Senate Committee Weighs Labor Bill Provisions with Significant Business Impacts

February 21, 2025

Senate Committee Weighs Labor Bill Provisions with Significant Business Impacts

The Senate Economic Development, Housing, and General Affairs Committee is evaluating proposals put forward for potential inclusion in an omnibus labor bill that could introduce substantial changes to Vermont’s employment laws. The proposals range from minor technical adjustments to major shifts that may increase labor costs and regulatory obligations for employers. The Vermont Chamber is analyzing the provisions to assess their potential impact on businesses and economic growth. Some key provisions under consideration include:

Minimum Wage Increase – Raising the minimum wage to $18.60 per hour by January 1, 2026. This increase may lead to higher consumer prices, compressed wage differentials, and hiring challenges.
Overtime Expansion – Extending overtime eligibility to certain lower-salaried executive, administrative, and professional employees could increase payroll costs and limit scheduling flexibility.
Vacation Leave Payout – Requiring employers to compensate any departing employees for unused vacation leave may create cash flow challenges, especially for businesses with staff who accrue significant leave balances.
Workers’ Compensation Changes – Including health insurance in the definition of wages for workers’ compensation could result in higher insurance premiums for employers.
Prevailing Wage & Payroll Record Requirements – Amending prevailing wage standards for state construction projects would raise wage and benefit costs while mandating additional payroll recordkeeping and enforcement measures. These changes may disproportionately affect small contractors and subcontractors and raise concerns for migrant workers.
Employer Mandates & Workplace Standards – Establishing a “good cause” standard for termination may limit employer flexibility in managing their workforce and increase legal risks. Restricting noncompete agreements could make it harder for businesses to protect proprietary information and maintain workforce stability. Additionally, requiring that employers provide accommodations to sit in the workplace could necessitate new workplace modifications.

These provisions, if enacted collectively, could create significant compliance burdens, increase operational costs, and reduce employer flexibility. With rising costs, higher taxes, and significant labor law changes enacted in the last legislative biennium, lawmakers must consider the cumulative impact of these financial and regulatory pressures on Vermont businesses. The Vermont Chamber will continue advocating for modifications to mitigate unintended consequences for Vermont businesses and is actively engaging with policymakers to ensure that any changes to labor laws support economic growth while balancing employee protections.

February 21, 2025

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Draft Bill Unveils Bold New Blueprint for Vermont’s Education Finance System

February 21, 2025

Draft Bill Unveils Bold New Blueprint for Vermont’s Education Finance System

Taking a step forward in efforts to modernize Vermont’s education funding, the House and Ways and Means Committee has begun reviewing newly released draft bill language outlining a comprehensive overhaul of the state’s property tax framework, based on the Administration’s proposal.

Redefining the Tax Landscape
At the heart of the proposal is a statewide education tax that applies uniformly to both homestead and non-homestead properties. Unlike the current system—which relies on a fixed base rate for non-homestead properties—the new approach ties the tax rate to an annually adjusted per-pupil “base amount” of $13,079. This shift is designed to account for forecasted revenues and ensure that education spending keeps pace with the evolving fiscal environment. Under the revised framework, the Commissioner of Taxes will calculate the appropriate rate for each municipality, and property tax bills will provide a detailed breakdown of the calculations, reinforcing a commitment to transparency.

A Closer Look at School District Funding and the State Guarantee
The draft bill introduces a “State Guarantee” mechanism intended to level the funding playing field among school districts. By comparing each district’s taxable property wealth per student to the state median, districts with lower local resources stand to receive substantial state support. The guarantee is calculated by applying a specific “State Guarantee Rate”—defined as one minus the ratio of a district’s equalized property tax grand list per-pupil to that of the median district—to the district’s approved spending. This targeted measure is designed not only to bolster districts that traditionally face fiscal challenges, but also to maintain local decision-making power in setting school budgets.

Ensuring Equity and Relief for Homeowners and Renters
The proposal further refines property tax relief by replacing the existing income-based property tax credit with a more progressive homestead exemption system. The new structure is tiered by income, promising greater relief for low- and moderate-income households. Additionally, for those with high property values relative to income, the draft includes provisions for a property tax deferral program—a model inspired by similar initiatives in states like Maine, Minnesota, and Oregon—allowing eligible homeowners to postpone a portion of their tax burden until a change in ownership occurs.

