February 17, 2011 DRAFT 2011 Jobs Bill Proposal

Transcription

1 February 17, 2011 DRAFT 2011 Jobs Bill Proposal and Comments on the Strategic Direction of ACCD and Vermont s Economic Development Plan

2 ACCD Economic Development Strategic Foundation The mission of the Agency of Commerce and Community Development is to help Vermonters improve their quality of life and build strong communities. The Statutory Outcome for Economic Development is a sustainable annual increase in non public sector employment and median income. Our economic development strategy will be based on these foundational statements. There are a number of other beliefs that are guiding the development of our strategy. The first is that government does not create non public sector jobs, but does have a role supporting private enterprise in doing so; most importantly by identifying and removing obstacles to enterprise development and by providing our citizens with sound lifetime educational opportunities. We believe more productive firms are able to pay higher wages and so conclude that our efforts must support improved private sector productivity to result in a sustainable increase in median income. One of the defining characteristics of productive firms is that they get more done with fewer employees, so we must also encourage and facilitate the development of more firms to result in a sustainable increase in non public sector employment. We should note that study after study has revealed that most American jobs are created by small business. Our efforts will focus on small enterprises and new entrepreneurs while maintaining and improving our strong relationships with our larger employers. We will employ cluster analysis to focus our efforts on likely opportunities for sector success, and focus our new-business recruitment strategies on Vermonter s with entrepreneurial opportunities and on out-of-state enterprises with established personal or business connections to Vermont. We recognize that agriculture is one of the most important clusters to Vermont s future, both economically and to preserve our working landscape and strong rural communities, and that exporting is a critical objective for the nation and for Vermont. We rely on our state, regional, and local partners to deliver critical components of our economic development systems. We cannot deliver on our mission and outcomes without their vibrant participation any more than we can do so without the leadership of our entrepreneurs. The Jobs Bill is not the whole of our Economic Development strategy, it is a proposal solely to seek legislative changes we believe are important components of a successful implementation of our evolving strategy, culled from the best ideas we identified from our partners in the field. The Agency of Commerce is undertaking a full review of all programs and activities currently in place to see if they still fit with the Mission and Outcomes, and to determine what we should change or stop doing, as well as what is working well and where we should focus to realize the best outcomes for Vermonters. Lawrence Miller, Secretary Agency of Commerce and Community Development DRAFT 2011 Jobs Bill Proposal February 17, 2011 Page 2 of 5

3 NOTE: An * asterisk denotes what does not require legislative changes. LONG TERM UNEMPLOYED REBATE ** An employer, who is otherwise in good standing with the State of Vermont, may apply for an incentive of up to $500 when the employer hires and retains new, full-time position, for a long term unemployed individual. Long term unemployed is someone receiving 5 months or more of unemployment benefits. The employer applies to VDOL and may receive the incentive after 12 months of the person being on the job. ($25,000) **NOTE: The Veteran s tax credit will be in an separate bill. *RETURN TO WORK TRAINING PROGRAM A program to enable unemployed to be trained and gain work experience at an employer while collecting unemployment. *SEASONAL WORKSHARE This web-based application will allow employers interested in partnering to share workforces during their off season to register. ESTABLISH A CREATIVE ECONOMY OFFICE Establish within the Department of Economic, Housing and Community Development a Creative Economy Specialist with $100,000 in reallocated funding from the Vermont Film Commission *MENTORING ENTREPRENEURS Expanding Entrepreneur Mentoring around the state can help guide, inform and educate new, enterprising Vermonters. Build on lessons learned from the Peer to Peer program from VSJF applied to earlier stage companies. *VALUE ADDED TRANSITION/DIVERSIFICATION PROGRAM VEDA has agreed to set-aside $1,000,000 (funds from VEDA) to loan for farmers wanting to diversify products or transition to new products. FUNDING FOR GAP (GOOD AGRICULTRIAL PRACTICES) CERTIFICATION: Establish a matching fund program to help producers obtain needed equipment and make building modifications to enable them to reach GAP or other food safety certifications (so they can access larger retail markets). ($100,000) MADE IN VERMONT Launch a broader Vermont co-branding program to support Vermont s agricultural sector as well as other Vermont enterprises that are positioned to use and support the Vermont brand. ENABLE THE DEVELOPMENT OF A SKILLED MEAT CUTTERS APPRENTICESHIP PROGRAM: The Agency of Agriculture will enter in to a performance based contract with an educational institution who will develop an approved apprenticeship and/or certificate program for this critical occupation. Apprenticeship is a work based learning program with approved classroom and on the job training components. ($25,000) LOCAL FOODS COORDINATOR: Increase access for Vermont producers to large institutional markets such as schools, the state, hospitals and others. Create a position at the Agency of Agriculture to work with institutions, distributers, producers and others to create match making opportunities that result in more locally grown products in Vermont institutions interested in sourcing more local foods. ($125,000) DRAFT 2011 Jobs Bill Proposal February 17, 2011 Page 3 of 5

