Vermont Governor Leverages Federal Stimulus Funds for Smart Growth

Vermont Governor James Douglas has released a plan to spend some of the state's share of funds from the federal American Recovery and Reinvestment Act on building a stronger base for technology-based growth. The $17.1 million SmartVermont suite of proposals includes funding for technology company loans, lending to small businesses, seed capital for entrepreneurs and support for regional economic development projects. Governor Douglas' office estimates that the investment would attract another $140 million in private capital to support the state's economic development goals.

The Vermont Economic Development Authority (VEDA) would house most of the new and expanded programs covered in the SmartVermont plan. A new Technology Loan program at VEDA would use a $1 million investment from the ARRA funds to secure up to $6 million in loans and attract an additional $4 million in private capital for high-tech companies. These loans would target strategic industries and expansion projects to further the state's economic development goals.

A new VEDA seed capital fund would help seed and startup stage companies obtain early-stage capital. The plan calls for $4 million in state funding over the next two years for direct equity investments in new firms. The governor's office estimates that this would attract another $8 million in private investment in FY09 and FY10.

In addition to direct financial support, the SmartVermont plan would fund incubation facilities and high-tech training. The Vermont Center for Emerging Technology, a high-tech incubator in Burlington, would receive $500,000 over the next two years to provide early-stage support for its clients. The Vermont Training Program, which contracts with companies to provide on-the-job training, classroom learning and lean-manufacturing programs to workers, would receive an additional $500,000.

The SmartVermont plan also includes more ambitious goals for the state's universal broadband initiative. In 2007, Vermont began a campaign to become the first state with border-to-border cellular and wireless broadband access for all its residents (see the May 14, 2007 issue). Gov. Douglas now plans to expand that goal to achieve 100 percent broadband penetration for all residents who do not choose to live off-the-grid. The governor argues that universal high-speed penetration is vital to implementing successful smart grid, health IT and e-education initiatives. ARRA funding would be available to help implement individual broadband access projects.

Details of the governor's plan are available at: http://governor.vermont.gov/tools/index.php?topic=GovPressReleases&id=3391&v=Article