2009 Legislative Session Wrap-up

Together with our legislative partner, Preservation Trust of Vermont, Smart Growth Vermont had a very active session advocating for reforms and public investments that have great impact on land use and development patterns. We focused our efforts on policies that provide incentives for new development opportunities in and around our established settlements as well as those that enhance the long-range viability of Vermont’s working lands.
 
Lawmakers adjourned on May 9, but they were called back by the Governor for a special session starting on June 2 because of a dispute over the state budget. In that special session, the legislature voted by a very thin margin to override the Governor’s veto of the budget.  The implications of this unusual turn of events are discussed below, along with an update on many of the issues we worked on during the 2009 session.
 

2009: THE GOOD NEWS

Increased Investments in our Downtown and Village Centers
Thanks to the efforts of Senator Vince Illuzzi and members of the Senate Economic Development Committee, the omnibus economic development bill for the session, H.313, included a $100,000 increase in the annual cap for downtown and village center tax credits.  This brings the annual amount allocated to supporting reinvestment in our downtowns and village centers to $1.7 million per year, which is almost $1 million more than the level authorized only four years ago!  Our legislative partner, Preservation Trust of Vermont, helped to educate lawmakers about the effectiveness of these incentives for creating much-needed jobs while preserving historic structures and revitalizing our community centers.

Tax Increment Financing Reforms Advance
Smart Growth Vermont supported key Tax Increment Finance (TIF) reforms to help particular community development efforts, including Burlington's Waterfront. TIFs are a public financing method that is commonly used for redevelopment and community improvement projects, including water and sewer upgrades, sidewalks, and parking structures. They use a portion of the additional tax revenue generated by new development to pay for infrastructure needs associated with that development.  Although efforts to secure passage of more comprehensive reforms stalled, the legislation was a step in the right direction.

Transportation Enhancements to be Expanded  
At the beginning of the session, the Agency of Transportation proposed a moratorium on new transportation enhancement projects for the construction and implementation of bike and pedestrian infrastructure. The Agency also laid out a plan to eliminate the public board awarding these community development incentives and replace it with unilateral decisions by an agency official. We fought this proposal, and are happy to report the program will actually be expanded in the coming year thanks to special funding provided by the American Recovery and Reinvestment Act.

Current Use Reductions Tabled Until Next Year
Citing the fiscal crisis, lawmakers considered a last minute proposal to place arbitrary caps or special surcharges on properties enrolled in the use value appraisal program.  The proposal was tabled in the face of widespread grassroots opposition to the proposal surfaced from groups ranging from the Vermont Natural Resources Council to the Vermont Farm Bureau. However, lawmakers are expected to reconsider the idea of curtailing it $45 million annual commitment to the current use system next year.


2009: THE BAD NEWS

Vermont Housing and Conservation Board Investments Drastically Reduced
Public investment in permanently affordable homes, farm business viability, conservation of working farms and forests, and public recreation access are essential to our state’s economic and cultural future.  Vermont faces a severe shortage of permanently affordable homes, and there is a long line of farmers looking to enhance their long-term viability through a conservation investment. The Vermont Housing and Conservation Board (VHCB) is the main source of state investment for these important investments in our shared future. The Legislature’s FY2010 budget enacted a drastic reduction of state investment in VHCB, which will have a tremendous impact on the construction of permanently affordable housing and the conservation of working farms and forests.  However, the Legislature rejected the Governor’s call for a total elimination of the conservation investment program.


2010: TO BE CONTINUED
 
Strip Development Controls Stall
S.99 is a bill that would modernize the way Act 250 regulates strip development. According to the Vermonter Poll, Vermonters are concerned about sprawl and think actions should be taken to address inefficient land development patterns. One of the worst forms of sprawl is strip development along scenic road corridors. The 2008 Smart Growth Summer Study Committee, of which Smart Growth Vermont was a member, acknowledged that Act 250 does not adequately address the problem of strip development. Recommendations from this committee were incorporated in S.99, and under the leadership of Senator Ginny Lyons, the bill was unanimously voted out of the Senate Natural Resources Committee. Unfortunately, it stalled in another Senate committee. This is an issue we will continue to work on in the 2010 session.
 
Growth Center Program Improvements Pending
Smart Growth Vermont supported S.64, a bill that would result in several important updates to the new Growth Center program. Having reviewed and commented on growth center applications from more than half a dozen communities and participated in both the Planning Coordination Group and Downtown Board meetings, Smart Growth Vermont is concerned about the size and scope of some of the first proposed growth centers. S.64 would provide communities and state agencies improved guidance and ensure growth centers do not support sprawl. The bill is pending in committee and will hopefully be a top priority for action in the 2010 session.