Vermont will likely continue to offer reimbursement to those who move to the state for a job.
Lawmakers voted this week to approve $630,000 to continue a program created to attract workers to the state — though the measure also calls for a study of the program to determine whether it actually works.
“There have been questions about whether it’s valuable, but I certainly believe it’s of value,” said Sen. Ginny Lyons, D-Chittenden, a bill sponsor. “This is the icing on the cake for people who are thinking about moving.”
The bill, S.62, which awaits the governor’s signature, would offer a grant of up to $5,000 to those who relocate to the state for a job. New residents who come to areas with higher unemployment rates or lower wages could receive up to $7,500 in grants. If signed into law, it would be available on a first come, first served basis starting July 1.
It’s the latest iteration of an incentive program that has received widespread recognition and been criticized as an ineffective and wasteful marketing ploy.
The state garnered national attention after Gov. Phil Scott announced in 2018 that Vermont would offer $10,000 to anyone who wanted to move to the state and work remotely. After businesses said they needed help finding workers, the program was expanded to anyone who moves to the state for a job.
In 2019, the first year of the program, the state gave out $500,000 to 140 workers, according to a 2020 report from the Agency of Commerce and Community Development. The average grant was $3,571.
Later that year, state Auditor Doug Hoffer questioned the value of the program, saying that it benefited only people who were already moving to the state.
Applicants had to prove residency before applying, meaning they “had the will and the means to relocate without the program,” he wrote in a report.
More recently, in 2020, the number of remote workers and out-of-staters buying homes surged by 38%, though that may be due more to the pandemic and less to the state’s branding efforts. “Incentives to remote workers is a critical economic development tool, especially as we come out of Covid,” said Sen. Michael Sirotkin, D-Chittenden, who sponsored the bill.
The state should build off that momentum, he said. “We have the opportunity to continue to lead the country in attracting new workers who wish to keep their jobs and work remotely from their new Vermont home.”
The Senate Committee on Economic Development, Housing and General Affairs originally tried to make the measure permanent and suggested $1 million annually for the program. House members were less enthusiastic, noting that it was not evidence-based or effective.
Ultimately the committee approved a reduced, $630,000 package. Lawmakers also charged the Agency of Commerce and Community Development with adopting measurable goals and an audit strategy to determine the effectiveness of the program.
The agency is expected to report back to lawmakers by December.
Regardless of the number of people the program attracts, it draws attention to the state and can help its long-term economic development strategy, said Austin Davis, a lobbyist for the Lake Champlain Regional Chamber of Commerce. “There’s something to be said about putting out a sign saying you’re open for business,” he said.
The measure can help attract more diverse Vermonters, he said. Anyone who does move will likely bring a spouse or family with them.
Besides, he said, it builds the state’s modern brand. “This helps us put ourselves out there in a way other than just cows and Bernie Sanders,” Davis said. “That kind of thing is needed.”
