Vermont Chamber Testifies on Impacted Tourism Industry

Amy Spear, Vermont Chamber Vice President of Tourism, testified this week in the House Committee on Commerce and Economic Development on the ongoing impact of pandemic related restrictions and the economic downturn. Amy briefed the Committee on many of the specific challenges facing tourism industry businesses, with a focus on lodging properties and restaurants, and advocated in support of the lodging and restaurant rescue package recently proposed by the Scott Administration. As written, the Administration’s proposal would provide $133 million in relief funds, including $23 million for businesses left out of relief programs created in June and $50 million for the hospitality industry. The Committee spent much of the week reviewing a draft bill that, if passed into law, would authorize the additional funds. You can watch the full testimony here.

Latest Business Relief Proposal Includes Vermont Chamber Priorities

Officials from the Agency of Commerce and Community Development (ACCD) testified in the House Committee on Commerce and Economic Development on the status of existing relief programs and on Governor Scott’s most recent economic relief proposal. Deputy Secretary Ted Brady, one of the witnesses from ACCD, forecast that relief dollars in existing programs would be drawn down to zero within the next three weeks. Deputy Secretary Brady went on to break down the latest relief proposal, explaining to the Committee that, if advanced by the Legislature, the $133 million proposal would be divided into four categories, including a $50 million Targeted Hospitality and Tourism Grant Program that would specifically serve industries most impacted by the pandemic, $23 million for an expanded business grant program designed for businesses left out of the initial State relief package, $10 million for economic development and marketing to promote Vermont tourism and encourage safe travel to Vermont, and a $50 million consumer stimulus buy local program.  In the period between the Legislature’s adjournment in June and the current legislative session, the Vermont Chamber advocated for the advancement of additional funds for existing relief programs and for a set-aside program that would serve industries most impacted by the pandemic. As the August and September legislative session unfolds, the Vermont Chamber will continue pushing for additional, meaningful relief to address the unprecedented hardship facing Vermont’s business community.

Local Chambers Call for Relief

Carol Lighthall, Okemo Valley Chamber of Commerce Executive Director, and Eric Friedman, Executive Director of the Mad River Valley Chamber of Commerce, testified in the House Committee on Commerce and Economic Development in support of a proposal to provide $1 million in relief to local chambers of commerce, many of which have seen decreases in revenue as a result of the economic crisis impacting their member-businesses around the state. The two chamber executives briefed the Committee on the many services local chambers continue to offer small businesses, explaining that in many cases chambers are waiving membership fees and offering technical support and advocacy resources to struggling businesses for free. Over the last several months, chambers of commerce have worked to ensure the Vermont business community is well represented and able to navigate the federal and state programs providing resources to COVID-19 impacted businesses.

VDTM Highlights $10 Million Marketing Proposal

The Vermont Department of Tourism and Marketing (VDTM) briefed members of the House Committee on Commerce and Economic Development on a $10 million proposal intended to amplify marketing to promote tourism and encourage safe travel to Vermont. VDTM Commissioner Heather Pelham explained to the Committee the funds would be used to support the long-term promotion of Vermont’s brand and to attract visitors from regions the Vermont Department of Health has deemed safe.

Over the 2020 Legislative Session, the Vermont Chamber led advocacy efforts for additional State marketing dollars, pointing out that Vermont falls far behind other states in New England in our investment in tourism marketing. In June, the Legislature provided additional funds to the VDTM for related purposes, and the Administration’s latest proposal would build upon the earlier investment to aid Vermont’s economy and strengthen our tourism industry in the future.

Act 250 Reform Remains in Limbo

The Senate Committee on Natural Resources and Energy continued discussions related to their latest Act 250 proposal. The current proposal under review includes encouraging provisions that would largely remove municipal areas of enhanced designation from Act 250 jurisdiction. If implemented, these changes would encourage sustainable economic development and aid in economic recovery from COVID-19 impacts. The current proposal also includes several concerning provisions that could significantly increase the scope of Act 250 jurisdiction, including sections related to forest fragmentation and rules that would bring newly constructed roads and driveways totaling more than 2,000 feet into Act 250 jurisdiction.

