House Committee Advances Economic Relief Grants
Senate Considers House-Approved Brownfield Funds
Scott Administration Proposal Would Prevent Unemployment Insurance Cost Hike
Tourism Marketing Funds Advance
Bill Would Provide Liability Protections for Agritourism Industry
House Bill Would Ease Development Hurdles in Downtowns
Resource Roundup
In Case You Missed It
House Committee Advances Economic Relief Grants
The House Committee on Commerce and Economic Development approved the Scott Administration’s proposal to provide $10 million for economic recovery grants for businesses that suffered an economic loss because of the pandemic and were left out of or did not apply for earlier relief programs. The Committee modified the original proposal from the Administration, including by more explicitly defining eligibility criteria and capping the amount a business can receive at $150,000. The legislation would prioritize businesses that have not received any COVID-19 related assistance from State or federal sources, with eligibility expanding after an initial 30-day period. The grant proposal passed the Committee by an 11-0 vote and was added to a COVID-19 relief package the House Committee on Appropriations is expected to complete Friday afternoon. Leadership of the House Committee on Commerce and Economic Development will also be presenting the bill to the Senate Committee on Economic Development on Tuesday morning. The Vermont Chamber previously testified in support of this funding and worked with impacted businesses to communicate to the Legislature why a business may have not been eligible for past relief programs.
The Committee also heard testimony from the Agency of Commerce and Community Development (ACCD) on a broad economic development bill. Included in the bill are:
- A Tourism Marketing Promotion Fund, within the Department of Tourism and Marketing, funded in future years with excess rooms and meals revenues
- A Buy Local Consumer Stimulus Program to re-establish and increase local consumer spending in Vermont to support small business and communities recovering from pandemic
- A New Vermont Employee Incentive Program to award incentive grants to qualifying new employees who relocate to Vermont
- Additional funds and changes to the Better Places Program within the Department of Housing and Community Development
- Funds to enhance technical service provided to assist Vermont-based technology companies in applying for federal small business innovation research and small business technology transfer grants
- Eligibility expansion and additional funds for the Downtown Tax Credit Program
- Support for a Canadian foreign trade representative firm to generate foreign direct investment (FDI) leads and prospects for the State in the areas of aerospace, biotechnology, and renewable energy, and provide Vermont with statewide representation in Québec.
The Committee is expected to continue review of the economic bill over the next few weeks.
Senate Considers House-Approved Brownfield Funds
The Senate Committee on Economic Development, Housing and General Affairs heard testimony from officials at the Agency of Commerce and Community Development (ACCD) highlighting some of the Scott Administration’s economic development budget proposals. Among issues discussed was $25 million proposed for brownfield remediation. “Brownfield” is a term that refers to properties where expansion, redevelopment, or reuse may be complicated by the release or threatened release of hazardous material. The liability associated with reuse of brownfield properties makes the redevelopment of these sites particularly costly. Brownfields are found throughout Vermont and are often historically significant to communities, considering their common past uses as manufacturing centers and places of employment. Redevelopment of brownfields often also helps localize development in municipal centers, reduces sprawl, and lessens liability for the State – which can end up taking control of the properties when remediation costs become unsustainable to the private sector or municipalities. The proposed funds would be directed toward a program that allocates money to sites that have the greatest environmental and economic impact for all 251 communities in Vermont. ACCD and the Department of Environmental Conservation (DEC) would jointly administer the funds.
The House Committee on Commerce and Economic Development recently advanced the brownfield proposal, with $14 million directed at DEC for assistance with environmental cleanup and related costs and $11 million directed to ACCD for additional financial supports. The measure was included in the Committee’s budget request to the House Committee on Appropriations. The Vermont Chamber fully supports the Administration’s proposal for brownfield remediation, as it would represent one of the largest investments of its kind in state history and would greatly benefit Vermont’s environment and the long-term economic health of our communities.
