[E]ighteen individual workers have been approved for cash from Vermont’s new remote worker program, with the average reimbursement about $3,800.
Joan Goldstein, the state’s economic development commissioner, told lawmakers Thursday that 47 people in all had moved to Vermont so far this year through the program as newly arrived remote workers or their family members.
Most of the 18 were reimbursed for moving expenses, although some were also repaid for connecting to broadband, Goldstein said.
Vermont’s remote worker program, approved by lawmakers last year, rapidly rose to fame with its promise of $10,000 for people willing to move to Vermont to take a remote job. The state started taking applications for the program on Jan. 1. Workers can receive up to $5,000 per year over two years as reimbursement for their expenses after moving to Vermont.
Acknowledging the success of the program, Gov. Phil Scott’s administration proposed that the state spend $1 million in the coming year to encourage more people to move to Vermont to reverse the state’s population decline. The administration proposal called for reimbursing not just remote workers but other workers who move to the state and take jobs. It called for targeting certain demographics and using data gathered from the newly arrived residents to market to mid-career professionals and young families.
The Senate Committee on Economic Development, Housing and General Affairs is considering legislation this week that would appropriate $2 million for the new worker relocation program, with $500,000 for identification and recruitment of workers, and $1.5 million for relocation incentives.
The panel has sought to respond to feedback from residents as it refines this year’s proposals. While news about the program attracted attention to Vermont and to the state’s other recruitment and incentive programs, it also provoked complaints from some existing residents who said the state should be spending more money to retain and assist workers who are already in the state.
“When I hear negative things about this, the thing I hear most from constituents is the perception we are paying money to attract people from elsewhere, but we are not doing the equivalent for attracting people who are already here with respect to upgrading their skills for moving to a remote area,” said Sen. Randy Brock, R-Franklin, on Thursday.
“Most of the naysayers on this was how can you give $10,000 to an out-of-stater? We have so many needs here,” said Sen. Michael Sirotkin, D-Chittenden and chair of the Senate Economic Development Committee. “We also do a lot for in-state workers in terms of workforce development.”
The legislation now before the committee seeks to address some of those concerns by broadening eligibility for grants to people who take any jobs in Vermont. The initial remote worker discussion was prompted by long-standing concerns about Vermont’s declining workforce. The state recorded an unemployment rate of 2.5 percent in January, the lowest since record-keeping began in 1976. Employers commonly say finding qualified staff is their most difficult challenge.
Sirotkin said Thursday that he would like to add the incentive of repaying student loans, because he has heard such loans have been identified as a deterrent for people who want to move to rural areas.
The measure that the Senate panel is considering now would allow expense reimbursement of $5,000 for someone who moves to any area of Vermont to work, and up to $7,500 for someone who moves to certain underserved areas of the state — those with higher-than-average unemployment or lower-than-average wages. First priority would go to newcomers who take jobs in high-need areas such as hospitality, manufacturing, technology, and the construction trades.
The new worker grants would be available starting on Jan. 1. Starting next year, workers taking Vermont jobs will be prioritized for grants over workers employed by companies out of state, Goldstein said.
She said the workers who have qualified this year come from a variety of states including New York, California, Florida and Hawaii, and had moved to towns including Colchester, Montpelier, Bennington, Burlington and Strafford. She said most of them are under 40.
“It’s very diverse. Someone said, ‘I am coming back home,’ and others are like, ‘It’s a nice affordable place,’” Goldstein said.
Goldstein told lawmakers in the committee hearing that her department has spent about $70,000.
“With the average grant only being $3,800, we’re going to be able to do lots more people, so this is great,” said Sen. Alison Clarkson, D-Windsor.
