Vermont

Asset Outcomes

Vermont excels in Asset Outcomes compared with its peers. It earns an A and ranks 5th in the index. This commendable performance is attributable to strong marks across the board. Financial assets are relatively sound here, with mean net worth of $131,525 (12th) per household and a relatively small (6th) gap in asset poverty between men and women. Human capital is particularly strong in Vermont. In terms of basic education the state ranks 6th in math proficiency, and higher education outcomes are even more sound and evenly distributed. For example, the number of associate?s degrees ranks 7th, college attainment ranks 12th, income differences in college attainment is minimal at 7th, and the disparity in college attainment between men and women is also small at 7th. Still, with almost 22% of households classified as asset poor, Vermont cannot rest on its laurels.

Business capital is also solid. Vermont?s small business ownership rate is 17% (6th), and its women?s business ownership rate is 2nd. However, the value of women-owned firms is the lowest in the nation (50th). Bank access is fair here; the state ranks 17th in both households with a savings account and households with a checking account. The percentage of low-income parents (11%, coming in 1st) and children (9%, ranking 2nd) who lack health insurance is low here compared with the rest of the United States.

Asset Policy

Vermont scores even higher in Asset Policy, coming in 3rd and landing its second A. Policymakers are putting forth a solid effort to encourage financial asset building. Vermont has established a state minimum wage higher than the federal minimum, an Earned Income Tax Credit, policy for Individual Development Accounts, and more generous asset limit levels for public assistance. Housing policy is also targeted in the state with a state housing trust fund, property tax circuit breaker protections, and several first-time homebuyer assistance programs. Business capital is also adequately backed. Policymakers have invested in a capital access program, microenterprise initiatives, employee ownership policy, and some assistance to asset-poor farmers.

There is room for improvement in human capital policy in Vermont. Although the state has a pre-kindergarten program and ranks 5th in need-based financial aid for undergraduates, it fares poorly in the equality of spending across all of the state?s school districts (50th). This is due to a strong reliance on the property tax for school spending. Assetprotection policies are fair here. There is a substantially good mix of policy, but some key ones are still missing. For example, the state?s homeowners could benefit from better property protection with measures restricting predatory lending and insurance redlining.

Tax Policy and Accountability

Vermont does a mediocre job on tax policy accountability. The state does not prepare a tax expenditure report that itemizes the value of revenues foregone via tax breaks. It only has some capacity to determine the impact of state taxes or changes in the tax code on taxpayers of all incomes.