Editor’s note: This commentary is by Joan Goldstein, who is commissioner of the Department of Economic Development of the Agency of Commerce and Community Development.
[T]he objective? Jobs — good paying, clean jobs to help fuel economic growth. States throughout the country engage in fierce competition for job creators and economy builders. They throw huge sums of money at the problem hoping to attract a big company.
Vermont takes a very different approach. In Vermont, our small scale, rural landscape, and small population means we have to find other ways to grow our economy.
And now, the Center for Budget and Policy Priorities just released a new report that validates Vermont’s economic development approach. The report fully endorses the economic development strategy and programs in place in Vermont. Here’s what Vermont does, and what the report says is the right thing to do:
“The vast majority of jobs are created by businesses that start up or are already present in a state — not by the relocation or branching into a state by out-of-state firms.” and “During periods of healthy economic growth, startups and young, fast-growing companies are responsible for most Vermont’s focus.”
While some states might continue to dedicate resources and incentives to recruiting new firms, Vermont concentrates on companies that are already here, especially those that show signs of success.
One of the benefits of being one of the smallest departments in state government is that we do not have the largesse to be anything but focused on activities that reap the best returns. We have worked with the Legislature to design an incentive program – Vermont Employment Growth Incentive (VEGI) — that accepts those basic economic development precepts. While some states might continue to dedicate resources and incentives to recruiting new firms, Vermont concentrates on companies that are already here, especially those that show signs of success.
Let’s take a look at some of the VEGI statistics:
• Only 7 percent of the current active VEGI projects are recruitments – that’s three projects. 74 percent are expansions of current Vermont operations, 14 percent are start-ups, and 5 percent are plant restarts.
• Also, 70 percent of the projects are by Vermont-based firms.
• Many of the firms in the program were young and fast-growing when awarded incentives, ensuring that their growth occurred here:
• KGM
• Dealer
• Commonwealth Dairy
• MyWebGrocer
• Revision
• New England Supply
• Vermont Smoke and Cure
• Freedom Foods
• Logic Supply
• Vermont Packinghouse
In addition to VEGI, we support start-ups and existing businesses with support to the Vermont Small Business Development Center, the Vermont Manufacturing Extension Center, regional development corporations throughout the state, the Vermont Center for Emerging Technology, UVM Technology Transfer, Procurement Technical Assistance Center, Working Lands, downtown redevelopment and literally most of what we do. We wholly appreciate this report’s affirmation of our economic development policies and programs. Vermont policymakers have indeed undertaken economic gardening long before it became a hip term.
