Housing and Conservation Funded

VHCB investments in affordable housing and land conservation are a proven economic development strategy. As part of the Housing and Conservation Coalition, we are pleased lawmakers decided to invest over $11M into our communities through VHCB next year. The funding will be $6.1M from the property transfer tax plus $5M from the Capital Bill. While reduced from the FY09 level of $15M, this level is positive and will produce good results. Special thanks to Speaker Smith for his support of this key program.

---

RPC's and RDC's Challenged to Change

The Challenges for Change Bill includes a shift in the way Regional Planning Commissions (RPC's) and Regional Development Corporations (RDC's) will operate. Challenges for Change is a broad package of reforms lawmakers developed to find $38M in state spending reductions by restructuring the way government operates. In late March, the Administration proposed the 11 RPC's be merged with RDC's and consolidated down to a total of nine entities. The proposal would have been a major change in focus and approach.

After lawmakers heard from RPC and RDC supporters, including Smart Growth Vermont members, they rejected the Administration’s proposal and instead moved to improve the accountability of these organizations. Under the final Bill, RPC’s funding were reduced by 5%, on top of last year’s cut of 13% and RDC’s were also reduced by 5% after a previous 8% cut. RPC’s will be offered performance-based contracts with the Agency of Commerce by February 2011 and in contrast the RDC's will be required to bid on performance-based request for proposals.

RPC’s and RDC’s will also undertake an evaluation on ways to increase regional coordination to improve service delivery. Synergy between economic development and land use planning has the potential to strengthen smart growth policies moving forward. The Chittenden County Regional Planning Commission was specifically directed to create a plan for merger with the Chittenden County Metropolitan Planning Organization, Vermont's only federally-created transportation planning entity.

---

Current Use Reform Still Unsettled

As part of the fiscal belt tightening efforts, lawmakers are looking to reduce spending on the Current Use taxation policy by $1.6M. This bill went through a lot of wrangling during the entire session and as we write this update the final outcome remains unclear because it is possible the Governor will veto the final package. The main features of the bill are a one-time $128 per enrollee fee, an improvement to taxes applied to land removed from current use for development, and a one-time appropriation to help bring the program into the electronic era. Critics of the bill oppose the one-time surcharge and they object to the development tax penalties provision.

---

Downtown and Village Center Redevelopment Incentives Enhanced

The Downtown and Village Center redevelopment tax credits were increased for the coming year and the financial instruments available to property redevelopers awarded credits were expanded. These tax incentives are among the most effective state public investments and are a strong tool for economic stimulus. Historic redevelopment in our town centers are labor intensive, which means jobs for Vermonters; it supports our local economies; and often adds underutilized property to our tax rolls. With our legislative partner Preservation Trust of Vermont, we successfully urged lawmakers to dedicate $100K of one time federal stimulus funds to increase the $1.7M annual cap on these credits. Lawmakers also enacted a change in the law that adds insurance companies to the list of corporations eligible to purchase tax credits from downtown project owners. This will help smaller property owners. Special thanks to Senators Illuzzi, Ashe and Cummings and the Senate Economic Development and Finance Committees and the House Ways and Means Committee.

---

Growth Center Reforms Enacted

Our top priority was enactment of a bill reforming the Growth Center law. Prior to the start of the Session, Smart Growth Vermont developed the details of the reform package through collaboration with Secretary of Commerce Kevin Dorn and Smart Growth Collaborative members Preservation Trust of Vermont, and Vermont Natural Resource Council. The bill provides language clarification and standards to address concerns raised during the last several years as towns have applied for growth center designation. The changes will streamline the application process; ensure that growth centers will not damage our downtowns and village centers; and provide standards to ensure growth centers are planned for 20 years of growth and result in compact, mixed use areas. Special thanks to the Senate and House Natural Resource Committees and Sen. Lyons and Representatives Klein and Krawczyk for their work on these changes.

---