Agency of Administration Proposes Bulletin 5 Revisions to Speed and Standardize State Grants
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Summary
Agency of Administration officials told the committee they are updating Bulletin 5 to clarify grant vs. contract distinctions, standardize indirect‑rate guidance, improve advanced‑payment risk assessments and publish practical checklists; Common Good Vermont also requested state funding to support nonprofits' capacity to manage grants.
Agency of Administration officials described a months‑long, multi‑stakeholder effort to update Bulletin 5, the state's grants guidance, and told the Government Operations & Military Affairs committee on Feb. 6 that changes are intended to make application, payment timing and reporting clearer and more consistent across agencies.
"We've created a lot of additional optional resources and materials to help guide folks of all ranges of experience through the process," said Nick Grama, chief operating officer at the Agency of Administration, summarizing work the agency completed with nonprofit partners, RPCs and multiple state granting agencies.
Grama said the proposed Bulletin 5 updates would: add clearer definitions distinguishing grants from contracts; provide consistent treatment and guidance for indirect rates; introduce standardized risk assessments and criteria for advanced payments; and publish checklists, fact sheets and appendices to reduce duplication across agencies. He said the agency plans to publish a draft for partner review and target an effective date of July 1 to align with the fiscal year.
Committee members asked how long grants take to execute and whether processes differ by grant type. Grama replied that timelines vary: some small, beneficiary‑payment grants can be executed quickly, while larger grants with extensive application or federal reporting requirements can take months. He noted an annual granting plan requirement for agencies under Bulletin 5 and described the AA‑1 review process for accepting federal grants, which includes finance and management, the secretary of administration and the joint fiscal committee; in urgent cases the joint fiscal committee can be asked for expedited review.
Charlie Baker, executive director of the Chittenden County Regional Planning Commission speaking for the statewide RPC association (transcript: VAPTA), said the practitioner feedback loop was helpful and that RPCs look forward to reviewing the next draft of Bulletin 5.
Emma Paradise, co‑director of Common Good Vermont (a program of United Way of Northwest Vermont), endorsed the administration's approach and asked the committee to support a budget request from Common Good to strengthen nonprofit capacity: $295,665 in one‑time funding and $267,777 in base funding for training, technical assistance, data collection and a technical assistance fund to help nonprofits manage state grants and respond to federal funding changes.
Grama emphasized the update is still in draft form and that the agency has committed to share drafts with external partners before finalizing them. No formal action on Bulletin 5 occurred at the hearing; the committee will continue to monitor the draft and related legislation.