News in Pursuit of TruthCelebrating Nine Years of Reporting in Vermont

2018 Annual Report

14 millionANNUAL PAGEVIEWS

270,000MONTHLY READERS

Vermont’s online nonprofit daily news organization

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 DIRECTORSKevin Ellis, MontpelierTom Evslin, StoweAnne Galloway, East HardwickLauren Geiger, PlainfieldEric Hanson, BurlingtonDon Hooper, BrookfieldTom Johnson, PoultneyCurtis Ingham Koren, Brookfield Crea Lintilhac, ShelburneNeale Lunderville, South BurlingtonBill Mares, BurlingtonCarin Pratt, StraffordJohn Reilly, BurlingtonMathew Rubin, MontpelierKathryn Stearns, Hanover (NH)Lars Hasselblad Torres, Montpelier

2018 STAFF Executive Director & Founder: Anne GallowayDirector of Business Development: Phayvanh LuekhamhanDirector of Underwriting: Theresa Murray-ClasenUnderwriting Sales: Dylan WoodrowMembership: Oliver Ames and Florencio TerraFinance Manager: Dan DudensingManaging Editor: Colin MeynSenior Editor & Reporter: Mark JohnsonSpecial Projects Editor: Jim Welch News Editors: Ellen Bartlett, Cate Chant, Dave GramReporters: Anne Wallace Allen, Mike Dougherty, Lola Duffort, Mike Faher, Elizabeth Gribkoff, Elizabeth Hewitt, Alan J. Keays, Xander Landen, Kit Norton, Kevin O’Connor, Aidan Quigley, Felippe Rodrigues, Jim Therrien Freelancers: Mark Bushnell, Jasper Craven, Duane Dunston, Susan Green, Adam Hall, Jon Margolis, David Moats, Katy SavageInterns: Kelsey Neubauer, Alexandre Silberman, Mariel Wamsley

2018 MEDIA PARTNERS Local: Addison Independent | The Barton Chronicle | Bennington Banner | Berkshire Eagle

Brattleboro Reformer | The Citizen (South Burlington) | Manchester Journal | Mountain Times (Killington) | News & Citizen (Morrisville) | The Other Paper (South Burlington) | Shelburne News St. Albans Messenger | Stowe Reporter | Valley News | Waterbury Record | Williston Observer

State: VPR | Vermont PBS | WDEV Radio National: Center for Public Integrity | Hechinger Report

VTDigger.org 26 State Street Montpelier, VT 05602 802.225.6224 1

FROM THE EXECUTIVE DIRECTOR

The Harvard Kennedy School and the Institute for Nonprofit News published a 35-page white paper in 2018 about VTDigger’s growth as a nonprofit news organization.

The report details how we have grown since we were founded in 2009, from a shoestring operation with no staff, a very small budget and a tiny readership, to a full-scale news operation in 2018 with 20 staffers, a budget of $1.7 million and a monthly readership of 270,000.

VTDigger has grown because Vermonters care about each other and the future of the state. Our growth is directly tied to readers who trust our daily in-depth and investigative reporting. We focus on what readers need to know to participate in a functioning democracy -- not what people in power want to hear.

We believe passionately in the public’s right to know. Shining a light in dark corners is our mission at VTDigger. We seek government records, attend public meetings, analyze data and investigate issues in the public interest.

On a daily basis, we publish news on the city of Burlington, the Vermont Legislature, health care and educational institutions, businesses, the environment and politics. More than 50,000 readers used our 2018 Election Guide to

learn about House, Senate and statewide candidates for office. Our 2018 investigations:

• In an analysis of the basing of how F-35 fighter jets, which are coming to Burlington in 2019, we looked at how noise from the planes will impact the health and safety of local residents.

• In a culmination of years of reporting, federal regulators closed the Vermont EB-5 Regional Center after determining that state officials had not protected investors in the Jay Peak projects.

• We probed Vermont Lottery data that showed store clerks and owners won tens of thousands of dollars from scratch tickets. The governor ordered an internal investigation.

• A seven-part series, The Flying Fraternity, exposed abuses of power by Vermont National Guard leadership that included sexual misconduct.

We are grateful to the 3,300 readers who make our work possible. VTDigger is free to everyone because of readers like you. We appreciate your support.

