The Vermont Economic Action Plan: Advocating for a Future of Abundance Rather than Scarcity

The Vermont Economic Action Plan: Advocating for a Future of Abundance Rather than Scarcity

This week, Vermont Futures Project Executive Director, Kevin Chu, testified before the House General and Housing Committee and the Senate Economic Development, Housing, and General Affairs Committee, presenting key insights from the Vermont Economic Action Plan. Testimony brought forth conversations about actionable steps to address the root cause of many challenges impacting Vermont businesses, focusing on a future of abundance rather than scarcity.

To advance Vermont’s economic future and improve affordability, Chu emphasized that Vermont must focus on increasing its population to 802,000 by 2035 through recruitment and retention of working-age people. Attracting new people such as remote workers, military retirees, and international professionals, will strengthen the workforce, support business success, and broaden the tax base. Additionally, Vermont should aim to increase the labor force participation rate to 70% by 2035 by aligning education with employer needs and reducing barriers to employment.

The ability to grow businesses in Vermont ties directly to housing availability and infrastructure. The plan sets a target of 350,000 non-seasonal homes by 2035 and calls for reduced development timelines alongside 40% reductions in regulatory costs. Legislators engaged with the presentation content and discussed the intersections of growth and migration with infrastructure and transportation improvements.

The Vermont Futures Project’s testimony reinforced the urgent need to solve problems, quantified the scale of action needed, and outlined incremental steps to improve affordability. The testimony demonstrates the critical need for policy to be informed by data. The Vermont Chamber will continue working with lawmakers to advance policies that support business growth, streamline regulations, and improve economic opportunities across the state.

Access the full Economic Action Report here.

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Education Finance Overhaul Takes Center Stage at the State House

Education Finance Overhaul Takes Center Stage at the State House

This week, legislators began a detailed review of Governor Scott’s proposed “Foundation Formula” for education finance, though actual bill language has yet to be seen. The foundation formula, which sets a base per-pupil amount of $13,200, adds weighted allocations for special education, English Language Learners, and career and technical education. While the plan aims to centralize services and encourage district efficiencies, legislators requested further clarification—particularly around local control and how these changes would roll out over time.

The Joint Fiscal Office also presented findings on moving from a property-tax-based education funding model to an income-tax-based system. The Vermont Chamber maintains that an income-based education tax would not address the root causes of rising education costs. Instead, it would impose greater volatility, administrative complexities, and potentially higher marginal rates on families and businesses already managing significant tax burdens.

As Vermont remains third in the nation for tax collections per capita, refining the existing property tax structure, paired with targeted relief mechanisms such as the property tax credit, is a more prudent and balanced approach to ensuring equitable funding while preserving housing affordability and economic vitality. The Chamber will continue to advocate for the Legislature to address the large-scale systemic issues crucial to reforming Vermont’s education system, ensuring both affordability and sustainability.

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Intern Spotlight: Will Broseman

Intern Spotlight: Will Broseman

Name:Will Broseman

College: University of Vermont

Field of Study: Majors in Political Science and Environmental Studies; minor in Emergency Medical Services

Anticipated Graduation: May 2025

Hometown: Winnetka, IL

What past or current experiences have prepared you for your internship with the Vermont Chamber of Commerce?

In my previous role as an intern at Community Wealth Development, I experienced firsthand the work of local governments. Throughout my internship, I contacted dozens of local town managers, select board members, and town treasures to solicit interviews. These interviews were conducted as part of a larger project to further understand local challenges Vermont municipalities faced.

During the 2020 presidential election, I had a strong interest in politics. However, at the time I was not yet old enough to vote, so I volunteered as a poll worker in Cook County, Illinois. This allowed me to participate in the election and engage with my local community.

What are you most looking forward to/what do you enjoy the most as part of your internship experience? What skills are you developing?

I am enjoying the opportunity to meet new professionals and lawmakers as part of my internship experience. It’s exciting to watch the government in action and see how laws are created, debated, and implemented. This experience is helping me develop skills in legislative analysis and understanding the intricacies of the policymaking process, which I find incredibly rewarding.

