Vermont may expand its pay-to-move program, would pay up to $7,500 to all eligible non-residents

MONTPELIER - The Vermont Senate is leaning into a strategy of paying non-Vermonters to bolster the state workforce.

The Legislature's upper chamber gave preliminary approval Friday to a bill that would pay people up to $7,500 to move to Vermont to take a job. The proposal builds on Vermont's remote worker incentive, which launched in January. 

The current remote worker program has paid 27 people to move to Vermont, said Joan Goldstein, commissioner of the Department of Economic Development.

Those new residents, who work for out-of-state businesses, received an average grant of $3,600, Goldstein said. People can qualify for $5,000 a year for two years, for a total of $10,000, but they must submit actual expenses for reimbursement. The program is still in its first year.

Sen. Randy Brock, R-Franklin, said the grants represent "peanuts" compared to other states' costly corporate job-creation incentives. 

Counting partners and children, the incentive has helped 69 people move to Vermont, Goldstein said.

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Senators agreed to expand the program so that it would help Vermont businesses to recruit workers. 

"We need to try new, innovative programs. We have to," said Sen. Becca Balint, D-Windham, arguing in favor of the bill. "We do not have the workers that we need."

The Senate advanced the proposal Friday by a vote of 27-2.

Sen Christopher Pearson, P/D-Burlington, and Sen. Anthony Pollina, P/D-Washington, cast the opposing votes. 

Here's how the proposal would build upon the highly-publicized remote worker program.

Who could apply?

Current program: Only remote workers are eligible. People have to be moving to Vermont to work remotely full-time for a business based outside Vermont.

Proposal: Remote workers would continue to be eligible for the incentive. Anyone who moves to the state after January 2020 to work full-time for a Vermont business would also be eligible.

Workers in certain industries would have a better chance at getting a grant. The bill suggests giving priority to applications from workers in early child care, the lodging and restaurant industry, manufacturing, technology and construction trades.

The program would continue to be restricted to full-time employees who receive a W-2 tax form from their employer. Independent contractors and freelance workers would not qualify.

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How much money?

Current program: Qualifying workers can receive reimbursements totaling $10,000 over two years.

Proposal: Workers could receive reimbursements up to $5,000, which would rise to $7,500 if they're moving to a "designated labor market area," a region that qualifies based on employment and wage statistics. Sen. Michael Sirotkin, the chairman of the Senate Economic Development Committee, said anywhere in Vermont other than Chittenden and Franklin Counties would qualify for the higher grant. 

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What could the money be used for?

Current program: The state provides reimbursement for moving expenses, setting up a home office with internet connectivity, paying membership fees for a co-working space, or paying a lease deposit. 

Proposal: The money could be used for moving expenses, but also to pay back student loans, to afford a down payment on a house, or to pay a deposit on a rental property.

What's next?

A final vote in the state Senate is expected Tuesday, then the bill will move to the House of Representatives. If the bill is approved, and if the Legislature provides funding in the state budget, the expanded incentive would be available in January 2020.

SUBMIT YOUR APPLICATION:Want $10,000 to move to Vermont? Get your application ready now.

More information about the current remote worker program is available at accd.vermont.gov/economic-development/remoteworkergrantprogram

Contact April McCullum at 802-660-1863 or amccullum@freepressmedia.com. Follow her on Twitter at @April_McCullum.