Safeguarding the Education Fund and Streamlining Administration
Revenue generated by the statewide education tax will flow into an Education Fund dedicated to covering the per-pupil base amount and the state guarantee. To ensure fiscal prudence, statutory reserve levels will be maintained at five percent, and strict administrative protocols will be enforced. Municipalities, in coordination with the Commissioner of Taxes, will play a critical role in billing, collecting, and remitting funds, all while adhering to robust penalties for any fraudulent claims.

Looking Ahead
As discussions continue, the Vermont Chamber will remain engaged in the conversation, ensuring that the impact on commercial and industrial properties is carefully balanced with the broader goals of funding a high-quality education system.

February 21, 2025

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Intern Spotlight: Nicholas Samson

February 21, 2025

Intern Spotlight: Nicholas Samson

Name: Nicholas Samson

College: University of Vermont

Field of Study: Environmental Studies Major, Political Science Minor

Anticipated Graduation: May 2025

Hometown: Simsbury Connecticut

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

My interest in working for the Vermont Chamber of Commerce stems from my deep admiration for Vermont and my passion for legislation and policy. Throughout my undergraduate career, I have explored various facets of environmental politics and policy, particularly through courses such as Environmental Law, Introduction to Environmental Policy, and Ecological Economics. These classes have broadened my understanding of how interconnected the environment is with systems such as legislation, land use, business, and commerce. This interdisciplinary foundation equips me to address key issues relevant to the Chamber, including land and natural resource use, policy implementation, and sustainable business practices.

Additionally, my internship with Travelers Insurance in the Bond and Specialty Insurance group strengthened my ability to work in a professional environment and align my work with organizational goals. In this role, I developed and spearheaded the creation of adult learning training modules for claim filing software, honing my skills in synthesizing complex information, project leadership, and effective communication.

Between my knowledge of policy and sustainability and practical business acumen, these experiences have prepared me to contribute meaningfully to the Vermont Chamber. I am excited to apply my skills to support the Chamber’s mission and advance Vermont’s economic and environmental goals

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

What I am most looking forward to in this internship is the unique opportunity to immerse myself in the channels and processes of government that come to life within the State House. Being on-site provides invaluable hands-on experience, allowing me to witness the inner workings of Vermont’s legislative process and interact with prominent figures in state politics. This environment offers practical, real-world knowledge that complements and enhances what I’ve learned in the classroom.

The internship is also strengthening my skills in networking and communication, particularly through the Vermont Chamber’s ability to connect me with diverse individuals and groups who inspire and challenge me. Engaging with professionals from various sectors has broadened my perspective and sharpened my interpersonal abilities.

Additionally, the fast-paced nature of the State House has honed my ability to adapt and learn quickly. Navigating new and dynamic situations has taught me to stay flexible and resourceful, skills that will undoubtedly serve me well in my future endeavors.

Overall, I am excited to continue growing through this experience and look forward to applying these skills to support the Vermont Chamber’s mission and my long-term goals in policy and environmental law.

What are your plans for after college?

My long-standing goal after graduation has been to attend law school, and I was honored to be accepted into the UVM/Vermont Law School 3+2 program. However, I decided to slow down my law school track to explore other opportunities, including studying abroad and gaining valuable experience through my current internship with the Vermont Chamber.

During this time, I’ve shifted my immediate focus toward applying for various Peace Corps positions. Volunteering and traveling have always been passions of mine, and I am eager to apply my background in environmental studies and understanding of economic development to make a meaningful impact in communities where I am most needed. I view this as an opportunity to deepen my understanding of global challenges and further develop the skills and perspective that will inform my future career in law and public policy.

In the intervening time between graduation and my potential Peace Corps service, I hope to remain in Vermont, contributing to the state I care deeply about, by working in the legislature or with businesses represented by the Vermont Chamber. During this time, I also plan to prepare for the LSAT and further refine my aspirations for law school.

Anything else potential employers should know about you?

As someone deeply connected to Vermont through family heritage spanning various towns in the Northeast Kingdom and personal lived experiences across the state, I am deeply invested in Vermont’s future. I bring a unique combination of academic knowledge, practical experience, and a strong work ethic to everything I do.

