Network Schools – Wayne Gerseny to https://www.nytimes.com/interactive/2022/04/03/magazine/thomas-piketty-interview u w B l.html?h I’ll smid=url-share the Is for

I just read a VPR webpage post describing a recent decision by the Vermont Employment Growth Incentive (VEGI) to offer $5,300,000 to Marvell, a computer chip manufacturer whose operations are located in Essex Junction VT. As VPR reports:

On Oct. 31, the state approved an application for Marvell for what it calls a Vermont Employment Growth Incentive — also known as VEGI. The state agreed to give Marvell up to $5.3 million of taxpayer money over several years. But like all VEGI deals, the terms are secret.

Joan Goldstein, commissioner of the Department of Economic Development, said state officials began having conversations about VEGI with Marvell several months ago, when the company’s plans to buy Avera first surfaced.

“Marvell is a pretty global company, has real no allegiance to Vermont, and so the idea behind VEGI is to make sure that this, Marvell, would be a new company to Vermont, that Marvell would establish and keep the jobs in Vermont,” Goldstein said.

Alas for VEGI and the Department of Economic Development, days before they announced the award Marvell announced its plans to shed 700 of the 3000 jobs in Vermont.

As readers of this blog know, I find the whole practice of offering businesses tax relief or grants to be at least a secondary factor in the diminishment of funds for schools. When businesses receive a tax break they are limiting the revenue stream for funding public services like schools. When businesses receive grants, they are getting tax dollars that could be spent to improve schools. But in the topsy turvy world of local politics, it is far better to offer $5,300,000 to a company who lays off 700 workers than it is to provide that money to schools who could use it to hire 88 teachers assuming they receive total compensation of $60,000 per year.