Leveling the funding field for small towns

The Deeper Dig

As Vermont’s Legislature opened its 2023 session and Republican Gov. Phil Scott was inaugurated to his fourth term, one theme got an early spotlight in the Statehouse: Vermont’s urban-rural divide.

Much of Vermont’s state population is concentrated in Chittenden County, clustered around the metropolitan center of Burlington, which is Vermont’s largest city with a population of nearly 45,000, according to the U.S. Census Bureau. And while smaller cities offer smaller pockets of density — such as Montpelier, Middlebury, Rutland or Brattleboro — much of Vermont’s population is spread thin across the rural state.

Scott focused on this dynamic in his Jan. 5 inaugural address and how Vermont communities’ needs differ whether they’re smaller or larger.

Specifically, Scott floated an idea to the Legislature: Let’s take a page from the playbook of retired U.S. Sen. Patrick Leahy, who, as the powerful chair of the Senate’s Appropriations Committee, instituted a rule called the small state minimum. The small state minimum guarantees small states like Vermont receive a minimum amount of funding with every major federal government allocation to states. The rule is designed so states with small populations would not be dwarfed by high population states when the feds dole out money.

By taking a page from Leahy, Scott proposed, the Legislature could prioritize Vermont’s smallest communities to receive funding from the state to tackle expensive local projects they could otherwise never cover themselves with their small tax bases.

“​​Now, it’s not about turning Canaan into Burlington,” Scott said in his address. “And no offense to Burlington, but I’m not sure anyone in Canaan wants that.”

Some lawmakers viewed Scott’s rhetoric as unnecessarily divisive. But others, especially lawmakers from rural regions, expressed gratitude that small towns, and the challenges they face, were getting some extra attention.

In this episode, various legislators — Rep. Emma Mulvaney-Stanak, P/D-Burlington; Rep. Taylor Small, P/D-Winooski; Rep. Lisa Hango, R-Berkshire; Sen. Russ Ingalls, R-Essex; Rep. Katherine Sims, D-Craftsbury; Rep. Laura Sibilia, I-Dover — respond to the governor’s proposal and weigh in on Vermont’s infrastructure needs.