VTDigger a Rising Star in Nonprofit News

Anne GallowayExecutive Director,

Founder of VTDigger.org

READER SURVEY*

55%IDENTIFY AS NEITHER

DEMOCRAT OR REPUBLICAN

57%DON’T SUBSCRIBE TO A PRINT NEWSPAPER

50%LIVE OUTSIDE VERMONT

86%HAVE A COLLEGE DEGREE

* Source: 2017 Reader Survey

98%

READERS VOTE INEVERY ELECTION

VTDigger.org 26 State Street

Montpelier, VT 05602 802.225.62242

VERMONT JOURNALISM TRUST, LTD.January 1, 2017-December 31, 2018

2018 2017REVENUE AND SUPPORTGrants $83,000 $235,731Underwriting 411,947 403,703Contributions 1,156,347 817,552News and other revenue 51,095 80,395Events 2,000 500Miscellaneous 11,824 3,947 SUBTOTAL $1,716,213 $1,541,828

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

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

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

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

Business Team

Phayvanh Luekhamhan

OliverAmes

DylanWoodrow

FlorencioTerra

DanDudensing

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

Earn over$60K per year

69%

Own theirown homes

84%

Have a college degree or higher

86%

Age Breakdown

Vote in everyor nearly

every election

98%

Gender Split18-34: 30%35-54: 38%55-64: 18%65+: 14%

Male: 50%Female: 48%Other: 2%

Interests & Activities

PERFORMANCE STATISTICS:

GROWTH STATISTICS:

2017 READER STATISTICS

Reading 86%

Exercising(Outdoors) 71%

Cooking 56%

Gardening 52%

Attending Arts Events 48%

Camping 41%

Exercising (Indoors) 39%

Writing 32%

Activities withChildren 24%

Making Art 22%

Going out to Restaurants 71%

14VermontCounties

20k+FacebookFollowers

30k+Twitter

Followers

64%Frequency of

Readingread daily or more

than daily

270k+Unique Monthly

Readers

40k+Daily HomePage Views

23k+Daily Digger & Weekly

Email Subscribers

Readership Loyalty>5 years: 48%>2 years: 31%>1 year: 13%

VTDIGGER AUDIENCE

VTDigger.org 26 State Street

Montpelier, VT 05602 802.225.62244

Rough Landing: Inside the years-long debate over

F-35s in Vermont

By Jasper Craven

In a five-part series, VTDigger explored the impact of the Burlington airport basing of the F-35, a new generation fighter jet that is four times louder than the F-16 planes now used by the Vermont National Guard.

Several hundred homes were torn down in the neighborhood near the airport in anticipation of the basing in 2019. Reporter Jasper Craven interviewed local residents who say they are concerned about the impact of noise levels on children’s health and property values.

Problems have plagued the development of the F-35, which is now the most expensive weapons system in U.S. history, expected to cost taxpayers more than $1.5 trillion by the time it is fully implemented. The Department of Defense issued a scathing report that identified more than 1,000 deficiencies with the plane’s functionality. The F-35 cannot reliably shoot straight, or deploy its bomb-aiming mechanisms correctly, the report found.

While Sen. Patrick Leahy, D-Vt., had publicly pledged not to influence the outcome, behind the scenes he was a central participant in the selection process since February 2010. Leahy staffers coordinated with military leaders over a media message and pushed to “fudge” numbers.

Impact: After the publication of VTDigger’s stories, Burlington residents and the city councils in three neighboring communities, voted against the F-35 basing.

VTDIGGER SPECIAL REPORTS

F-35s atBTVWidespread failures

in mental health treatment

By Mike Faher

Regulatory findings in 2018 show psychiatric patients at Vermont hospitals were mistreated, raising questions about whether the overtaxed mental health system is unprepared to properly care for patients.

At several hospitals, patients have been punched, tased and handcuffed by security and police officials who have not received mental health training.

VTDigger’s three-part series on psychiatric treatment in Vermont hospitals found violations involving 18 mental health patients at six hospitals cited in inspections.

Impact: In response, the Department of Mental Health wants to eliminate payment for police in emergency rooms to prevent incidents of violence. The Vermont Legislature and the governor’s office are looking at ways to increase mental health treatment capacity.

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

Federal agency shuts down Vermont EB-5

Regional Center

By Anne Galloway and Alan J. Keays

The U.S. Citizenship and Immigration Service shut down the Vermont EB-5 Regional Center in 2018 because of the state commerce agency’s failure to stop the largest fraud in the history of the national foreign investor program. From 2008 to 2016, the developers of Jay Peak Resort misused $200 million under the aegis of state oversight.

Impact: The federal agency cited VTDigger’s investigative reporting in the years leading up to the Securities and Exchange Commission action in April 2016. The state has appealed the agency decision and has refused to release official correspondence with USCIS in the case. VTDigger sued the state over the documents in 2019.

More than Luck? Investigating big wins on small games

By Katy Savage

A year-long review found at least 117 retailers, or those close to them, had won a major lottery prize — defined as $600 or more, the lowest level at which the state keeps track for tax purposes — between 2011 and 2016.

Collectively, they won nearly $1.8 million. In addition, employees at 29 convenience stores claimed more than $1.4 million in prizes from stores they worked at, or formerly worked at, or from neighboring outlets. At least five of the 25 most prolific winners were current or former convenience store employees or owners.

