Senate committee hears Act 181 evaluation of rural technical assistance; VCRD seeks $500,000 for a coordinated pilot

The Senate Committee on Government Operations on Friday heard the results of an Act 181 evaluation that found technical assistance for Vermont’s rural municipalities is fragmented, short‑term and difficult for small towns to navigate. Jessica Savage, director of programs and strategic initiatives at the Vermont Council on Rural Development, asked the committee to consider a $500,000 appropriation in FY27 to staff a coordinated technical‑assistance program that would combine backbone administrative support, customized resource teams and predominantly direct funding to towns.

The request and report are the product of a multi‑partner steering committee and statewide outreach that included regional listening sessions, 195 survey responses and comparative interviews with officials in other states, presenters said. Gary Holloway, who identified himself as downtown program manager with the Department of Housing and Community Development, summarized four priority areas in the report: increase state‑agency participation on local problems; develop municipal and regional shared‑service tools; expand local engagement and leadership development; and boost local capacity with flexible resources.

"We've identified four actionable priority areas," Holloway said, describing barriers such as volunteer turnover, limited municipal staff, and administrative complexity that can block communities from accessing grants and assistance. Presenters and committee members discussed practical steps including a centralized information hub, shared equipment inventories, and simplifying grant application and reporting requirements across agencies.

Savage said the $500,000 proposal would provide administrative backbone to design and implement a technical‑assistance and funding program that prioritizes underserved rural towns and allows communities to use awards for housing, infrastructure, child care, climate resilience and related project phases. "Our proposal is simple and allows for implementation of some of the most impactful recommendations in the report," Savage said.

Presenters noted existing programs and pilots — including the municipal technical assistance program (MTAP) and the Rural Economic Development Initiative — as foundations that could be scaled or reimagined. Savage said a prior two‑year, $3 million ask for MTAP had been included in an earlier governor’s recommendation but did not pass; the House budget this year includes $250,000 for related work.

Senator White told the presenters she supports the work of the Vermont Council on Rural Development and said she would back including at least the House‑recommended $250,000 in committee correspondence. "I would even go so far as to say I'd be supportive of the full $500,000," she said.

Committee members pressed presenters on implementation details: how to reduce administrative burden when federal and state requirements remain, how to ensure emergency management and other agencies are at the table, and whether property transfer tax revenues or other sources could sustain ongoing assistance. Presenters acknowledged some recommendations would require longer interagency work while other actions — inventorying shared equipment or piloting a small cohort model — could be started more quickly.

The steering committee’s Act 181 charge concludes with the report, but presenters said members are interested in continuing work to identify near‑term "low‑hanging fruit" and longer‑term system changes. With no vote at the hearing, the request remains a proposal; the House’s $250,000 inclusion is the nearest enacted marker as the committee considers next steps.

The committee adjourned with plans to follow up as needed.