Keurig owner snaps up Dr Pepper in $18.7 billion deal
Keurig is getting back into the soft drink business and changing its name as part of a new world order for consumer beverages. Texas-based Dr Pepper Snapple Group, Inc (NYSE: DPS) and Waterbury, Vermont-based Keurig Green Mountain, Inc have announced that Keurig will take control of the diversified beverage company for $18.7 billion in cash to create the new Keurig Dr Pepper. Dr Pepper is the latest acquisition by European consumer products giant JAB Holdings, which bought Keurig two years ago. The new KDP will boast a portfolio of iconic consumer brands and unrivaled distribution capability to reach virtually every point-of-sale in North America.
For now, operations and staffing will remain as is, but Keurig will once again be a publicly traded company. Location of the headquarters for the new company has yet to be decided. For now, Keurig Green Mountain will continue to operate out of all its current locations.
The CEO of Keurig Green Mountain, Bob Gamgort, will also lead the new KDP once the deal is consummated.
Scott signs bill to legalize marijuana
Governor Phil Scott has signed H511, An act relating to eliminating penalties for possession of limited amounts of marijuana by adults 21 years of age or older, into law. Governor Scott last year vetoed a legalization plan, but was open to a bill that addressed DUI and restricted access to marijuana by children, but putting in stricter consequences. A re-worked bill was finalized last fall and the governor agreed that he would sign it if it was signed off by the Legislature this session. Both the House and Senate approved the revised bill earlier this month, albeit without the support of many Republicans. Republicans want the state to take a wait-and-see approach to legalization, as several western states have legalized possession and even commercialization of pot. Vermont now becomes the first state in the US to legalize it through legislative process.
Hallquist to run for governor as Democrat
The CEO of Vermont Electric Cooperative is planning to run for governor as a Democrat. Christine Hallquist, 61, would become the nation’s first openly transgender, major-party candidate for governor if she were to win the Democratic primary. She has led the Johnson-based company since 2005. Hallquist, who went by David until 2015, lives in Hyde Park. Governor Phil Scott is expected to run for re-election.
St Michael’s College names Sterritt 17th president, first woman
Dr Lorraine Sterritt, a national leader in higher education with experience at some of America’s finest institutions, has been named the 17th president of Saint Michael’s College in Colchester. Sterritt will be the first woman to hold the position in the College’s history. Dr. Sterritt currently serves as president of Salem Academy and College in Winston-Salem, North Carolina.
Sterritt will assume her duties as president in July 2018.
Sterritt holds a bachelor’s degree and a master’s degree in French from Queen’s University Belfast, and a master’s degree and a doctorate in French from Princeton University. Prior to assuming the position at Salem, Sterritt served as dean for administration at Harvard College, and as a member of the faculty of arts and sciences. Prior to Harvard, Sterritt held positions as associate dean and associate vice provost and was a member of the faculty at Stanford University. Previously she had held positions at the University of Pennsylvania, Harvard and Princeton University.
Vermont unemployment rate falls to 2.8 percent
Vermont’s seasonally-adjusted statewide unemployment rate for December 2017 was 2.8 percent. This reflects a decline of one-tenth of one percentage point from the revised November rate. The national rate in December was 4.1 percent. As of the prior month’s preliminary data, the Burlington-South Burlington Metropolitan NECTA was tied for the ninth lowest unemployment rate in the country for all metropolitan areas. Overall, Vermont was tied for fifth lowest in the nation and New Hampshire was tied for second (2.6 percent).
Scott offers budget proposal with no tax or fee hike
Governor Scott outlined his FY2019 budget priorities in late January that reinforced his campaign goals from 2016 - growing the economy and the workforce, fighting opioid addiction, and not raising taxes or fees. The governor’s proposed budget ($3.9 billion) includes $82 million of increased spending over FY2018, which he said is below the average wage rate growth of 2.36 percent. The governor’s stated goal is to keep budget growth below the six-year rolling average of wage growth.
The governor announced a number of proposals to support elderly Vermonters, the elimination of state income taxes on social security benefits, and more training opportunities for seniors. He highlighted technical education as a priority and reiterated his goal of enticing more people to move to Vermont with a proposal to spend $3.2 million on a targeted marketing program. He announced environmental initiatives to reduce emissions from tailpipes and chimneys, proposed using $1.8 million in VW settlement money to create more electric vehicle charging stations and he urged farmers to turn manure into compost for use as a revenue generating export instead of a water pollutant.
