Second Round of Relief Money Advances
Relief Bill Includes Hazard Pay
Legislature Advances Broadband Package
Act 250 Progress a Mixed Bag
First Quarter Budget Bill Advances
Workers’ Compensation Changes Under Review
Resource Roundup
In Case You Missed It
Second Round of Relief Money Advances
S.350, the Legislature’s initial relief bill provided $70 million to businesses impacted by COVID-19 related restrictions and closures. Using the framework established in S.350, the House advanced an additional round of funding that would direct another $70 million in grants to businesses that have suffered a 50 percent or greater reduction in revenue in a monthly or quarterly period from March 1, 2020 to September 1, 2020 as compared to the same period in 2019. The Agency of Commerce and Community Development (ACCD) in coordination with the Department of Taxes (DOT) would continue to administer and distribute this portion of the funds. The section of the bill titled “Economic Relief for Businesses and Individuals” includes an additional $31.5 million in funding for various businesses, bringing the total relief for businesses advanced by the second round of funding to $101.5 million. The table below breaks down those amounts by program.
As drafted, the $70 million provided directly to ACCD for additional emergency economic recovery grants would not accessible to sole proprietors. According to legislative council, sole proprietors will be able to access the remaining funds and programs provided by the bill.
The Vermont Chamber has advocated for the expeditious advancement of additional, widely accessible relief funds for businesses, and we applaud the Legislature, and particularly the House Committee on Commerce and Economic Development, for acting quickly to advance this latest relief bill. The business community has made clear that more relief is needed, and over the coming weeks the Vermont Chamber will continue to advocate for additional funding for the business community.
Relief Bill Includes Hazard Pay
A $20 million hazard pay grant program was added to the most recent relief package. The program would provide grants to certain employers for the provision of hazard pay to frontline workers whose job placed them at an elevated risk of exposure to COVID-19 during the first two months of the COVID-19 public health emergency. Eligible employers include employers who employ one or more individuals in Vermont in an assisted living residence, a nursing home as defined, a residential care home, a therapeutic community residence, a health care facility, a physician’s office, a dentist’s office or a dental facility, a homeless shelter, a home health agency, a federally qualified health center, a rural health clinic or clinic for the uninsured, a program licensed by the Department for Children and Families as a residential treatment program, an ambulance service or first responder service, a morgue, or a provider of necessities and services to vulnerable or disadvantaged populations. The Agency of Administration is responsible for administering the program.
Legislature Advances Broadband Package
The Legislature recently advanced a funding package that would help address the connectivity shortfall impacting 70,000 Vermont households that do not have access to federally defined broadband. Federally defined broadband includes speeds of at least 25/3 Mbps, which is sufficient for most telehealth, work, and learn-from-home tasks. COVID-19 related restrictions and closures have demonstrated that broadband access is now both an essential economic development goal and an immediate emergency need.
As currently drafted this broadband proposal represents an unprecedented investment in delivering connectivity to unserved locations throughout Vermont. While the Vermont Chamber is supportive of dedicating an investment of this magnitude to ensuring Vermont’s many communities have sufficient internet access, we have concerns about provisions within the relief package that would limit the use of these funds to specific technologies. We continue to believe public investments in broadband should be technology-neutral and include public and private partnerships that maximize institutional knowledge and capitalize on existing infrastructure, while planning for future technology landscapes. A technology-neutral approach would also bring Vermont in line with proven strategies employed by surrounding New England states.
Act 250 Progress a Mixed Bag
In the last several weeks modernization efforts of Act 250 have resulted in mixed progress. The Vermont Chamber was encouraged by advancement of uncontroversial provisions in the Senate’s earlier Act 250 proposals that would largely remove municipal areas of enhanced designation from Act 250 jurisdiction. If implemented, these changes would encourage long-term economic development and aid in economic recovery from COVID-19 impacts. Unfortunately, in recent days, what was previously a widely agreeable bill has expanded to include several concerning provisions that could significantly increase the scope of Act 250 jurisdiction. The most recent changes 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, are not negatively impacted by any final changes to Act 250.
First Quarter Budget Bill Advances
After passing in the House earlier this month, the Senate approved a budget bill that would fund state government for the first three months of the fiscal year (July through September). The Scott Administration previously proposed a 2 percent reduction in state spending for the first quarter to account for COVID-19 related revenue shortfalls. House and Senate Appropriators largely rejected that proposal, choosing instead to refrain from significant state spending cuts in hopes that federal CARES Act dollars will be permitted to be used for revenue replacement. Federal regulations currently do not allow CARES Act relief to be used for revenue replacement. Separately, as part of the Pay Act, state employees will receive an average 1.9 percent step increase and a $1,400 one-time payment to individuals employed as of July 1, 2020 and an average 1.9 percent step increase and 2.25 percent across-the-board increase for a total 4.15 percent increase in Fiscal Year 2022.
Workers’ Compensation Changes Under Review
As drafted, the most recent bill proposing changes to workers’ compensation law could broadly expand COVID-19 related workers’ compensation eligibility to jobs outside of the emergency services realm. The proposed changes have the potential to impart considerable cost impacts on employers. The Vermont Chamber is advocating for limiting the scope of the bill to frontline workers involved in emergency response and public safety. Testimony on the proposed changes will continue next week.
Resource Roundup
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Vermont Chamber Passport to Recovery
The Vermont Chamber’s Passport to Recovery portal is dedicated to the Vermont community in place of our Workforce & Talent Summit and shares timely webinars to help businesses, employers, and employees across the state. Economic, sales & marketing, health, and workforce webinars will be provided through June and July. -
Economic Recovery and Relief Package Webinar Series
An archive of ACCD's sector-specific webinars. -
CDC-Based COVID-19 Business Plans
PieMatrix in Burlington is offering free CDC-based COVID-19 back-to-business and back-to-isolation plans for businesses to use when opening or closing operations. -
Department of Labor RETAIN Program Provides Return to Work Resource
Vermont Retaining Employment and Talent After Injury/Illness Network created a checklist resource to help guide employers and employees as they return to work. Please contact Deborah Kennedy with questions.
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