What are your plans for after college?

After graduating, I plan on pursuing my master’s degree in sustainable innovation at the University of Vermont Grossman School of Business.

Contact Info:  

wbroseman5@gmail.com

www.linkedin.com/in/will-broseman

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Joint Legislative Hearing Sets Stage for Housing

Joint Legislative Hearing Sets Stage for Comprehensive Housing Solutions

The Senate Economic Development, Housing, and General Affairs Committee and the House General and Housing Committee held a joint hearing to review the Administration’s omnibus housing bill—a collaborative effort demonstrating their commitment to addressing Vermont’s housing crisis this session. The bill includes funding for infrastructure, investments in housing development programs, reforms to housing appeals, and changes to last year’s Act 250 reforms.

Legislators were keenly interested in the presentation and engaged in dialogue as well as debate, particularly with proposed changes to last year’s Act 250 bill. As the bill’s process unfolds, hearing from the groups responsible for mapping and the new Land Use Development Board will be crucial to identifying necessary corrections. This will help ensure that the bill effectively incentivizes development, protects natural resources of statewide significance, and preserves opportunities for all Vermonters to have a voice in these decisions.

These committees are unlikely to be the only ones reviewing this presentation, as land use also falls under the jurisdiction of the House Environment and Senate Natural Resources and Environment Committees. With housing being critical to addressing Vermont’s workforce and demographic challenges, this collaborative approach will hopefully continue throughout the session.

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Senator Welch Hears From Vermont Chamber and Members on Potential Tariffs

Senator Welch Hears From Vermont Chamber and Members on Potential Tariffs

The Vermont Chamber of Commerce, committed to advancing Vermont’s economy and representing businesses statewide, participated in a critical roundtable led by Senator Peter Welch to address the potential economic impact of proposed new tariffs. Vermont businesses, including manufacturers, farmers, and service providers, depend heavily on a strong trade relationship with Canada—Vermont’s largest trading partner. The Chamber views the maintenance of open markets and consistent trade policies as essential for economic stability and growth.

Potential tariffs, which could raise costs by 25% on raw materials, construction components, grain, and manufacturing inputs, pose significant risks to Vermont’s small businesses. The Vermont Chamber emphasized how such tariffs could lead to higher costs for essential goods and services, affecting businesses across sectors like agriculture, construction, and manufacturing. Without the capacity to absorb increased expenses, many businesses would be forced to pass these costs on to consumers, exacerbating the state’s affordability challenges and affecting the financial well-being of Vermont families.

As the Vermont Chamber continues its advocacy efforts, it remains focused on promoting policies that maintain economic growth while protecting Vermont businesses from financial instability. Working closely with state and federal leaders, the Vermont Chamber will strive to ensure that Vermont’s economic ecosystem remains resilient, with an emphasis on preventing harmful impacts from sudden cost increases and supporting long-term investment in workforce and community development.

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Healthcare Rises to Top, but the Roadmap to Solutions Remains Unclear

Healthcare Rises to the Top, but the Roadmap to Solutions Remains Unclear

Last year’s staggering 19% increase in commercial health insurance rates remains top of mind for businesses as affordability priorities are debated in Montpelier. These rising costs have compounded challenges for employers already struggling to absorb double-digit increases in property taxes, the payroll tax, and a variety of new regulations from the past year.

Following Governor Scott’s budget address, Speaker Jill Krowinski emphasized healthcare as a critical factor in the affordability conversation that requires action this year. This week, a new coalition, VHC911, emerged, calling on the legislature and administration to address healthcare reform. At a press conference, the group highlighted Vermont’s commercial insurance costs compared to neighboring states but did not propose specific policy solutions. If the current state of housing and education finance has made anything clear, it’s that inaction on growing issues can lead to dire consequences.

