Vermont's recovery
Toolbox
Published: April 1, 2009
Tom Evslin, the state's chief recovery officer, is encouraged by the willingness of government and business leaders in Vermont to take a leadership role in putting the federal stimulus program into effect.
Vermont's small size and programs already in place have put the state in a good position to make constructive use of up to $1 billion in federal money allocated for the economic recovery. Federal officials may view Vermont as a laboratory where innovation in advanced telecommunications, electric power, and health care technology can be advanced with federal money.
Vermont has already put in place the Vermont Telecommunications Authority, which has $40 million in bonding authority that can be used to leverage $100 million in federal money. Toward that end Evslin is working with telecommunications companies in Vermont to put together a unified application to enable Vermont to achieve 100 percent broadband coverage.
In the same vein, he is working with Vermont utilities to develop an application for money to pay for smart electric meters and a smart grid, with the intention of making Vermont the first state to use 100 percent smart power.
It was Evslin's charge by Gov. James Douglas to foster the kind of cooperation that will make these innovations happen, and he has been pleased to find an attitude that he described as "we can do this."
A major portion of the money coming to Vermont will be for education. There will be $25 million in added money for Title I, which helps schools serve needy students, and $21 million in added money for special education. Additional millions will go to school districts with the intent of staving off layoffs.
The governor and Legislature have different views on one sliver of the stimulus funds — $17.1 million in economic development money. Douglas hopes to use the money to provide business with low-cost loans through the Vermont Economic Development Authority. Evslin estimated that $17.1 million could leverage as much as $150 million in business activity. Some of that money could be used for low-interest loans for farmers, who need all the help they can get during a time of crushingly low milk prices.
The Legislative leadership has suggested the money could be used for public safety, though it is unclear whether that money would merely offset other public safety money.
The massive stimulus program, combined with President Obama's equally large budget proposal, has raised concerns about deficit spending and the accumulating national debt. At the same time, many economists argue that the level of government spending still is not sufficient to offset the economic collapse.
Evslin has a pragmatic view of the uses of debt. "Debt is not bad if you use that money for investment," he said. Just as people borrow to buy a house or to pay for college, governments may borrow to invest in necessary infrastructure or economic activities that will not only pull us out of recession, but make the future more prosperous.
At least that is the idea behind the Obama recovery plan. In Vermont Evslin is working to prepare Vermont's government agencies and businesses to make the best use of the money available so it becomes an investment rather than a waste. Much hinges on his success.
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