Impact: VTDigger’s investigation led to an internal probe of the findings, and the Vermont Lottery subsequently banned store agents from playing during work hours. Officials are also considering background check requirements for store workers.

VTDIGGER SPECIAL REPORTS

The Flying Fraternity: Allegations of

misconduct at the Vermont National

Guard

By Jasper Craven

VTDigger interviewed 24 members of the Vermont Air Guard who say leaders of the organization have condoned a culture of alcohol abuse and sexual misconduct.

In a seven-part series, we reported that officers harassed and assaulted female Guard members, jet pilots frequently abused alcohol and a chaplain coerced a woman into a years long sexual relationship. In addition, we found that the Guard delayed discharges and improperly accrued federal funds.

Impact: In the aftermath of the series, the adjutant general announced his retirement, and Gov. Phil Scott called for an independent investigation. The Lutheran Church is investigating a chaplain accused of sexually abusing a subordinate. And the Vermont Legislature is looking at a change in state statute that would bring more scrutiny to the selection of the adjutant general.

VTDigger.org 26 State Street

Montpelier, VT 05602 802.225.62246

Podcast

Reporter and producer Mike Dougherty launched The Deeper Dig, an inside analysis of the most important story of the week. The weekly podcast is an audio narrative woven from the voices of newsmakers and reporters.

Election Guide

VTDigger’s 2018 Election Guide showcased our coverage of the campaign season and featured more than 400 candidates for the Legislature and statewide office. More than 50,000 readers used the guide.

Data Reporting

We augmented our statewide coverage with graphs, charts, maps and interactive visualizations that help readers grasp data at a glance. This kind of analysis is critical for explaining the impact of economic policy changes, trends and complex education and health care data.

Looking Ahead For 2019

VTDigger is launching new sections for business reporting, obituaries and jobs classifieds. We are also expanding our underwriting, membership and events programs.

VTDIGGER REPORTING

NEW TOOLS & EXPANDED COVERAGE

NEW:BUSINESS BEAT

Making It In Vermont

In October 2018, VTDigger hired Anne Wallace Allen, the former editor of the Idaho Business Journal and Vermont AP reporter, to cover business in Vermont.

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.

While at VTDigger we often publish watchdog reporting on layoffs and management issues at businesses, we believe it’s important for Vermonters to know how companies are making a meaningful contribution to the state’s economy and culture.

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

VTDIGGER GROWTH

READERSUPPORTED

NEWSVTDigger is a mission-driven nonprofit that relies on contributions from readers. That 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 in 2018.

Total Reader Donations2016 - $426,4552017 - $527,5672018 - $753,972

Subscriptions Up By 51 PercentWe have seen huge growth in email subscriptions to the Daily Digger, Weekly Wrap and topical emails on health care, education, criminal justice, the environment, politics and business. Our open rate is about 40 percent. The industry standard is 22 percent.

Xander Landen of VTDigger interviews Attorney General T.J. Donovan at the Statehouse.

30 Percent Audience GrowthThe number of readers who rely on VTDigger for news and information has increased significantly over the past three years as we have expanded our reporting capacity. Annual readership has increased by 30 percent in 2018. Last year, VTDigger’s pageviews increased from 10 million to 14 million.

EXPANDING READERSHIP

VTDigger.org 26 State Street

Montpelier, VT 05602 802.225.62248

Nurses’ Strike

UVM Medical Center ended an ongoing contract dispute with nurses after a fractious two-day strike that cost the Burlington hospital $3 million. VTDigger’s data report showed that John Brumsted, the CEO, earned 29 times the average nurse.

Act 46 Lawsuit

School districts filed three lawsuits in 2018 against the state over implementation of the school consolidation law, Act 46. Elmore and Stowe, Huntington and a group of 31 schools argue that the law did not give the State Board of Education authority to dissolve school districts.

Lake Carmi in Crisis

Lake Carmi in Franklin County has been described as the poster child for Vermont’s water pollution problem. The House voted in 2018 to approve a bill declaring Carmi “a lake in crisis” — poisoned by toxic blue green algae from farm phosphorus runoff.

2018 Election

Divided government won the day in the 2018 election cycle. Democrats took over the House of Representatives with a veto-proof majority, while Gov. Phil Scott, a Republican, won a second term, beating out former power executive Christine Hallquist, a Democrat.

Marijuana Legalization

The Vermont Legislature and Gov. Phil Scott enacted a marijuana legalization law that allows residents to possess 1 ounce of the drug and to grow two plants. The compromise paved the way for the future legalization of a retail market.

CityPlace Stalls

The CityPlace development slowed to a standstill last summer after the Burlington Town Mall was torn down, leaving an enormous hole off the Church Street Marketplace. While the developer blamed the contractor and the city, records showed that the holdup was a delay in funding for the project.

