MONTPELIER — The House and Senate on Friday approved a workforce development bill that includes nearly $2 million for various new attraction or training initiatives for people who move to Vermont to work. It now goes to the governor for his signature.
On Jan. 1, the state started reimbursing people up to $10,000 if they move to Vermont to take remote jobs. New next year, under H.533, is a program that will reimburse workers up to $5,000 in some areas of the state and $7,500 in places where workers are needed most. Acknowledging that employers cite the worker shortage as one of their greatest hurdles to growth, the new program is for people who take jobs within Vermont.
Even if the new workers arrive with a job in mind, the program will help Vermont companies, said Justin Worthley, senior vice president of human resources at Burton, the snowboard equipment and clothing company based in Vermont, which has supported the measures.
“Maybe they’ll have a spouse with them who is looking for a position,” Worthley said. “Anything and everything the state is doing to get a better workforce base in the state is positive. I think this is pretty brilliant strategy.”
So far, 33 people have moved to Vermont to take jobs through the remote worker program, said Sen. Alison Clarkson, D-Windsor, a strong supporter of the measure. Through the friends and family who accompanied those workers, the state now has 87 new residents, she said — including nine families with school-age children. Clarkson said those who were asked about salaries reported they make between $50,000 and $100,000 annually.
The average award was $3,700. Applications are still coming in, but the state has tapped out its fund for reimbursements until July 1, when another $125,000 will be available for the program.
The new worker program was an initiative created by Gov. Phil Scott’s administration last year after the remote worker program generated thousands of inquiries. In his fiscal year 2020 budget, the governor called for spending $1 million in the coming year to attract more people to help reverse Vermont’s population decline.
The measure that came out of the Senate Committee on Economic Development, Housing and General Affairs contains $1.95 million for the actual incentives, as well as another $225,000 in marketing funds that can also be used for incentives if necessary.
Anyone who moves to Vermont to take a Vermont job for any length of time would qualify for reimbursement of some moving expenses. People who move to areas where the labor shortage is most extreme, including the White River Junction, Burlington, and Montpelier areas, will be eligible for up to $7,500 in reimbursements.
But there are some limits. Only one reimbursement is allowed per household, and people won’t be able to move in and out of the state to apply for more than one reimbursement.
The new worker incentive is only available to people who take jobs that pay at least 160% of the minimum wage in most of the state, which amounts to $17.24 per hour. In areas with lower wages or higher unemployment, they must make 140% of the minimum wage to qualify. The Vermont minimum wage is $10.78 per hour; 140% of that is just over $15 per hour.
Lawmakers who oppose the move-to-Vermont reimbursements have argued that the money would be better spent on Vermonters who are already in the state. Sens. John Rodgers, D-Orleans, Chris Pearson, P-Chittenden and Anthony Pollina, P-Washington voted against the conference committee’s version of H.533. It passed unanimously in the House, and it now goes to the governor for his signature.
“The remote worker thing has gotten some good publicity, and I think it has probably drawn some good people here,” Rodgers said. “But I still feel that we have a lot of really bright kids who are leaving the state to make more money. We need to do more to take care of our own.”