Vermont Business Magazine
(Roundup of news from the last month)
Governor Scott signs $9.1 billion budget into law
Governor Phil Scott has signed the $9.1 billion 2025 budget “Big Bill” into law. His signature was expected. I appreciate that this budget makes important affordability investments – most notably the $77 million general fund transfer to the education fund to help stabilize property taxes this year, and $13.5 million in much needed, targeted tax relief for young families, lower income, working Vermonters and seniors on fixed incomes.
Scott signs property tax bill into law with 1.1% increase
Governor Phil Scott signed into law the property tax rate “yield bill,” H.491. The average increase in property taxes this year is 1.1%. Last year’s increase was 13.8%. While costs have come down this year, the Legislature used $77.2 million in surplus funds from the General Fund as a one-time fix for FY2026, which begins this July 1. Before the session began, the projected average property tax increase was 5.9%.
Vermont’s unemployment rate rose one tenth to 2.7% in April
The Vermont Department of Labor reported that the seasonally adjusted statewide unemployment rate for April was 2.7 percent. This reflects an increase of one-tenth of one percentage point from the prior month’s revised estimate. The Labor Force and the number of Employed both fell, while the number of Unemployed increased slightly. The civilian labor force participation rate was 65.1 percent in April, a decrease of two-tenths of one percentage point from the prior month’s revised estimate. Vermont now is tied for the third lowest jobless rate in the US, after being second lowest for many months. Vermont is tied with Montana and is below South (1.8%) and North Dakota (2.6%).
$30.2 million from Department of Transportation for 2024 flood damage reimbursements
U.S. Senator Peter Welch (D-Vermont) has announced that the Department of Transportation’s (DOT) has allocated $30.2 million in new emergency relief funding to the Vermont Agency of Transportation and the U.S. Fish and Wildlife Service to help Vermont communities impacted by the July 2024 floods. The funding, allocated through DOT’s Federal Highway Administration Emergency Relief Program, will reimburse the state for costs associated with repairing roads, culverts, headwalls, bridges, and trails.
GMCB receives 2026 rate increase requests: Blue Cross 13.7%, MVP 7.5%
The Green Mountain Care Board has received the 2026 individual and small group health insurance premium rate filings from BlueCross and BlueShield of Vermont and MVP Health Plan. Blue Cross Vermont requested an increase of 23.3% and MVP requested a 6.2% increase in the Individual Market, while in the Small Group Market, Blue Cross requested a 13.7% increase and MVP a 7.5% increase. The Individual Market rates will be impacted by a potential loss of federal tax credits. The filings mark the beginning of a multi-month public review process led by GMCB, during which GMCB hears from its actuaries, the carriers, the Health Care Advocate, the Department of Financial Regulation, and the public. Final decisions are expected to be issued in August.
Deaths from opioid overdose declined significantly in 2024
New data from the Vermont Department of Health shows a significant decline in opioid overdose deaths last year. According to the newly released Fatal Opioid Overdoses Among Vermonters Report, 183 Vermonters died from an opioid-related overdose in 2024, a 22% decrease from 2023 when 236 people died. This marks the second consecutive year of a decline in overdose deaths, after a slight drop in 2023.
Burke Mountain completes sale to Bear Den Partners
Employees, pass holders, condo owners, residents and frequent visitors who stuck with this mountain through nine years of limbo, you are rock stars. You made it. For the first time in nearly a decade, Burke Mountain isn’t the central player in an international investment scandal. But who’s counting, right? Your staying with us is a testament not just to your patience but also to the strength of this community and this region. What is a community? It’s not a tagline or slogan. It’s knowing your neighbor will pull you out of a ditch in a snowstorm or share their generator when the power goes out. It’s standing by someone when they’re down. Through the last decade, you, the staff, guests and pass holders stood by Burke Mountain when it was down. That’s community. That’s the soul of skiing, and that’s Burke.