EDUCATION ENVIRONMENT

POLITICS CRIMINAL JUSTICEHEALTH CARE

BURLINGTON

VTDIGGER BEAT REPORTING

Editorial Team

Anne Galloway Jim Welch Colin Meyn Cate Chant Mike Dougherty

Staff Reporters

Aidan Quigley

Alan J.Keays

Anne WallaceAllen

ElizabethGribkoff

FelippeRodrigues

KitNorton

LolaDuffort

MikeFaher

XanderLanden

Mark Johnson

VTDigger.org 26 State Street Montpelier, VT 05602 802.225.6224 9

FOUNDATIONS $5000+

Ann H. Symington FoundationBay and Paul FoundationsBen Cohen Charitable TrustChildren’s Fund of the Upper ValleyEthics & Excellence in JournalismFidelity Charitable Gift FundFountain FundGay and Lesbian Fund of VermontGDS Legacy Foundation, Inc.High Meadows FundJ. Warren and Lois McClure FoundationJohnson Family FoundationLintilhac Foundation, Inc.Loring, Wolcott & Coolidge TrustMorris and Bessie Altman FoundationNH Charitable Foundation: Tillotson FundPeriwinkle FoundationPowell and Brooks Charitable FundSchwab Charitable FundSustainable Futures FundThe Miami FoundationVermont Community Foundation

BENEFACTORS CIRCLE $5000+

Claudia and Peter KinderDiana McCargo and Dr. Peter SwiftEric HansonJohn Kern and Valerie HurleyJonathan Z. LarsenJudy Geer and Richard DreissigackerKathy Fisher and Rocco MaggiottoKevin Ellis and Kimberly HackettLauren Geiger and J. Peter YoungLyman Orton and Janice IzziMark JohnsonMary and Tom EvslinMathew RubinWinthrop H. Smith

LEADING UNDERWRITERS

Almartin VolvoEfficiency VermontFirst Light FiberGifford Medical Center

Green Mountain PowerHoward CenterMarvin Windows and DoorsRutland Regional Medical CenterVermont Economic Development AuthorityVermont NEAVSACVSECU

UNDERWRITERS & SPONSORS

AARP of VermontAkerman LLPAlla VitaAmerican Heart AssociationBale Auction VermontBlodgett SupplyBusiness Resource ServicesCabot CreameryCapstone Community Action Council, Inc.Catamount SolarChristine For VermontClara Martin CenterCollege of St. JosephCommunity Engagement LabDavis & HodgdonDinse, Knapp & McAndrewDonald TurnerDr. Dan Freilich for CongressFleming Museum of ArtFlynn Center For The Performing ArtsGrace CottageGreen Up VermontHigher Ground MusicHunger Mountain CoopInternational Joint CommissionLake Champlain ChocolatesLet’s Grow KidsLouis MeyersMarie Audet and Paul Ralston for VermontMinuteman Press VermontMontpelier AliveMontpelier High School Community Based LearningNOFA-VTNorthfield Savings BankPayDataPrevent Child Abuse VermontProtect Our Wildlife VermontRights and Democracy

rk MILES IncRootstockSchurz CommunicationsSirotkin for SenateSouthern Windsor Regional Planning CommissionSterling CollegeSugarbushTaking Steps VermontThree Penny Taproom / Mad TacoUnited Academics - UVMUVM Health NetworkVermont Brewer’s AssociationVermont Coffee CompanyVermont Conservation VotersVermont Department of Fish and WildlifeVermont Dept of LaborVermont Federal Credit UnionVermont Fuel Dealers AssociationVermont Hand CraftersVermont Housing Finance AgencyVermont Insurance Agents AssociationVermont Natural Resources CouncilVermont PBSVermont State Ethics CommissionVermont State TreasurerVermont Technical CollegeVermont Transco, LLCVT Association of Chamber Execs.VT Businesses for Social ResponsibilityVT Electric Power ProducersVT Municipal Bond BankZuckerman for Vermont

About 40 percent of our funding comes from local businesses that support VTDigger’s reporting and want to reach the more than 270,000 readers a month who rely on our news. In 2018, we lowered our rates, created new email and underwriting products, and launched a self-serve portal.

2018 FINANCIAL SUPPORTERS

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.

“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

“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 LyallExecutive Director of the ACLU of Vermont

26 State Street, Suite 8 • Montpelier, Vermont 05602802.225.6224 @vtdigger • VTDigger.org

VTDigger is a project of the Vermont Journalism Trust, a 501(c)(3) nonprofit.

Finalist, 2017 Online News Association Al Neuharth Award

Finalist, 2017 Investigative Reports and Editors FOIA Award