News In Brief August 2022 Vermont Biz
News In Brief August 2022 – Vermont Biz https://clarkcountynewsnow.com/news-in-brief-august-2022-vermont-biz/
(Roundup of news from August 2022)
S&P affirms and upgrades credit outlook for State of Vermont bonds
S&P Global Ratings has affirmed the State of Vermont’s AA+ (the second highest) general obligation bond ratings and revised the rating outlook from negative to stable. Vermont is still the highest rated New England state. In the ratings report, S&P wrote that the improved outlook is attributed to recent shifts in demographic trends, “retirement reforms designed to significantly reduce unfunded liabilities,” and historical credit strengths including “regular forecast updates, annual midyear budget adjustments, consistent reserve levels across economic cycles, and debt affordability oversight.” Vermont received the highest score possible in the financial management category. The state’s bond rating was downgraded by Moody’s and Fitch from triple A status in 2018 and 2019, respectively, and the assignment of a “negative outlook” by S&P in 2020.
State tax revenues again greater than expectations
The State’s General Fund, Transportation Fund (T-Fund), and Education Fund receipts in July were a combined $227.0 million, or 2.8%, above monthly consensus expectations. The General Fund, Education Fund and even the Transportation Fund all finished the month with revenues above target, marking a strong start for the new fiscal year. The sales tax, which feeds the Ed Fund, was particularly strong (plus 8.5%). General Fund revenues collected for the month totaled $136.6 million, $0.6 million above the monthly consensus cash flow revenue target.
The corporate income was particularly strong (plus 18.25%), while the personal income, which has been very robust, had a more modest month (plus 3.1%). The tourism-related rooms & meals tax, which also has been strong, was below targets (minus 3.55%) as set by state economists.
Revenues into the Transportation Fund exceeded monthly consensus expectations, bringing in $23
The Education Fund revenues were $4.9 million, or 7.9%, above the monthly consensus cash flow target, having collected $66.8 million in July.
Strong performance was to be expected given the still largely positive pace to retail and visitor activity in Vermont.
Vermont’s unemployment rate falls to 2.1 percent in July
Vermont’s seasonally adjusted unemployment rate fell one-tenth in July 2022 to 2.1 percent. All three major metrics showed positive results, as the labor force and number of employed increased and the number of people looking for work decreased. In addition, the civilian labor force participation rate rose to 61.7 percent in July, up one-tenth from June. The jobless rate has returned to pre-pandemic levels, but the labor force is still far behind and some 20,000 available jobs in Vermont are still unfilled. Vermont has the fifth lowest jobless rate in the nation.
Healthy Living Market receives Deane Davis Business of the Year Award
VermontBiz and the Vermont Chamber of Commerce announced August 17 that Healthy Living Market and Café is the winner of the prestigious and highly anticipated Deane C. Davis Outstanding Business of the Year Award, 2021. This annual award honors a Vermont business that shows an outstanding history of sustained growth while displaying an acute awareness of what makes Vermont unique. The award, named for the former governor of Vermont, was created 32 years ago by VermontBiz and the Vermont Chamber of Commerce to recognize and honor the state’s best companies.
Scott issues 10-point public safety enhancement and violence prevention action plan framework
Governor Phil Scott has issued his 10-point public safety enhancement and violence prevention action plan, laying out the framework of a comprehensive response to address violent crime and other public safety concerns across the state. To begin, Governor Scott has directed the commissioner of Public Safety and other agency and department executives – in partnership with other law enforcement entities, prosecutors, and the judiciary – to implement a 10-point plan focused on three core goals: To reinforce frontline law enforcement capacity and prioritize immediate reduction, prevention and prosecution of violent crime statewide; To expand prosecution capacity and help the courts address a backlog of cases; and To prioritize long-term violence prevention policies, systems, and services.
GMCB approves health insurance rates hikes of 11.7% for Blue Cross and 18.3% for MVP
The Green Mountain Care Board (GMCB) is requiring Blue Cross Blue Shield of Vermont (BCBSVT) and MVP Health Plan, Inc to lower the premiums they wanted to charge individuals and small businesses for health insurance plans in 2023. BCBSVT asked for a 15.4% increase and got 11.7% in the small group (business) plan; MVP asked for a 23.4% increase and got 18.3%. The increase in rates for individuals were similar (see below). Despite the reductions, the rates are still the highest approved since August 2019.
