Roundup of news from April 2022

State reports strong tax revenue results for March

While refunds kept the vital personal income tax from posting an even stronger month, corporate, gasoline and rooms and meals taxes pushed monthly state revenues well ahead of targets for March. The General Fund, Transportation Fund, and Education Fund receipts were a combined $239.9 million, or 8.9%, above upwardly revised monthly consensus expectations.

Fiscal year-to-date (YTD), General Fund and Education Fund revenues are above target while the Transportation Fund is slightly below target. The cumulative revenues stand at 1.2% above revised consensus expectations through the third quarter of the state’s fiscal year, which ends June 30, 2022.

General Fund revenues collected for the month totaled $162.6 million, or $15.9 million above the monthly consensus cash flow revenue target. Fiscal year to date, General Fund revenues were $1,336.2 million, exceeding their target by $19.8 million or 1.5%.

This month’s performance in the General Fund was supported by a small net gain in the personal income category and larger gains in corporate taxes and meals & room taxes. Personal income receipts were bolstered by upbeat receipts activity in withholding and estimated tax payments, but surprisingly large refund activity moderated the overall gains in this category again last month.

Consumption taxes, which generally track travel & tourism, were strong, with meals & room (+22%), gasoline (+23.17) and sales & use (2.9%) a combined $5.92 ahead of expectations.

Revenues into the Transportation Fund beat expectations, bringing in $26.7 million in March compared to the consensus cash flow target estimate of $25.1 million. Fiscal year-to-date, the T-Fund brought in $209.6 million which was $1.4 million or 0.7% below the consensus cash flow target.

The Education Fund revenues were $2.2 million, or 4.5%, above the monthly consensus cash flow target, having collected $50.7 million in March. For the first three quarters of the fiscal year, the Ed Fund received $508.0 million, which is 1.1% higher than the consensus cash flow target.

Unemployment rate falls two-tenths to 2.7 percent in March

The Vermont unemployment rate fell another two-tenths in March as all three major metrics showed significant improvement. The seasonally-adjusted statewide unemployment rate was 2.7 percent. This also reflects a decrease of 1.1 percent from March 2021. Vermont is tied for the ninth lowest rate in the nation and second lowest in the East behind New Hampshire (2.5 percent).

The labor force increased by 1,389 people from February and by 3,865 from the same time last year. The number of employed increased by 2,133 from February and 7,629 from last year and the number of unemployed fell by -744 and -3,764 respectively. The comparable United States rate in March was 3.6 percent, which was a decrease of two-tenths of one percentage point from the revised February estimate. Vermont is tied for the ninth lowest rate in the nation and second lowest in the East behind New Hampshire (2.5 percent). See table below.

Bill Stenger gets 18 months for role in AnC Vermont EB-5 case

William Stenger, the former president of Jay Peak resort, was sentenced April 14 to 18 months in federal prison for his part in a massive foreign investor fraud case. This is six years to the day that federal agents raided the offices at Burke Mountain and Jay Peak Resort.

Stenger also was ordered to make $250,000 in restitution to a group of 36 investors that got swindled by making investments into the EB-5 program that provides residential immigration “green” cards in exchange for $500,000.

Stenger had helped develop several businesses in the Northeast Kingdom based in part on false claims made to government officials in conjunction with the  immigration enhancement program.

Stenger pleaded guilty in August 2021 to a felony charge of knowingly and willfully submitting a false document in January 2015 to the Vermont Regional Center as part of his promotion of the Jay Peak Biomedical Research Park EB-5 investment project, also known as AnC Vermont project in Newport.

Chief U.S. District Court Judge Geoffrey W. Crawford told Stenger, 73, he would be under federal supervision for 3 years once he is freed from prison.

Crawford agreed to allow Stenger to self-report to prison on June 7.  The court will recommend Stenger serve his time at the Federal Correctional Institution in Fort Devens, MA, because it has a hospital facility.  With good time he could be freed after 15 months.

An associate of the development, William Kelly, subsequently received a similar federal sentence for his role in the AnC Vermont fraud. 

Quiros gets five years, fined over $8 million, for EB-5 fraud

The United States Attorney’s Office announced that Ariel Quiros, 65, of Puerto Rico, and formerly of Key Biscayne, Florida, was sentenced April 29 to 60 months in prison by Chief Judge Geoffrey W. Crawford in United States District Court in connection with his involvement in the AnC Vermont EB-5 investment project. Chief Judge Crawford also ordered Quiros to serve a three-year term of supervised release and to pay $8,338,600.77 in restitution. Today’s sentencing follows Quiros’s guilty pleas in August 2020 to three felony charges: conspiring with co-defendants William Kelly, Jong Weon (Alex) Choi, and William Stenger in a multi-year wire fraud scheme to defraud immigrant investors seeking green cards through the EB-5 program. Kelly was sentenced on April 20 to 18 months in prison. Choi is still at large. 

DFR Commissioner Mike Pieciak to step down in May

Commissioner Mike Pieciak will be stepping away from his role leading the Vermont Department of Financial Regulation (DFR) in May. He subequently announced he would run for treasuer as Treasurer Beth Pearce will not seek reelection, citing health issues. Pieciak, along with Health Commissioner Mark Levine and former Human Services Secretary Mike Smith, was a familiar face at the governor’s pandemic response press conferences beginning in March 2020. Pieciak provided data modeling related to the rise and recent decline of COVID-19. Commissioner Pieciak was appointed to lead the consumer watchdog agency by Governor Scott in January 2017. He joined DFR in 2014 as Deputy Commissioner of the Securities Division, appointed by Governor Peter Shumlin.

Masks now optional at Burlington International Airport

The Transportation Security Administration (TSA) withdrew the security directive requiring masks within airports. As a result, the Burlington International Airport (BTV) will no longer require masks within the airport. Like other public spaces, individuals may choose to continue to wear masks. A Florida federal judges ruling struck down the CDC recommended mandate on all forms of transportation. The federal requirement has resulted in many confrontations on commercial airplanes from passengers not wanting to wear a mask. If traveling from BTV– remember to show understanding, respect and patience with others who chose to continue wearing masks in airports and on aircraft.

$45 million Champlain Parkway construction contract OK’d

The Burlington City Council on April 25 unanimously supported a $45 million contract to finally build the Champlain Parkway. The funding of the project comes primarily from the federal government, which is contributing 95 percent of the cost. The State of Vermont will pay 3 percent. The City of Burlington will be responsible for 2 percent of the project’s eligible costs. The Champlain Parkway will be a two-lane, 25 MPH road which is designed with pedestrians, cyclists, visitors and residents in mind.

The project will connect the South End with downtown Burlington, alleviating traffic on neighborhood streets while providing an opportunity to safely navigate 2.8 miles of roadway, through Lakeside Avenue, with improved accommodation for pedestrians and cyclists with the development of a shared use path along Pine Street, and traffic signal improvements with pedestrian signalization.

The initial construction phase includes more than $40 million of improvements between Home Avenue and Kilburn Street. Construction is anticipated to begin by July of this year and be completed in 2024.

Scott signs off on new districts for Legislature

Seven Days reports that Chittenden County will gain a state Senate seat under new legislative districts because of population changes, which will start with upcoming elections. There will be three separate Senate districts in Chittenden County: two with three members each and one with a single senator.

The central Chittenden district will have three senators representing the north part of Burlington, Winooski, the southern part of Colchester and most of Essex.

The southeast Chittenden district will have three senators representing the southern part of Burlington, South Burlington, Shelburne, Charlotte, Hinesburg, Bolton, Williston, Jericho and…