The Scott administration recently removed $20 million from a broadband fund to pay for flood relief programs.
And now some members of a state panel that is overseeing the broadband buildout are concerned about making sure the money is returned in time to meet construction deadlines.
The Vermont Emergency Board met in late July to try to find some money they could quickly access to help flood victims.
“The Emergency Board cannot make new appropriations. So in this case they were not able to simply create a new $20 million appropriation to support flood relief efforts. They had to draw it from somewhere.Will Anderson, Department of Finance and Management
“The Emergency Board cannot make new appropriations,” Department of Finance and Management budget analyst Will Anderson told the Vermont Community Broadband Board at a meeting on Aug. 14. “So in this case they were not able to simply create a new $20 million appropriation to support flood relief efforts. They had to draw it from somewhere.”
The Emergency Board took the money from the general fund, but that general fund money was backed up by American Rescue Plan Act funding.
The federal ARPA dollars come with strict restrictions, and the state was counting on the money to be there to back up additional federal grant programs that require matching funds.
“This funding came from ARPA, and it was for a specific purpose,” said Vermont Community Broadband Board member Holly Groschner. “So I’m just confused how state government can reuse federal funds that were congressionally designated for a specific use and replace then later.”
Anderson told the board that since the ARPA money was not going to be used until mid-April, the administration saw it as a viable source of quick cash that could go right out to Vermonters who were struggling to rebuild following July’s flooding.
“To me it feels like we have repurposed dollars,” Vermont Community Broadband Board chairwoman Patty Richards told Anderson. “And I just want to be sure we haven’t overstepped here, and if there is some sort of reporting requirement that we’re aware of that.”
Anderson told the board the administration will put the money back during budget adjustment, which happens when the Legislature is back in session.
“To me it feels like we have repurposed dollars. And I just want to be sure we haven’t overstepped here, and if there is some sort of reporting requirement that we’re aware of that.”Patty Richards, Vermont Community Broadband Board
But Laura Sibilia, a state representative from Dover who's also a member of the Vermont Community Broadband Board, says she's afraid the money could get caught up in legislative negotiations, and not make its way back for use building out broadband across Vermont
“The part that has me the most concerned is that we have a promise from the administration to propose repayment of these,” Sibilia said. “But they may propose to repay these and defund something that is a legislative priority, which then sets up a big conflict. This is a lot of money. I know we’re used to COVID funds, and so everything seems small, but this is a lot of money.”
On Friday, Gov. Phil Scott’s spokesman Jason Maulucci said, “Given the immediate needs communities and employers had after the floods, it was necessary to act quickly to respond.”
The state is expecting a budget surplus of $78.4 million, and Maulucci said the administration expected the money to be back in the hands of the Vermont Community Broadband Board well before it’s needed in mid-April.
“We are confident the $20 million will be available and restored to the VCBB without any operational impacts to the program,” he said.
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