Editor’s note: This commentary is by Caleb Magoon, who owns Power Play Sports and Green Mountain Screenprinting and Embroidery, both in Morrisville, and is developing another retail business in Waterbury. He also is vice chair of the Lamoille County Planning Commission, president of the Morrisville Alliance for Culture and Commerce, on the board of the Vermont chapter of the Main Street Alliance and a partner of Campaign for Vermont.
[D]espite the myriad of challenges our state faces: property tax reform, budget cuts, and education reform, all the bigwigs seem to be putting their backs into one big issue — economic development. Although budget cuts are absolutely necessary right now, we simply can’t just cut our way out of our current predicament with budget shortfalls projected for several years into the future. We need to grow our way out of it.
The majority of our leadership has finally come to this same conclusion and decided to take action. But the fact is, economic development is a challenging thing to do. Not because it’s an impossible challenge, but because there isn’t a single, tidy, politically convenient policy to magically spur economic prosperity. There is no single silver bullet and no one solution. We must do many things to get this ball rolling.
Spurring economic development requires a multifaceted approach and diversified tactics. Growing an economy isn’t a single solution problem, because it’s not just one problem. Vermont needs to address the cost of doing business in Vermont, reform our education system, promote workforce development, and consider regulatory and permitting reform, just to get started. No quick fix will solve these issues. What can make an impact are long-term and comprehensive strategies focused on tackling a wide array of these challenges. Bottom line: we need to start addressing these issues with more than just Band-Aid solutions.
Here are a few things that should be part of any comprehensive economic development strategy:
Develop our workforce/reform education. This may be the most essential element to growth. Economic growth goes hand-in-hand with a well-educated and skilled workforce. Raising incomes raises revenue, which is our ultimate goal. We need more collaboration between our primary schools, higher education institutions, state agencies and businesses.
With an expansion of Act 77, we could expand the ways our youth are exposed to career possibilities and pathways. By developing connections to businesses and community organizations, students could obtain skills and work experiences that help them discover their interests, talents and best job prospects. We need to shake up the traditional school model and ensure kids are getting both fundamental education and skills that lead to career paths. Many workers lack the requisite skills to obtain good paying jobs in Vermont. Though our graduation rates are high, too many high school graduates require remedial course work. We have work to do; the fact stands that we cannot grow our economy without a skilled workforce.
Reduce regulatory burdens and stop creating more! Last year the Legislature expanded the powers of Act 250 with its 9L criteria. Though this law is well intended (the prevention of strip development), it is much too broad and has significantly increased the barriers to redeveloping rural small towns in geographically challenging locations. These same towns reside in the areas of the state that need redevelopment the most. We need to refine and reduce hurdles for responsible development, not increase them.
Leaders need to craft policies that look beyond the two-year election cycle and will have long-term impact. Step one is our state leadership prioritizing economic growth, leading the charge and creating a roadmap with targeted, specific goals.
Export our products. Vermont businesses are making some of the finest value added products in the country backed up by a great brand: Vermont. But getting these products to outside markets is a struggle. One example is the beer, wine and liquor market. Our products have been recognized worldwide for their quality. But navigating the laws of interstate commerce for alcohol is a huge challenge for any small business, especially when the entrepreneur is doing every task the business requires. Vermont’s Small Business Development Center already has a specialist helping alcohol related start-ups. Their role in guiding these businesses could easily be expanded to helping navigate the challenges that make it tough to sell in out-of-state markets. These businesses don’t need a handout; they just need someone with knowledge and experience to give them a helping hand. With just a little help from the state, business owners could more effectively navigate interstate commerce and greatly increase our exports.
Work with entrepreneurs. We have one of the highest rates of small business ownership in the country and surely some of them are poised to be the next Darn Tough or Keurig Green Mountain. We can’t compete with tax levels in New Hampshire or incentives in New York. Incentives are not why people start businesses here. We need to use the assets we do have, our natural resources, geography, quality of life and strong statewide brand to build businesses and entrepreneurs. That starts with increasing funding and assistance to small businesses and getting them what they need to grow. We need to start catering to the small businesses and not just the big ones; asking them what they need most and working with them to help their growth.
Make no mistake; these policies will likely cost taxpayers money. But I don’t know a single business that can grow without strategic, long-term investments. Vermont political leaders need to make growth a priority and look at all legislation through the lens of its impact on the economy. The state government hasn’t made economic development a priority in years and our stagnant growth is the proof. Leaders need to craft policies that look beyond the two-year election cycle and will have long-term impact. Step one is our state leadership prioritizing economic growth, leading the charge and creating a roadmap with targeted, specific goals.
Almost as important as what we should start doing is what we should stop doing. Among the proposals to cut the budget is the elimination of funding for our regional economic development corporations and to the Department of Tourism and Marketing. These programs are our lifeblood — essential to economic development. The idea of cutting their funding is ludicrous in the face of the espoused idea of promoting economic development.
At this point in time, there are so many options the state could exercise to influence positive change that officials could throw darts at a board filled with ideas and probably do pretty well. As much as I am heartened by the efforts of the Legislature to seek out ideas for economic development, we have yet to see the legislation to prove that leadership wants to make this a real priority, not just lip service. Tackling this challenge isn’t difficult, but effecting real change for the longtime viability of our economy will take some significant legwork. There is no silver bullet. Solutions built around the two-year election cycle will likely have limited impact. Vermont needs long-term economic strategy. Vermont needs strong leadership advocating wide ranging policies and goals, prioritizing growth. Vermont needs to grow its way out of our economic and budget woes.