The Senate Committee on Finance also met to review fee structures related to Act 250 with a specific focus on a proposed section that would provide the Department of Fish and Wildlife the ability to bill applicants for costs of personnel and services expended by the Department on a major Act 250 permit. While this section does allow for the allocation of costs to be appealed to the Natural Resources Board by the applicant, the appeals process and the fee itself have the potential to increase costs related to Act 250.

The Vermont Chamber will continue working to ensure communities, both urban and rural, do not suffer negative economic impacts because of any final changes to Act 250.

Resource Roundup

• Enroll Your Business in Gift Card Program
  We are encouraging Vermont businesses to enroll now in the new Buy Local Vermont Gift Card Program intended to increase sales for local businesses. #BuyLocalVermont is a program created by the State of Vermont that uses CARES Act funding to aid Vermont businesses and residents struggling in the wake of the COVID-19 pandemic. The #BuyLocalVermont program promises to bring in the foot traffic needed to quickly increase sales for restaurants, retail stores, entertainment and performing arts venues, lodging, and tourism related businesses.
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• New Tourism Planning Tool Launched
  While the Vermont Chamber continues to push for much-needed relief for the hospitality industry, we have also been working to develop an improved directory on VermontVacation.com  to help position the industry positively during the trip planning process. Developed in collaboration with the Vermont Department of Tourism and Marketing with user experience at the forefront, the new directory is a planning tool with easy navigation and direct-booking capabilities for featured listings. Learn more about the new directory and explore the new tool on VermontVacation.com.
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• Vermont Futures Project Releases White Papers on Vermont Taxing Dilemma
  Like so many private businesses and non-profit organizations, the State of Vermont currently faces a deep budget deficit due to the onset of a global pandemic. The response to revenue losses due to COVID-19 will be long-lasting. The Vermont Futures Project believes that the time is now to take a broader look at our current tax structure and how it impacts Vermont’s economic performance for our long-term economic security and sustainability. This paper from The Vermont Futures Project addresses Vermont Taxing Dilemma: A Long-Term View.
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• The American Cancer Society of Vermont is Recruiting Community Leaders
  The American Cancer Society (ACS) of Vermont is recruiting male community leaders for their 2020 Real Men Wear Pink of Vermont. With the spread of COVID-19, breast cancer patients are more vulnerable than ever. Involvement is focused on making an impact so ACS can continue to conduct research and keep vital patient and caregiver resources available during this difficult time. To apply or nominate someone, connect with Heather Winther at heather.winther@cancer.org, 802.872.6325 or register for 1 of 2 Networking Sessions on September 3rd.

In Case You Missed It

• Vt. Chamber Government Affairs Director Testifies on Governor’s Budget Proposal
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• Vt. Futures: Now Is the Time to Rethink Taxes
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• #BuyLocalVermont Program Created by State of Vermont
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• Lawmakers Promise to Push for State College ‘Bridge Funding’ in State Budget
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• Durkee: Extended Road to Recovery for Commercial Real Estate

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Legislature Returns for Budget Session

The Legislature will return remotely on Tuesday to complete the unfinished three quarters of the State budget, make changes to existing COVID-19 related relief programs, and possibly turn to other perennial issues unrelated to COVID-19. As a result of budgetary uncertainties related to the pandemic, the Legislature adjourned at the end of June having only completed the first quarter of the budget. While much of that budgetary uncertainty still exists, over the next few weeks the Legislature will predominantly focus on completing the remainder of the State budget. Scott Administration officials have already begun briefing the Governor’s own budget proposal to appropriations committees in the Legislature. The Governor’s plan, which requires legislative approval, includes an additional $133 million in relief for businesses hardest hit by the COVID-19 related economic downturn.

There is currently $200 million remaining from the federal CARES Act, which originally provided Vermont with $1.25 billion in relief. While many legislators are opposed to using these funds for economic relief, choosing instead to withhold the $200 million in reserve in hopes it will be authorized for future state revenue replacement, the Vermont Chamber continues to argue that these funds should be used for direct economic relief purposes. Not employing these funds for relief efforts will result in increased rates of permanent business closures around the state, which will ultimately exasperate tax revenue shortfalls.

