Thank you to this week’s sponsor of our Advocacy Update:
January 9, 2026
Hello loyal readers, we’re back at it in Montpelier, and it feels as if we just put a bookmark in the last legislative session. As we jump back into things, here are 12 things you should know.
- 12% is the increase projected in the nonpartisan December 1st letter for property taxes.
- The Scott administration told members of the House Appropriations Committee that it wants to use nearly $75 million in surplus revenue to blunt the impact while working on substantial changes.
- Senate President Pro Tem Phil Baruth is putting forth a proposal to impose variable allowable growth rates to restrict school budgets for at least two years.
- 11 months until the next election, and some folks have already announced their candidacy, and many more their retirement. Both parties are making their case to voters while doing their work in the State House.
- 10 to 20 new school districts is what Act 73, last session’s monumental education transformation bill, charged the School District Redistricting Taskforce to create.
- BUT they didn’t, meaning the fate of all of the pieces of the Act triggered by district map implementation are at risk. This leaves us where we were before the summer legislative adjournment, with everything back on the table.
- The Nine is the location for the first legislative breakfast, providing a fun opportunity to network with your legislators at a new location with some of the largest golf simulators in New England. Come see if your legislator is back in the swing of things.
- Eight hundred feet of road (or driveway) can trigger Act 250 jurisdiction under the “road rule” created under Act 181, which, it turns out, places most of the state under Act 250 jurisdiction, creating frustration that will hang over any land-use reform conversations this legislative session.
- This is not the only issue with Act 181, while the road rule pushes development close to existing roads, new Tier 3 maps often make those areas impossible to build in, leaving just very small Tier 1 areas that are woefully inadequate to meet state housing goals.
- Seven months until the next fiscal year, and revenues are lagging behind in some areas, with a complicated outlook in the face of federal factors.
- An easy way to think of this is; behind us is the era of abundant federal money, ahead of us is an era of less abundant and stable federal funding, but for right now, while things aren’t great, they’re relatively normal.
- Six mid-session legislative appointments have been needed as legislators have resigned mid-biennium for various reasons, removing some high-profile legislators.
- The reasons range from a scandal of national proportions, leaving the country, family reasons, and new jobs; however, it stirs questions of the limitations of citizen legislature that are always beneath the surface.
- Over the next five years, Vermont will get $195 million in federal funds each year to transform our healthcare delivery, enabled by federal legislation HR. 1 (AKA “The One Big Beautiful Bill Act” or OB3).
- Though don’t forget, the same Act sealed the fate of sunsetting expanded health insurance credits that will result in Vermonters losing a collective $65 million in support annually, causing average net premiums for the subsidized population to more than double, affecting nearly 30,000 Vermonters in the state with the most expensive healthcare in the world.
- Four…ty percent – the amount property taxes have increased in the last five years, and voters will not forget that. Cost containment is everyone’s goal ahead of the coming election.
- For every three Vermonters, one will be over the age of 65 by 2030, a statistic driving everything legislators are grappling with in Montpelier, meaning fewer students for our schools, a more expensive healthcare system, numerous housing issues, and much more.
- Second-oldest housing stock in the country due to our chosen scarcity, creating a supply-side problem. Attempts to remedy that supply-side problem are now hitting a difficult patch, which will tempt many legislators to do what progressive places often do: throw money at the problem as if it were a demand-side problem.
- If a popular restaurant was using less than 6% of its floor space for seating and wanted to boost sales, would you advise adding tables or giving the few people already in the restaurant steep discounts?
- One issue is the most prominent: education. The Governor dedicated his entire 35-minute State of the State address to the topic, issuing an ultimatum that he would not sign the must-pass legislation unless he received a bill that transformed the education system in a way he deemed substantial.
For our new readers, intros are not usually this long, however, it’s important to set the stage.
In this week’s update:
- Accountability docket addresses “stuck” repeat offenders
- VT has missed $60 million in visitor revenue
- CHIP implementation is around the corner, learn more and required first step
- The Laundry List
We strive to make these concise and easy to read. Feedback is not just welcomed, it’s encouraged – [email protected]
Space is Filling Up – Register Today for the LCC Legislative Breakfast Series
Every year, we bring legislators, policymakers, and LCC members together to celebrate business ownership and entrepreneurship and advocate for economic opportunity for our region. Sponsored by EastRise Credit Union, our Legislative Breakfasts are opportunities to connect with legislators and those in higher office.
January Legislative Breakfast
- When: Monday, January 26 | 8:30 am
- Where: The Nine | 1205 Airport Parkway, South Burlington
March Legislative Breakfast
- When: Monday, March 16 | 8:30 am
- Where: Dealer.com | 1 Howard Street, Burlington
Thank you to our hosts, The Nine and Dealer.com, for their generous support of our Legislative Breakfast Series!
Thank you to our breakfast sponsor
Accountability Docket Addressing “Stuck” Repeat Offenders
Read time: 1 minute
For years, the business community has highlighted a few problems:
- A few offenders are responsible for the vast majority of open dockets in the court
- These are not moving through the backlogged judicial system; they are non-violent, and the system is prioritizing violent offenders, leaving these repeat offenders stuck in judicial no-man’s land.
