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Disposable Income for Vermont Residents Falls Below the U.S. Average

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Disposable Income for Vermont Residents Falls Below the U.S. Average


After a tumultuous year marked by high interest rates, inflation, and multiple rounds of layoffs, many economists had pessimistic forecasts for 2023, some all but guaranteeing a recession. Despite interest rates reaching a 22-year high at the end of 2023, the U.S. economy defied expectations and continued to grow. According to the Bureau of Economic Analysis, consumer spending was a significant factor driving economic growth, reporting a 4.2% increase in disposable income in the U.S. in the fourth quarter of 2023.

While retail spending continues to show strength, rising costs are beginning to take their toll. Although disposable income—or the income remaining after taxes—showed an overall increase in 2023, the personal savings rate—or the percentage of disposable income saved—decreased overall, indicating that Americans are spending more and saving less.

Change in the Personal Savings Rate and Inflation Rate Over Time

The personal savings dropped below historic norms as inflation remains persistently elevated

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Source: Captain Experiences analysis of data from the Bureau of Economic Analysis and U.S. Bureau of Labor Statistics | Image Credit: Captain Experiences

Personal savings reached record highs during the early months of the COVID-19 pandemic, as Americans curbed spending while government programs provided additional financial support. However, as the economy reopened, a combination of pent-up consumer demand, supply chain issues, and labor shortages sent prices soaring. As Americans struggled to keep pace with rising costs, personal savings dropped sharply. Between April of 2020 and June of 2022, the personal savings rate dropped by more than 29 percentage points to a low of just 2.7%.

While rapidly rising interest rates have since helped tamp down inflation, personal savings still haven’t rebounded to pre-pandemic levels, highlighting the long-lasting impact of inflated costs and current spending habits.

Self-Estimated Minimum Family Income Requirement Changes Over Time

After inflation set in, the American perception of affordability has shifted

Source: Captain Experiences analysis of Gallup Poll Social Series data | Image Credit: Captain Experiences

Despite a strong job market and low unemployment rate, Americans are still struggling to keep up with the rising cost of living. In the past decade, Americans’ opinions around affordability have changed dramatically, with many feeling like they need to earn significantly more than previous years to live comfortably. In 2013, more than two-thirds of Americans estimated they could support a family of four with an annual household income of $75,000 or less. By 2023, less than half of Americans agreed. In fact, 30% of Americans estimate $100,000 to be the minimum income requirement to comfortably raise a family of four in 2023, compared to just 10% in 2013.

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Disposable Income for Vermont Residents Falls Below the U.S. Average

Changes in Household Spending From a Year Ago

While households increased their spending on recreation and health from last year, they cut back on dining out and foreign travel

Source: Captain Experiences analysis of Bureau of Economic Analysis data | Image Credit: Captain Experiences

As disposable income and personal savings rates changed in the U.S., so did household spending habits. Priorities shifted, with foreign travel and dining out taking a backseat to spending on recreational activities and health. Compared to a year ago, spending on recreation increased 5.9% in Q3 2023, while health spending increased by 5.4% when adjusted for inflation. In the same timeframe, spending on foreign travel decreased by 7.6%, while expenses reserved for dining out decreased 0.4%. Along with recreation and health, spending on transportation also rose by 3.1%.

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In the U.S., disposable income varies geographically. Since many factors like the local cost of living and interest rates can affect an individual’s disposable income, residents in certain parts of the country fare better than others. Many states in the Great Plains region—known for a lower cost of living than average—have high levels of disposable income. Five out of the top six states are located in this region, led by North Dakota with a cost-of-living adjusted, after-tax income of $71,444 per capita. On the other hand, Hawaii ranks last with an adjusted after-tax income per capita of only $47,894. Select areas of the Deep South, like Mississippi and Georgia, also have some of the lowest levels of disposable income in the country.

This analysis was conducted by researchers at Captain Experiences using data from the Bureau of Economic Analysis. Researchers ranked states according to the per capita after-tax income after adjusting for the cost of living.

Here is a summary of the data for Vermont:

  • After-tax income per capita (adjusted): $54,327
  • After-tax income per capita: $54,922
  • Before-tax income per capita: $63,039
  • Personal taxes paid per capita: $8,117
  • Cost of living (compared to average): +1.1%

For reference, here are the statistics for the entire United States:

  • After-tax income per capita (adjusted): $56,062
  • After-tax income per capita: $56,062
  • Before-tax income per capita: $65,470
  • Personal taxes paid per capita: $9,408
  • Cost of living (compared to average): N/A

For more information, a detailed methodology, and complete results, see States With the Least Disposable Income on Captain Experiences.