4 FARM TO SCHOOL PROGRAMS: Strategically focus funding to continue the competitive grant program for Farm to School to expand opportunities for Vermont producers to serve these markets and Vermont schools seeking to source locally grown products. ($75,000) *ENABLE MARKETING OF CSA SHARES TO STATE EMPLOYEES: Authorize the marketing of CSA s in state office buildings so state employees are aware of opportunities to buy locally grown products and support local farmers. VERMONT STATEWIDE INTERNSHIP PROGRAM Potentially redirect Next Gen. internship funding to this initiative. Encourage internships among all sectors, including agriculture and value-added agriculture. VDOL to develop a program to administer. *GOVERNOR S CAREER READINESS CERTIFICATE Builds on existing career readiness certificate started and funded by VDOL (some VTP $ too) STEM (Science, Technology, Engineering and Math) INCENTIVE An incentive payment for a recent college graduate (graduated within the last 18 months), with an associate s degree or higher, who takes a STEM job in Vermont. The incentive is $1,500 per year if the graduate remains in Vermont for 5 or more years. Targeted at helping to fill hiring needs at manufacturers and other technology employers. ($75,000) LARGE ANIMAL VETERINARIAN LOAN REPAYMENT PROGRAM We can potentially re-direct existing dollars to create a loan forgiveness program for large animal vets patterned after the nursing loan forgiveness program. To meet demonstrated regional needs as defined by the Secretary of Agriculture ($50,000) ENABLE DEVELOPERS TO APPLY FOR AND RECEIVE DESIGNATION AND INCENTIVES UNDER THE VERMONT NEIGHBORHOOD PROGRAM Developers could apply directly for a project rather than waiting for a municipality to go through a long planning process to change density and bylaw language necessary for designation. *MAXIMIZE PRIVATE INVESTMENT THROUGH THE FEDERAL NEW MARKET TAX CREDIT PROGRAM Education of RDCs and other development entities in NMTC-eligible areas, particularly in the Northeast Kingdom. *REENERGIZE OUR INDUSTRIAL PARKS Priority to ensure that all existing parks are wired with broadband. Add selected Industrial Parks to Key Facilities priority for broadband along with hospitals, schools, etc. VERMONT BUSINESS PARTNER INCENTIVE Create the VBPI program, which would allow a Vermont company, in good standing, to earn an incentive payment if they help recruit a vendor or supplier Vermont that will create at least 5 new, permanent, full-time jobs. And the new company will benefit, too. The existing company may claim an incentive of $500; the new company may claim an incentive of $500 for a maximum of $5,000 per company. This is targeted at manufacturers, new technology companies and other value added, capital importation companies. ($50,000) DRAFT 2011 Jobs Bill Proposal February 17, 2011 Page 4 of 5

5 EXPANSION OF EB5 PROGRAM Add new targeted sectors to the Regional Center s approved sectors covering important areas of development including: agriculture, utilities, and finance and seek authority to create a special fund and collect a modest closing cost from projects which complete EB5 financing. THE VEPC INITIATIVE: Reauthorize VT Economic Growth Incentive (VEGI) Propose to extend it until June, Suspend the look back provision when a business is bringing a new line of business or new jobs to Vermont that were not here before the application. The Secretary of Commerce is able to waive the wage requirements in certain, limited circumstances i.e. areas of high unemployment. VERMONT TRAINING PROGRAM (VTP) Add 5% to the health care allowance when considering the wages at the end of training for both new hires and incumbent workers. And give the Secretary of Commerce and Community Development authority to waive the wage threshold in certain geographic areas and/or with high demand occupations. INCREASE SLAUGHTERHOUSE CAPACITY IN VERMONT: Provide matching grant funds for slaughter and meat processing facility improvements (e.g., additional equipment, storage, and other infrastructure needs). ($50,000) VAAFM TRAVEL FUNDS FOR FEDERAL FARM BILL: Funds will be made available to allow the Vermont Agency of Agriculture to be involved regionally and nationally in the formation, interaction and movement toward passage of the Federal Farm Bill. ($25,000) MERCHANT BANKING Amending 8 V.S.A to reduce capital requirements from $10,000,000 to $1,000,000 LONG RANGE ECONOMIC PLANNING Develop a short term economic development implementation plan by reviewing all past economic development plans an pull our common, implementable recommendations combine with other recommendations. MONITORING THE FARM TO PLATE PLAN: Conduct an annual evaluation of progress on F2P Strategic Plan implementation, including data collection and analysis. ($100,000) VERMONT SUSTAINABLE JOBS FUND GOVERNANCE CHANGES: This will enable VSJF to apply Community Development Financial Institution (CDFI) designation and thereby be eligible to apply for up to $2million in capitalization for the Flexible Capital Fund a near equity, patient, mezzanine level financing fund for growth stage businesses in the VSJF s market sectors. Items with an * do not require legislation. DRAFT 2011 Jobs Bill Proposal February 17, 2011 Page 5 of 5