Auditor: Economic incentive program is improving

The state's economic development incentive program has improved but still needs fine-tuning, according to a report by Vermont State Auditor Randy Brock.

Previous auditors' reports have raised concerns about whether companies were receiving tax incentives from the program even though they had laid off workers.

"Over what we have seen in the past, they have addressed a number of issues, and there are substantial improvements," outgoing State Auditor Randy Brock said Tuesday.

Brock's office reviewed the estimated $132 million awarded to about 200 companies since 1998. The review didn't take into account a statutory change lawmakers say will streamline the Economic Advancement Tax Incentive Program and make companies more accountable.

Under the change, which goes into effect this week, companies earn incentives if they have increased their work force. They get money from the state's general fund, rather than tax breaks, so that the benefits can be more easily evaluated and decreased if the companies fail to meet requirements.

Before those changes went into effect, Brock's report showed improvement in how the program is administered by the Vermont Economic Progress Council and the Department of Taxes.

For example, a controversial part of the program has awarding incentives to companies that say they would not make investments in the state unless they are awarded the benefits.

The Vermont Economic Progress Council has started keeping minutes of those meetings, which will be available to the auditor.

Brock, who lost his re-election bid to Democrat Thomas Salmon, said he remains troubled by how those decisions are made.