Living and Working in Burlington Vermont

Last week I wrote about the Senate Economic Development Committee’s work to restructure the Unemployment Insurance fund in the face of push back from all sides.

This week it would inconceivable not to write about the work of the Senate Appropriations Committee and their support of the Vermont Convention Bureau. Some may question why supporting an enterprise that brings thousands of room nights to Vermont that otherwise would go to other states takes courage. Well, the unexplainable reality is that the Department of Tourism and Agency of Commerce have for the past two years refused to provide any support to the Bureau making Vermont the only state that, in some way, does not support its Convention Bureau.

Last year the legislature appropriated the money requested by the Lake Champlain Regional Chamber for the support of the VT Convention Bureau. This year, Representative Heath of Westford, who is the Chair of the House Appropriations Committee, once again got the ball rolling by putting in half of the necessary funds. Yesterday, the Senate Appropriations Committee led by Senators Shumlin and Bartlett, in the midst of the toughest recession that this state has ever seen, found and added the remaining money. These Senators understood that the ability to fill hotel beds, to fill seats in restaurants and to fill tourist venues directly returns real tax money to the state coffers. These Senators did this in the face of opposition from the administration and in light of the many others who were clamoring for money.

Please take the time to drop each member of the Senate committee and Representative Heath a note of thanks. Far too often we only take time to tell them when we disagree with their actions. Fair is fair. They really deserve kudos this time.

There are many issues facing the legislature this year that will alter the way the state has done business, compensated employees, and provided services to its citizens. Among the thorniest and Gordian changes facing them is how the state will deal with the depleted unemployment trust fund.

Vermont has taken great pride in providing some of the highest benefits to those who find themselves unemployed. It is emblematic of the safety net we provide to other troubled and disadvantaged Vermonters. While it has been providing those very generous benefits (including according benefits to those fired for gross misconduct) it has neglected for over a decade to raise the tax paid by employers that funds the program. The result of the perfect storm of benefit generosity and underfunding is that, in the midst of the Great Rescission, the UI fund is broke.

Legislators have been aware of the funding crisis since last session. Despite valiant efforts last year by the Senate Economic Development Committee, a solution eluded the legislature. This year, the problem Vermont faces is even worse. We are borrowing from the federal government while paying interest plus penalties on the borrowed money.

In the middle of this quagmire stands the Chairman of the Senate Economic Development Committee. Senator Vince Illuzzi, a Republican from Essex-Orleans, has been a champion of Vermont workers for his long legislative career. Although an attorney by training, he grew up in the blue collar world of the Barre granite workers where his father was a world-renowned carver. When push came to shove, Vince could always be counted on to be labor’s strongest ally. But the world has changed and Senator Illuzzi finds himself at the sword’s point leading the fight for a balanced approach to solve the fiscal and social crisis that looms.

Instead of looking to the business owner to foot the bill, or the labor to absorb cuts or to simply fiddle while Rome burns, he and his committee asks that all parties shoulder some portion of the burden. Businesses are being asked to pay higher taxes; unemployed workers would not be so readily compensated for terminations based on egregious behaviors; some benefits would prospectively see modest reductions and those workers employed today would be asked to contribute to the fund (for the average worker, the cost is estimated to be 80.00 a year). This is not a Jonathon Swift-like Modest Proposal, but a reasoned and prudent approach to solving a real problem.

However, the Senator is being pilloried in some quarters (and by both sides!). Call me naïve, but it strikes me that a balanced approach that treats folks according to their abilities and needs is just plain fair what we used to call Leadership.

Many of us were pleased this week to read that the Canadian dollar is on ‘par’ with our currency. For folks in the Lake Champlain region that are in the tourism, hospitality or retail sectors, this news is welcome as the government cutting taxes. With our competitive prices and welcoming approach to our Canadian neighbors, this means that the visitor season should be even more robust than last year. It also means that enplanements from Burlington Airport should continue to feature a large percentage of Canadians from Montreal south, as they take advantage not only of our excellent air rates but the lodging deals provided by our local hotels, motels and B&B’s.

