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Appropriations committee reviews H.398 changes to VIDA authority and disaster loan fund
Summary
The House Appropriations Committee discussed H.398, which would expand powers of the Vermont Economic Development Authority (VIDA), codify a governor'issued sustainable-jobs strategy, and create a Vermont Disaster Recovery Loan Fund seeded by $2 million repurposed from an existing BGAP appropriation.
The House Appropriations Committee met March 17 to consider H.398, an act relating to the Vermont Economic Development Authority (VIDA), including proposals to broaden VIDA's lending authority and to create a Vermont Disaster Recovery Loan Fund seeded with $2 million repurposed from an existing Business Growth and Agricultural Program (BGAP) appropriation.
The bill would expand the definition of eligible projects to include capital improvements, receivables and other secured lending; extend loan terms for local development corporations from 10 to 20 years; allow VIDA to pledge securities, use credit enhancements and purchase its own bonds; and add statutory language that shields VIDA board members and staff from personal liability for bonds or contracts except for intentional misconduct. It would also replace the current process for a governor-issued Vermont Sustainable Jobs Strategy (cited in statute at section 280B) by putting the existing strategy language into statute and adding a clause to consider the effects of climate change.
The measure creates a new Vermont Disaster Recovery Loan Fund to provide loans and other financial assistance to businesses and agricultural enterprises following disasters. Under the bill's language discussed in committee, VIDA must consult with the secretaries of the Agency of Commerce and Community Development (ACCD) and the secretary of agriculture when deciding whether to make funds available after a disaster; if a disaster is declared by the governor or president, consultation is not required and the fund's availability would automatically trigger. Joint Fiscal Office staff said the bill proposes a $2 million appropriation in fiscal 2025 to seed that fund by repurposing $2 million of a previously allocated $7 million for BGAP, leaving $5 million for BGAP.
Cameron Wood of Ledge Council summarized the substantive changes and the new disaster fund, and said the disaster fund's policies and procedures would be developed by VIDA. "There is a provision in there that says that they can only charge interest such to recoup administrative costs for a fund," Wood said, describing an intent to keep interest rates low. Chris Stewart of the Joint Fiscal Office confirmed verbally and by reference to the governor's recommended budget that the $2 million would come from FY25 funds already allocated to BGAP and that the bill as drafted does not create new general-fund spending for FY26.
Committee members discussed whether to remove section 3 of the bill (the provision that duplicates the appropriation language) and rely on the single instance of the appropriation language in the governor's budget language (C103). Committee counsel circulated a draft committee amendment that would strike section 3 in its entirety and renumber the effective-date provision. The Appropriations chair asked members whether to act in committee or wait until the next day to vote; members agreed to consider a committee amendment and to vote when quorum and scheduling permitted.
The bill had already been recommended out of the House Commerce and Economic Development Committee; Representative Emily Carris Benson said that committee's vote was "eleven-zero-zero." Appropriations members noted technical drafting issues and that VIDA currently operates multiple subchapters and programs, so the bill largely clarifies and expands administrative authority rather than changing core program goals. Members also discussed the provenance of the Vermont Sustainable Jobs Strategy language, which staff said dates to a two-page memo from the 1999 Governor Dean administration and which the Commerce committee's amendment would codify with a climate-related expansion.
No final Appropriations committee vote on the committee amendment was recorded in the transcript; members planned to take the vote the following day to accommodate scheduling and notice procedures.
Votes at a glance
- House Commerce and Economic Development Committee recommendation on H.398: 11-0-0 in favor of the Commerce committee's amendment (as reported to Appropriations). - Appropriations committee: committee amendment offered to strike section 3 (which would avoid duplicative appropriations); vote postponed/pending (to be taken at a later session).