My background in environmental studies and political science, coupled with hands-on experience at the State House and professional roles such as my internship with Travelers Insurance, has equipped me to tackle complex challenges like policy development, sustainable business practices, and community engagement with creativity and determination.

I am passionate about contributing to Vermont’s economic and environmental growth and am always eager to explore opportunities where I can make a meaningful impact. I welcome the chance to connect and discuss how my skills and dedication can support your organization’s goals.

How should potential employers contact you?

Employers seeking someone dedicated, resourceful, and driven to make a difference are welcome to connect with me—I’d love to explore how I can support your goals. I can be reached in the following ways:

Email – nicswamson@gmail.com

LinkedIn – www.linkedin.com/in/nicsamson

February 21, 2025

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Legislators Advance Housing Solutions to Support Economic Growth

February 14, 2025February 14, 2025

Legislators Consider Housing Solutions to Support Economic Growth

This week, legislators continued to explore approaches to address Vermont’s housing needs while bolstering economic growth statewide. During a Senate Economic Development, Housing and General Affairs Committee session, industry experts examined offsite construction for modular housing. The hearing detailed offsite building techniques, highlighting both cost efficiencies and operational challenges, while state officials stressed the importance of land factors and ongoing housing operations. The testimony concluded by outlining potential solutions and policy reforms needed to support sustainable housing development.

Parallel discussions centered on modernizing Vermont’s housing stock and infrastructure, with the Vermont Housing Improvement Program (VHIP) at the forefront. VHIP has successfully funded the rehabilitation of more than 1,000 housing units through a combination of grants and loans. Despite challenges such as fluctuating fair market rents and high costs associated with accessory dwelling unit projects, lawmakers remain committed to refining strategies that support a robust and accessible housing market for Vermonters.

The House Commerce and Economic Development and House General and Housing Committees are evaluating proposals to modernize community development financing. Two initiatives—the Housing Infrastructure Initiative (HIT), championed by Let’s Build Homes, and the Administration’s Strategic Projects for Advancing Rural Communities (SPARC) proposal—were discussed as potential new development financing tools that compliment Vermont’s traditional financing model of Tax Increment Financing (TIF). Both proposals offer streamlined structures and enhanced technical assistance for local municipalities, aiming to better support community needs. While concerns were expressed regarding rural feasibility and impacts on local resources, proponents detailed comprehensive financing and technical assistance strategies to alleviate these challenges.

Housing committees do not appear to be taking up the Administration’s omnibus housing bill. Instead, they plan to incorporate select elements into new committee housing bills. Ensuring that any final legislation includes strategic funding, robust infrastructure support, and targeted regulatory relief is critical. As both House and Senate committees continue to refine omnibus housing bills, the Vermont Chamber will continue working with lawmakers to integrate these forward-thinking proposals that equip communities and developers with tools to address Vermont’s housing crisis.

February 14, 2025

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From Tax Credits to State Guarantees: Vermont’s Education Finance Overhaul

February 14, 2025February 14, 2025

From Tax Credits to State Guarantees: Vermont’s Education Finance Overhaul

With a clear focus on progressivity, transparency, and local control, the Administration’s proposals address nearly every facet of the current education finance framework—from the way property tax credits are calculated to new mechanisms that directly address disparities among school districts.

A Progressive Shift in Tax Relief
The Administration has proposed reconfiguring the education portion of Vermont’s income-based property tax credit. The proposal would replace the current credit with a homestead exemption tiered by income, effective July 1, 2027. This shift is designed to address the “lag” between prior year income figures and current year tax obligations, making it easier for voters and school boards to see how budget votes translate directly into tax bills. Preliminary modeling—based on projected 2024 household income and FY25 property values—suggests that while some households may face modest increases, a range of mitigation strategies exist, such as a revamped circuit breaker credit and a property tax deferral program. These issues were discussed in a joint hearing with the Senate Finance Committee and the House Ways & Means Committee.

Recognizing that some households—especially those with high property values relative to income—might see tax increases under the new homestead exemption system, there was a focused discussion on relief through property tax deferral. Drawing on models from other states, including Maine, Minnesota, and Oregon, the proposal would allow eligible homeowners to defer a portion of their property taxes until the property is sold or ownership changes. While specifics remain under discussion, key ideas include setting deferral limits in tandem with the new homestead exemption and ensuring the program is accessible to those most in need.