AOE and VDH provide recommendations on COVID-19 for the start of school
The Vermont Agency of Education and the Department of Health has issued a joint memo to school nurses for the opening of school relative to COVID-19. The memo gives school nurses recommendations on how to manage symptomatic individuals, implement testing protocols, and suggests communication strategies including the need to work closely with local medical practices. The memo puts emphasis on the clinical judgment of school nurses in determining if a student or staff member with mild symptoms is well enough to attend school.
The memo puts emphasis on the clinical judgment of school nurses in determining if a student or staff member with mild symptoms is well enough to attend school.
Schools will be provided a supply of both antigen and LAMP tests to implement the protocol outlined in the memo. Both in-school and take-home testing will be available. Decisions about when to test, and what test to use, will rely on the expertise of school nurses.
Scott appoints Jennifer Barrett to Vermont Superior Court
Governor Phil Scott has appointed Jennifer Barrett, of Newport, to the Vermont Superior Court. Barrett has served as the state’s attorney for Orleans County since 2015. She previously served as deputy state’s attorney in both Orleans and Bennington counties. As state’s attorney, Barrett has prosecuted a range of cases including homicides, kidnappings, sexual assaults and domestic assaults, as well juvenile cases, post-conviction relief cases and appeals. Over the course of her career, she has skillfully tried more than 50 cases to verdict before Vermont juries.
Court approves plan to sell Jay Peak for $58 million
A Park City, Utah, resort company has offered to acquire Jay Peak Resort for $58 million. Jay Peak Receiver Michael Goldberg will accept this bid for Vermont’s northern-most ski resort unless a higher bid comes in over the next month. Goldberg announced the bid by Pacific Group Resorts Inc in a filing to the US District Court in Miami. The court granted Goldberg’s motion on August 4.
The Pacific Group bid is binding, according to Goldberg, regardless of any other bid.
However, if there is another bid, at the receiver’s discretion, an auction could be triggered to generate a higher offer for the resort. The receiver would then make the final determination on the winning bid, with the minimum offer being $58 million. According to the resort, since the initial offer other bidders have emerged, though no stated bidder or offer has been made public. A final bid is expected to be announced by the end of this year.
AOT receives $12.5 million in E-Bus funding and public transit improvements
The Vermont Agency of Transportation (AOT) has received two new grants through the Federal Transportation Agency (FTA) totaling $12.5 million. These awards will bring nine new e-buses to Vermont and allow for a new building and facility improvements to the Marble Valley Regional Transit District. The first grant award of $9.2 million is through the FTA’s Low and No Emissions Bus and Bus Facility Grant program and will bring nine new e-buses to Marble Valley Regional Transit District (MVRTD) and Green Mountain Transit (GMT). Five of these buses will be medium-sized transit vehicles from a new manufacturer, Letenda, located in Longueuil, Quebec.
Five towns commit ARPA funds to build high-speed internet
Select boards in Groton, Hardwick, Peacham, Ryegate, and Walden have voted to allocate a total of $328,050 in American Rescue Plan Act funding towards constructing additional high-speed broadband infrastructure within their communities. The funds pledged by the five Caledonia County towns will be matched by both NEK Broadband and the Vermont Community Broadband Board. The combined total of $984,150 will accelerate the construction of the initial framework of infrastructure referred to as the “backbone” of the project. By building the backbone sooner than planned, NEK Broadband expects to bring new high-speed internet to portions of 90% of the towns in the Northeast Kingdom over the next two years. The ARPA funding also enables NEK Broadband to build new infrastructure sooner to three additional towns: Danville, Lyndon, and Saint Johnsbury.
AOT grant program for 2023 municipal highway and stormwater mitigation projects
The Vermont Agency of Transportation (AOT) has announced a grant funding opportunity for 2023 municipal highway and stormwater mitigation projects, as part of the Agency’s ongoing commitment to improve the quality of state waters and provide financial assistance to municipalities in these efforts. The enabling legislation that determines eligibility states: Any environmental mitigation activity, including pollution prevention and pollution abatement activities and mitigation to address stormwater management, control, and water pollution prevention or abatement r...
