Montpelier, Vermont - January 23, 2010 Source: http://www.wcax.com
For years, Republican gov. Jim Douglas and Democrats in the legislature have feuded over economic growth policy. But now both sides have agreed on one course of action that promises to create more than 800 good jobs in Vermont.
The Vermont Emergency Board, composed of the governor and chairman of the four money committees, considered a proposal to lift the state's cap on incentives for companies to create jobs -- from $10 million to $23-million.
"Obviously, I believe it's important to provide some capacity for our Economic Progress Council to respond to the requests that are pending," Douglas said at the beginning.
The move would provide enough revenue to cover requests from four companies that would grow in Vermont. This pickup in activity could mean that the state's economy may be ready to come out of the recession. Earlier this month, economist Tom Kavet, who advises the legislature, said things are looking a bit better. "There's been some positive signs from a number of quarters, so we're starting to see a little bit of growth," Kavet told the same panel on January 13.
This week, the E-board, as it's called, had concrete evidence that Kavet is right. And this from an economist who had been skeptical about tax breaks for companies. But now, that mood seems to be shifting. Sen. Susan Bartlett (D-Lamoille County) said, "And as I'm sure you know, Tom is not exactly a big supporter of tax credits or incentives. But he said, it you're going to do this, he was very impressed with VEGI."
VEGI stands for Vermont Employment Growth Incentive. The state will hear from the four applicants, all said to be clean and green -- exactly what Vermont wants. The largest is Dealer dot Com, which would add 300 jobs over three years. Another is Hayward Tyler Pumps, which would add sixty jobs. This company is larger, with branches all over the world, including England, Scotland, China and India. Its pumps are used in nuclear power as well as renewable energy. Also applying for the incentives are Skypoint Solar, a new startup, and Business Financial Publishing, based in Washington DC, which would move to Vermont.
Economic growth incentives have picked up support among legislative leaders since the rules for receiving the tax breaks were tightened up in 2007.
Fred Kenney, director at the Vermont Economic Progress Council, told Channel 3, "The benefit to the company is now a cash incentive that they earn. Once the perform, once the create the payroll and the jobs and the capital investments in Vermont that generate new revenue to the state that we never would have seen. Then a portion of those new revenues goes back to the company as the incentive."
The new tax revenues generated by the companies are expected to be a lot more than the nearly thirteen million dollar value of the incentives. The E-Board voted unanimously to lift the cap, leading Douglas to comment, "Well, that was perhaps the most expeditious meeting we've had in awhile."
It sends a message that Vermont wants jobs, growth and prosperity.