Jobs bill menu is thin fare

Sen. Vince Illuzzi. VTD file/Josh Larkin

Tuesday, a legislative conference committee pondered but did not resolve the differences between House and Senate versions of a bill that might add some jobs to the state’s economy. House Speaker Shap Smith said if lawmakers can’t agree on the details, the bill might not advance before the end of the session. In which case, it’s possible, other lawmakers say, that the appropriations in the bill could be incorporated in the budget.

It would be wrong to say that the conference committee “labored and brought forth a mouse,” as the old Roman adage put it, if only because the committee hardly labored at all.

Besides, it’s not as though H.287, commonly called “the jobs bill,” has no innovative proposals. Both houses went along with Shumlin’s plan to assist local, sustainable, agriculture with a $100,000 appropriation to support the Farm-To-Plate investment program helping farmers sell their goods directly to local consumers. The bill would also create one new position in the Agency of Agriculture to “facilitate matchmaking producers with commercial and institutional markets.”

Both houses agreed to spend $25,000 to provide $500 subsidies to a company every time it “hires a qualified long-term unemployed Vermonter” until the end of next year, with a cap of $5,000 per employer.

But there are few big-money additions to programs that the state has been using for years to encourage hiring. Several sections of the bill assure the continuance of the Vermont Employment Growth Incentive program, under which the state pays employers who move into the state or expand their operations in Vermont. (A new provision would extend the sunset for VEGI  from July 1, 2011 to Jan. 1, 2012, during which time Lawrence Miller, secretary of the Agency of Commerce and Community Development, has said he will study the efficacy of the program.)

Politicians in both parties have supported the VEGI payments for years, and are confident they have created jobs. Critics, including policy analyst Doug Hoffer, though, doubt that the program meets the “but for” test, meaning that the jobs would not have been created “but for” the VEGI payout.

The Senate version of the bill would extend “tax increment financing” districts to up to 10 Vermont communities. Towns and cities with TIF districts could keep 75 percent of the property tax revenue raised from within the district rather than sending it to the state. Municipalities could then use that extra money to upgrade their streets and sidewalks or pay for other improvements.

The tax breaks come out of the Education Fund. The bill explanation did not include an estimate for how much this plan might cost the state.

The bill’s shortage of major job-creation expenditures is no mystery. The Legislature began the session with a $176 million budget shortfall, and could hardly initiate big new spending.

In addition, many economists doubt that state policies make much difference when it comes to economic growth. That dollar Vermonters spend in Burlington, Bennington and Brattleboro is worth just as much in Birmingham, Bozeman, and Boise. It’s a national economy.

Despite all the talk about persuading outside businesses to move to Vermont, statistics indicate that very few firms move from one state to another, and when they do, it’s hard to know why. Some are attracted by lower taxes. But others prefer high-quality schools, roads, and amenities, which often require higher taxes.

The Senate version of the Jobs bill contains two measures that don’t seem directly related to job creation. One would allow art galleries and bookstores to serve beer and wine at their events. The other would protect consumers from what Sen. Vincent Illuzzi, the Derby Republican, described as a “scam” by companies that convince people on line or by telephone to sign up for package deals which are then added to their telephone bills.

Editor’s note:Anne Galloway contributed to this report.