City of Burlington to layoff 18 workers in budget crunch
Burlington Mayor Emma Mulvaney-Stanak has announced that the city will reduce its workforce by 25 positions, which will result in 18 workers being laid off. While the budget gap at $8 million for the new fiscal year is far smaller than the $14.2 million gap for FY25, the ability to balance the budget is far more difficult this time. She noted that city taxes increased in FY23 by 6%, FY24 by 6%, and FY25 by 11%. The City has grown unsustainably between FY15 and FY24, adding 98 FTE positions funded by general operating dollars for a total of just over 500 General Fund FTEs today. This growth includes about 37 positions which were created with one-time funding sources (federal or state grant or pandemic relief funding) and had no long-term sustainable funding mechanism identified. She said the city charter is outdated and does not allow property taxes to support expenses in a fair and predictable way for residents and government.
Sixty-Five permanently affordable apartments open at Fort Ethan Allen in Colchester
Champlain Housing Trust and Evernorth celebrated with community members, state officials, and public funders at Fort Ethan Allen in Colchester, marking the completion of 65 new permanently affordable apartments. The apartments, across three buildings, were completed in phases over the past five months. The 65 apartments are a mix of one-bedroom and studio apartments, which are lacking in the neighborhood. Eighteen will come with rental subsidy committed by the Burlington Housing Authority, capping rent at 30% of the renter’s income. CHT is also renting fifteen of the apartments to people who had been experiencing homelessness.
Governor Scott: Education bill not good enough, yet
Governor Phil Scott on May 23 issued the following statement: “In January, I proposed a bold plan to reform our public education system, focused on improving quality and opportunities for our kids, stabilizing our funding system, and providing taxpayers with much needed relief. I have been clear: we cannot adjourn this legislative session without a bill that sets us on the course to accomplish these goals, and I’ve appreciated the constructive conversations we’ve had with both chambers to date. While the Senate moving this bill forward today is an important procedural step, I still cannot accept either the House or Senate versions. I do however remain optimistic about finding a path forward with the committee of conference.”
House passes health care reform bill
The Vermont House of Representatives voted to pass S.126, an act relating to health care payment and delivery system reform, on a tri-partisan vote of 99-38. The legislation is a landmark health care reform bill aimed at reducing health care costs, improving patient access, and ensuring long-term sustainability for Vermont’s health care system. S.126 tackles long-standing concerns with Vermont’s fragmented and increasingly expensive health care system by moving toward a system that rewards quality, access, and sustainability. The bill authorizes the Green Mountain Care Board to implement reference-based pricing to rein in commercial health care costs and requires a strategic redesign of how care is delivered across Vermont.
Treasurer Pieciak’s bi-partisan medical debt relief plan signed into law
On May 15, Governor Phil Scott signed into law S.27, a proposal brought forward by Treasurer Mike Pieciak to eliminate up to $100 million in medical debt for middle- and working-class Vermonters and remove medical debt from credit scores. The bill passed the Legislature on a unanimous, bipartisan vote and requires no additional taxes or fees. Individuals who carry medical debt are less likely to seek care when they need it, leading to worse health outcomes, more expensive care in the future, and missed time at work. A 2021 survey by the Vermont Department of Health found that 85,000 Vermonters delayed or avoided care due to fear of medical debt.
Scott signs updated shield bill, protects patients and providers of abortion and gender care
Facing ongoing federal attacks on sexual and reproductive health care providers, Vermont lawmakers have taken bold, decisive action. With Governor Scott’s signature, S.28 is now law, reinforcing Vermont’s steadfast commitment to protecting both patients and providers of legally protected health care, including abortion and gender-affirming care. Scott has signed S.28 into law. S.28, An act relating to access to certain legally protected health care services.
Governor Scott issues Executive Order to pause electric vehicle sales requirements
Governor Phil Scott has issued Executive Order 04-25, directing the Agency of Natural Resources to pause enforcement of a multi-state plan requiring vehicle manufacturers to meet certain electric vehicle (EV) sales targets for passenger cars and medium- and heavy-trucks. “I continue to believe we should be incentivizing Vermonters to transition to cleaner energy options like electric vehicles. However, we have to be realistic about a pace that’s achievable. It’s clear we don’t have anywhere near enough charging infrastructure and insufficient technological advances in heavy-duty vehicles to meet current goals,” said Governor Scott. “We have much more work to do, in order make it more convenient, faster, and more affordable to buy, maintain and charge EV’s. When we do, it’s more likely everyday Vermonters will make the switch.”