Scott Administration Proposal Would Prevent Unemployment Insurance Cost Hike
The Senate Committee on Economic Development, Housing and General Affairs reviewed a proposal by the Department of Labor that, if implemented, would enact a one-year freeze to both the taxable wage base and the tax rate schedule that determines employer contributions to the Unemployment Insurance Trust Fund (UITF). The Department’s proposal would also limit increases to the UI tax rate schedule in subsequent years to a maximum of a two-schedule jump. The UI tax rate schedule is currently set at the lowest contribution level, schedule one. The Department’s proposal would provide considerable cost savings for employers in the short term, while also ensuring the UI Trust fund remains solvent in future years. Mathew Barewicz, Director of Economic & Labor Market Information, briefed the Committee on the impact the proposal would have on the UI Trust Fund, while also comparing the impact to a separate proposal created by the Committee that would raise the weekly UI benefit by 20 percent. The Vermont Chamber previously testified in support of limiting cost increases related to employer contributions to the UITF, and we fully support the Department’s current proposal to limit costs for employers. If you have questions about unemployment insurance, please contact Vermont Chamber Government Affairs Director Charles Martin.
Tourism Marketing Funds Advance
Heather Pelham, Commissioner of the Vermont Department of Tourism and Marketing (VDTM), briefed the Senate Committee on Economic Development, Housing and General Affairs on the Scott Administration’s proposal to boost tourism marketing for the state. As offered by the Administration, the proposal would provide $1 million in seed funding for a tourism and marketing fund that is tied to rooms and meals tax performance. The House Committee on Commerce and Economic Development recently advanced the funds included in the proposal, without language supporting changes to future years rooms and meals tax revenue use.
Sectors dependent on tourism were most impacted by the pandemic, causing rooms and meals tax receipts to drop by $48 million and overall visitor spending to decline by $700 million. In June approximately 15,000 tourism jobs, or about half of all tourism sector workers, were furloughed because of the pandemic. Despite tourism being one of Vermont’s largest economic contributors, the State’s tourism budget is the smallest in the Northeast. In addition to improving existing marketing efforts, the proposal would also contribute to economic recovery when the state begins to fully reopen. Please contact Vermont Chamber Vice President of Tourism Amy Spear with questions.
Bill Would Provide Liability Protections for Agritourism Industry
The House Committee on Agriculture and Forestry advanced H.89. If passed into law, the legislation would limit liability for agritourism operators by making providers of agritourism activities immune from civil liability if a participant is injured as a result of risks inherent in the activity. The legislation would additionally help contribute to the economic diversification of Vermont farms. The Vermont Chamber fully supports this legislation because agritourism represents a significant economic opportunity for Vermont’s rural communities. For questions about the bill, please contact Amy Spear.
House Bill Would Ease Development Hurdles in Downtowns
H.278 would allow municipalities to apply for Act 250 master plan permits for downtown development districts, village centers, and neighborhood development areas. Under the bill, eligible municipalities could apply to Act 250 District Commissions for a master plan permit for a designated area or any portion of that designated area pursuant to the rules of the Natural Resources Board. In approving a master plan permit, a District Commission would be able to set specific conditions that an applicant for an individual project permit in designated areas would be required to meet. If adopted, the legislation could set conditions in which applicants are provided with greater predictability and a degree of assurance that future development projects may be approved on a proposed development tract. This would result in greater efficiency in the environmental review process and help to avoid unnecessary and unreasonable costs for applicants.
The Vermont Chamber has long advocated for greater predictability and reduced costs in the Act 250 permitting process and previously supported legislative proposals that would limit Act 250 jurisdiction in designated centers.
Resource Roundup
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VT Economic Conference Recording: The COVID Opportunity – Keeping Your Business Relevant
About 100 attendees joined the Vermont Chamber on Wednesday for our final 2021 Vermont Economic Conference seminar, to hear from Dr. Benjamin Ola. Akande, economist and President of Champlain College. The discussion included current employment statistics in Vermont, career opportunities, and the pandemic’s impact on women in the labor force. Watch the recorded event. Watch all the recorded Vermont Economic Conference seminars here. -
SBA Webinar for Veterans
The Small Business Administration is hosting a two-day webinar from 8:30 a.m. to 4 p.m. Feb. 24 to 25 for veterans wanting to learn about the fundamentals of starting a small business. Boots to Business is a free SBA training program for transitioning service members, veterans, and family members to assist understanding the steps, stages and activities related to launching and growing a business as a post-military career. For more information or to register, contact Miguel Moralez at 603-225-1601 or email miguel.moralez@sba.gov.
In Case You Missed It
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- First-Time Lawmakers Struggle to Connect in ‘Frustrating’ Virtual Statehouse
- Vermont State Colleges Board Poised to Consider Consolidation Plan
- Vermont’s Broadband Puzzle: 60,000 Households Aren’t in the Picture
- Tax Revenues Still Ahead of Projections After Revision, but Less So
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