- These are the offenses affecting the quality of life in our communities, as these types of offences affect the day-to-day experiences of businesses and community members.
Enter the “Accountability Court,” which legal eagles will be quick to note is actually an “Accountability Docket.”
- This is a designated space for those who are racking up charges and affecting the community, yet are not doing anything that warrants them getting their day in court before a violent offender.
- It focuses on those with five or more open dockets, which, at the statewide level, make up 28% of all dockets
It’s been a success! The accountability docket has resolved almost 400 cases of the nearly 900 under its purview since it started this fall.
- Unfortunately, the operation will wind down at the beginning of February as it was a temporary measure announced as part of the Governor’s support for Burlington. There are talks of trying the same pilot in other parts of the state.
What do you think?
- Have you seen a change since this docket’s implementation?
- Would you like to see it continue?
Vermont Has Missed out on $60 Million in Visitor Dollars by Not Having a Convention Center
Readtime: 1.5-2 minutes
This week, two committees heard testimony on the interim report of the Convention Center Task Force, from Jeff Lawson, VP of Tourism and Marketing at the Lake Champlain Chamber and head of Hello Burlington, the destination marketing initiative for the greater-Burlington area.
The state task force has benefited from a concurrent effort by Hello Burlington, which engaged a consultant specializing in such venues. A preliminary market feasibility study confirmed the project is viable and timely.
Important takeaways from the report;
- It’s more than economically feasible! The initial study by Hunden Partners concluded that, if a facility were built, demand would support it. The region is estimated to have lost approximately $60 million in business over the past 10 years due to a lack of adequate large-scale meeting infrastructure.
- While Burlington is already a strong weekend destination, the project is seen as a vital opportunity to capture “middle-of-the-week” business travel and professional events.
We have a market that is ready and has some strategic advantages!
- Hotel Inventory Growth: Downtown Burlington is poised for a 50% increase in hotel room inventory by between 2025 and mid-2027. Breaking the 1,000-room threshold downtown makes large-scale infrastructure much more viable.
- The “Walkability” Factor: Consultants emphasized that Burlington is decades ahead of its competitors because it already possesses a walkable downtown experience and lakefront (Church Street Marketplace and Lake Champlain) that attendees actually want to visit.
- Major Demand Drivers: Local anchors like the University of Vermont, Beta Technologies, and the Vermont Captive Insurance Association (VCIA) generate consistent demand.
It’s not all good;
- The Primary Hurdle – Construction Capital: Despite the clear market demand, funding the initial construction remains the most significant challenge.
- Governance Challenges: Unlike many other states, Vermont lacks county-level governance, which prevents the implementation of a county-wide lodging or rooms tax to bond and fund such a project.
- Loss Leaders: Convention centers are typically “loss leaders” that do not make money themselves but drive secondary spending in hotels, restaurants, and retail. Finding an entity to “hold the bag” on the annual operating loss is a major point of discussion for the state task force.
What’s Next?
- Phase 2 of the Hello Burlington Consultant Report is Launching: The project is now moving into a deeper financial modeling phase. This will involve a 10-to-15-year look at construction costs, tax revenue implications, and specific programming.
- The State Taskforce’s Final Report is due this coming November.
CHIP Implementation Around the Corner: Learn More and Required First Step
Readtime: 30 Seconds
The launch of CHIP remains on track for later this month. In the meantime, a required interest form is now live for municipalities to provide a high-level overview of their proposed projects. This brief form is a required first step for all municipalities before they complete the official application. It will help VEPC track program interest and anticipate incoming applications.
In anticipation of the upcoming launch of the Community Housing and Infrastructure Program(CHIP), there will be a series of webinars available to help local leaders understand how tax increment financing works and supports community investment. These will take place on January 8, 13, and 15 from 2:00-3:00 pm, and recordings will be made available. The series explores the steps local municipalities should take to implement CHIP and is designed for first-time learners and local leaders to lay the foundation for responsibly putting this tool into action.
The Laundry List
Hundreds of hours of committee discussion each week culminate into our advocacy update, so not everything makes it into the overall update; however, we often cover what is left on the cutting-room floor here for our most dedicated readers.
- We typically have a “happy report-a-poloza to all who celebrate” section in the laundry list next week; however, things change, and most of the reports came a month ago. See all the reports here.
- You might have missed it over the holidays; Governor Phil Scott has named Christina Nolan of Burlington and Michael Drescher of Hinesburg to the Vermont Supreme Court.
- Legislation aimed at restrictions for extreme temperatures introduced last year is alive and active.
- A contingent from Burlington, including the Mayor and City Council President, was in Montpelier this week to push for the passage of the City’s proposed ordinance to ban guns in businesses that serve alcohol.
- The House Committee on Commerce and Economic Development heard a report from a working group on noncompete agreements this week. While the group could not find evidence that these agreements have created tangible issues in Vermont, there was some consensus on working within existing case law for common-sense guardrails.
- In a slightly comical twist, both Democrat Emilie Krasnow of South Burlington and Republican President Donald Trump rolled out similar policy proposals this week, preventing private equity from buying single-family homes.
Hey! You read the whole update. You probably have some thoughts on the content or how we delivered it. Feel free to reach out with those at [email protected].