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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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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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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Vermont Chamber Advocates for Economic Growth and Housing Solutions 

Vermont Chamber Advocates for Economic Growth and Housing Solutions

The Vermont Chamber advocacy team engaged with both House and Senate committees to outline priorities aimed at fortifying Vermont’s economy. Discussions centered on housing affordability, workforce challenges, regulatory reforms, technology, and positioning Vermont as a premier relocation destination. 

Tourism and manufacturing were highlighted as economic pillars, each contributing $3 billion annually and employing thousands of Vermonters. The Chamber’s Foundation, the Vermont Futures Project, was spotlighted for its focus on long-term economic planning, ensuring these critical sectors continue to drive statewide prosperity. 

Housing availability and affordability took center stage as a pressing concern. The Chamber will continue advocating for meaningful reforms to reduce construction costs, improve infrastructure, and expand access, emphasizing the importance of addressing Vermont’s demographic challenges and workforce gaps to sustain economic vitality. 

The Chamber emphasized the integral connection between business growth and wage growth, presenting data that reinforces the need for collaborative efforts to support businesses. Economic development remains a priority for the Vermont Chamber, and the team is poised to work alongside lawmakers to ensure businesses have the resources and environment necessary to thrive. 

To bolster advocacy efforts surrounding technology issues, the Vermont Chamber introduced attorney Josh Diamond from Dinse, who the Chamber has hired on retainer. With his extensive legal expertise and six years of experience as Vermont’s Deputy Attorney General, Josh will provide critical insights and representation for Vermont’s business community on emerging technology challenges. 

The team will do additional introductions next week and will dive into expert testimony on legislation. Through proactive collaboration with lawmakers, stakeholders, and industry leaders, the Vermont Chamber continues to champion policies that advance Vermont’s economy and enhance quality of life for all. 

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Laying the Groundwork for Education Finance Reform 

Laying the Groundwork for Education Finance Reform

Legislative committees discussed Vermont’s education finance system this week, emphasizing the complex ties between funding, governance, and education quality, and the need for reforms both to address these challenges and tackle high costs head on.  While awaiting the Governor’s proposed education finance reforms in the January 28 budget address, House and Senate committees reviewed the current funding system, its formula, and potential improvements. 

Elements of the Governor’s proposal were previewed by members of his administration and included simplifying tax structures, recalibrating the Common Level of Appraisal, and ensuring taxpayer capacity aligns with funding obligations. Testimonies from the Department of Taxes and the Agency of Education also emphasized the need for a more streamlined and transparent system. Proposals for statewide teacher contracts and construction aid policies further underscored the need for cohesive, statewide strategies that will reduce costs and increase affordability. 

One proposed funding formula, informed by models from states like Massachusetts and Maine, aims to establish a base funding amount per student, with adjustments for factors like school size, cost of living, and student needs. Legislators discussed implementing the formula in Vermont, focusing on the base amount, property taxes, and teacher compensation. 

Continued, focused dialogue among the legislature, educational leaders, and other stakeholders will be a priority this session. Addressing the large-scale systemic issues is crucial to reforming Vermont’s education system to ensure both affordability and sustainability. 

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Governor Phil Scott’s Inaugural Speech Echoes Vermont Chamber’s Priorities

Governor Phil Scott's Inaugural Speech Echoes Vermont Chamber’s Priorities
Governor Phil Scott pictured at a podium speaking at the 2025 inauguration

Governor Phil Scott’s inaugural address delivered a clear call to action on the most pressing challenges, including affordability, housing, education reform, and workforce sustainability. These priorities reflect significant overlap with the Vermont Chamber of Commerce’s ongoing advocacy efforts, emphasizing shared goals to strengthen Vermont’s economy and improve the quality of life for its residents. Keeping affordability and Vermont’s challenging demographics at the forefront, the address focused on:

  • Affordability and economic growth
  • Addressing the housing crisis
  • Student-centered education reforms
  • Moving forward together

Affordability and Economic Growth
A central theme of Governor Scott’s speech was Vermont’s need to tackle its affordability crisis. He noted the state’s reputation as a high-tax destination and emphasized that Vermont cannot afford to lose more residents due to rising costs. A vision of achieving affordability through economic growth rather than tax increases aligns with the Vermont Chamber’s emphasis on fostering business resilience and attracting new residents. Both aim to reduce the financial burdens facing Vermont’s families and businesses while expanding economic opportunities.