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Somali flag flown outside Vermont school building brings threats

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Somali flag flown outside Vermont school building brings threats


WINOOSKI, Vt. — A small school district in Vermont was hit with racist and threatening calls and messages after a Somali flag was put up a week ago in response to President Donald Trump referring to Minnesota’s Somali community as “ garbage.”

The Winooski School District began to display the flag Dec. 5 to show solidarity with a student body that includes about 9% people of Somali descent.

“We invited our students and community to come together for a little moment of normalcy in a sea of racist rhetoric nationally,” said Winooski School District Superintendent Wilmer Chavarria, himself a Nicaraguan immigrant. “We felt really good about it until the ugliness came knocking Monday morning.”

The Somali flag was flown alongside the Vermont state flag and beneath the United States flag at a building that includes K-12 classrooms and administrative offices. Somali students cheered and clapped, telling administrators the flag flying meant a great deal to them, he said.

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What ensued was a deluge of phone calls, voicemails and social media posts aimed at district workers and students. Some school phone lines were shut down — along with the district website — as a way to shield staff from harassment. Chavarria said videos of the event did not also show the U.S. and Vermont flags were still up and spread through right-wing social media apps, leaving out the important context.

“Our staff members, our administrators and our community are overwhelmed right now, and they are being viciously attacked. The content of those attacks is extremely, extremely deplorable. I don’t know what other word to use,” Chavarria said Tuesday.

Mukhtar Abdullahi, an immigrant who serves as a multilingual liaison for families in the district who speak Somali and a related dialect, said “no one, no human being, regardless of where they come from, is garbage.” Students have asked if their immigrant parents are safe, he said.

“Regardless of what happens, I know we have a strong community,” Abdullahi said. “And I’m very, very, very thankful to be part of it.”

The district is helping law enforcement investigate the continued threats, Chavarria said, and additional police officers have been stationed at school buildings as a precaution. Winooski is near Burlington, about 93 miles (150 kilometers) south of Montreal, Canada.

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White House spokesperson Abigail Jackson called the calls and messages the school received “the actions of individuals who have nothing to do with” Trump.

“Aliens who come to our country, complain about how much they hate America, fail to contribute to our economy, and refuse to assimilate into our society should not be here,” Jackson said in an email late Thursday. “And American schools should fly American flags.”

Federal authorities last week began an immigration enforcement operation in Minnesota to focus on Somali immigrants living unlawfully in the U.S. Trump has claimed “they contribute nothing ” and said “I don’t want them in our country.” The Minneapolis mayor has defended the newcomers, saying they have started businesses, created jobs and added to the city’s cultural fabric. Most are U.S. citizens and more than half of all Somali people in Minnesota were born in the U.S.

At the school district in Vermont, Chavarria said his position as superintendent gave him authority to fly the flag for up to a week without the school board’s explicit approval.

The school district also held an event with catered Somali food, and Chavarria plans to continue to find ways to celebrate its diversity.

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“I felt sorrow for the students, the families, the little kids that are my responsibility to keep safe. And it’s my responsibility to make them feel like they belong and that this is their country and this is their school district. This is what we do,” he said.

___

Scolforo reported from Harrisburg, Pennsylvania.



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WCAX Investigates: Police participation in border program draws scrutiny

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WCAX Investigates: Police participation in border program draws scrutiny


BURLINGTON, Vt. (WCAX) – Vermont police officers are working overtime shifts along the Canadian border under a federal program that critics say could violate the state’s anti-bias policing laws.

“Up here, we’re so small we rely on our partner agencies,” said Swanton Village Police Chief Matthew Sullivan.

On a recent frosty Friday, Sullivan was patrolling along the Canadian border as part of Homeland Security’s Operation Stonegarden. The chief and other local officers work overtime shifts for the U.S. Border Patrol.

“It acts as a force multiplier because we’re able to put more officers out in these rural areas in Vermont,” Sullivan said.

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During an exclusive ride-along, Sullivan showed us a field where, as recently as last fall, migrants were smuggled across the border. “These people are really being taken advantage of,” he said.

From 2022 to 2023, U.S. Border Patrol encountered just shy of 7,000 people entering the country illegally in the region, more than the previous 11 years combined.

In several instances, police say cars have tried to crash through a gate in Swanton along the border. Others enter from Canada on foot and get picked up by cars with out-of-state plates.

The chief says the illegal crossings strike fear among local parents. “They didn’t feel safe allowing their kids outside to play, which is extremely unfortunate,” Sullivan said.

Through Operation Stonegarden — which was created in the wake of 9/11 — Sullivan and his officers get overtime pay from the feds. “We’re kind of another set of eyes and ears for border patrol,” Sullivan said. His department also gets equipment and training.

