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The Vermont Statutes Online
Title
03APPENDIX
:
Executive Orders
Chapter
032
:
TAXATION AND FINANCE
§
EO32-8. (No. 07-09) [Designation of State of Vermont as a Recovery Zone under
the American Recovery and Reinvestment Act
WHEREAS, the
American Recovery and Reinvestment Act of 2009, Pub.L. No. 111-5, (hereinafter
"ARRA") amended the Internal Revenue Code of 1986 (hereinafter the
"Code") to authorize state and local governments to issue Recovery
Zone Economic Development Bonds and Recovery Zone Facility Bonds (hereinafter
together referred to as "Recovery Zone Bonds"); and
WHEREAS, the
Code established bond volume limitations, or caps, on the issuance of Recovery
Zone Bonds and allocated those volume caps among the states to counties and
large municipalities within each State based upon population and relative
declines in employment in 2008; and
WHEREAS, the
U.S. Treasury and Internal Revenue Service allocated Vermont's share of the
Recovery Zone Bond volume caps to the State and sub-allocated the caps among 11
Vermont counties; and
WHEREAS, the
Assistant Judges in 9 of those 11 counties, pursuant to their authority, have
waived their counties' respective allocations and re-allocated their share of
volume caps to the State of Vermont; and
WHEREAS, on
October 14, 2009, the State of Vermont Emergency Board, pursuant to its
authority to allocate private activity volume cap among bond issuing
instrumentalities of the State, will consider allocating all Recovery Zone
Facility Bonds' volume cap waived by the counties to the Vermont Economic
Development Authority, an instrumentality of the State of Vermont; and
WHEREAS, in
October, 2009, the Joint Fiscal Committee of the Vermont General Assembly,
pursuant to its authority, will consider approving the Governor's allocation of
the Recovery Zone Economic Development Bonds' volume cap waived by the counties
to the Vermont Municipal Bond Bank, an instrumentality of the State of Vermont,
and to the State of Vermont should there be capacity not used by the Vermont
Municipal Bond Bank; and
WHEREAS, the
purpose of Recovery Zone Economic Development Bonds is to promote economic
activity through expenditures that promote development or other economic
activity in a recovery zone designated as such by the county or State, as
applicable, that is the recipient of volume cap; and
WHEREAS, the
purpose of the Recovery Zone Facility Bonds is to finance property used in the
active conduct of a trade or business in a recovery zone; and
WHEREAS,
Recovery Zone Bonds are a significant resource to the State of Vermont and will
stimulate economic activity, increase employment opportunities and mitigate the
effects of the national recession; and
WHEREAS, the
Code requires that all Recovery Zone Bonds be issued prior to January 1, 2011
and it is imperative that recovery zones in Vermont be designated as soon as
possible to ensure that Vermont and Vermonters realize the full benefit of the
bonds; and
WHEREAS, the
Code defines a recovery zone, among other things, as an area designated by the
issuer as having significant poverty, unemployment, rate of home foreclosures,
or general distress; and
WHEREAS,
unemployment in Vermont has nearly doubled statewide during the current
downturn and every county of the state has suffered at least a doubling of
unemployment since 2007 leading to significant general distress; and
WHEREAS, 28% of
Vermonters work outside their county of residence and new jobs created anywhere
in the state will significantly benefit those impacted by the recession; and
WHEREAS,
projected state general fund revenues for FY2010 are 15% below actual revenues
in FY2008 and are, in fact, less than actual FY2005 revenues and this severe
impact on state revenues will be mitigated by development and construction
anywhere in the state; and
WHEREAS, there
is no area of Vermont that has not been significantly impacted by the recession
and it is urgent to address both the problems of unemployment and declining
revenues in Vermont.
NOW, THEREFORE,
I, James H. Douglas, by virtue of the authority vested in me as Governor, do
hereby designate the entire State of Vermont as a recovery zone under the Code
as amended by ARRA. This designated recovery zone shall pertain to any Recovery
Zone Bonds issued by the State of Vermont, the Vermont Economic Development
Authority, the Vermont Municipal Bond Bank, and any other instrumentality of
the State that may later receive an allocation of Recovery Zone Bond volume
caps from the State.
This Executive
Order shall take effect upon signing.
Dated October 9,
2009.