Public Policy Coordinator Blog

Check out the blog for up-to-date information on current legislation, bills up for debate, VBSR's take on issues, policy action items, and more. 

An archive of past updates can be found here.

 

The pace at the statehouse picked up considerably this past week.   On Tuesday, the Governor presented his budget address, the details of which can be found here.

With state revenues less than 2006 levels, median family incomes down $2,000 from last year, and an increased demand for state services during this recession, it will be a legislative session like no other.  While the legislative leadership and the Administration are still projecting a spirit of cooperation, some differences are certainly beginning to emerge as to what programs and services will get hit most.  

The “Challenges for Change” report supported both the Administration and the legislative leadership continues to get mixed reactions in the halls of the statehouse. While most agree that state services must be delivered more efficiently, many do not believe that it can be achieved in the needed timeframes and in some cases without additional investment first (e.g. IT).  Some critical of the report believe that the report only serves to provide cover for legislators so that when they make cuts they do not have to acknowledge there will be real pain to people who rely on services.  (53 million from Human Services no small bite). Either way, the relevant committees will be kicking out bills over the next few weeks that contain the benchmarks to be achieved.  

Jobs Forum. Good reports from the Legislative Jobs Forum held on Thursday 1/21/10. ( See blog entry by Jenna Seibeck, VBSR intern).

Energy.  Big developments at ENVY this week may have changed some legislators minds regarding relicensing of the facility. Releases of radioactive tritium, cobalt-60, and zinc-65 may have made some less favorable towards the plant, especially in addition to the sworn testimony by ENVY representatives which in the best case were “mis-statements”, in the worst case perjury. Not a good week for ENVY.  Before the week was out VBSR wrote to all State Senators with our current position regarding relicensing.

Health Care.  Cost containment through global hospital budgets is likely to be the front-runner for any reform action this year.  All of the major bills contain hospital budget pieces, and the House and Senate Health Committee’s have been holding joint meetings on this issue.  Legislative staffers have pulled together a good side-by-side comparison on the major health care reform bills to help tease out the commonalities and differences.

Upcoming- In week 4 we are expecting continued work in House Commerce and Senate Economic Development on jobs bills.  VBSR will be testifying in House Commerce on Thursday (1/28), and Senate Economic Development on Wednesday (1/27). House Natural Resources will try to wrap up the truck idling bill (H.97) and will be getting a Vermont Yankee Update on Wednesday afternoon (12/27).

See you soon! VBSR Legislative Reception taking place on Feb 4 in Montpelier.  Please attend !!

 Jenna Seibeck- VBSR Legislative Associate- January 21, 2010

Main Issues Raised:
1.    Inadequate workforce
2.    Inadequate access to capital
3.    Inadequate infrastructure
4.    Reformation of Tax Policy

Question 1:  What is working well regarding economic development in Vermont?  How can state government further spur economic growth?
•    “Scale” of Vermont provides opportunities to create public and private partnerships to benefit all employers in the area, which leads to a more collaborative approach.  Vermont has great customers.  Jason Oleet, NSA Industries
•    Ability to provide education and training.  Tiffany Bluemle, Vermont Works for Women
•    Legislature is in touch with the needs of their constituents and are available.  Gordon Winters, Swanton Lumber
•    Demand for local agricultural products and business has grown steadily.  Fred ???, Small Retail Farm in Rutland
•    Endorses maintaining or raising taxes in order to get the quality of life.  Linda Markin, Concept 2
•    “Shop Local” campaign has been very successful.  Mike Trombley, Advance Music

Question 2:  If you need to expand, can you?  If so, has state government helped in this effort?  If not, what constraints limit your ability and can state government help?
•    Constrained by access and cost of capital.  Need additional sources of capital apart from SBA loans.  Jason Oleet, NSA Industries
•    Family businesses are constrained by tax burdens, specifically the estate tax, which only exempts up to $2 million.  This is $1.5 million less than the federal exemption amount.  This harms generational family businesses and creates a disincentive.  In addition, the capital gains tax is also prohibitive for businesses which may choose to move to a state that does not tax capital gain.  The expense incurred for the unemployment fund has a direct impact on the bottom-line of a business.  Businesses alone cannot replenish the fund.  The combination of these taxes is daunting for businesses.  Vermont has the perception of being a highly taxed state.  There is also an aging workforce and it is difficult to attract younger generations.  Need to incentivize students to stay after graduation.  Need a lower tax burden and a stable workforce.  Gordon Winters, Swanton Lumber
•    Potential investors ask about the possibility of relocating Vermont businesses.  VEGI credits are not unique to Vermont, other states have similar credits.  Need to have something different that only Vermont can offer.  Legislature needs to anticipate future needs, instead of waiting until something becomes an issue.  Vermont needs to find something to be excellent at and not try to be a part of everything.  Tax policy needs work, especially the tax burden on capital gains.  Businesses may relocate just to avoid the capital gain tax.  Need to hire 10 employees, but there are no locals available, so have to look out of state.  Jerry Tarrant, MyWebGrocer
•    There is room to grow, however sales tax is an issue and customers want to haggle over the tax.  Business has lost jobs.  The building is on the historic list and have been trying to get a tax grant for a renovation, but has continually been denied.  Mike Trombley, Advance Music
•    Want to expand but need equity and job investment.  Need the SEED fund to be fully activated to the $4.3 million.  David Walsh, Standards Technology Group

