2018 Annual Report

14 million ANNUAL PAGEVIEWS 270,000 MONTHLY READERS

Vermont’s online nonprofit daily news organization

2018 Annual Report

News in Pursuit of Truth Celebrating Nine Years of Reporting in Vermont WHO WE ARE

VTDigger is a nonprofit online news daily dedicated to public-service journalism. We cover Vermont politics, consumer affairs, business, education, energy, the environment and other matters of public concern.

VTDigger was founded in 2009 and merged with the Vermont Journalism Trust in 2011, becoming a 501(c)(3) nonprofit organization.

The mission of Vermont Journalism Trust and VTDigger is to produce rigorous journalism that explains complex issues, holds the government accountable to the public, and engages Vermonters in the democratic process.

2018 BOARD OF DIRECTORS 2018 STAFF Kevin Ellis, Montpelier Executive Director & Founder: Anne Galloway Tom Evslin, Stowe Director of Business Development: Anne Galloway, East Hardwick Phayvanh Luekhamhan Lauren Geiger, Plainfield Director of Underwriting: Theresa Murray-Clasen Eric Hanson, Burlington Underwriting Sales: Dylan Woodrow Don Hooper, Brookfield Membership: Oliver Ames and Florencio Terra Tom Johnson, Poultney Finance Manager: Dan Dudensing Curtis Ingham Koren, Brookfield Managing Editor: Colin Meyn Crea Lintilhac, Shelburne Senior Editor & Reporter: Mark Johnson Neale Lunderville, South Burlington Special Projects Editor: Jim Welch Bill Mares, Burlington News Editors: Ellen Bartlett, Cate Chant, Dave Gram Carin Pratt, Strafford Reporters: Anne Wallace Allen, Mike Dougherty, John Reilly, Burlington Lola Duffort, Mike Faher, Elizabeth Gribkoff, Mathew Rubin, Montpelier Elizabeth Hewitt, Alan J. Keays, Xander Landen, Kathryn Stearns, Hanover (NH) Kit Norton, Kevin O’Connor, Aidan Quigley, Lars Hasselblad Torres, Montpelier Felippe Rodrigues, Jim Therrien Freelancers: Mark Bushnell, Jasper Craven, Duane Dunston, Susan Green, Adam Hall, Jon Margolis, David Moats, Katy Savage Interns: Kelsey Neubauer, Alexandre Silberman, Mariel Wamsley

VTDigger a Rising Star in Nonprofit News

The Harvard Kennedy School and learn about House, Senate and the Institute for Nonprofit News statewide candidates for office. published a 35-page white paper Our 2018 investigations: in 2018 about VTDigger’s growth as a nonprofit news organization. • In an analysis of the basing of how F-35 fighter jets, which The report details how we have are coming to Burlington in grown since we were founded in 2019, we looked at how noise 2009, from a shoestring operation from the planes will impact with no staff, a very small budget the health and safety of local Anne Galloway and a tiny readership, to a full- residents. Executive Director, scale news operation in 2018 • In a culmination of years of Founder of VTDigger.org with 20 staffers, a budget of $1.7 million and a monthly readership reporting, federal regulators of 270,000. closed the Vermont EB-5 Regional Center after VTDigger has grown because determining that state officials had not protected investors in * Vermonters care about each other READER SURVEY and the future of the state. Our the Jay Peak projects. 55% growth is directly tied to readers • We probed Vermont Lottery IDENTIFY AS NEITHER who trust our daily in-depth and data that showed store DEMOCRAT OR REPUBLICAN investigative reporting. We focus clerks and owners won tens 57% on what readers need to know of thousands of dollars DON’T SUBSCRIBE TO to participate in a functioning from scratch tickets. The A PRINT NEWSPAPER democracy -- not what people in governor ordered an internal 50% power want to hear. investigation. LIVE OUTSIDE VERMONT We believe passionately in the • A seven-part series, The Flying 86% public’s right to know. Shining a Fraternity, exposed abuses of HAVE A COLLEGE DEGREE light in dark corners is our mission power by Vermont National * Source: 2017 Reader Survey at VTDigger. We seek government Guard leadership that included 98% records, attend public meetings, sexual misconduct. analyze data and investigate issues in the public interest. We are grateful to the 3,300 READERS VOTE IN EVERY ELECTION readers who make our work On a daily basis, we publish possible. VTDigger is free to news on the city of Burlington, everyone because of readers like the Vermont Legislature, health you. We appreciate your support. care and educational institutions, businesses, the environment and politics. More than 50,000 readers used our 2018 Election Guide to