Changes to Grant Programs Announced

The Vermont Chamber supported the advancement of $176 million in economic relief grants in June. To date, State programs delivering those grants have provided more than $100 million to over 3,500 businesses. While a significant portion of the original funds remain, it is not for lack of need.  As a result of narrow eligibility criteria and the original caps on overall grant awards, many businesses were either ineligible for the relief programs or only able to receive relatively small allocations of relief. Most businesses in Vermont were not eligible for the relief programs under the original criteria as a result of either not having employees or not being able to demonstrate 50 percent loss of revenue relative to 2019 earnings. The Scott Administration worked to remedy some of the problems with eligibility criteria by allowing owner/employees who receive a W2 to apply and by raising the overall amount a business can receive from $50,000 to $150,000. The Vermont Chamber worked with the Administration to promote and advance both of these changes.

The latest economic relief package proposed by the Scott Administration also includes $23 million in additional grant funds for sole proprietors, new businesses, and businesses that sustained less than 50 percent losses. The Vermont Chamber advocated for adding additional funds to relief programs that would specifically target businesses left out of the initial grants. If implemented by the Legislature, this $23 million proposal would help achieve that goal. Additional changes, some of which require legislative approval, are needed. Currently, businesses are also limited to only 10 percent replacement of previous year earnings, an aspect of the relief programs many businesses are also finding problematic. During the upcoming legislative session, the Vermont Chamber will continue working with state leaders to address these problems, and to add additional funds to State relief programs for industries hardest hit by the pandemic, like lodging and restaurant entities.

Vermont Chamber Priority Lodging and Restaurant Relief Fund Proposed

Governor Scott’s recently released budget proposal for the remaining three quarters of the fiscal year includes a request for $133 million from Coronavirus Relief Fund (CRF) reserves currently sitting in the State’s coffers to be used for additional business relief grants. The proposal includes $50 million for the lodging and restaurant industries specifically. Since the beginning of the pandemic, the Vermont Chamber has communicated to state leaders the reality that Vermont’s lodging and restaurant industries have suffered disproportionately because of restrictions impacting occupancy and diminished visitor throughput. State economists recently quantified this in reports to legislative committees. The Governor’s proposal requires legislative approval and the Vermont Chamber will continue advocating for the advancement of these essential relief funds.

Governor’s Budget Proposal Includes More Childcare Funding

The Scott Administration’s budget proposal includes an additional $12 million for childcare resources. The funds would be drawn from federal relief money provided to Vermont in the CARES Act. The Vermont Chamber is supportive of efforts to improve childcare resources in Vermont and advocated for childcare resources at the federal level. Strengthening Vermont’s childcare apparatus is essential to maximizing workforce participation and improving the long-term economic health of Vermont.

Latest Relief Proposal Includes Additional Marketing Fund and Buy Local Campaign

Governor Scott’s latest economic relief proposal includes $10 million for marketing Vermont to visitors from regions deemed safe by the Department of Health. The Vermont Chamber has long argued that Vermont falls far behind other state’s in New England regarding state investment in tourism marketing. In June, the Legislature provided additional funds to the Vermont Department of Tourism and Marketing (VDTM) for related purposes, and the Administration’s latest proposal would build upon the earlier investment to aid Vermont’s economy and strengthen our tourism industry in the future. The Governor’s proposal additionally includes $50 million for a program that would provide Vermonters with $150 to spend at local businesses.

Governor’s Budget Plan Includes Funds for Broadband Buildout

With the ongoing connectivity crisis impacting thousands of households because of telehealth, learn- and work-from-home requirements, the Vermont Chamber is continuing to push for expanded broadband access to underserved communities. Over the last several months our team met with public and private stakeholders, school officials, and others to guide our advocacy on this issue.

In testimony delivered in the Senate by the Vermont Chamber in June, we highlighted the need for broadband connectivity in unserved Vermont communities. Currently, 23 percent of Vermont (69,899 business and residential locations) does not have access to broadband at 25/3 mbps – the service speed that defines broadband under federal law. This speed is also sufficient for most current learn- and work-from-home tasks. The Vermont Chamber is encouraging state leaders to expeditiously advance funding to provide broadband for households currently unable to work from home, learn from home, or receive telehealth services because of connectivity limitations.