While this economic news makes us smile especially in light of the anemic improvements to our economy, there are other reasons to welcome our northern neighbors. We should never forget that the culture and heritage of Vermont is inextricably entwined with that of Canada, especially Quebec. Before the languages of late 20th and early 21st century ‘new Americans’ was heard in our schools, we heard Quebecois. Last year the Vermont Council on World Affairs hosted the Heritage in Harmony program that explored and celebrated the connections between France, Quebec and Vermont. In the years before 9/11, the border between our two countries was nearly invisible and even today the courtesy extended to those who cross the borders between both countries is very different than what one experiences when traveling internationally.

I say this not to state the obvious but to remind all of us that we should never take our friends for granted. That is as true in our personal life as it is in business and international affairs. Everyone wants to feel and truly be appreciated. So, when you have the opportunity to interact with one of our Canadian friends, take a moment to thank them, personally, for their patronage and friendship.

The Douglas administration unveiled their Challenges for Change proposal last week to a chorus of discontent from every imaginable sector. The Chamber was among those wishing to have been spared the possibility of reduced funding. The concept of shrinking government’s size while increasing its effectiveness is a wonderful one until a pet program is the one being gored. This is no different today than it was in 1994 when, in a previous life and in a previous administration, I was among those attempting to do the same thing. Our ideas were met with disdain, many were dropped and a few lived to prove themselves out. We missed huge opportunities back then and we stand to lose opportunities now if we allow the process to be derailed. It is time to come together as Vermonters and make this work.

That said, could the administration worked with constituency groups to craft, or at least review, the proposed changes before launching them? Probably. Would an inclusive process run the risk if devolving into a ‘process for process sake’ exercise that has become the hallmark of the bureaucracy today? Probably. Would the suggestions have been markedly different? Pretty Likely…. Could we have, with legislative and executive leadership, commitment and fortitude driven an inclusive process that met the financial and time constraint benchmarks? Yes. However, as the saying goes, “it is what it is.”

We are faced with a Hobson’s Choice: accept what has been proposed in the Challenges for Change and that is already marbled in the House budget that assumes the savings ($38 million) or cut a much less strategic $38 million out of that budget. To me the choice is clear.

It is up to all of us, whether we are in the economic development, environment, human services or protection sectors, to work to make the best tasting lemonade we can.

This week Burton Snowboards announced that they are moving their manufacturing operations to Austria, citing the costs associated with manufacturing in Vermont as the reason for the move. I was in Montpelier the day the decision was announced and was shocked to hear some opine that the move wasn’t such a big deal: after all, "only" 43 jobs were being lost. And, they noted, Burton has said that they would add R&D jobs. I thought all jobs were worth saving and that all jobs had value. Apparently, to some in Montpelier, all work is not equal. Some have a more erudite air about them. Too bad.

So while it is true that Burton is staying in Vermont and while it is true that higher-end R&D jobs will be created, are folks really missing the fact that good paying, (what were traditionally called) blue collar manufacturing jobs are leaving? Are they missing the fact that the quintessential Vermont success story (Burton) is publicly stating that manufacturing is no longer viable in this state? Can they be blind to the fact that not every person who wishes to live and work in this state can be an R&D engineer; or a software programmer; or work in any number of other knowledge based jobs? Vermont needs jobs for folks who either prefer to do other kinds of labor or for whom certain jobs reflect the best that they can be. We cannot continue to create a business environment where the cost of doing business is prohibitive for all but a few companies. Vermont cannot continue to turn a blind eye to large companies that would prefer to be here but who must respond to stockholders' needs. If Vermont wants to play in the global economy, we need to act like we do. Creating a business environment for boutique businesses is not going to create a world-class hub of economic development activity.

It is time to wake up and smell the coffee…………. and remember the time when young Olympian Gold Medal winners rode Burton boards made in Burlington, Vermont.

I recently returned from a trip to Dubai, having spent the last week meeting with business leaders and government officials in an attempt to learn about opportunities for Vermont businesses to take advantage of the growing markets in this region of the world. Despite some recent financial setbacks, Dubai and the United Arab Emirates hold great potential for select aspects of our business community. I will expand upon that at a later date but want to talk now about the people and culture.

