The second generation of Vermont’s worker relocation grant program is set to launch on Jan. 1, this time with incentives for people moving to the state to work for a Vermont business, rather than those moving to work remotely.
Vermont will reimburse up to $7,500 in relocation costs for those moving to the state to work. (Though in some parts of the state, like the areas surrounding Burlington and Montpelier, there will be a $5,000 cap).
That’s less than the previous program, which offered up to $5,000 for two consecutive years for remote workers to move to Vermont. However, Nate Formalarie, spokesperson for the Agency of Commerce and Community Development, said since the program ended up being quite popular in its first year, and because the money was first come first serve, most people won’t get a second payment.
The remote worker program saw 135 applications and brought 359 people, in total, to the state in 2019, according to the ACCD. The average payout was $3,600, with some people utilizing the full $5,000, and others as little as $500, Formalarie said.
“But the Vermont business community came out and said ‘Hey, we would also like to see incentives for people moving here to work for Vermont companies,’” Formalarie said.
Since the state’s unemployment rate is far below the national average—just over 2%, compared to nationally—officials and lawmakers decided to open up the program to incentivize people to work for businesses in Vermont that might be struggling to find employees.
“With our historically low unemployment rate, there are many business sectors in Vermont looking for qualified candidates to fill openings,” Agency of Commerce and Community Development Secretary Lindsay Kurrle said in a statement. “Businesses in the state will now have another incentive they can offer when trying to recruit people to work here.”
Legislators have also begun looking at creating a program that would incentivize businesses for recruiting workers to Vermont. The issue is expected to be considered in the upcoming legislative session.
“Helping new Vermonters relocate and find employment is important as we work to reverse our demographic crisis, grow the economy and support employers so they succeed too,” Gov. Phil Scott said in a statement.
The size of Vermont’s labor force peaked about a decade ago in most counties, and has since seen a decline in every part of the state save Chittenden County. The counties of Windsor, Windham, Rutland, Lamoille, Essex, Caledonia and Bennington have all seen double digit decreases in available workers since 2006.
In November, a report from State Auditor Doug Hoffer found the remote worker program to be of “questionable value.” It questioned whether the financial incentives offered by the state were actually the motivating factor in getting people to Vermont, or if they would have come regardless.
Hoffer argued that since applicants were required to show proof of Vermont residence when applying for their moving expenses to be reimbursed, it was clear they already had both the will and means to relocate without the program’s help.
As such, Hoffer said the prospect of reimbursements was “at best, a minor incentive for grantees to move to Vermont.” And at worst, “the grants were gifts to those who would have moved here regardless of financial incentives.”
Formalarie said his agency was glad for Hoffer’s feedback, and that it’s taking it under advisement moving forward. But compared to similar programs around the country that offer people money up front, he said Vermont’s system of reimbursing actual relocation costs has proven to be a more cost-effective process.
“These aren’t programs that are going to fix the whole problem,” he said. “We’re trying to find tools to combat the demographic crisis that we’re in, and we need a variety of them.”
