Agency of Education says it must run open adult-education grant competition as rural providers warn of steep cuts

The Vermont Agency of Education told the Senate Education Committee on April 3, 2025, that it is proceeding with an open, competitive grant process for the adult education and literacy program after the General Assembly changed the funding formula, and that awards are expected in May following a grant application window that closes April 25.

The change shifts distribution from a county-weighted formula to a calculation based on the two‑year average number of students served, a move the agency and some legislators described as an attempt to modernize and make funding more equitable. Providers that testified at the hearing said the shift will produce large losses in some rural counties and have urged a pause or additional legislative direction before awards are finalized.

The hearing matters because the program provides basic-skills and English-language instruction that state and federal officials treat as workforce development under the Workforce Innovation and Opportunity Act (WIOA, Title II). Agency officials said they must follow statute and federal guidance; providers said the practical effect will be reduced capacity to serve rural residents and to sustain existing learning centers.

Agency of Education Secretary Zoe Sonder told the committee the agency is implementing a formula the General Assembly placed in law and that the department must balance continuity of services with compliance. "The Agency of Education's role is to implement what is in law," Sonder said. She and other agency officials noted the current competition is open and that the agency honored the prior formula through the previous grant cycle to avoid a sudden loss of service.

Robin Castle, state director of adult education and literacy for the Agency of Education, described the program and the statutory mechanics. Under 16 V.S.A. §4011 as written in statute, the appropriation is calculated as "26 percent of the base education amount times the two-year average of students served in previous two years," a method Castle said emphasizes enrollment rather than county demographics. Castle said the department is competitively awarding multi-year (three-year) grants under WIOA requirements and that federal and state funds are combined in the competition.

Providers said the change disproportionately affects sparsely populated counties. Michelle Fost, executive director of Northeast Kingdom Learning Services, told senators that the new distribution method would amount to "what would be a $500,000 cut to the funding" for the three counties her organization serves (Essex, Caledonia and Orleans) and explained structural reasons why small allocations do not translate directly into viable local programs. Catherine Quakstein, executive director of Central Vermont Adult Education, said the statewide system served about "2,000 students statewide" in fiscal years 2023–24 and that providers employ roughly "132 educators and support staff." Quakstein noted that Essex County, historically funded under the older rule, had about nine students counted in the two‑year average that drives the new allocations, which she said produced an extreme difference when translated into county allocations.

Providers described how grants are administered: awarded providers receive a regional allocation, propose annual budgets for each fiscal year within the multi‑year award, and must meet performance measures and student targets. Providers explained that costs per student vary by geography because of satellite facilities, travel, and duplicated fixed costs for multiple small learning centers that serve scattered rural populations; one provider estimated an average cost per student of about $3,000 based on recent years.

Agency witnesses emphasized constraints imposed by the competitive process. Lisa Held, assistant division director for student pathways at the Agency of Education, told the committee the agency does not set statute and is following the law placed by the legislature. Held also said the agency cannot advantage any applicant during an open competition and noted that new providers have expressed interest in applying. "This is not an entitlement," she said, describing the statutory and federal framework the agency must follow.

Legislative staff and advocates urged clearer direction. Meg Post, who identified herself as working with an advocacy organization focused on adult education, said the intent of the General Assembly’s recent budget language was to increase the total appropriation for adult education rather than to alter county‑level distribution without stakeholder review. "The legislative intent was to increase total appropriations for adult education in the budget," Post said, adding that stakeholders expected work on the distribution method to be the subject of a broader review.

Committee members and witnesses discussed a possible middle ground: preserving the increased total appropriation while convening a study group to revise the distribution method to reflect rural service realities and workforce priorities. Agency officials confirmed the department can follow additional legislative direction, but they said they are required to implement current statute and to complete competitive processes in ways that protect fairness to applicants.

Next steps noted at the hearing: the agency’s grant competition remains open through April 25, awards were described as expected in May, and House budget language included directions for a stakeholder review of the funding formula for future sessions. Committee members asked for the legislative language and for a clearer enumeration of fiscal assumptions so the committee can consider targeted fixes if the house budget language remains in the final budget.

The hearing included detailed provider testimony about program design (the state’s new adult diploma pilot, integrated education and training activities with technical centers, and outreach to English‑language learners) and repeated requests for a convening of stakeholders to design a distribution formula that balances equity with rural service costs.