Revenue forecast positive, if uncertain
The consensus revenue forecast prepared by economists employed by both the executive and legislative branches projected an increase in receipts for the General Fund, especially in regards to the vital Personal Income Tax. The economists also set targets for the non-dedicated components of the Transportation Fund, and the non-property tax components of the Education Fund. Economist Jeffrey Carr kicked off the meeting by saying that it was a “revenue forecast for the ages” due to the uncertainty associated with the impact of recent federal tax changes on state revenues. The initial analysis shows that General Fund revenues will increase $8.1 million in FY18 and $29.7 million in FY19. State revenues through the first six months of the fiscal year for all major funds were roughly two percent above targets. Some of the increase in General Fund revenues can be attributed to the accelerated estimated income tax payments by self-employed Vermonters.
Actual Personal Income Tax revenues for December surged and are running ahead of projections. General Fund revenues collected for the month of December totaled $139.62 million, $8.19 million above the consensus cash flow expectation for the month. At this midpoint in fiscal year 2018, the General Fund is $13.43 million ahead of the consensus forecast for the first half of the year. Of note, Personal Income Tax collections have exceeded year to date expectations by $9.85 million.
The Transportation Fund collected $22.29 million for the month of December, +$0.86 million ahead of its $21.44 million target. All components of the Transportation Fund were modestly above target for the month, except for the Gasoline Tax which was down slightly by -$0.73 million. Year to date, the Transportation Fund is ahead of its cumulative target by +$2.36 million.
The Education Fund collected $14.58 million for the month, -$0.67 million below the consensus target of $15.25 million. Year to date, the Education Fund is ahead of its cumulative target by $0.19 million. The fiscal year ends on June 30.
New income tax would cut property tax by third
Faced with a projected 7% increase in homestead property tax rates, the House Democratic leadership is proposing a new income tax that would reduce the education property tax. They also envision moving the sales tax out of the General Fund so it also could support the Education Fund.
An education income tax will be created. It will have progressive rates, with a zero rate for income below $47,000 and it will apply to adjusted gross income. It will include a mechanism to protect low-income homeowners and will maintain a progressive tax structure.
Unlike the property tax, the education income tax will be subject to wage withholding which will be an advantage for taxpayers. The education income tax will be fixed statewide, will not be affected by local spending decisions, and will replace income sensitivity.
The homestead education property tax will be adjusted by local spending decisions. Overall, it will be significantly reduced by an AVERAGE statewide of more than one-third. The impact in individual towns will vary depending on their local spending decisions.
Bond upgrade has saved Burlington $12.6 million
As Burlington Telecom heads to a new chapter in its brief history as part of new owner Schurz Communications, another chapter appears to be closing. A recent audit conducted on the City of Burlington has found that its improved financial performance, and subsequent bond rating upgrades, has resulted in the city saving $12.6 million. The financial problems suffered by Burlington Telecom and subsequently by the city as it tried to shore up the telecom with an unauthorized $16.9 million loan cratered the city’s bond rating and that of city-owned Burlington International Airport.
Sexual harassment bill gets wide support
A tripartisan coalition of House members, along with an Independent, announced comprehensive legislation dealing with sexual harassment in the workplace. While the initiative is starting in the House, Senators from both sides of the aisle expressed support for it. The governor already has initiated such training for state workers.
The bill will offer a way to make real change for every worker in Vermont, will remove the curtain behind which harassers have hidden their crimes and will offer a place workers can go to find the help they need to say to their harasser, ‘no thanks’ to unwanted sexual advances. H707 is designed to curb abuse, encourage women to file complaints and provide whistleblower protections to women who speak out about ongoing harassment in the workplace.
GMP to cut bills by $6 million via federal tax changes
In a filing with the Vermont Public Utility Commission, Green Mountain Power is seeking to lower bills for customers by $6 million. The benefit comes from federal tax law changes that reduce GMP’s corporate tax rate from 35 percent to 21 percent. This change will be retroactive and take effect January 1, 2018 at the start of GMP’s new rate year. The reduction will be applied starting in the February bill cycle and will be returned monthly throughout 2018 as a bill credit.
Vermont Gas customers receive $2.4 million cost reduction
Vermont Gas has announced that it will reduce 2018 customer costs by $2.4 million, the full benefit of December’s federal tax law changes. Vermont Gas has filed a notice with the Vermont Public Utility Commission to give customers a monthly credit on 2018 bills, starting February 1st and continuing through October 2018. Each of Vermont Gas’ 51,000 customers will receive a credit on their heating bill, based on usage, over the next eight months.
Study shows significant impact made on opioid addiction
An evaluation of the Care Alliance for Opioid Addiction, Vermont’s Hub and Spoke system of care, has shown that people in treatment for opioid addiction reported a 96 percent decrease in opioid use, and a 100 percent drop in overdose incidences, according to a new report from the Vermont Department of Health. The 185 page report details the findings of a study conducted in 2017 to better understand the impact that the addiction treatment services model has had on the lives of those in treatment and that of their families.