Vermont gets $23 million from ongoing settlement with tobacco manufacturers
Attorney General Charity Clark has announced that Vermont received a total of $23,132,483.92 from tobacco manufacturers under the tobacco Master Settlement Agreement (MSA). Annually, Vermont receives monies from tobacco manufacturers from the MSA, which resolved the State’s lawsuit filed in the 1990s. The settlement funds are credited to the State’s Tobacco Fund, and the legislature determines how they are spent. To date, more than 45 tobacco companies have joined the MSA. As a leader in this effort, Vermont has received more than $817 million from the tobacco companies since 1998.
Breeze debuts seasonal service to Charleston from Burlington
Breeze Airways, the premium leisure carrier connecting underserved cities across the U.S., today debuted new nonstop seasonal service from Leahy Burlington International Airport BTV to Charleston, S.C. with fares starting from $59 one-way. The new route will operate twice weekly on Mondays and Fridays. Breeze began flying in Burlington in February 2024 and has since grown to five nonstop routes to popular destinations like Orlando, Raleigh-Durham, and Tampa.
Vermont Law and Graduate School gifted $10 million for environmental work
A testament to its global impact in environmental law and policy, Vermont Law and Graduate School has received its largest-ever donation — $10 million. An anonymous international foundation dedicated to solving environmental challenges will award VLGS this impactful gift over a three-year period to reinforce and grow the school’s expertise in agriculture and food systems and animal protection policy. In addition, the funding will advance a new aquaculture project. With a focus on research and advocacy, this endeavor aims to examine and tackle the environmental implications of aquaculture.
Vermont State University President Dr. David Bergh announces 2026 retirement
Vermont State University (VTSU) President Dr. David Bergh has announced his intention to retire at the end of the next academic year and the conclusion of his current contract on June 30, 2026. His retirement will mark the culmination of a nearly 30-year career in higher education, including over two decades of dedicated service to the Vermont State Colleges System. Bergh took the helm of Vermont State University (VTSU) as interim president following the planned departure of current chief executive and former Vermont Agency of Human Services Secretary Michael K Smith in September 2023. Smith himself was thrust into service after Parwinder Grewal tendered his resignation and left in April 2023 before the new university formally began operating on July 1, 2023. Whoever follows Bergh will be the fourth VTSU leader in just over three years.
$1.75M grant to boost organic dairy sales in schools, youth programs
The Northeast Dairy Business Innovation Center (NE-DBIC) announces a new grant made possible through the USDA’s Commodity Credit Corporation. With total funding of $1,750,000, the Organic Dairy Product Promotion (ODPP) Grant will make it easier for youth-based centers to serve regionally produced USDA-certified organic dairy products to students across the Northeast.
US Justice Dept files complaints against Hawaii, Michigan, New York and Vermont over climate actions
The US Justice Department has filed complaints against the states of New York and Vermont over their “climate superfund laws.” In separate actions, the Justice Department filed lawsuits against the states of Hawaii and Michigan to prevent each state from suing fossil fuel companies in state court to seek damages for alleged climate change harms. President Trump recently directed Attorney General Pamela Bondi to take action to stop the enforcement of state laws that “unreasonably burden domestic energy development so that energy will once again be reliable and affordable for all Americans.” These lawsuits advance Trump’s directive in Executive Order 14260.
Over $3 million in resilient food systems grants awarded in Vermont
The Vermont Agency of Agriculture, Food and Markets (VAAFM) and the U.S. Department of Agriculture (USDA) are pleased to announce the Resilient Food Systems Infrastructure Program (RFSI) awards in Vermont. This program targets two important segments of the Vermont food system; Infrastructure and Equipment. Six Vermont food system organizations are receiving $2.1 million in infrastructure grants for larger-scale projects that extend capacity and infrastructure for aggregation, processing, manufacturing, storing, transporting, wholesaling, or distribution of locally produced food.