The Governor’s message of bolstering opportunities for working Vermonters and supporting local communities parallels the Chamber’s push for innovative workforce development solutions. Efforts to promote Vermont as a destination for skilled workers and investing in community development directly impact the other challenges facing Vermont. The economic impact of a shrinking workforce remains a key focus for the Vermont Futures Project, which continues to highlight the issue and provide valuable data to support solutions.

Housing: A Shared Priority
The Vermont Chamber has long advocated for increased housing supply by addressing root causes and barriers to development. Governor Scott echoed this urgent need, calling for the construction of 8,000 new homes annually—a figure Vermont is far from achieving. The speech advocated for treating housing development as an emergency by streamlining regulatory barriers, investing in infrastructure, and revitalizing workforce. Affordable housing for all incomes is critical to retaining employees, attracting new talent, and fostering economic growth.

Education: Tackling Costs and Improving Outcomes for Students
The Governor delivered a pointed critique of Vermont’s current education funding model, highlighting dramatic cost increases that outpace the value delivered. With the current expected 5.9% increase this year, property taxes will have increased by 33% over three years, a trend further compounded by increases in education-related revenue sources, many of which depend on taxes collected and remitted by the business community. These include 100% of sales tax revenue, one-third of purchase and use tax revenue, one-quarter of rooms and meals tax revenue, 100% of the new short-term rental surcharge, as well as lottery funds and general fund transfers. Despite these escalating costs, Vermont serves only 80,300 students across an “out of scale” education system with high administrative overhead and small class sizes.

Scott pledged to introduce a multi-year plan to overhaul the system focusing on a student-centered funding formula and a more efficient governance structure. This proposal includes streamlining administrative costs, rethinking local school board responsibilities, and implementing guardrails to ensure fiscal discipline. By addressing these systemic inefficiencies, the Governor aims to contain costs while improving outcomes—both of which are essential to Vermont’s economic future.
This approach complements the Vermont Chamber’s advocacy for critical cost-saving reforms that prioritize addressing root issues over simply increasing funding.

Moving Forward Together
Governor Scott’s speech reflected a shared vision with the Vermont Chamber: focusing on practical, long-term solutions to Vermont’s most significant challenges. From housing to affordability to workforce development, his priorities align with the Chamber’s commitment to advancing Vermont’s economy.

As the legislative session progresses, the Vermont Chamber will collaborate with lawmakers, the administration, and other stakeholders to achieve shared goals. The Governor, Speaker, and Pro Tem have all emphasized the importance of setting priorities, maintaining focus, and taking a collaborative approach. The Vermont Chamber will look for this commitment every day throughout the session, and expect all leadership to continue driving progress, delivering outcomes, and advocating for policies that support Vermont’s businesses and communities.

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Union Mutual Named 2024 Outstanding Busniess of the Year

Union Mutual Named 2024 Outstanding Business of the Year

Image of the Union Mutual Logo with an image a torchbearer's lamp and the slogan "Live life well protected" written below "Union Mutual."

 VermontBiz and the Vermont Chamber of Commerce are pleased to announce Union Mutual Insurance Company as the recipient of the 2024 Outstanding Business of the Year Award. The award will be presented to Union Mutual at the opening session of the Vermont Economic Conference on January 28 at the UVM Dudley Davis Center.

A Legacy of Community Commitment

Founded in 1874, Union Mutual has been woven into the fabric of Vermont for more than a century and a half. Throughout its history, the company has combined strong financial performance with a deep sense of social responsibility, supporting a range of community initiatives across the region. In 2024 alone, Union Mutual employees collectively contributed over 230 volunteer hours to local organizations such as Special Olympics Vermont, Meals on Wheels, and the Vermont Foodbank. Its charitable giving fund also provided financial assistance to dozens of nonprofits, from youth sports programs to healthcare foundations.

“For 150 years, Union Mutual has strived to be a reliable and forward-thinking partner to our policyholders and our community,” said Lisa Keysar, President & CEO. “Receiving the Outstanding Business of the Year Award is an honor that reflects our team’s enduring commitment to Vermont. We believe deeply in giving back, fostering a positive work environment, and ensuring Vermonters can ‘live life well protected.’”

Union Mutual’s leadership in corporate responsibility is evident in both its environmental initiatives and its employee-focused culture. The company maintains a solar array at its Montpelier headquarters, pursues paperless processes for policyholders, and partners with One Tree Planted for every new paperless policy—underscoring its dedication to sustainability. Internally, Union Mutual offers robust professional development, competitive benefits, and flexible workplace options, helping earn it recognition as one of the Best Places to Work in Vermont for 11 consecutive years.