Kmart in Rutland to close in April
The Kmart at the Diamond Run Mall in Rutland Town will close sometime in April, according to a statement by the parent company of Kmart and Sears. It appears to be the only Vermont Kmart or Sears store scheduled to be closed in the latest round of store closings by the struggling retailer. It will close a total of 103 stores by this spring.
SIT to cut 30 staff positions in Brattleboro
The School for International Training in Brattleboro is about to undergo a major transition. SIT still will have its headquarters in Brattleboro, but according to its president, Dr Sophia Howlett, its educational programs will expand to the more than 30 countries where SIT has learning sites. SIT will no longer offer full-time graduate programs in Brattleboro. The emphasis will be shifted to developing a new, full-time, global master’s degree program that will instead use SIT’s overseas program centers. As a result of this change, up to 30 positions on the Brattleboro campus would be eliminated by the end of fiscal year 2019.
GMCB approves Epic $151.7M e-health record project
The Green Mountain Care Board (GMCB) has approved the implementation of a new electronic health record system (EHR) across four hospital affiliates of the University of Vermont Health Network, which it says is a significant step that will enhance the delivery of high quality care with instant access to a patient’s most updated medical information. The new system will replace a patchwork of programs that do not communicate across hospital boundaries, often a barrier to providing the highest quality and coordinated care when patients receive treatment in multiple care settings. The project will use products from Epic Systems Corporation and cost $151.7 million over a six-year implementation period.
UVM Health Network to relocate captive insurance to VT
The University of Vermont Health Network will be moving its captive insurance company to Vermont from Bermuda. The action comes as the result of a unanimous decision by the Board of Directors of VMC Indemnity Company, Ltd, the health network subsidiary that provides medical malpractice insurance coverage for its medical providers.
Governor Scott appoints Randy Brock to the Vermont Senate
Governor Phil Scott has announced the appointment of Randy Brock, of Swanton, to represent the Franklin District in the Vermont State Senate. Brock, a Republican, will replace Dustin Degree, who stepped down from the Senate last month to serve in the Scott Administration as special assistant to the Governor and director of workforce expansion.
Union Bankshares reports FY 2017 financial results
Union Bankshares, Inc (NASDAQ:UNB), based in Morrisville, has announced results for the three and twelve months ended December 31, 2017. Consolidated net income for the three months ended December 31, 2017 was $1.9 million, or $0.43 per share, compared to $2.3 million, or $0.53 per share, for the same period in 2016, and $8.4 million, or $1.89 per share, for the year ended December 31, 2017, compared to $8.5 million, or $1.91 per share, for the same period in 2016.
Six Rutland area businesses get Vermont Training Program Grants
Governor Phil Scott has announced that six Rutland County businesses have received a total of $696,797 in Vermont Training Program Grants from the Vermont Department of Economic Development to train 470 employees. The grants, which range from $12,800 to $281,889, will be used to provide training for employees specific to each company’s specialty and future growth goals.
Burlington School Board passes budget, typical tax going up $358
Burlington residents will have a school budget to approve on March 6. At a special board meeting on Tuesday, January 23, the Burlington School Board passed a budget recommendation. The recommended budget will increase education spending to $15,111.81 per equalized pupil, an increase of less than one percent (0.8 percent) over the last fiscal year. While the increase per child is very small, the state’s education funding formula means that the proposed budget could raise property taxes by 7.99 percent.
According to the District, the proposed budget will impact taxes on a $250,000 home by $358 per year. The increase in spending per pupil is below the threshold of 2.5 percent that was recently recommended by the state. However, because of a deficit in the state education fund, and a decrease in the city’s level of appraisal, even this modest spending growth results in a higher tax impact.
Vermont Life will not be sold
Vermont Life Magazine will remain part of state government. The Agency of Commerce & Community Development received nine bids last fall following a state request for proposal that solicited bids to privatize the 70-year-old publication. The magazine and associated calendars and products generate about $1.2 million a year in revenue. The promotional publication in recent years was running upwards of a $400,000 deficit and accumulated about $3 million in debt, but is now just breaking even. The Vermont Life team’s expertise will be integrated into the Commerce Agency beyond just the magazine.
Agencies upgrade UVM Health Network to ‘A’ bond ratings
The University of Vermont Health Network’s bond ratings have been upgraded by two of the nation’s leading bond agencies, an affirmation of the health network’s financial stability. S&P Global Ratings again upgraded the network’s bond rating, this time to ‘A’ status. Moody’s Investor’s Service also boosted the network’s rating to ‘A2,’ which is the equivalent of the S&P high mark. This will result in the UVM Medical Center’s interest rate dropping about .5% and Network affiliates dropping about 1%.