As the House Health Care Committee and Senate Health and Welfare Committee explore solutions, several opportunities for progress remain. Legislators, administration officials, and healthcare leaders must collaborate to develop a balanced reform plan. Additionally, bold and innovative workforce solutions are needed to address the demographic and labor shortages affecting not only healthcare but all industries in Vermont.

As discussions continue, the Vermont Chamber will advocate for solutions that balance affordability, access, and sustainability in Vermont’s healthcare system.

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Governor Scott’s Budget: Fixing Systems, Not Just Funding Them

Governor Scott’s Budget: Fixing Systems, Not Just Funding Them

Governor Phil Scott delivered his budget address on Tuesday, presenting a $9 billion spending plan focused on education reform, housing expansion, and public safety—without increasing taxes or fees. Emphasizing the need for long-term structural fixes rather than temporary funding patches, the Governor underscored the importance of making Vermont more affordable and competitive for businesses and working families. His priorities align closely with the Vermont Chamber’s legislative agenda, which advocates for affordability, workforce development, and strategic economic growth.

Fixing Education

With Vermont spending $2.4 billion annually on education while student outcomes remain inconsistent, the Governor proposed a major overhaul. His plan includes consolidating school administration into five regional districts to improve efficiency, standardizing student funding and teacher salaries, and expanding career training programs to better prepare students for the workforce. To prevent a projected 6% property tax increase, he proposed using $77 million from the General Fund—aligning with the Chamber’s focus on fiscal responsibility and affordability.

Building Housing That Supports Workforce Growth

Vermont needs at least 7,000 additional housing units to meet demand, support employers, and sustain economic growth. The budget fully funds the Vermont Housing and Conservation Board with $37 million and provides $4 million for the Vermont Housing Improvement Program to help small-scale landlords bring units to market faster. Additionally, a one-time $40 million investment in water, sewer, and stormwater infrastructure will unlock stalled housing projects. These measures support the Chamber’s call for workforce housing solutions that directly address Vermont’s labor shortage.

Strengthening Public Safety for Businesses

Rising crime rates, including a 40% increase in aggravated assaults and a doubling of retail theft since 2018, have significantly impacted downtown businesses. The budget proposes tougher sentencing for repeat offenders, increased funding for pre-trial supervision, and expanded addiction recovery services. These steps align with the Chamber’s advocacy for policies that create safe, vibrant economic hubs for businesses and communities.

Investing in Infrastructure & Economic Resilience

The budget allocates $858 million for roads, bridges, and public transit, expands Downtown and Village Center Tax Credits by $2 million, and creates a new disaster recovery fund to provide immediate relief for businesses impacted by natural disasters. With a $15 million investment in Efficiency Vermont, the state aims to support climate resilience without raising costs for ratepayers—an approach that dovetails with the Chamber’s focus on sustainable economic growth.

A Shared Vision for Vermont’s Economic Future

Governor Scott’s message was clear: Vermont must fix broken systems, not just fund them. His budget priorities reflect many of the Vermont Chamber’s legislative goals—fiscal responsibility, workforce development, housing expansion, and public safety improvements. As the legislative session unfolds, the Chamber will continue working to ensure that policies promote long-term economic stability, business competitiveness, and a high quality of life for all Vermonters.

A complete transcript of the Governor’s budget address can be found here.

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Intern Spotlight: Carl J. Barton

Intern Spotlight: Carl J. Barton

Name: Carl J. Barton

College: Saint Michael’s College

Field of Study: Majors in Political Science and Business Administration; Minors in Psychology and Criminology

Anticipated Graduation: 2027

Hometown: Grafton, New Hampshire 

What past or current experiences have prepared you for your internship with the Vermont Chamber of Commerce?

I was Student Government President all through high school, with that trend continuing into college. I had a part-time job with a law firm, took various political science courses and was involved in Model UN.

What are you most looking forward to/what do you enjoy the most as part of your internship experience? What skills are you developing?

I’m excited to network and collaborate with different members of legislation and community leaders across Vermont, as well as experience a true government position from a personal viewpoint. Furthermore, I’m currently strengthening my skills of interpreting important information and analyzing it to see long term effects and nuances of that information.