Burlington Subaru and Burlington Hyundai dealerships sold to Hoffman Auto Group
802 Cars has sold its Burlington Subaru and Burlington Hyundai dealerships in Vermont to Hoffman Auto Group. Both dealerships rank #1 in Vermont for their respective franchises and boast strong customer loyalty. In addition to Burlington Subaru and Burlington Hyundai, 802 Cars also owns 802 Honda, 802 Toyota and 802 Subaru – all located in Berlin – which will be retained by owner Dave Birmingham post-transaction.
Two Springfield companies receive VEGI awards for expansion projects
Springfield Regional Development Corporation (SRDC) and the Vermont Economic Progress Council (VEPC) are pleased to announce two recent Vermont Employment Growth Incentive (VEGI) awards to Springfield companies to support their planned expansion projects. Vermont Packinghouse received Initial approval for an Estimated Incentive of $576,909, including a Labor Market Area (LMA) enhancement, given the location in an economically distressed area of the state.
Citizens Business Conditions Index cooling but steady in Q1
The national Citizens Business Conditions Index (CBCI) held steady at 50.9 in the first quarter of 2025. The reading is generally consistent with the 4Q24 level of 51.0, suggesting that business conditions remained positive to start the year despite growing macroeconomic uncertainty throughout the period. The Vermont index was 52.5 for the quarter, outpacing the national index. The readings above 50 indicate that business conditions were positive in the first quarter, supported by solid corporate revenue trends as Citizens’ clients continued to perform well during the period.
Stoweflake Resort goes to foreclosure auction on June 14
Thomas Hirchak Company will conduct a foreclosure auction on June 14 at 11 am for the Stoweflake Mountain Resort and Spa at 1746 Mountain Road in Stowe. The auction, initially scheduled for May 15, comes four years after the family-owned resort and spa, famous as a wedding venue, was sold by the Baraw family in December 2021 to a New York firm. It was again sold in April 2024 to a Massachusetts-based firm, which owns a handful of other Vermont hotels. The total amount owed is over $15 million. The Superior Court, Lamoille Division (Hyde Park) ruled in March that the property can be foreclosed and can be sold to the highest bidder at a public auction.
Tax revenues in March down overall as GF exceeds targets
Secretary of Administration Sarah Clark released Vermont’s revenue results for March 2025. Only the General Fund exceeded its monthly consensus cash flow target, corresponding to the annual consensus forecast update as adopted by the Emergency Board at its January 2025 meeting. The Transportation Fund and Education Fund both failed to achieve their respective targets. The consumer- and tourism-related taxes all missed their targets (Meals & Rooms (-1.3%), Sales (-0.4%), Gasoline (-7.1%)), which could be a variance in timing for the winter tourism season winding down, as their year-to-date numbers are all ahead of targets. Meanwhile, the Personal (+1.7%) and Corporate Income (+6.9%) taxes had positive results in support of the General Fund.
Judge signs off on Woodstock Foundation settlement
A state judge has approved an out-of-court settlement involving the Woodstock Foundation Board of Directors and the former longtime chair and vice chair of the board over their claims they were improperly removed and that the Woodstock Inn & Resort and the Billings Farm & Museum had been mismanaged. Judge H. Dickson Corbett, without written comment, signed his name to the bottom of the proposed settlement filed in Vermont Superior Court in Woodstock. The move appears to end the monumental legal battle that has mesmerized the Woodstock area for the past 2.5 years.
USDA Announces $26.5 Million in Grant Funding to Support Local Food Systems
The USDA’s Agricultural Marketing Service just opened three major grant programs designed to rebuild local food systems, expand supply chains, and strengthen market access for producers, food hubs, and community partners.