In June, the Legislature advanced a connectivity package of $43 million, with much of those funds dedicated to building out internet access in unserved areas. Part of the Scott Administration’s recently proposed budget also includes an additional $2 million for the Public Service Department for Grant Distribution to Communication Union Districts (CUDs) for broadband buildout efforts.

Act 250 Reform Legislation Anticipated

Act 250 changes attached to a housing bill failed to advance before adjournment in June but are anticipated to resurface during the August/September session. Members of the Senate Committee on Natural Resources and Energy who originally added the amendment proposing the change to the housing bill reintroduced those changes in the form of an amended version of the Act 250 reform bill (page 6462) that was passed by the House in March.

The Vermont Chamber was encouraged by the advancement of uncontroversial provisions in the Senate’s earlier Act 250 proposal that would have largely removed municipal areas of enhanced designation from Act 250 jurisdiction. If implemented, these changes would encourage sustainable economic development and aid in economic recovery from COVID-19 impacts. Unfortunately, what was previously a widely agreeable bill expanded in late June to include several concerning provisions that could significantly increase the scope of Act 250 jurisdiction. The most recent changes advanced by the Senate Committee on Natural Resources and Energy include the addition of sections related to forest fragmentation and rules that would bring newly constructed roads and driveways totaling more than 2,000 feet into Act 250 jurisdiction.

The Vermont Chamber will continue working to ensure communities, both urban and rural, do not suffer negative economic impacts because of any final changes to Act 250.

Global Warming Solutions Act Remains Unfunded

H.688 creates the ability for a citizen to sue the State if it fails to reduce greenhouse gas pollution to not less than 26 percent from 2005 greenhouse gas emissions by 2025, not less than 40 percent from 1990 greenhouse gas emissions by 2030, and not less than 80 percent from 1990 greenhouse gas emissions by 2050. The legislation also establishes a council to develop necessary policy recommendations to achieve these goals. Unlike original drafts of H.688, the version advanced in June did not include funding to facilitate operation of the climate council. It is anticipated that legislative leaders will work to advance funding for the program when they return next week.

Resource Roundup

• Vermont Dept. of Tourism and Marketing Survey
  The COVID-19 pandemic has affected all aspects of the tourism economy in Vermont. To help the Department of Tourism and Marketing quantify the impact across the industry, from lodging to retail and restaurants to the arts, please participate in this survey. Having accurate impact data will help inform additional recovery strategies going forward. Responses are requested by Friday, September 4th.
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• Department of Defense Agency Provides Pre-Deployment Guidance for Vermont Employers
  Employer Support of the Guard and Reserve (ESGR) is a Department of Defense agency that recognizes outstanding support of reserve component servicemembers, increases awareness of the laws governing employment of reserve component servicemembers, and resolves conflicts through mediation. In response to a recently announced future deployment of Vermont National Guard personnel, ESGR has released guidance detailing steps that employers of National Guard soldiers and airmen can take to prepare for and support their employee’s upcoming deployed service obligation. For additional questions about employer obligations under USERRA, employers can contact Linda Fowler at linda.fowler10.ctr@mail.mil or by phone at (802) 338-4187.
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• Restart Vermont Marketing Stimulus Grant Program Launched
  Agency of Commerce and Community Development (ACCD) has announced the launch of the Restart Vermont Marketing and Stimulus Grant Program. The program will provide $500,000 of Federal Coronavirus Relief Funds as grants to organizations for efforts and activities related to economic recovery, consumer stimulus, marketing, or tourism projects to support businesses that have suffered economic harm due to the COVID-19 pandemic.
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• Dept. of Health Info on COVID Testing in Workplace
  The Department of Health has updated information regarding COVID-19 testing in the workplace. The Department of Health does not recommend requiring asymptomatic employees to test for COVID-19 or provide proof of a negative test prior to returning to work, unless that person is looking to end their quarantine period early. Learn more.
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• Vermont Chamber Producing Legislative Update Videos
  The Vermont Chamber will produce brief legislative update videos during the August/September session. Our first legislative update video will be distributed next week. Follow us on Facebook and Twitter for updates.

In Case You Missed It

• Grant Applications Show Lodging Industry Is Hardest-Hit Sector in Crisis
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• State Economic Recovery Grants Increased to $150,000
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• Weekly Unemployment Claims: VT Down, U.S. Up

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