What are your plans for after college?

After college, I’m interested in possibly attending law school or pursuing an experience in legislation of some kind!

Anything else that potential employers should know about you?

I consistently work to make sure whatever is needed of me is completed and strive to exceed expectations.

Contact Info:  

cbarton@mail.smcvt.edu

https://www.linkedin.com/in/carlbarton/

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Small Group and Individual Health Care Markets to Remain Unmerged

Small Group and Individual Health Care Markets to Remain Unmerged

The House Health Care Committee has taken a critical step to protect small businesses from absorbing the higher costs associated with the individual health insurance market by ensuring the small group and individual markets remain permanently unmerged.

This issue has been a focus of the Vermont Chamber for several years. In prior sessions, the Vermont Chamber helped advocate for the markets to remain unmerged, as long as enhanced federal subsidies were available to stabilize the individual market. With those subsidies set to expire in 2025, the markets were scheduled to merge this year, which would have resulted in even higher premium increases for small businesses.

Testimony from the Department of Vermont Health Access, health care organizations, and the Vermont Chamber emphasized the importance of maintaining this separation. Keeping the markets separate helps protect small businesses from potential rate increases caused by the individual market, providing an upside in an otherwise difficult year for health insurance premiums.

The committee unanimously supported H. 35, which codifies the unmerged markets. Their swift action demonstrates a strong commitment to protecting Vermont’s small businesses and their ability to offer quality health insurance.

The Chamber will continue monitoring the progress of H. 35 through the House and into the Senate, advocating for solutions that support Vermont’s business community. Though this is an important step, a considerable amount of work remains to be done do if health care costs are to be addressed this year.

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Revenue Forecast: Vermont’s Resilient Economy and Emerging Challenges

Revenue Forecast: Vermont’s Resilient Economy and Emerging Challenges

The Emergency Board met this week to review the Consensus Economic Forecast, which showcased Vermont’s strong but shifting economic landscape. Productivity remains high, supported by record-breaking stock market performance and 48 consecutive months of job growth. Workforce mobility continues to shape the labor market, with approximately 10,000 workers moving into and out of the state annually. While this activity brings opportunities, it also presents challenges for labor market stability.

State revenues are slightly above expectations, with Fiscal Year 2025 estimates showing overall collections 3.7% higher than projected. However, performance varies across major funding streams:

  • General Fund: Revenues exceeded expectations by 6.0%, driven by strong personal income and corporate tax collections.
  • Education Fund: A 2.1% shortfall stems from weaker sales and use taxes, meals and rooms taxes, and declining lottery revenues.
  • Transportation Fund: Revenues were 2.7% above estimates, bolstered by strong vehicle purchase activity.

Certain tax streams produced mixed results. The Childcare Payroll Tax fell behind expectations, while the Property Transfer Tax exceeded projections. Revenue from cigarette and e-cigarette sales declined but was partially offset by growth in nicotine pouches.

Adjustments to Vermont’s tax system also revealed uneven outcomes:

  • Sales & Use Tax: Expanding the tax to include sectors like cloud-based services underperformed expectations.
  • Short-Term Rental Surcharge: Marginally below projections.
  • Motor Vehicle Purchase & Use Tax: Surpassed targets due to pent-up demand and tariff concerns.

National trends add further complexity. A reliance on federal stimulus funds has temporarily supported Vermont’s economy, but as those funds taper off, pressure mounts for sustainable fiscal solutions. Additionally, uncertainty surrounding potential inflation, interest rates, and tax reforms under the incoming federal administration could impact the state’s economic trajectory.

The ongoing legislative session provides a critical opportunity to adjust fiscal priorities and prepare for these challenges. Vermont businesses should stay engaged in policy discussions to ensure their voices are heard. The next revenue update, scheduled for July, will offer further insight into the state’s fiscal outlook.

This forecast highlights both opportunities and uncertainties for Vermont’s business community, reinforcing the importance of adaptability and collaboration in navigating the state’s economic future.

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