WA woman connected to Zizians fired bullet that killed Vermont border agent, report says
The Seattle Times reported that a woman charged in the January killing of a U.S. Border Patrol agent during a Vermont traffic stop fired the bullet that struck him in the neck, authorities say in a new report. Another agent fired back during the Jan. 20 stop, wounding Teresa Youngblut and killing her companion, Felix Bauckholt, the U.S. Customs and Border Protection said in a statement.
Federal government cancels Vermont’s Digital Equity Grant
Vermont Community Broadband Board (VCBB) has been notified that Vermont’s $5.3 million Digital Equity Capacity Grant has been canceled as of May 9, 2025. The grant was being used to implement Vermont’s Digital Empowerment (DE) Program. The DE Program potentially impacts 95% of Vermonters. The Digital Equity Act, passed by a bipartisan majority of Congress, aims to help people who have barriers to accessing the internet, including people living in rural areas, people who are 60+, people with a low-income, veterans, people with disabilities, those with language barriers, members of racial and ethnic minorities, and incarcerated people.
Trial begins for cutting 300 trees in national forest, ties to Essex County case
A Windham County man is scheduled to go on trial in federal court this week on charges he illegally cut down at least 299 trees in Stratton that were designated for protection as part of the Green Mountain National Forest. Raymond Otto Tarbell, 66, of Townshend has waived his right to a jury trial and will have his criminal case heard by Federal Magistrate Judge Kevin Doyle in Burlington. Tarbell was linked in 2012 to an improper heavy cut on property owned in Ferdinand in Essex County in the Northeast Kingdom, records show. He and a partner paid more than $23,000 to the state of Vermont to help settle the case, Vermont Business Magazine reported at the time.
‘Adapt and Thrive’ drives Southern VT Economy Summit
Over 300 Southern Vermont community and business leaders, representing 160 different organizations from across the state and region, joined hosts Brattleboro Development Credit Corporation (BDCC) and Bennington County Regional Commission (BCRC) at Mount Snow in Dover, VT, on May 20 for the 8th annual Southern VT Economy Summit. The theme of this year’s Summit, “Adapt and Thrive” was centered around the findings of the 2024 SoVermont Zone Comprehensive Economic Development Strategy (CEDS), which stresses the need for our region to foster a shared culture of adaptation in the face of rapid economic, technological, and environmental change.
Burlington pushes through $16,100 raise for mayor’s wife, as 25 city workers are laid off
Burlington Public Works Director Chapin Spencer was busy recently pushing for more than a $16,100 a year pay raise for the wife of Mayor Emma Mulvaney-Stanak as the city’s CEO was contemplating laying off about two dozen municipal employees due to a projected $8 million budget shortfall. Spencer, in a memo to the Burlington Board of Finance and City Council on April 14, argued to give Megan Moir, the director of water resources, an annual pay increase from $124,681 to $140,843.
Rob Katz to return as CEO of Vail
Vail Resorts, Inc. (NYSE: MTN) announced Tuesday that Rob Katz, current Executive Chairperson and former Chief Executive Officer, has been appointed CEO of the company. Katz, 58, succeeds Kirsten Lynch, who has stepped down as CEO and as a director of the Board. Lynch will remain in an advisory role to the company for an interim period to facilitate a smooth transition. Vail owns three resorts in Vermont: Mount Snow, Okemo and Stowe Mountain Resort. The news that Lynch was removed and former CEO Katz brought back sent Vail shares higher Wednesday nearly 9% to about $165, even as the broader markets waivered. Still Vail is down year-to-year (52-week range, 129.85 - 199.45). When Lynch took over in 2022, shares had been trading near $350.
Switchback Spirits wins Gold at 2025 San Francisco World Spirits Competition
Essential Vermont Malt Whiskey, part of the Switchback Spirits lineup from Switchback Brewing Co., has been awarded a Gold Medal at the 2025 San Francisco World Spirits Competition (SFWSC), the most prestigious and influential competition in the global spirits industry. Now in its 25th year, the 2025 SFWSC drew over 5,000 entries from around the world, making it one of the largest and most competitive editions to date. The results were officially announced, celebrating products that exemplify excellence, quality, and distinction. Judges praised Essential Vermont Malt Whiskey.
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