Credit agencies affirm ‘A’ rating for D-HH, upgrade outlook
Two major credit rating agencies have affirmed their “A” rating for Dartmouth-Hitchcock Health (D-HH), with an upgrade of the credit outlook from both services. FitchRatings (Fitch) has affirmed its “A” rating, and has upgraded its credit outlook to “positive” for D-HH. Meanwhile, Standard & Poor’s has affirmed its “A” rating and improved its outlook for D-HH from “negative” to “stable.”
Macy’s to close Burlington location
Macy’s department store is closing and the building has been bought by the redeveloper of the adjacent Burlington Town Center Mall. The Macy’s location is not technically part of the $225 million redevelopment of the mall off Church Street, but will likely be demolished and repurposed to enhance downtown redevelopment.
North Hartland Tool expanding Vermont plant
North Hartland Tool Corporation (NHTC), manufacturer of precision gages and fixtures, will expand its manufacturing facility located in North Hartland. The building expansion will allow for new equipment and software incorporating the latest “lights out” technology. With these updates, the company will increase its hours of manufacturing and workforce to meet the growing demands in the design and manufacturing of precision instruments and aerospace tooling.
New Ikon ski pass makes for Epic competition in Vermont
The raucous ski industry continues to provide skiers across Vermont and across North America with more collective ski pass options, as rivalries intensify. The new owner of Stratton has joined forces with the owner of Killington (Powdr) and others to offer the Ikon Pass. Alterra Mountain Company of Denver has announced that the ski companies have joined together to offer skiers and riders the pass to unite 12 destinations from Alterra Mountain Company and 11 premier destination partners. Alterra, which now owns Stratton and Quebec neighbor Tremblant, was formed on January 11, 2018, by investors which own Aspen (Colorado) and Squaw Valley (California). Still separately managed, Aspen and its resorts will be a partner in the Ikon Pass. In another coup, Alterra also announced that superstar skier and Burke Mountain Academy graduate Mikaela Shiffrin would be both an investor in Alterra and a promoter of the Ikon Pass.
BED to buy power from Bellows Falls hydro
The Burlington Electric Department has entered into a power purchase agreement (PPA) with Great River Hydro, LLC for renewable hydroelectric power from Great River Hydro’s Bellows Falls hydroelectric facility on the Connecticut River with back-up power available from both Great River Hydro’s Vernon and Wilder hydro facilities. The two-year agreement, which commenced on January 1, 2018, will deliver 7.5 megawatts of Vermont-produced electricity to Burlington Electric’s 100 percent renewably-sourced portfolio.
GMP doubles its carbon reduction goals for 2018
Green Mountain Power (GMP) has set an ambitious goal for carbon reduction in 2018 and beyond. The goal is to partner with customers to drive down costs and eliminate more than 8,000 metric tons of carbon emissions per year using clean energy for the next two decades. This will result in eliminating more than 160,000 metric tons of carbon emissions and combined with past reductions is the equivalent of removing nearly 3,000 cars from our roads each year for the next 20 years.
VNA completes $7.1M McClure Miller VNA Respite House capital campaign
The Visiting Nurse Association of Chittenden and Grand Isle Counties (VNA) has announced the recent completion of its McClure Miller VNA Respite House capital campaign. Begun in March 2016, the capital campaign successfully raised $7.1 million dollars to fund construction of the larger, state-of-the-art hospice residence in Colchester. McClure Miller Respite House is the only Medicare-certified residential hospice in Vermont.
Killington becomes largest EV charging hub in New England
Killington Resort, the largest ski and snowboard resort in Eastern North America and a POWDR company, is now New England’s largest electric car charging hub with a total of 45 electric vehicle (EV) chargers throughout the resort’s properties. As a part of POWDR’s Play Forever sustainability efforts Killington Resort and Pico Mountain added additional electric vehicles chargers throughout Killington Resort and Pico Mountain. EV charges were installed across the resort at the Sykeship Base Area, Snowshed Base Area, Snowshed Upper Parking Lot, K-1 Base Area and Pico Mountain Base Area for a total of 45 electric car chargers.
Twinstate and FirstLight partner to expand services
As a benefit to customers all over the Northeast Region, Twinstate Technologies has partnered with FirstLight Fiber out of Albany, New York to broaden products and services. FirstLight, a leader in fiber-optic data, Internet, data center and voice services has become a tech giant throughout the Northeast for the past several years, stretching from Western New York to Vermont to Eastern Maine and as far North as Montreal to Southern New York State and New York City.
Nemerov to give the commencement address at UVM
Alexander Nemerov, chair of the Art and Art History Department at Stanford University, who writes frequently on the importance of the humanities in contemporary life, will give the commencement address at the University of Vermont on May 20. Nemerov is a UVM alumnus who graduated Phi Beta Kappa in 1985 with degrees in Art History and English. He received an honorary doctorate degree from the university at UVM’s May 2017 commencement.