Question 3:  Do you have access to an adequately trained workforce?  If so, which program(s) worked well?  If not, what could be improved?  Do you get qualified candidates from our secondary schools?  Post-secondary?  So you supply your own training? 
•    Need a diverse workforce portfolio, need to bring new talent to the state, develop skills, and strengthen workforce capacity at all levels.  Vermont needs to: (1) spend more money, money that it already has, on training; (2) keep VSAC robust; (3) provide additional funding for support resources for working parents (ie childcare); (4) employment placement and retention; (5) increase on the job collaborations to create more jobs; (6) support of transitional job programs; and (7) avoid designating any single entity as an employment development workforce.  Tiffany Bluemle, Vermont Works for Women
•    Need to attract more people from other states.  We hire based upon need and not tax breaks.  Would prefer to have a universal healthcare system because many employees simply stay to continue getting benefits (this prevents new employees from coming in).  Vermont is not keeping up with other state in telecommunications.  Also concerned about energy prices, especially in light of Vermont Yankee issue.  Linda Markin, Concept 2
•    Having great difficulty recruiting for knowledge-based jobs.  Also, have been exporting innovation because don’t have the resources to complete the next step in the process.  Need incentives for the employer to keep the employee and the employee to stay.  Need to keep young people in the state.  Need to advertise available jobs rather than outsourcing.  One way to do this is to make them visible to students as early as possible.  Current tax policy could prevent many businesses from coming to Vermont.  Need a way to connect businesses to one another.  Need incentive for investment and to keep business in Vermont.  Want products not only made in Vermont, but by Vermonters.  Bill Parker, Creative Microsystems
•    Need to focus on incentivizing jobs.  Jerry Tarrant, MyWebGrocer
•    Opened an office in Boston to attract engineering talent to the company.  NPS is growing green jobs in Vermont and wind power is a high growth industry.  NPS is expanding and building new, larger turbines, which it wants to manufacture in Vermont.  Vermont needs to build a critical mass in an industry.   James Stover, Northern Power Systems
•    There is a great challenge to find talent.  Vermont should make a network for the software development sector.  David Walsh, Standards Technology Group

Question 4:  Is the state infrastructure, roads, bridges, water, sewer, and telecommunications robust enough to support your company’s growth? 
•    Need agricultural infrastructure.  Want to keep the agricultural landscape, but paying development prices for agricultural land.  The Vermont Land Trust is what is making the purchase of this land possible.  Need help with policy to bring food into Vermont and to increase local production.  There will be a study this summer that will document the cost of groceries in Vermont comparing several grocery stores with farmers’ markets.  Fred ???, Small Retail Farm in Rutland
•    Telecommunications infrastructure is inadequate and we had to move business out of state.  Jerry Tarrant, MyWebGrocer

 

Save the date ! VBSR Legislative Reception taking place on Feb 4 in Montpelier.  Please attend !!

Energy. Week #2 at the statehouse ended with significant news regarding Entergy Nuclear Vermont Yankee (ENVY).   The recent tritium leak was troubling enough but the fact that the company had previously testified that there were no underground piping that needed to be reviewed as part of the recent safety evaluations, shows the management is not  credible. Concerns about the transparency, the competence, and the integrity of the firm were included in VBSR’s 2009 policy regarding re-licensure of ENVY, in addition to a variety of other concerns. VBSR is reaching out to legislators to urge them to not vote to renew the operating license. While VBSR is talking to legislators about ENVY there is nothing more effective than a direct call or email from a business constituent. It is time to contact your legislator and express your opinion regarding ENVY.   Here is a link to the legislative directory  or you can send to and we will get a copy of your comments to your legislators.

Health Care. VBSR has been working with other health care reform advocates to push for significant progress this legislative session.   Although it would be ideal if significant action was achieved at the federal level, the necessary changes are not forthcoming anytime soon.  Legislative leadership has been meeting with VBSR on an ongoing basis to identify ambitious but actionable steps for Vermont.  (Links to the significant health care reform blls can be found in the last blog entry). In the week ahead, the house and senate health care committees will begin with focus on hospital cost containment- global hospital budgets, opportunities for administrative savings, and bending the cost curve.

Other Upcoming. This coming week the proposed budget details will be presented in the Governor’s budget address on Tuesday afternoon.  Relevent committees will start developing draft bills to implement the “Challenges for Change” report.   House Natural Resources will begin taking testimony on the truck idling bill H.97.