Bridging the Gap
The Administration’s sweeping proposal also introduces a “State Guarantee” mechanism aimed at leveling the playing field for school districts. The mechanism calculates a “match rate” by comparing each district’s taxable property wealth per student to the state median. Districts with lower property wealth, which would traditionally struggle to fund education beyond the foundation formula, stand to receive significant state support. Meanwhile, districts with higher local resources would see little to no state guarantee. This targeted approach is intended to ensure more equitable funding while preserving local decision-making.

State Guarantee in Focus
The House Ways and Means Committee reviewed initial bill language that embeds the State Guarantee within a broader statutory reform of Vermont’s education finance system. This version provides precise definitions and detailed formulas—including adjustments to tax rates, billing procedures, and spending limits. Notably, it defines the “State Guarantee Rate” as one minus the ratio of a district’s equalized property tax grand list per pupil to that of the median district, with a floor at zero. This legislative framework also addresses related terms such as “excess spending” (spending above 118% of the statewide average) and specifies comprehensive administrative procedures to ensure accurate tax collection and fund remittance. While the legislative framework’s provisions are intended to create a more robust and enforceable education finance system, they also mean that local administrators, school districts, and taxpayers must navigate a more complex regulatory environment.

Balancing Change and Local Control
Looking ahead, education spending projections and district budgeting recommendations are aimed at improving resource allocation and operational efficiency. By aligning tax relief mechanisms with current income levels and streamlining district operations, the proposal aspires to create a more sustainable funding model while maintaining robust local control—a balance that has been at the center of Vermont’s education finance debates.

As legislators begin a careful review of these proposals, the Vermont Chamber remains committed to engaging in discussions and advocating for the Legislature to address the large-scale systemic issues crucial to reforming Vermont’s education system, ensuring both affordability and sustainability.

February 14, 2025

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26 Vermont Chamber Businesses Named as Best Places to Work in Vermont 2025

February 11, 2025

26 Vermont Chamber Businesses Named as Best Places to Work in Vermont 2025

The Vermont Chamber of Commerce congratulates our members who have been named to the 2025 Best Places to Work in Vermont list! This recognition is a testament to the commitment of Vermont businesses to creating positive and supportive work environments for their employees. This year, a total of 65 Vermont businesses were recognized, including 26 Vermont Chamber members.

The Best Places to Work in Vermont program is a statewide initiative that recognizes companies that create positive work environments for their employees. The selection process is based on an evaluation of company policies, practices, and employee surveys.

Vermont Chamber members that were named to the 2025 list include:

Small Businesses (15-99 employees)

Co-operative Insurance Companies
Davis & Hodgdon Advisory Group
Encore Renewable Energy
Green Mountain Surgery Center
Heritage Aviation
Instrumart
Junapr
NDI
Open Approach
Primmer Piper Eggleston & Cramer PC
Prolytix
ReArch Company
Redstone
Saba Marine
Vermont Economic Development Authority

Medium Businesses (100-249 employees)

Chroma Technology Corp.
Concepts NREC
DEW Construction
Downs Rachlin Martin PLLC
NorthCountry Federal Credit Union
The Richards Group
Union Mutual Fire Insurance Company
Vermont Federal Credit Union

Large Businesses (250+ employees)

Acrisure
NBT Bank
Vermont Mutual Insurance Group

These businesses are setting the standard for workplace excellence in Vermont. They are committed to creating cultures that are not only productive, but also enjoyable and rewarding for employees. The final rankings will be announced at the awards presentation on April 2.

Congratulations again to our members who were named to the 2025 Best Places to Work in Vermont list!

February 11, 2025

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A group of three workers collaborating on a project site, representing Vermont's workforce.

Senate Committee Weighs Labor Bill Provisions with Significant Business Impacts

February 21, 2025

Draft Bill Unveils Bold New Blueprint for Vermont’s Education Finance System

February 21, 2025

Legislators Advance Housing Solutions to Support Economic Growth

February 14, 2025

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

February 7, 2025

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.

February 7, 2025

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Education Finance Overhaul Takes Center Stage at the State House

February 7, 2025

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.

February 7, 2025

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Intern Spotlight: Will Broseman

February 7, 2025February 7, 2025

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

February 7, 2025

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Joint Legislative Hearing Sets Stage for Housing

January 31, 2025January 31, 2025

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.

January 31, 2025

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