first-time homebuyers.
Regulators approve Vermont Gas’ bid for out-of-state landfill gas
Vermont’s Public Utility Commission has approved a request by Vermont Gas Systems to enter into a long-term contract to buy biogas and its associated renewable energy credits from a landfill in New York’s Finger Lakes region, as reported by Vermont Public. This will be VGS’ largest contract for “renewable natural gas.”
More than $1 million to expand meat and poultry processing in Vermont
US Department of Agriculture (USDA) Secretary Tom Vilsack has announced that the Biden-Harris Administration is investing $1,096,655 in Vermont Livestock Slaughter & Processing through the first round of the Meat and Poultry Processing Expansion Program (MPPEP). This is part of $223 million in meat and processing programs nationwide. Vermont Livestock Slaughter & Processing connects hundreds of farmers in Vermont and the Northeast with the customers they supply. Meat processing is currently a bottleneck in the region with many producers having to wait significant periods for the service. With their MPPEP investment, they will maximize their capacity and position the company for succession planning to an employee-owned model.
National Life Board approves $26.5 million in dividends for 2023
The National Life Group Board of Directors has approved an estimated payment of approximately $26.5 million in dividends to eligible participating policyholders in 2023. This payment represents National Life’s ongoing commitment to its policyholders and continues a proud heritage of having paid a dividend every year since 1855. An annual dividend is a yearly payment from the life insurance company for certain policies. Every year the company determines what the dividend rate will be, or if they will pay a dividend at all. Annual dividends are not guaranteed and may increase or decrease from policy year to policy year.
UVM Health Network fiscal year 2022 results highlight continued financial challenges and important progress
Extraordinary cost inflation and workforce shortages continue to impact hospitals and health systems as the University of Vermont Health Network releases its Fiscal Year 2022 year-end results. To address these broad challenges, the Network is actively implementing a focused path forward plan to improve revenue and expenses, recruit and retain talented employees and continue improving patient access to high-quality care in Fiscal Year 2023.
Largely due to the sharply increased cost of labor and providing patient care, the UVM Health Network ended Fiscal Year 2022 with a $90 million loss (-3.3% margin).
The budgeted, or target, margin for FY22 previously approved by Vermont regulators was $66.5 million (2.5% margin). Operating margin is what nonprofit organizations use to invest in people, buildings and equipment, to provide the highest quality care and pay staff competitively. A financially stable health system should see a minimum 3.0% operating margin.
Without $55 million in one-time state and federal funds received in Fiscal Year 22 to support expenses previously incurred due to COVID-19 initiatives and losses, the loss across the health system in Vermont and Northern New York would have been $145 million (-5.3% margin).
Southern Vermont CEDS 2022 Vital Projects announced
The Bennington County Regional Commission (BCRC) and the Brattleboro Development Credit Corporation (BDCC) are pleased to announce that ten projects submitted as part of the Southern Vermont Comprehensive Economic Development Strategy (CEDS) have received Vital Project designation. The Southern Vermont CEDS is a federally-approved action plan for growing the regional economy. Each year, the CEDS includes new and updated project submissions from businesses and organizations that highlight activities strengthening the region. Projects were selected by a CEDS Project Review Committee composed of members of the public and business community. The committee reviewed 78 projects from municipalities, businesses, and non-profit organizations across the two-county region. They met in Dover in early November to complete a final project review and select 10 vital projects.
State launches $40 million Community Recovery and Revitalization Program
Governor Phil Scott and the Agency of Commerce and Community Development (ACCD) has announced the launch of the $40M Community Recovery and Revitalization Program (CRRP) application at the Fairbanks Museum in St. Johnsbury. This new program, proposed by the Scott Administration and passed by the Legislature through Acts 183 and 185, is funded through the American Rescue Plan Act (ARPA) to support capital investment projects that will assist Vermont’s economic recovery effort. CRRP’s application opening comes on the heels of the Capital Investment Program (CIP), a previous program that allocated $10 million for similar types of projects, approving another round of grants including a grant to Fairbanks Museum and Planetarium.
VHCB water quality grants available for Vermont farms
The Vermont Farm & Forest Viability Program, a program of the Vermont Housing & Conservation Board, has grant funds available for on-farm capital improvement projects that have a positive impact on water quality. Eligible farmers can apply for a Water Quality Grant, which provides $5,000 to $40,000 in funding. Applications are due by January 27, 2023. Viability staff are hosting the second virtual information sessions to answer questions on Tuesday, January 10 from 10am-12pm.