26 State Street Montpelier, VT 05602 802.225.6224 VTDigger.org 1 VERMONT JOURNALISM TRUST, LTD. January 1, 2017-December 31, 2018

Statement of Activities for the years ended December 31, 2017 (Audited) and 2018 (Reconciled, to be audited)

2018 2017 REVENUE AND SUPPORT Grants $83,000 $235,731 Underwriting 411,947 403,703 Contributions 1,156,347 817,552 News and other revenue 51,095 80,395 Events 2,000 500 Miscellaneous 11,824 3,947

SUBTOTAL $1,716,213 $1,541,828

EXPENSES Program expense $964,602 $936,881 General and administrative 166,223 63,470 Fundraising expense 364,441 302,503

TOTAL EXPENSES $1,495,266 $1,302,854

This financial summary is unaudited and pending review by VJT accountants.

Business Team

Phayvanh Oliver Dylan Florencio Dan Luekhamhan Ames Woodrow Terra Dudensing

26 State Street Montpelier, VT 05602 2 VTDigger.org 802.225.6224 VTDIGGER AUDIENCE

GROWTH STATISTICS:

PERFORMANCE STATISTICS: 2017 READER STATISTICS

Making Art 22% Activities with Children 24% 84% 69% Writing 32%

Own their Earn over Exercising 14 20k+ (Indoors) 39% Vermont Facebook own homes $60K per year Counties Followers Camping 41%

98% 86% Attending Arts Events 48%

Vote in every Have a college 270k+ 40k+ or nearly degree or higher Gardening 52% Unique Monthly Daily Home every election Readers Page Views

Cooking 56%

Going out to Gender Split Age Breakdown Restaurants 71% Male: 50% 18-34: 30% Female: 48% 35-54: 38% 30k+ 23k+ Other: 2% 55-64: 18% Twitter Daily Digger & Weekly 65+: 14% Followers Email Subscribers Exercising (Outdoors) 71%

Reading 86%

64% Readership Loyalty Frequency of >5 years: 48% Reading >2 years: 31% Interests & Activities read daily or more >1 year: 13% than daily

26 State Street Montpelier, VT 05602 802.225.6224 VTDigger.org 3 VTDIGGER SPECIAL REPORTS

F-35s at Widespread failures in mental health BTV treatment

By Mike Faher Rough Landing:

Regulatory findings in 2018 Inside the years- show psychiatric patients long debate over at Vermont hospitals were F-35s in Vermont mistreated, raising questions about whether the overtaxed By Jasper Craven mental health system is unprepared to properly care In a five-part series, VTDigger for patients. explored the impact of the Burlington airport basing of At several hospitals, patients the F-35, a new generation have been punched, tased fighter jet that is four times and handcuffed by security louder than the F-16 planes and police officials who have now used by the Vermont not received mental health National Guard. training. Several hundred homes VTDigger’s three-part series were torn down in the on psychiatric treatment in neighborhood near the airport Vermont hospitals found in anticipation of the basing in violations involving 18 mental 2019. Reporter Jasper Craven health patients at six hospitals interviewed local residents cited in inspections. who say they are concerned about the impact of noise Impact: In response, the levels on children’s health and Department of Mental Health property values. wants to eliminate payment While Sen. Patrick Leahy, D-Vt., for police in emergency had publicly pledged not to Problems have plagued rooms to prevent incidents influence the outcome, behind the development of the of violence. The Vermont the scenes he was a central F-35, which is now the most Legislature and the governor’s participant in the selection expensive weapons system office are looking at ways process since February 2010. in U.S. history, expected to to increase mental health Leahy staffers coordinated cost taxpayers more than $1.5 treatment capacity. with military leaders over a trillion by the time it is fully media message and pushed to implemented. The Department “fudge” numbers. of Defense issued a scathing report that identified more Impact: After the publication than 1,000 deficiencies with of VTDigger’s stories, the plane’s functionality. The Burlington residents and F-35 cannot reliably shoot the city councils in three straight, or deploy its bomb- neighboring communities, aiming mechanisms correctly, voted against the F-35 basing. the report found.

