This is sad news (for me as a former faculty member of Vermont Law School), but not surprising. Law school applications have been lower nation-wide over the past couple of years. The expectation expressed by some, such as Dean Frank Wu of Hastings, is that this is part of a permanent adjustment for law schools that reflects fundamental changes in the market for legal services.
In response to these trends, VLS will be reducing staff, including potentially faculty, according to VLS President Marc Mihaly. Good luck to VLS and all of my former colleagues there.