Vermont Chamber Supports Continued Health Care Savings for Small Business

Vermont Chamber Supports Continued Health Care Savings for Small Business

S.54 will keep the small group and individual markets separate for the duration of the federal premium tax credit expansion through 2025. The Vermont Chamber, a successful leader on this issue, continues to support keeping the small group market separated from the individual market, and while the issue is momentarily addressed, cost-shifting questions beyond the next few years remain to be addressed. 

In testimony, the Vermont Chamber reminded members of the Senate Finance Committee that the small group market represents only 6% of the overall health insurance landscape. Amid economic uncertainty, legislators were also asked to consider the small business financial implications of re-merging the market and to work towards a plan that ensures they are not burdened with the full cost of holding the individual market harmless in 2025.   

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Data Privacy Proposal Could Result in Unintended Consequences on Small Business

Data Privacy Proposal Could Result in Unintended Consequences on Small Business

A data privacy bill that could cause costly and superfluous lawsuits against businesses is under consideration in the House Commerce and Economic Development Committee. As this proposal progresses, the Vermont Chamber will work to ensure the legislature has a comprehensive understanding of the potential impacts on the Vermont business community. Our advocacy will encourage legislators to thoroughly study and understand this complex issue and consider legislation passed in other states in which data privacy laws balance the protection of consumer privacy with manageable regulation on businesses.  

Attorney General Charity Clark testified on the need for data privacy legislation to give the Attorney General’s Office grounds for enforcement. Clark acknowledged concerns shared by the Vermont Chamber, that compliance for small companies could be very difficult, time-consuming, and costly. The Chamber has additional concerns that companies that own data will not be able to use it for purposes such as targeted advertising. Other business representatives have requested exemptions for financial institutions, healthcare research companies, and companies covered by HIPAA, or a working group to study the issue before making legislative changes. 

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Senate Finance Committee Takes Testimony on Employer Taxes

Senate Finance Committee Takes Testimony on Employer Taxes

The Senate Finance Committee heard testimony from the Joint Fiscal Office (JFO) on employer payrollbased taxes, such as State and Federal income tax, Social Security, Medicare, unemployment insurance, and workers compensation, and received a preview of proposals for new payroll taxes. The Vermont Chamber will testify next week on the total impact of millions in proposed taxes to ensure the committee has a thorough understanding of the cumulative impact of these measures on employers when considering implementing additional taxes and understand the need to value economic stewardship during a time of great uncertainty. 

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Immediate Action on Housing Required for Workforce Growth

Immediate Action on Housing Required for Workforce Growth

The demand for housing continues to be met with opposition from community and environmental advocates that want to discourage development and are denying housing opportunities to others. Kevin Chu of the Vermont Futures Project, Evan Langfeldt of O’Brien Brothers and former Vermont Chamber board member, and WeiWei Wang of the Vermont Professionals of Color Network all provided expert testimony on the need for the creation of more housing to ensure more people of all backgrounds can live, and work, in Vermont. While many of the policy areas outlined by the Vermont Chamber are been addressed through proposals in the Omnibus Housing Bill, equity remains central to the Vermont Chamber’s work to help shape this legislation. 

Chu, of the Vermont Futures Project, testified that Vermont needs more people, and more people need Vermont. He detailed the immediate need for the creation of more housing to ensure population growth can keep up with workforce demands, and that for an economically secure, sustainable, and equitable future, Vermont needs more people of diverse backgrounds to be able to move here. Langfeldt testified on the underlying reasons for rising housing costs and the lack of inventory and proposed opportunities for solutions that meet demand while addressing climate goals. Wang, of the Vermont Professionals of Color Network, also testified in support of strategic investments to create statewide housing opportunities and the need to address the homeownership gap for the fast-growing, but historically marginalized, BIPOC community in Vermont. 

The Vermont Chamber is collecting stories of businesses that have lost employees or prospective employees because of housing. If you are an employer who has experienced this, please complete this brief survey. 

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Economic Recovery Program Championed by Vermont Chamber Reaches Successful Conclusion

Economic Recovery Program Championed by Vermont Chamber Reaches Successful Conclusion

The VEDA Short-Term Forgivable Loan Program has been fully subscribed. The business relief program provided a total of $17.6 million of financial assistance to 177 businesses whose operations were harmed by pandemic-related economic impacts, such as restaurants, lodging properties, and special events vendors, who were forced to close or severely limit their operations. The average award granted by the program was $99,400. The remaining applications in the queue for review will allow VEDA to allocate the full $19 million closing out the program. This economic development program was successfully advocated for by the Vermont Chamber in the 2022 legislative session.  

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Vermont’s Only Business Incentive Program at Risk

Vermont’s Only Business Incentive Program at Risk

A bill that would effectively end the Vermont Employment Growth Incentive (VEGI) program is under consideration. Vermont Chamber members Caledonia Spirits, Chroma Technologies Lawson’s Finest Liquids, and Beta Technologies all testified in continued support of the VEGI program as an economic growth strategy and encouraged legislators to use the approaching sunset as an opportunity to review and modernize the program, rather than eliminate it.  

Since its inception in 2007, VEGI has incentivized the creation of 8,812 jobs, generating over $514 million in payroll and over $1 billion in capital investments. The current legislation would pause the program during low unemployment periods, which is not a reliable indicator of true economic conditions, and effectively end the essential program. Additional testimony in support of commonsense reforms instead of disbanding the program was provided by the Vermont Chamber to the House Commerce and Economic Development Committee, and is available here.  

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Paid Leave Fast-Tracked With 13 Weeks Leave and 100% Wage Replacement

Paid Leave Fast-Tracked With 13 Weeks Leave and 100% Wage Replacement

For the average-sized Vermont Chamber member, one employee on leave would require them to operate without 20% of their total workforce for a quarter of the year. The Vermont Chamber provided testimony this week on the Paid Family and Medical Leave Insurance Program, encouraging legislators to consider the current economic realities facing Vermont business owners, and any unintended consequences of vague language included in the bill. The bill is expected to be voted out of committee next week, leaving few days for the committee to evaluate the testimony received in recent weeks and address concerns on eligibility, process, and scope. 

As Vermont continues to face a significant workforce shortage and given the time and resources required to hire and train talent, the alternative of hiring a temporary replacement worker is a difficult, costly, and in many cases, an ineffective remedy. A payroll tax to employers, on top of the considerable cost involved in the loss of an employee for 12 weeks, would be an economically difficult imposition on many Vermont businesses. As goes the success of small businesses, so often goes the success of our communities. The strain that this proposal will place on their success is worrisome. Vermont Chamber testimony encouraged legislators to investigate the scope of this new program and seek a balance of providing a benefit with additional costs to both employers and their employees.  

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