ON RESTRUCTURING EDUCATION
MINUTES
Meeting of November 4, 1997
The Legislative Oversight Committee on Restructuring Education met at 1:15 p.m. in the Senate Chamber of the State House.
MEMBERS PRESENT: Sens. Cheryl P. Rivers, Chair; Nancy I. Chard; James H. Greenwood; Helen S. Riehle; Peter E. Shumlin; Paul A. Cillo; John S. Freidin; David C. Hathaway; Martha P. Heath; Karen M. Lafayette.
STAFF PRESENT: Bill Russell, Emily Tartter, Anne Winchester and Rachel Levin of the Legislative Council; Catherine Benham of the Joint Fiscal Office.
Senator Rivers called the meeting to order at 1:15 p.m.
1. APPROVAL OF 10/28/97 MINUTES *
The Committee decided to act on the minutes later in the meeting.
Staff distributed the following information: a 11/3/97 letter from Steven E. Jeffrey, Executive Director of the Vermont League of Cities and Towns, addressing the Committee’s request for additional information on voted property tax exemptions; a 10/30/97 memo from Terry Knight, Chief of Operations for Property Valuation and Review, to listers and assessors announcing meeting dates and a 4/6/92 [please note that is the correct date] report provided by Property Valuation and Review on how PVR handled the town-voted exemptions and local stabilization agreements with regard to the aggregate fair market value study certified January 1, 1992 [please note that is the correct date] in which the 1991 grand lists were utilized.
2. TAX STABILIZATION AND TAX INCREMENTAL FINANCING - WITNESSES
AND COMMITTEE DISCUSSION
Bill Russell, Chief Legislative Counsel, distributed the following documents: a 11/4/97 memo addressing Committee action on property tax exemptions and stabilization agreements and a memo addressing other state’s property tax exemptions for economic development.
Senator Rivers invited the following witnesses testimony before the Committee and invited additional input on policy in the area of tax stabilization and tax incremental financing.
Elizabeth Courtney, Executive Director of the Vermont Natural Resources Council, said that Act 60 stops subsidizing of sprawl; that steps can be taken legislatively to strengthen downtowns while helping to protect the rural countryside; and that tax incremental financing is a useful tool
William Shouldice, Secretary of Commerce and Community Development, said that approval of tax stabilization agreements in Act 60 deserves a second look; that the timing and confidentiality in reviewing business plans is a real concern due to divulging of personal financial information; that tax stabilization agreements and tax incremental financing are important tools to have in the tool bag for promotion of economic development.
Frank Cioffi, Commissioner of Economics, said that businesses are looking for predictability and stability and that it is important for them to be able to predict the tax rate over a given period of time.
The Committee said that they would like to invite William Shouldice and Frank Cioffi to testify at a future meeting to present any Administration proposal relating to tax stabilization and tax incremental financing districts.
Patricia Moulton Powden, Executive Director of the Springfield Regional Development Corporation testified via telephone. She said that she would fax her comments as well as relaying them verbally. She said that she is in favor of a process of approving tax stabilization outside of the full Legislature as well as to advocate for a process to expedite approval of tax increment financing districts. She said that after developing criteria for tax stabilization agreements, she suggested review by an independent panel which would allow for more timely review than legislative approval. She also suggested that the State’s economic development office develop a computer model to help assess the relative costs and benefits of proposed developments.
Senator Rivers then said that due to Bill Johnson’s afternoon schedule, she would invite him to give the Committee an update on Property Valuation and Review implementation activities. He said he had been involved in Municipal Officer Meetings, as well as others, that there is a second Homestead update being sent to local officials, but that several issues need to be addressed first. The Committee requested that he include the Committee’s language on exemptions in a future mailing.
Bill Johnson continued his testimony, saying that the Commission on Quality Appraisals and Equalization was having its third meeting this week and that a discussion would take place about equalization and fair market value. He said the Commission would have two to three more meetings and that the members were aware of the January due date for a report.
The Committee resumed taking testimony on tax stabilization and tax incremental financing.
Wayne Fawbush, Director of the Vermont Sustainable Jobs Fund, distributed and discussed a document entitled, Vermont Sustainable Jobs Fund, Inc: Business Plan. He discussed the vision for the Sustainable Jobs Fund, Sustainable Development Strategies to Employ, Enabling Legislation and Mission, and issues of economic opportunity, workplace quality, environmental quality and community opportunity. He said he believes Act 60 has opened the door for opportunity to move Vermont forward by providing potential stability and the broadening of the tax base. He said that it is important to discuss educational quality in the context of economic development.
He cited a study which assessed the cost and benefits of creating new jobs in Oregon. The Committee requested a copy of the study.
Bruce Seifer, Assistant Director for Economic Development for the City of Burlington, said that there are opportunities in using Act 60 relating to training, the issue of brownfields and vacant buildings. He added that Burlington has used tax increment financing twice for the Burlington Waterfront. He said that establishing criteria and conducting cost-benefit studies are both very important.
3. TAX EXEMPTION PRESENTATION OF DRAFT LANGUAGE - COMMITTEE
DISCUSSION
Due to time constraints, Senator Rivers said that the Committee would ask Bill Russell of the Legislative Council to review the 11/4/97 memos at the next meeting.
4. UPDATE FROM ADMINISTRATION
Sean Campbell, Deputy Commissioner of Taxes and Special Assistant to Secretary Hoyt on Act 60, updated the Committee on the public information program and Marketing Partners’ progress.
Bill Reedy and Jerry Cassell of the Department to Education reported that Marc Hull, the Commissioner of Education, was at another meeting and they would give a report on his behalf. They distributed and reviewed a 10/31/97 memo from William J. Reedy, General Counsel for the Department of Education to Marc Hull, Jerry Cassell, Bill Scherr, Jeff Francis, John Nelson on the subject of Draft Australian Ballot Budget Article.
The Committee adjourned at 4:00 p.m.
Respectfully submitted,
Rachel Levin
* Please note that the numbers refer to agenda item number.