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Municipal leaders ask Legislature to bolster emergency road funds and consider revenue sharing
Summary
The Vermont League of Cities and Towns told the Senate Transportation Committee that municipalities need clearer, more reliable funding and emergency borrowing authority to respond to frequent disasters and to maintain rural roads and bridges.
Representatives of the Vermont League of Cities and Towns (VLCT) told the Senate Transportation Committee on Feb. 25 that municipalities need stronger, more predictable financial tools to maintain roads, fix bridges and respond quickly to disasters.
Samantha Sheehan, municipal policy and advocacy specialist at VLCT, said the organization supports the state’s climate and electrification goals but urged lawmakers to “mindfully diversify the transportation fund revenue sources” so municipalities are not left with disproportionate burdens. VLCT staff described municipal requests this session that include topping up the Town Highway Emergency Fund, new short-term emergency borrowing authority for selectboards to cover immediate hazard repairs while awaiting federal reimbursement, and expanded authority for municipalities to hold unassigned fund balances for project readiness and grant matching.
Why it matters: VLCT witnesses said the Town Highway Emergency Fund is underfunded and that smaller towns especially lack the staff capacity to prepare projects for state grant programs. Sheehan described technical-assistance work VLCT provides — including help to secure federal ARPA funds and a recent role in assembling roughly $8 million in grant funding for a South Burlington transportation project — and urged the committee to fund municipal project-readiness programs so towns can apply successfully for state and federal grants.
Revenue proposals and equity concerns: VLCT staff floated one revenue approach discussed by several committee members: remitting a portion of vehicle registration fees to the municipality where the vehicle is registered so local governments receive revenue that aligns with wear-and-tear on local roads. Staff said such revenue-sharing exists in neighboring states and would enable small towns to plan multiyear capital budgets and to meet grant match requirements.
VLCT also asked for language enabling selectboards to access emergency borrowing through the bond bank for up to five years to pay for repairs and to improve the consistency and transparency of municipal accounts (for example, allowing municipalities to retain unassigned fund balances). The League’s transportation committee members told senators they remain concerned that State transportation budgets and grant programs do not consistently account for municipal needs.
Ending: VLCT asked the Senate Transportation Committee to work with the Agency of Transportation and municipal partners to build a consistent statewide inventory of municipal road and bridge needs, to increase emergency fund capacity, and to explore revenue-sharing or other stable funding mechanisms so towns can maintain the basic infrastructure that enables broader state transportation and climate goals.