26 State Street Montpelier, VT 05602 4 VTDigger.org 802.225.6224 VTDIGGER SPECIAL REPORTS

More than Luck? Investigating big wins on small games

The Flying Fraternity: Federal agency shuts Allegations of down Vermont EB-5 misconduct at the Regional Center Vermont National Guard By Anne Galloway and Alan J. Keays By Jasper Craven By Katy Savage The U.S. Citizenship and VTDigger interviewed 24 Immigration Service shut down A year-long review found at members of the Vermont Air the Vermont EB-5 Regional least 117 retailers, or those Guard who say leaders of the Center in 2018 because of close to them, had won a organization have condoned the state commerce agency’s major lottery prize — defined a culture of alcohol abuse and failure to stop the largest fraud as $600 or more, the lowest sexual misconduct. in the history of the national level at which the state keeps foreign investor program. track for tax purposes — In a seven-part series, we From 2008 to 2016, the between 2011 and 2016. reported that officers harassed developers of Jay Peak Resort and assaulted female Guard misused $200 million under Collectively, they won nearly members, jet pilots frequently the aegis of state oversight. $1.8 million. In addition, abused alcohol and a chaplain employees at 29 convenience coerced a woman into a years Impact: The federal agency stores claimed more than long sexual relationship. In cited VTDigger’s investigative $1.4 million in prizes from addition, we found that the reporting in the years leading stores they worked at, or Guard delayed discharges and up to the Securities and formerly worked at, or from improperly accrued federal Exchange Commission action neighboring outlets. At least funds. in April 2016. The state has five of the 25 most prolific appealed the agency decision winners were current or Impact: In the aftermath of and has refused to release former convenience store the series, the adjutant general official correspondence with employees or owners. announced his retirement, and USCIS in the case. VTDigger Gov. Phil Scott called for an sued the state over the Impact: VTDigger’s independent investigation. The documents in 2019. investigation led to an Lutheran Church is investigating internal probe of the findings, a chaplain accused of sexually and the Vermont Lottery abusing a subordinate. And the subsequently banned store Vermont Legislature is looking agents from playing during at a change in state statute that work hours. Officials are would bring more scrutiny to also considering background the selection of the adjutant check requirements for store general. workers.

26 State Street Montpelier, VT 05602 802.225.6224 VTDigger.org 5 VTDIGGER REPORTING

NEW TOOLS & EXPANDED COVERAGE

NEW: Data Reporting

BUSINESS BEAT We augmented our statewide coverage with graphs, Making It In Vermont charts, maps and interactive visualizations that help In October readers grasp data at a 2018, glance. This kind of analysis VTDigger Podcast is critical for explaining the hired Anne impact of economic policy Wallace changes, trends and complex Allen, the Reporter and producer Mike Dougherty launched education and health care former data. editor of The Deeper Dig, an inside the Idaho analysis of the most Business important story of the week. Journal and The weekly podcast is an Vermont AP reporter, to cover audio narrative woven from business in Vermont. the voices of newsmakers and reporters. Allen covers business and economic trends -- including workforce challenges and has launched a Q&A series with CEOs. She also started a new feature column for VTDigger, called “Making it in Vermont,” which features entrepreneurs who have built successful businesses in the Green Mountain State. Allen has interviewed hemp product developers, helicopter designers and hardware manufacturers. Election Guide Looking Ahead While at VTDigger we often For 2019 publish watchdog reporting on VTDigger’s 2018 Election layoffs and management issues Guide showcased our VTDigger is launching at businesses, we believe it’s coverage of the campaign new sections for business important for Vermonters season and featured more reporting, obituaries and to know how companies than 400 candidates for the jobs classifieds. We are also are making a meaningful Legislature and statewide expanding our underwriting, contribution to the state’s office. More than 50,000 membership and events economy and culture. readers used the guide. programs.