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Six agencies in Vermont participate in Stonegarden: The Vermont State Police, Chittenden County Sheriff’s Department, Essex County Sheriff’s Department, Orleans County Sheriff’s Department, Newport City Police Department, and the Swanton Village Police Department. Some three dozen across New England participate in Stonegarden. These agencies collect relatively small amounts from the feds — $760,000 in Vermont, $190,000 in New Hampshire, and $1 million in Maine.

But amid the Trump administration’s immigration crackdown, Stonegarden is under scrutiny.

“This has become quite relevant to a lot of people once again,” said Paul Heintz, a longtime Vermont journalist who now writes for the Boston Globe. “These three states have dramatically different policies when it comes to local law enforcement working with federal law enforcement.”

Vermont has some of the strictest rules about police assisting federal immigration officials. The Fair and Impartial Policing Policy limits cooperation with the feds and says immigration status, language, and proximity to the border cannot be the basis of an investigation.

“Vermonters have made clear through their elected representatives that they want state and local law enforcement to be focusing on state and local issues,” said Lia Ernst with the ACLU of Vermont. She says Stonegarden is crossing the line. “They don’t want their police to be a cog in the mass deportation machinery of any administration but particularly the Trump administration,” Ernst said.

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The ACLU and other critics are concerned that Stonegarden creates a cozy relationship between local police and immigration officials that can be used to enforce the president’s immigration crackdown.

Heintz says the distinction between civil and criminal immigration enforcement can be fluid. In most civil cases in which the feds seek to deport, Vermont law enforcement can’t play a role because it’s against the law. In criminal cases, which local police can enforce, immigrants can be detained and charged.

“An operation may start out appearing to focus on a federal criminal immigration issue and may turn into a civil one over the course of that investigation,” Heintz said.

“There is a lot of nuance to it,” admitted Sullivan. He insists his department is not the long arm of federal law enforcement and is instead focused on crime, including guns, drugs, and human trafficking. However, if someone is caught in the act of crossing the border illegally, that constitutes a crime, and the chief said he calls for federal backup. Though he said that rarely happens.

“It’s a criminal violation to cross the border outside of a port of entry, and technically, we could take action on that. But again, we’re not here to enforce civil immigration while working Stonegarden,” Sullivan said.

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Vermont Catholic Church receives bankruptcy court’s OK to sell Rutland property – VTDigger

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Vermont Catholic Church receives bankruptcy court’s OK to sell Rutland property – VTDigger


Rutland’s former Loretto Home senior living facility, as pictured in recent advertisements offering it for sale. Pomerleau Real Estate photo

Vermont’s Roman Catholic Diocese, now seeking to reorganize its depleting finances in U.S. Bankruptcy Court, has received permission to sell its former Loretto Home senior living facility in Rutland.

In a ruling this week, Judge Heather Cooper said she’d allow the state’s largest religious denomination to accept a $1 million offer from Rutland’s nonprofit Cornerstone Housing Partners, which wants to transform the Meadow Street building into transitional and long-term affordable apartments.

“The proposed sale represents the highest and best offer for the property,” church lawyers argued in court papers, “and the proceeds of the sale will assist the diocese in funding the administration of this bankruptcy case and ultimately paying creditors.”

Cornerstone said it had a $3.9 million commitment from the state Agency of Human Services to help it buy and rehabilitate the 20,000-square-foot facility.

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The nonprofit could immediately launch its first-phase plan for 16 units of emergency family housing under a new state law that expands locations for shelters. But the $1 million sale is contingent on receiving a Rutland zoning permit for a second-phase plan for at least 20 long-term apartments.

“We’re not going to purchase the building if we can’t create affordable apartments there,” Mary Cohen, the nonprofit’s chief executive officer, told VTDigger. “The goal is to create permanent housing.”

Cornerstone already has heard questions from neighbors as it seeks a zoning permit from Rutland’s Development Review Board.

“I think it’s a lack of understanding,” Cohen said. “We’re good landlords. We house people and take good care of our property. The application process will allow a public conversation about what our plans are.”

The Vermont Catholic Church filed for Chapter 11 protection a year ago after a series of clergy misconduct settlements reduced its assets by half, to about $35 million. Since then, 119 people have submitted new child sexual abuse allegations — almost double that of an earlier 67 accusers who previously settled cases over the past two decades.

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To raise money, the diocese enlisted Pomerleau Real Estate to market the Loretto Home after the facility closed in 2023. The property, under the control of the church since 1904, was initially listed at $2.25 million before being reduced to $1.95 million and, by this year, $1.3 million, court records show. The diocese received an unspecified number of offers before accepting Cornerstone’s $1 million bid this summer.

Under the Chapter 11 process, the Vermont church must receive court approval for all major purchases and sales until a judge decides on its call for a reorganization plan.





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