Amy Spear

After years of stalled attempts to modernize Act 250, the 50-year-old land use law, legislators and advocates seem hopeful that this could be the year, though the path toward modernization is unclear at this point. This week, two bills that emphasize housing development were reviewed. Both bills would change how Act 250 is applied in designated downtowns and Neighborhood Development Areas and reduce Act 250 responsibilities for developers, while creating additional work for municipalities beyond the designations that they have already received. The Vermont Chamber will continue to advocate for Act 250 modernization that will reduce redundancies for all parties and make permitting more predictable and less costly.

The Vermont Chamber testified in the Senate Economic Development Committee in support of creating a statewide short-term rental (STR) registry. The testimony referenced Vermont Futures Project research and noted that the STR market and Vermont’s housing shortage must be part of the same conversation. The Committee revisited S.79 and discussed a new bill, S.210, which seeks a path to compromise by addressing some of the concerns outlined in Governor Scott’s S.79 veto message. Both bills address rental housing health and safety and contain provisions to create a short-term rental registry. A registry would serve as an important step to ensure a safe rental environment by providing an avenue for communication and data collection. Read the Vermont Chamber’s testimony here.

Congressman Peter Welch joined Vermont Chamber members for a conversation about how Vermont can leverage federal funding to build the economy of the future. The Congressman discussed the impacts COVID-19 has had on businesses and empathized with what employers have gone through. The discussion turned to the workforce shortage, with a need for housing, childcare, and infrastructure to attract more people to live and work in Vermont. Julia Birnn Fields of Birnn Chocolates spoke of her business’s success in hiring New Americans, and Sarah Morris of Basin Harbor talked about her challenges in hiring enough seasonal workers without a steady supply of foreign workers. Congressman Welch spoke about the recent increase in the H2B visa program and the Afghan refugees being resettled in Rutland. He will continue to support efforts to bring more workers to Vermont, through visa programs and refugee resettlement. Ruth Ann Pattee of Northern Stage Theater Company asked what provisions for housing may come from federal funds. Congressman Welch discussed the increase in housing prices, the impact from short term rentals on the housing market, and his support of the Build Back Better bill’s funding of tax credits and construction of new housing units. He also affirmed his support for replenishing the Restaurant Relief Funds, which could provide much-needed aid to the at least 581 Vermont restaurants with unmet need. Catch up on this conversation by viewing the recording of the event here.

In his State of the State address, the Governor foreshadowed support for childcare programs in his upcoming budget, specifically referencing changes to the Childcare Financial Assistance program to increase access to quality care and learning. That is one component of helping families with children. Other areas up for discussion this session include emergency compensation and recruitment tools for early childhood educators and funding a Child Care Financing Study. The Governor will also propose a tax relief package focused on retirees, middle-income families and young workers which may create room for discussion on a state-level Child Tax Credit, similar to the federal tax credit that recently expired. The initial proposal would be a $1,200 annual refundable tax credit for children under six with an estimated cost of $58.7 million. How this would be funded in the short-term or long-term has yet to be discussed but the House Committee on Ways and Means appeared poised to pursue this proposal.

Historic federal investments in broadband infrastructure will jumpstart broadband buildout, connecting more households, businesses, and community anchor institutions to bring the economy into the 21st century. Due to the matching requirements for most of these programs, the Legislature must determine whether State funds appropriated for broadband buildout will be sufficient to cover Vermont’s share of the cost of these projects, and whether the State is on track to meet statutory goals of providing 100/100 Mbps service to all locations in Vermont by 2024. The Legislature must also address the problem of finding the workforce to carry out this project. Last year, the Legislature created a pilot program at Vermont Technical College to train fiber-optic technicians, pay them during classroom training and apprenticeship, and offer wraparound services such as childcare. The Vermont Chamber supports this program to create a stronger talent pool and will continue to advocate for relocation incentives to attract more workers to the state.

The Capital Investment Program was initially funded with $10.5 million in ARPA funds to support transformational projects for key infrastructure needs including housing, climate, wastewater and economic development. As collaborative community projects rolled in, the program was oversubscribed by $60 million. The Senate Committee on Economic Development reacted positively to the Department of Economic Development’s presentation which will likely lead to greater funding to replenish the program.

The Governor’s requests for adjustments to the current year funding were discussed. The Vermont Chamber testified in support of increases in programs that support growing Vermont’s workforce and workforce housing. Those include Vermont State College funding to the Critical Occupations Program Scholarship, the Welcome Home Scholarship, and a CTE pilot program as well as ARPA funds going to housing programs for VHCB, VHIP, a rental risk pool, and a Missing Middle Home Ownership Development Pilot Program. You can view that testimony here.