For me and others on this trip, Dubai and this part of the world is a bit of an enigma. I knew little and most of that of what I did know was formed by our press and their interpretation of current geo-political occurrences. From day one, I have been impressed by the genuine warmth of its people and their openness—to talk about business but also to talk freely about their views of the United States and our interactions with the Muslim world. Most were young business professionals in their mid-thirties and many had had received some education in the west. They deeply love their country and are proud of their heritage, culture and religion. At the same time, they hold our country in high regard even if they don’t always understand our political system. To a person, they divorce our people from our political theatre in Washington. They watch CNN and Fox News and the Daily Show. From the Vice-President and Sheikh of Dubai to the women business leaders we ate our meals with, they express a hatred for terrorism and find it an affront to Islam. One spoke of living in the United States during 9/11 and his sadness at what happened was palpable. Likewise they are infuriated that their country was used to stage the assassination of a Hamas leader. The UAE and Dubai in particular is a melting pot of ethic and religious groups living harmoniously among each other. Integrated education is held out as the single best hope of eradicating intolerance and achieving world stability.

It is often noted that diplomacy is best practiced on a person to person level. I have no idea what business will come from the visit of twenty three leaders of Chambers of Commerce across America. What I do know is that each of us takes home a deeper understanding of a people and culture seen often as caricature and an understanding of the similarities that bind us.

The Vermont Senate voted overwhelmingly to move towards a 2012 closure of Vermont Yankee, the state’s nuclear power plant. A vote of 26-4 is about as strong a repudiation of the plant as is possible. Four senators voted to keep the process alive (not to re-license the plant, per se).Two were Democrats and two were Republicans. So why would these four stand against the tide? Knowing each fairly well, it is clear that none are ‘in the pocket’ of VY. Each of them has a successful career outside the State House; they are all in politics not for self aggrandizement but to serve in the truest sense of citizen legislator. None need to serve other than for the calling of service itself. I could recount the history of each and attempt to divine why they stood against the tide. It might prove to be an interesting exercise but the most interesting story is that of Senator Phil Scott of Washington County.

Senator Scott is a Republican hailing from Washington County, certainly not the epicenter of conservative thought. He voted for same sex marriage and withstood a barrage of criticism. He is now running in the Republican primary for Lt. Governor in a state that is decidedly ‘blue’ and running against the son of one of Vermont’s most revered political families.

In recent polls, it appears that nearly 50% of Vermonters want VY shut down. Let’s face it. The operation and public relations efforts of VY over the past year could have been made into a Three Stooges movie. It left even their most ardent supporters scratching their heads.

Senator Scott, speaking in the quiet voice that is characteristic of his Vermont roots, explained that his vote was about ‘process’ and not a vote in favor of the power plant. He firmly believes that the legislature should be a deliberative body; one that assembles facts, debates them openly and only after that open debate, makes a decision. He felt that this vote was pushed through to appease the current popular sentiments towards Yankee and lacked the thoughtful review that the Vermont Senate has been noted for. If law and policy are made, he reasoned, based on populist sentiments much of the progressive law and policy that we have today would not exist.

Whether one agrees with his vote or not, it is an interesting perspective into one of our candidates for higher office. Process matters; dialog matters; facts matter.

As many folks know, the Chamber is celebrating its centennial year. While there are many unifying links between then and now, there is one that I think rises above all others. It is powerful and speaks volumes about what we value most. At the core of what we believe is the view that the employees of our member companies are the most valuable asset that a company possesses. The LCRCC member businesses employ roughly 60,000 staff. Every president, CEO or business owner that I speak is quick to attribute their success to the skill, dedication and commitment of their employees. Their view is a predictable as the sun rising in the east. Industries may change names of companies change, ownership can change, physical plants get altered but the constant in any business remains the people. It’s for this reason that the Chamber focuses so intently on training, leadership development and the dissemination of information. We are committed to doing whatever it takes to increase the value that an employee can make to a business. It is our critical point of differentiation and is one point that makes membership in the chamber so important.

So as we begin to celebrate our centennial year, we cannot ever lose sight of the fact that the people who constitute the membership create not only our success but the success of their companies.

Lake Champlain and those who advocate for its water quality and sustainable habitat recently won a major battle on the state and federal level.