26 State Street Montpelier, VT 05602 6 VTDigger.org 802.225.6224 VTDIGGER GROWTH

EXPANDING READERSHIP

Xander Landen of VTDigger interviews Attorney General T.J. Donovan at the Statehouse. READER SUPPORTED 30 Percent Audience Growth NEWS The number of readers who rely on VTDigger for news and information has increased significantly over the past three years as VTDigger is a mission-driven we have expanded our reporting capacity. Annual readership has nonprofit that relies on increased by 30 percent in 2018. Last year, VTDigger’s pageviews contributions from readers. That increased from 10 million to 14 million. means your donation is invested directly in news and operations that support our reporting.

Any surpluses are plowed back into the organization -- there are no shareholders or private owners siphoning off profits.

About half of our budget in 2018 came from readers. In all, we received $753,972 in total donations from readers last year, a 42 percent increase over 2017, and a 77 percent increase over 2016.

The number of readers who give monthly has increased from fewer than 100 to more than 600 Subscriptions Up By 51 Percent in 2018. We have seen huge growth in email subscriptions to the Daily Digger, Total Reader Donations Weekly Wrap and topical emails on health care, education, criminal 2016 - $426,455 justice, the environment, politics and business. Our open rate is 2017 - $527,567 about 40 percent. The industry standard is 22 percent. 2018 - $753,972

26 State Street Montpelier, VT 05602 802.225.6224 VTDigger.org 7 VTDIGGER BEAT REPORTING

HEALTH CARE POLITICS CRIMINAL JUSTICE

Nurses’ Strike 2018 Election Marijuana Legalization

UVM Medical Center ended an Divided government won the The Vermont Legislature and Gov. ongoing contract dispute with day in the 2018 election cycle. Phil Scott enacted a marijuana nurses after a fractious two-day Democrats took over the House of legalization law that allows strike that cost the Burlington Representatives with a veto-proof residents to possess 1 ounce of the hospital $3 million. VTDigger’s data majority, while Gov. Phil Scott, a drug and to grow two plants. The report showed that John Brumsted, Republican, won a second term, compromise paved the way for the the CEO, earned 29 times the beating out former power executive future legalization of a retail market. average nurse. Christine Hallquist, a Democrat.

EDUCATION BURLINGTON ENVIRONMENT

Act 46 Lawsuit CityPlace Stalls Lake Carmi in Crisis School districts filed three lawsuits Lake Carmi in Franklin County in 2018 against the state over The CityPlace development slowed has been described as the poster implementation of the school to a standstill last summer after child for Vermont’s water pollution consolidation law, Act 46. Elmore the Burlington Town Mall was torn problem. The House voted in 2018 and Stowe, Huntington and a down, leaving an enormous hole to approve a bill declaring Carmi group of 31 schools argue that the off the Church Street Marketplace. “a lake in crisis” — poisoned by law did not give the State Board While the developer blamed the toxic blue green algae from farm of Education authority to dissolve contractor and the city, records phosphorus runoff. school districts. showed that the holdup was a delay in funding for the project.

Editorial Team

Anne Galloway Jim Welch Colin Meyn Cate Chant Mike Dougherty Mark Johnson

Staff Reporters

Aidan Alan J. Anne Wallace Elizabeth Felippe Kit Lola Mike Xander Quigley Keays Allen Gribkoff Rodrigues Norton Duffort Faher Landen

