Bennington/Manchester economic report: County worries its gains will be lost to property tax reform

Vermont Business Magazine, Oct 01, 1997

Bennington County is moving ahead economically on a number of fronts, as the surging national economy brings factory orders, tourists, and other sources of job growth and spending money.

On a comparative basis, though, there are still concerns about factors that may be slowing the pace. Transportation, dependent on the spending of a federal government that is determined to balance its budget and a state government that relies on highway fees to balance its General Fund, continues to create bottlenecks and stumbling blocks. The county's Northshire and Southshire, which in many respects have very different personalities, are united in experiencing problems in this area.

But of far greater concern this year is Act 60, the Legislature's effort to address the Vermont Supreme Court's demand for more equitable school spending. Generally, the southern part of Vermont seems to be more concerned about the ways in which taxation of so-called "gold towns" and of businesses could, in the words of one Bennington County official, "kill the goose that laid the golden egg."

According to Jay Barrett, a Fairlee Select Board member who is coordinating municipal opposition to Act 60, 47 communities had signed on for the fight as of mid-September. Of that number, 27 communities -- 57 percent -- were from Windsor, Windham and Bennington Counties. The six Bennington members were Manchester, Dorset, Winhall, Peru, Landgrove and Woodford, with Sunderland expressing some degree of interest and Shaftsbury trying to make up its mind, Barrett said.

There are some who are not merely concerned but are literally terrified that the higher levels of taxation will destroy a synergy that has created prosperity in at least parts of Bennington County. Second home owners have become volunteers and donors, supporting all sorts of organizations that have contributed to the quality of life, which in turn has been a factor in the phenomenal growth of retailing in the Northshire towns, which in turn has helped fund still more amenities.

Already there are indications that this upward cycle may be breaking: That new real estate construction has slowed in the most upscale areas, that the philanthropic may be having reservations, and that education especially, as part of community infrastructure, will be slammed by cutbacks.

Overall, many feel they are part of another Noble Experiment (as Prohibition was once called) that is doomed to failure, and that the only question is how bad Vermont's economic debacle will be. Gold towns? To get spread, gold gets beaten, they say.

But Bennington County is not letting outside forces dictate the pattern of events. An intense debate over how to plan for growth in Manchester, a vigorous downtown revitalization program in Bennington, efforts to promote industrial growth, promising transportation initiatives, and expansions of historical and cultural amenities are all signs that the region will be worth watching as the new millennium approaches.

MONUMENTAL VIEW

Visitors to the Bennington Battle Monument get a bird's-eye view of the surrounding territory, but not a panoramic one. Similarly, an overview of the county's economy has to be made through a number of casement slits, so to speak, and can only give a general impression of its very diverse landscape.

The latest Department of Employment and Training labor market data for the Bennington-Manchester area suggests improving conditions. Between July of 1996 and July of 1997, the labor force increased from 21,250 to 21,700, employment rose from 20,400 to 20,900 (a 2.5 percent increase), unemployment dropped from 900 to 800, and the unemployment rate decreased from 4.2 percent to 3.7 percent.

National trends in value retailing, the category that includes Manchester's proliferation of outlet stores, may have helped. At Value Retail News, a publication which tracks the industry, executive editor Linda Humphers said, "Value retailing, like most retailing, for the past two years, was off, especially apparel retailing, and apparel retailing makes up a much larger percentage of outlet retailing than general retailing."

But in the first quarter of 1997, value retailing sales picked up 7.3 percent over the comparable period in 1996, Humphers said. That was followed by a 4.2 percent jump in the second quarter -- the most recent data available -- and "we don't see that it's going to fall apart any time soon." The pace of construction along Manchester's main streets (which itself may have helped boost employment) would seem to confirm that impression.

State tax data for the fiscal years of 1995-96 and 1996-97 (July 1-June 30) show the county as a whole with taxable meals nearly level ($38,520,603 to $38,041,564), taxable rents up 6.8 percent ($23,162,384 to $24,733,422), taxable alcohol about the same ($7,491,986 to $7,590,206) and room and meals tax receipts going up 1.9 percent ($5,098,651 to $5,193,606).

A different perspective on the overall economy comes from the county's two independent banks, the Bennington Cooperative Savings & Loan, Inc, the only institution of its kind in the state, and the Factory Point National Bank, which has its headquarters in Manchester.