Child Care Investments at the State or Federal Level?

Child Care Investments at the State or Federal Level?

Last week, the House nearly unanimously passed child care legislation that would provide immediate investments to support Vermont’s economy and set goals over the next several years to achieve affordable access to high-quality child care. H.171, now under review in the Senate, calls for the following child care investments:

  • $5.5 million to increase funding for Vermont’s Child Care Financial Assistance Program (CCFAP), implementing the third year of a five-year plan, enabling expanded eligibility for child care financial support.
  • $2.5 million in investments to support and strengthen Vermont’s early childhood education workforce through student loan repayment and scholarship programs.

The bill also charges experts to convene two studies to examine and identify strategies for effective governance and sustainable funding for a truly affordable, high-quality child care system for Vermonters. Let’s Grow Kids, a child care advocacy organization, led efforts to advance this legislation, partnering with families, early childhood education, and businesses.

There is common agreement about the need, but less attention has been concentrated on the cost of these goals. Current estimates range from $200 to $500 million. One alternative to burdening Vermont taxpayers with this important but expensive benefit is a federal solution.

President Biden has proposed a massive caregiving plan with up to $775 billion in investment to be paid for by changing tax regulations that mostly impact real estate developers. The Biden Administration proposal would:

  • Provide free universal Pre-K for 3- – 4-year-old children
  • Improve pay and benefits for child care workers
  • Create a refundable tax credit up to $8,000 for low and middle class workers
  • Provide subsidies for no more than 7% in income for anyone at 1.5x median income (the state goal in H.171 is 10%)

Earlier this week, the Biden Administration suggested that this bill would not see immediate action, mostly because some of the investments were included in the recently passed $1.9 trillion Relief Act which will increase the child tax credit up to a $3,600 per qualifying child. In a new twist, rather than taking this once a year as part of your annual tax filing, families will begin receiving periodic installments beginning in July.

Advocates and observers acknowledge that this expanded benefit will quickly become a popular program, making it difficult to let it expire. If Congress allows it to continue, it may go a long way to avoiding a Vermont-based tax increase for child care.

Bill Would Impose New Property Tax, Expand Manufacturing Credit and Exemption

Bill Would Impose New Property Tax, Expand Manufacturing Credit and Exemption

The House passed H.437 a revenue bill that would create a property transfer tax surcharge at the rate of one half of a percent on the value of property transferred over $1 million. The bill would also increase the annual amount available for the affordable housing tax credit, which would be dedicated to purchasing and restoring manufactured homes. Funds generated through the tax would support the expansion of the sales and use tax exemption for machinery, equipment, and ancillary processes deemed to be used as an integral or essential part of an integrated manufacturing operation.

This would be a move away from taxation at consumption theory and direct use standard to an integrated plan that proposes to make tax exempt the ancillary processes that occur throughout the manufacturing process, from raw materials in the beginning to the final product and packaging. To qualify for exemption these processes must protect the quality of the product and be part of the integrated production operation. Examples include air quality, cooling, heating, waste removal, and cleaning. Additional processes that occur after initial packaging, such as testing, inspection, quality control, and secondary packaging would also be exempt from the use tax under this proposal.

Vermont Chamber Addresses Racial Equity During Latest Virtual Policy Discussion

Vermont Chamber Addresses Racial Equity During Latest Virtual Policy Discussion

Excerpt from WAMC News coverage of a Vermont Chamber of Commerce event:

‘Vermont has long been known for, and often struggled with, being one of the whitest states in the nation.   According to U.S. Census data, 94 percent of the state’s population is white, 1.4 percent Black, 1.9 percent Asian and 2 percent Hispanic or Latino. 

Vermont Chamber President Betsy Bishop says advancing diversity, equity, and inclusion has become a priority for many organizations including the Vermont Chamber.  

“Our board  has begun working on DEI (diversity, equity, inclusion) issues through a task force that initially started with a mission to diversify our board,” Bishop said. “The mission quickly brought in to include diversifying our membership and partnering with other organizations to help BIPOC businesses thrive in Vermont. We are developing programming to support and promote BIPOC (Black, Indigenous, Persons of Color) businesses and other business in efforts to address DEI initiatives in their own companies. We’ll be gathering input through an outreach process to ensure that we meet the needs of these businesses.”’