26 State Street Montpelier, VT 05602 8 VTDigger.org 802.225.6224 2018 FINANCIAL SUPPORTERS

FOUNDATIONS $5000+ Green Mountain Power rk MILES Inc Howard Center Rootstock Ann H. Symington Foundation Marvin Windows and Doors Schurz Communications Bay and Paul Foundations Rutland Regional Medical Center Sirotkin for Senate Ben Cohen Charitable Trust Vermont Economic Development Southern Windsor Regional Children’s Fund of the Upper Authority Planning Commission Valley Vermont NEA Sterling College Ethics & Excellence in Journalism VSAC Sugarbush Fidelity Charitable Gift Fund VSECU Taking Steps Vermont Fountain Fund Three Penny Taproom / Mad Taco Gay and Lesbian Fund of Vermont UNDERWRITERS & SPONSORS United Academics - UVM GDS Legacy Foundation, Inc. UVM Health Network High Meadows Fund AARP of Vermont Vermont Brewer’s Association J. Warren and Lois McClure Akerman LLP Vermont Coffee Company Foundation Alla Vita Vermont Conservation Voters Johnson Family Foundation American Heart Association Vermont Department of Fish and Lintilhac Foundation, Inc. Bale Auction Vermont Wildlife Loring, Wolcott & Coolidge Trust Blodgett Supply Vermont Dept of Labor Morris and Bessie Altman Business Resource Services Vermont Federal Credit Union Foundation Cabot Creamery Vermont Fuel Dealers Association NH Charitable Foundation: Capstone Community Action Vermont Hand Crafters Tillotson Fund Council, Inc. Vermont Housing Finance Agency Periwinkle Foundation Catamount Solar Vermont Insurance Agents Powell and Brooks Charitable Christine For Vermont Association Fund Clara Martin Center Vermont Natural Resources Schwab Charitable Fund College of St. Joseph Council Sustainable Futures Fund Community Engagement Lab Vermont PBS The Miami Foundation Davis & Hodgdon Vermont State Ethics Commission Vermont Community Foundation Dinse, Knapp & McAndrew Vermont State Treasurer Donald Turner Vermont Technical College BENEFACTORS CIRCLE $5000+ Dr. Dan Freilich for Congress Vermont Transco, LLC Fleming Museum of Art VT Association of Chamber Execs. Claudia and Peter Kinder Flynn Center For The VT Businesses for Social Diana McCargo and Dr. Peter Swift Performing Arts Responsibility Eric Hanson Grace Cottage VT Electric Power Producers John Kern and Valerie Hurley Green Up Vermont VT Municipal Bond Bank Jonathan Z. Larsen Higher Ground Music Zuckerman for Vermont Judy Geer and Hunger Mountain Coop Richard Dreissigacker International Joint Commission Kathy Fisher and Rocco Maggiotto Lake Champlain Chocolates Kevin Ellis and Kimberly Hackett Let’s Grow Kids Lauren Geiger and J. Peter Young Louis Meyers About 40 percent of our Lyman Orton and Janice Izzi Marie Audet and Paul Ralston funding comes from local Mark Johnson for Vermont businesses that support Mary and Tom Evslin Minuteman Press Vermont VTDigger’s reporting and Mathew Rubin Montpelier Alive Winthrop H. Smith Montpelier High School want to reach the more than Community Based Learning 270,000 readers a month who LEADING UNDERWRITERS NOFA-VT rely on our news. In 2018, we Northfield Savings Bank lowered our rates, created Almartin Volvo PayData new email and underwriting Efficiency Vermont Prevent Child Abuse Vermont products, and launched a self- First Light Fiber Protect Our Wildlife Vermont Gifford Medical Center Rights and Democracy serve portal.

For a compete list of all 2018 supporters, please visit our website or contact us to receive a digital copy of our full annual report.

26 State Street Montpelier, VT 05602 802.225.6224 VTDigger.org 9 “Our democracy relies on a free and independent press—one that can inform and educate, foster dialogue and debate, challenge authority and speak truth to power. If we want to live in a state where our institutions are accountable to the people they serve, we need journalism that is unafraid to ask tough questions and expose hard truths, empowering us to learn and grow together, to make needed changes, and to do better. And that’s why we must remain vigilant in defense of the free press, especially now.” - James Duff Lyall Executive Director of the ACLU of Vermont

“This is my No. 1 recommendation: support a source of local journalism in your area. Research has shown that an absence of local coverage may lead to increased corruption – and local journalism is under tremendous financial strain. In your emails to me you praised Vermont’s VTDigger.” – David Leonhardt, “What To Read Now.” New York Times, Nov. 24, 2017

“VTDigger’s dogged coverage of politics and corruption in Vermont has attracted strong readership and a mix of donations, grants, and sponsorships from local businesses.” – “Digital news outlets are in for a reckoning.” The Economist, Nov. 30, 2017

Finalist, Ancil Payne Award for Ethics in Journalism “They had the guts to do this despite all the money and political resistance. They had the nerve and perseverance to get something done in the face of really tough pressure.”

– Tom Bivins, Payne Award Judge

Finalist, 2017 Online News Association Al Neuharth Award

Finalist, 2017 Investigative Reports and Editors FOIA Award

26 State Street, Suite 8 • Montpelier, Vermont 05602 802.225.6224 @vtdigger • VTDigger.org VTDigger is a project of the Vermont Journalism Trust, a 501(c)(3) nonprofit.