Governor Presents Phase 2 of Economic Relief and Recovery Package
Monday, June 15, 2020
Governor Phil Scott announced the second phase of the Administration’s $400 million Economic Recovery and Relief Package. Phase 2 uses $90 million to bring financial assistance to struggling businesses, housing and community recovery efforts, broadband expansion, and regulatory modernization.
The Legislature passed its own economic recovery plan also on Friday that contains $93 million, with $70 million for small business and another $23 million for housing.
The Legislature wants to retain much of the funding to help fill what could be upwards of a $400 million budget shortfall for FY 21.
Scott has urged the lawmakers to put all $400 million into the economy now because the long-term negative impact will be far greater if the economy collapses from business bankruptcies.
The money comes from the federal CARES Act, from which Vermont received $1.25 million.
On May 20, Governor Phil Scott announced his proposal for a $400 million economic relief and recovery package, using funds from the $1.25 billion the state received from the Federal CARES Act. The two-phase proposal will start with $310 million for immediate relief to the most impacted sectors and businesses to be followed by $90 million for long-term recovery efforts. The Agency of Commerce and Community Development and the Governor will now work with the Legislature towards passage of this historic relief package.
Phase 2 of the relief and recovery package is intended to help Vermonters find a path forward to thrive in a new economy, following their survival in Phase 1 in four different categories:
- Financial assistance: Funding to help prevent wide-scale foreclosures, bankruptcies and deterioration of the sectors and the communities in which they operate. Support longer term recovery efforts via seed funding to create and grow job creators in new technologies, utilizing IP, and to support prosperity for the state. ($55.5MM)
- Housing and Community Recovery: Provide grants, technical assistance, and resources to villages and downtowns that restore consumer confidence, rebuild local economies, boost local capacity, and reconnect Vermonters to one another. Additional funding to provide direct financial assistance to stabilize households that could otherwise face foreclosure. ($11MM)
- Broadband Expansion: Broadband expansion program to connect the last mile, bridge the affordability gap, and streamline the processing of pole licensing applications to ensure that businesses and families have continue access necessary to adapt to this new way of life. ($20MM)
- Regulatory Modernization: Enhance economic recovery by modernizing Vermont’s regulatory programs and environmental permitting tools. These investments will accelerate the transition of program administration from paper-based to web-based and changes to support more efficient permit processing. ($3.5MM)
See full details of the plan.
Source: Vermont Business Magazine