Read more from WAMC News Reporter Pat Bradley.

Watch our full recorded event, Advancing Equity in Vermont, with Representative Hal Colston and Senator Kesha Ram.

Vermont Chamber of Commerce Welcomes New Membership Engagement Director

Vermont Chamber of Commerce Welcomes New Membership Engagement Director

The Vermont Chamber of Commerce is pleased to announce Sophia Yager as the organization’s new Director of Membership Engagement. She will work closely with Vice President of Business Development Chris Carrigan and President Betsy Bishop, who has helped lead the Chamber for more than 10 years. 

“Representing businesses in every industry across the state, the Vermont Chamber is committed to improving Vermont’s economy, creating jobs, and helping our members sustain and grow their businesses,” said President Betsy Bishop. “Sophia will be vital to the Chamber’s work to improve economic development, and she arrives at a critical time, as Vermont begins to reopen and recover from the impact of Covid-19.”

Sophia will support the membership and government affairs teams and strengthen Chamber member engagement and the organization’s business advocacy and policy work. She previously served as Deputy Director of the State Workforce Development Board, where she led policy development and stakeholder engagement efforts to grow and advance Vermont’s workforce. Born and raised in Vermont, Sophia graduated from the University of Vermont in 2017 with a degree in political science.
 
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About the Vermont Chamber of Commerce
The largest statewide, private, not-for-profit business organization, the Vermont Chamber of Commerce represents every sector of the state’s business community. Its mission is to create an economic climate conducive to business growth and the preservation of the Vermont quality of life.
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Transit Updates on Vermont Rail Plan and Airport System Plan

Transit Updates on Vermont Rail Plan and Airport System Plan

By Chris Carrigan, Vice President of Business Development

Vermont Rail Plan Readies the State for Recovery

Rail is an essential and integral component of Vermont’s “multimodal transportation system” that moves freight, passengers, and visitors and drives our economy. With 580 miles of active track, Vermont’s rail system moved 6.9 million tons of freight in 2018. Over the past five years Amtrak service carried 95,000 passengers in Vermont annually. While the COVID-19 pandemic suspended rail service by Amtrak in March, 2020, the draft Vermont Rail Plan presented by the Vermont Agency of Transportation (VTrans) offers a commitment to restore service and provides important updates and recommendations that will ready the State as we work toward recovery. For example, extension of the Ethan Allen Express to Burlington, with stops in Vergennes and Middlebury, will begin running in 2022 and allow passengers and visitors to travel between Burlington and New York City. Extending the Vermonter, which operated daily between Washington D.C. and St. Albans, to Montreal is included in the first priority set of recommendations, along with rebounding from the pandemic, improving passenger rail stations, and upgrading State-owned freight rail lines. The Vermont Freight Plan will be released later in 2021. As a member of the Freight Plan Advisory Committee, the Vermont Chamber applauds the work that VTrans is doing to modernize our rail infrastructure and ready the State to recover from the pandemic and move our economy forward.

Vermont Airport System Plan Essential for Recovery

Civil aviation, according the Federal Aviation Administration, generated $1.17 billion in economic output, accounted for $298 million in earnings, supported 9,505 jobs, and represented 2.2% of Vermont’s gross domestic product. Then the pandemic happened in 2020 and passenger traffic for both commercial and private aviation suffered a drastic decline, crippling the travel and tourism industry. Now as we see a hopeful light at the end of the tunnel with vaccinations on the rise we also have the Vermont Airport System plan by the Vermont Agency of Transportation (VTrans). The draft outlines a 20-year strategic plan for developing and maintaining the State’s sixteen public-use airports with recommendations to improve and modernize. From runway extensions and technology upgrades to new facilities and services, such as restaurants, the plan’s recommendations are key components of economic development and essential as we work towards recovery and travel rebounds. Additionally, and, importantly, the plan is visionary, making recommendations to support electric aircraft development and related infrastructure upgrades. Electric vertical takeoff and landing (eVTOL) aircraft, such as Vermont-based Beta Technologies, will electrify aviation, revolutionize the way we travel, and is the future of urban mobility. As a member of the Governor’s Aviation Council, the Vermont Chamber supports the important work VTrans is doing to propel our airports, which serve as engines of commerce and economic development, forward and into the 21st century.  ​