Repro and X Press merge
REPRO, a full-service printer located in Winooski has merged with X Press, a full-service printer located in Stowe, to better service their printing customers across Vermont. In order to be more cost efficient and effective X Press will relocate their business to REPRO’s facility in Winooski making deliveries to their customers in the Stowe area on Mondays, Wednesday’s and Fridays.
Vermont Federal Credit Union donates over $20,000
Vermont Federal Credit Union donated over $20,000 to variety of local charities and non-profit organizations in recognition of the “Giving Tuesday” movement. The charities selected include: Spectrum Youth Services in St. Albans, Enosburg Food Shelf, HOPE Holiday Shop, Addison County Parent Child Center, Pride Centers VT, Jenna’s Promise, Franklin County Humane Society, Vermont Children’s Museum, Vermont Adaptive Ski and Sports and Lamoille Community House.
Governor Scott and the Office of Racial Equity promote IDEAL Vermont
Governor Phil Scott and the Office of Racial Equity are promoting a new state initiative that encourages and supports municipalities across the state in their efforts to be more inclusive, equitable and welcoming. IDEAL Vermont, which stands for Inclusion, Diversity, Equity, Action and Leadership, officially kicked off in October with its first fourteen member towns and cities: Bennington, Brattleboro, Burlington, Essex, Fairfax, Hardwick, Hartford, Hinesburg, Orange, St. Albans, South Burlington, Richmond, Tinmouth and Winooski.
Vermont delegation supports locality pay for southeastern Vermont
Senator Patrick Leahy (D-Vt), Senator Bernie Sanders (I-Vt) and Senator-elect Peter Welch (D-Vt) have joined their New Hampshire counterparts in sending a letter urging a locality pay region be established for the White River Junction area of Vermont. Federal workers in Windsor and Orange Counties in Vermont, and Grafton and Sullivan County in New Hampshire, face gaps with their private sector equivalents and nearby Federal employees due to categorization as “rest-of-U.S.” Vermonters who work for the White River Junction VA and the U.S. Army Cold Regions Research and Engineering Lab have strongly advocated for the change.
Burlington to vote on return to ranked-choice ballot
Burlington city councilors has approved changes on how elections are conducted, as reported by Seven Days. One would allow mayoral, school board and election official contests to be decided with ranked-choice voting, which just played a notable role in the outcome of congressional races in Alaska and which Burlington at one time employed. The second change on the ballot would extend voting rights to noncitizens living in Burlington legally.
Virtual Workforce Support Sessions for Employers
Employers interested in recruitment, training, and retention resources have a new opportunity to connect with experts in a series of lunchtime learning sessions. Workforce Development Specialists from the Department of Economic Development, Department of Labor, and Vermont State Colleges (Vermont State University and Community College of Vermont) will cover: Who to contact for workforce programs and services; How to upskill incumbent workers or train new hires; Where to find labor market information like wage rates and projections; What funding may be available to help pay for training. Meetings will be held virtually on Thursdays from Noon to 1PM on December 1st, December 8th, and December 15th.
Fund will expand protection of community lands, honors conservation leader Morgante
A group of conservation advocates came together on November 19 to celebrate the creation of a new fund to conserve lands important to Vermont communities. The fund was established by Hinesburg residents in honor of conservationist Andrea Morgante who is a founding member of the Hinesburg Land Trust. For close to 40 years, Morgante has championed the conservation of roughly 3,000 acres in the town, including the recent expansion and conservation of the 1,125-acre Hinesburg Town Forest.
Major food distributor sued by three Vermonters
Three Vermont men are part of a requested class action lawsuit filed in US District Court in Burlington against Bimbo Bakeries USA Inc. and its distribution arm on claims they repeatedly failed to pay premium wages for work beyond 40 hours a week. Arthur Provencher of South Hero, Michael McGuire of Colchester and Ronald Martel of Essex maintain they are falsely classified as independent contractors by Bimbo and Bimbo Food Bakeries Distribution LLC. Bimbo has about 30 listed brand names, including Freihofer’s, Sara Lee, Thomas and Arnold, according to the company website.
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