In December 2009, environmental groups from around the country came together to launch the national "Great Waters Coalition", namely to collectively lobby for more federal funding to clean up polluted bodies of water including the Great Lakes, the Gulf of Maine, and Chesapeake Bay. There was one glaring exception from the list – Lake Champlain. Vermont groups such as Business Alliance for a Clean Lake (of which your Chamber is a founding member) and the Lake Champlain Committee were immediately galvanized into action and swiftly applied to join the Great Waters Coalition. Their entreatment was accepted – which brings Lake Champlain into a national alliance whose watersheds are home to over half of the entire country’s population.

Lake Champlain is arguably the lifeblood of the Champlain Valley if not the entire state of Vermont. However, many have not yet adequately attributed the proper importance to this essential ecosystem that shapes our daily lives and that fuels our economy in countless seen and unseen ways. As a result, the warnings of algae blooms, invasive species, and harmful climate change have often fallen on deaf ears – those who need to hear the message the loudest.

The Business Alliance for a Clean Lake (BACL) has a simple, clear mission: we support efforts to clean the lake, to prevent further man-made impacts that would reduce its safe and enjoyable use, and to protect the Lake for the future of our economy and for future generations. Restoration efforts have been slow and are hampered by lack of funding, limited interest on the part of residents and businesses, or perhaps simple ignorance that the smallest acts can make the biggest impact.

BACL has come together to make the cleanup of our state treasure a reality. Only by raising awareness and implementing educational programs, backed by state and national support, can we change the status quo. Lake Champlain joining the list of other prized bodies of water in the Great Waters Coalition will not only elevate Vermont’s efforts, but also bring us into the national movement to preserve and restore all the Great Waters in America.

As predictable as the January snows and annual thaw, the Vermont legislature begins its annual session. This year it, and all of Vermont, faces the most difficult financial choices in our history. Throughout the twentieth century, there are milestones that reflect the point in time when either the change that was nascent emerged or when a unique event altered the way the state viewed itself. The infamous flood of 1927 is most the commonly used example of this and even today politicians scurry to be the first to remind all who would listen that Vermont turned down federal relief aid because of the strings attached to it. From a slightly more contemporary perspective, Vermont historians note that our Republic was rocked and forever changed by the debate over reapportionment in the 1960’s. Small towns traditionally given a vote and voice in Montpelier were in many observers’ minds quieted by that loss. Others note that a similar seismic shift occurred during the debates concerning school funding and civil unions. In many ways the results left in the wake of legislative action this year could be just as significant although certainly more understated. A sampling of issues is illustrative of this fact.

Foremost are the budget decisions that must be made. Excising 158 million dollars from a slightly more than 1 billion dollar budget following two years of other reductions will require cuts in services across the board. Understanding that the lion’s share of state spending is in human services and education, it is clear that the pain of these cuts will be felt by some of the most troubled and disadvantaged among us.

Vermont has guarded and prided itself on its environmental and ‘green’ image. We have every right to be proud of our legacy. The legislature must decide this year whether or not to approve the process that would set in place the review to relicense Vermont Yankee Nuclear Power Plant, known today as Entergy. Without an affirmative vote, the plant will begin the long process of shut-down in 2012. There are those who extol the virtues of nuclear power as inexpensive, clean and non-polluting while other equally ardent opponents remind us not to forget the waste stream left behind or the spectacles of Three Mile Island or Chernobyl. I can find no one, politician or private citizen, who does not have an opinion on the matter.

Vermont is perennially noted as a tough place to do business. Permit costs, taxes, utility rates, our inclusive public processes all add to the financial costs. Those who decide to locate and remain here fit the mold of rock-hard savvy business people. The legislature has an opportunity this year to mitigate some of those costs while at the same time creating incentives that will attract clean and green businesses to Vermont. To the casual observer this seems fairly intuitive. To some, incentives equate to corporate welfare; lower tax burdens to fatting the rich and transparent permit process to serving up Vermont’s environment to exploiters.

The list of issues could go on for pages. Regardless of our political affiliation, our non-profit memberships, our personal belief systems or any other factor that influences us, we have to remember that Vermont is one community and that the strength we have exhibited throughout adversity and challenges has been derived from the understanding that we are truly just one.