Spotlighting Blood’s Catering & Party Rentals

Spotlighting Blood's Catering & Party Rentals

This month, we are spotlighting Vermont Chamber member Blood’s Catering & Party Rentals. Voted the Upper Valley’s Best Caterer every year since 1999, Blood’s is the region’s premier source for all your catering, bar, and party rental needs. Their mission is simple: serve delicious, exquisite food that guests will be raving about long after your event.

Through three generations of the Blood family, they pride themselves on their superior service and high-quality products.

Visit Blood’s Catering’s website to learn more!

Forced to Send Workers Home, Vermont Employers Are Embracing the Change

Forced to Send Workers Home Last March,
Vermont Employers Embrace the Change

By Betsy Bishop, President of the Vermont Chamber of Commerce

Last April, I suggested positioning Vermont as a work-from-home capital to encourage people to live and work in our beautiful state and bolster our post-pandemic economic recovery. Since then, I spoke with hundreds of business owners, CEOs, and team leaders in Vermont that sent workers home following Governor Scott’s initial Emergency Order. I learned their responses to this grand experiment are quite similar, despite being from diverse sectors. When asked how remote work is impacting their companies and employees, leaders responded at length. Their experiences are summarized below in a few key areas.

  • Seamless – Nearly every leader I spoke with described the transition to remote work as “seamless.” At times that was due to pre-pandemic efforts like at KeyBank, where Vermont Market President Don Baker said his company had a remote work policy and the technology in place to quickly and efficiently transition most employees to full-time remote status. Many businesses credited the seamless transition to employees and managers eager to do their part to curb the spread of the virus. Certainly, there were rushed expenditures for laptops and workarounds for connectivity, but, in the end, they experienced a smooth transition.
  • Change for Good – Many employers see the COVID crisis as a catalyst for change in the future of work, encompassing how people work, where, and with whom. Most employers are committing to a hybrid work model, where employees work from home regularly and frequent the office less. Cheryl Allen, Vice President of Human Resources for King Arthur Baking Company, is a newcomer to Vermont, and she believes that the hybrid work model and more remote work positions will lead to a greater pool of candidates, which will help them reach their goals for greater inclusion and diversity in their workforce.
  • Collaboration – Several employers identified a decline in collaboration opportunities, both random and planned. Rebecca Foster, Interim CEO of VEIC and Director of Efficiency Vermont, said her team is “hungry for collaboration.” She is restructuring their physical office space for greater teamwork with less individual desk space for when the work-from-home order is lifted.
  • Productivity – Without exception, every employer said they saw productivity increase, and many expressed surprise at this. They admitted that had it not been for the pandemic, it could have been many years before this much of their staff could work remotely. At the Vermont Chamber, since our switch to remote work in March, we saw productivity spike and significant organizational success in 2020.
  • Culture – The majority of employers I spoke with during the pandemic are concerned about a decline in corporate culture. They spent years building a business ecosystem that is integrated into their communities and that attracts and retains workers. They know this will require attention as they implement long-term remote working.
  • Flexibility – The leaders I spoke with understand that remote work allows employees to tackle the personal challenges in their lives more easily, including caring for children or older parents. Allowing for flex hours helps accommodate employee needs, and the implementation has gone smoothly.
  • Remote Management – Supervising remote employees created new challenges, but with productivity on the rise, managers are gladly adapting. Mari McClure, CEO of Green Mountain Power, has employees who are both in the field and working remotely. She shared that she now “manages her productive team by Zooming around.”
  • Happy Employees – Business owners report that the vast majority of their employees are happier working from home. Workers report less pressure, less stress, and less rushing around, especially in the mornings while getting children to school or commuting to work. While they are giving up free coffee at the office, most employees are pleased that, without a commute, they have reduced their financial costs and environmental impact, while gaining more time in their day.