“We have so many outstanding businesses in Vermont that reflect our state’s innovative and community-driven spirit,” said Vermont Chamber President Amy Spear. “Union Mutual’s longevity, remarkable community impact, and forward-thinking business practices align perfectly with the core values we celebrate in this award.”

“From its longstanding record of financial stability to its multi-faceted approach to community service, Union Mutual is a wonderful example of how success and responsibility can go hand in hand,” said John Boutin, Publisher of VermontBiz. “They exemplify the best of what Vermont businesses bring to our communities.”

For 35 years, VermontBiz and the Vermont Chamber of Commerce have partnered to present the Outstanding Business of the Year Award, recognizing the state’s most dynamic and community-minded companies. Past winners represent a who’s who of Vermont businesses, each significantly contributing to the state’s economy and the well-being of its residents.

______________________________

OUTSTANDING BUSINESS OF THE YEAR AWARD WINNERS

[Previously known as the Deane C. Davis Outstanding Vermont Business of the Year Award]

2023      BOURNE’S ENERGY

2022      HICKOK & BOARDMAN INSURANCE GROUP

2021      HEALTHY LIVING MARKET AND CAFÉ

2020      LAWSON’S FINEST LIQUIDS

2019      CHROMA TECHNOLOGY CORP.

2018      GREEN MOUNTAIN POWER

2017      VERMONT MUTUAL INSURANCE GROUP

2016      MARATHON HEALTH

2015      PC CONSTRUCTION

2014      CHAMPLAIN CABLE

2013      DEALER.COM

2012      GW PLASTICS, INC.

2011      FOLEY FAMILY OF COMPANIES

2010      SMALL DOG ELECTRONICS

2009      BIOTEK INSTRUMENTS INC

2008      NATIONAL LIFE GROUP

2007      SYMQUEST GROUP INC

2006      RSG

2005      KING ARTHUR FLOUR

2004      IDX

2003      HUBBARDTON FORGE

2002      NRG SYSTEMS

2001      WILD APPLE GRAPHICS

2000      WAITSFIELD CHAMPLAIN VALLEY TELECOM

1999      CABOT CREAMERY

1998      VERMONT COUNTRY STORE

1997      SMUGGLERS’ NOTCH RESORT

1996      MACKMOLDING COMPANY

1995      VERMONT HEATING & VENTILATING

1994      GREEN MOUNTAIN COFFEE ROASTERS

1993      PERRY RESTAURANT GROUP

1992      MCKENZIE MEATS

1991      C & S WHOLESALE GROCERS

1990      WALLACE ENTERPRISE

Vermont Chamber of Commerce and NBT Bank Partner to Launch New Economic Insights Webinar Series

Vermont Chamber of Commerce and NBT Bank Partner to Launch New Economic Insights Webinar

The Vermont Chamber of Commerce has announced a new programmatic partnership with NBT Bank, aimed at providing businesses across the state with the valuable, data-driven economic insights needed to succeed in today’s dynamic marketplace.

The new Economic Insights webinar series will launch on January 14 at 1 PM and will feature insights and analysis from Kenneth J. Entenmann, CFA®, Chief Investment Officer & Economist at NBT Wealth Management. Ken has more than 33 years of investment experience. Prior to joining NBT Bank, he served as Director of Investment Management at Alliance Bank. In his current role, he oversees more than $6 billion in assets under management and administration in trust, custody, retirement, institutional, and individual accounts.

Entenmann graduated from Cornell University with a bachelor’s degree in Applied Economics and Business Management. He also earned an MBA from the William E. Simon Graduate School of Business Administration at the University of Rochester and holds the Chartered Financial Analyst (CFA) designation.

During the webinar, Ken will explore national and Vermont-specific economic trends, offering clear, actionable guidance for businesses throughout the state. In each webinar, Ken will examine the current economic landscape, highlight emerging trends, and discuss their potential impact on Vermont’s business community. Whether you’re seeking to understand the broader economic forces at play or looking for specific guidance on navigating the Vermont market, these sessions will deliver actionable insights to keep you informed and ahead of the curve. Powered by NBT Bank, this series is designed to help Vermont businesses stay resilient and responsive in a shifting economy.

“We’re thrilled to partner with NBT Bank to deliver this valuable resource to our members and the broader Vermont business community,” said Amy Spear, President of the Vermont Chamber of Commerce. “As Vermont businesses navigate economic challenges and opportunities, having access to real-time expert guidance and data-driven insights empowers Vermont businesses with knowledge and tools for long-term success.”  

For more information, series dates, and to register, please visit vtchamber.com/economic-insights.