As we begin to imagine a mostly vaccinated population and think about economic recovery, remote work is on the minds of workers, employers, and policy leaders. We know that a widely implemented hybrid remote work model is likely and hope that remote work options will increase our talent pool in Vermont and help us attract new workers. While only 37% of U.S. workers can plausibly work from home, these jobs are a cornerstone of Vermont’s economy. Even though employers were forced to send workers home in March, they are embracing the change. They know that with increased productivity, lower environmental impact, and opportunities for collaboration come happier employees, stronger retention, and new recruitment opportunities.

The Vermont Chamber will continue to welcome people from all backgrounds to consider Vermont home, join our workforce, come to our colleges, live and work here, experience our world-class recreation, and both embrace and enhance our way of life. Ultimately, more people living and working here will help put Vermont’s economy back on the road to recovery. 

Betsy Bishop is the president of the Vermont Chamber of Commerce, whose mission is focused on creating an economic climate conducive to business growth while enhancing Vermont’s quality of life. She lives in East Montpelier.

Virtual Policy Series – 2020

Virtual Policy Series (Archive)

We’re connecting our members with Vermont’s influencers.

The Chamber’s Virtual Policy Series connects Vermont lawmakers and the state’s leaders with members for important discussions about the issues of concern to our members. Connect, engage, learn and share during these virtual conversations.

Thanks to our 2020 Series Sponsors

Have Questions?

Find out what the Chamber is doing for your business!

CONTACT US

Government Affairs

Legislative Update – December 14, 2020

The Vermont Chamber’s lobbying team will provide a pre-session legislative update and answer questions about anticipated state and federal legislation impacting Vermont businesses. This is a chance to have your lobbyists answer questions on issues important to you!

Legislative Preview – December 7, 2020

Vermont Public Radio’s Peter Hirschfeld, VTDigger’s Anne Galloway, and Seven Days’ Kevin McCallum will discuss the post-election legislative outlook for 2021, including issues the Legislature is expected to return to or begin work on when the new session begins in January.

Act 250 Reform – November 30, 2020

Natural Resources Board Chair Diane Snelling and Agency of Natural Resources Secretary Julie Moore will discuss developments related to Act 250, reform progress made during 2020, and expectations for changes in the future. 

Economic Outlook for the Road Ahead – November 23, 2020

Department of Public Service Commissioner June Tierney and Representative Laura Sibilia will discuss broadband investments made in 2020 and expectations for broadband infrastructure improvement in the future. Click on the map to the right to view the distribution of various broadband types in Vermont.

Broadband Now and Beyond – November 16, 2020

Department of Public Service Commissioner June Tierney and Representative Laura Sibilia will discuss broadband investments made in 2020 and expectations for broadband infrastructure improvement in the future. Click on the map to the right to view the distribution of various broadband types in Vermont.

Election Results & Economic Impact – November 9, 2020

U.S. Chamber of Commerce Executive Vice President and Chief Policy Officer Neil Bradley will discuss election results and the impact of national results on Vermont’s business community. 

The State of Vermont’s Workforce – November 2, 2020

Department of Public Service Commissioner June Tierney and Representative Laura Sibilia will discuss broadband investments made in 2020 and expectations for broadband infrastructure improvement in the future. Click on the map to the right to view the distribution of various broadband types in Vermont.

Elections During a Pandemic – October 26, 2020

Secretary of State Jim Condos will provide an overview of the Secretary of State’s work and discuss navigating Vermont’s election system in 2020.

Congressman Peter Welch – October 19, 2020

Congressman Peter Welch was our first guest in the Virtual Policy Series. He discussed economic relief available for Vermont businesses and federal actions impacting Ver

Spotlighting Mobile Medical International Corporation

Spotlighting Mobile Medical International Corporation

This month, we are spotlighting Vermont Chamber member Mobile Medical International Corporation. MMIC provides temporary healthcare facilities which provide a full line of U.S. healthcare code compliant on-site solutions for hospitals. They strive to improve the health and well-being of people through creative design of temporary medical facilities and support systems that enable their customers to deliver the highest standard of care. They have a demonstrated history of bringing innovative products to market and introduced the world’s first Mobile Surgery Unit (MSU), a US healthcare code compliant temporary medical facility designed to provide an on-site solution for hospitals experiencing downtime.

Why MMIC? Because they never stop caring. From surgical to sterile processing to water quality, their solutions are backed by decades of unequaled performance.

Visit MMIC’s website to learn more!

Vermont and Québec Aerospace Trade Corridor Endures the Pandemic

Vermont and Québec Aerospace Trade Corridor Endures the Pandemic

 In December, the Vermont Agency of Commerce and Community Development and the U.S. Small Business Administration partnered with the Vermont Chamber of Commerce and U.S. Commercial Service to host a delegation representing Vermont’s aerospace, aviation, and defense sectors at a reinvented 100% virtual edition of the 2020 Aerospace Innovation Forum by Aéro Montréal, with the theme of “Smart Travelling Rethought.” This effort was in support of the work to build a U.S.-Canadian Aerospace Corridor linking Vermont’s $2 billion aerospace and aviation cluster with the $28 billion Canadian aerospace industry for cross-border contacts and contracts. This was also part of the vision of the Memorandum of Understanding between the Vermont Chamber of Commerce and Aéro Montréal, signed in 2013 and now enhanced by extension of the corridor to Connecticut.
 
Due to generous support provided through the U.S. Small Business Administration’s State Trade Expansion Program (STEP), and coordinated at the state level by the Vermont Department of Economic Development, Vermont’s delegation gained access to rich content on new and emerging trends from industry leaders, as well as online B2B meetings with prime contractors, Tier 1 suppliers, and fellow SME suppliers that represent Québec’s $13.8 billion aerospace cluster. According to Gartner Research, 80% of B2B sales interactions between suppliers and buyers will occur in digital channels by 2025.  
 
As a special highlight, Vermont-based Beta Technologies was prominently featured in the Flying Taxis presentation by Martine Rothblatt of Unified Therapeutics at the 2020 Aerospace Innovation Forum. Beta is a visionary aerospace manufacturer developing the next generation of electric vertical takeoff and landing (eVTOL) aircraft, which will transform urban mobility and the future of flight.  
 
Vermont Governor Phil Scott said, “I’m pleased to support the partnership of the Vermont Agency of Commerce and Community Development, U.S. Small Business Administration, Vermont Chamber of Commerce, and U.S. Commercial Service to advance Vermont’s aerospace and aviation industry. Vermont’s participation in Aéro Montréal’s Innovation Forum was one of many positive steps we have taken as we work to grow our state’s aerospace sector and strengthen the U.S.-Canadian trade corridor.”
 
Vermont Chamber of Commerce Vice President of Business Development Chris Carrigan said, “Our delegation and work in December is the culmination of seven years of inter-clustering and supply chain integration, which is optimizing global supply chains by providing our companies and northern neighbors with access to new markets, contacts, innovation, business opportunities, and contracts in a new virtual supply chain landscape.”
 
The 2020 Vermont delegation consisted of Beta Technologies, Burlington International Airport, Cam Development & Micro Components, KAD Models & Prototypes, Liquid Measurement Systems, Mansfield Heliflight, Manufacturing Solutions Inc., North Country Engineering, and Stephens Precision. For more information, visit www.themanufacturingsummit.com or Vermont Division of International Trade.

About the Vermont Agency of Commerce and Community Development
The Vermont Agency of Commerce and Community Development’s (ACCD) mission is to help Vermonters improve their quality of life and build strong communities. ACCD accomplishes this mission by providing grants, technical assistance, and advocacy through three divisions: The Department of Economic Development, the Department of Tourism and Marketing, and the Department of Housing and Community Development. For more information on ACCD please visit: accd.vermont.gov.
 
About the Vermont Chamber of Commerce
The largest statewide, private, not-for-profit business organization, the Vermont Chamber of Commerce represents every sector of the state’s business community. Its mission is to create an economic climate conducive to business growth and the preservation of the Vermont quality of life.