Bill in Vermont would divert nearly $10M from IT modernization fund
A group of technology organizations and private companies last week sent a letter to Vermont state senators detailing concerns about a legislative proposal to move $9.5 million in interest earnings from the state’s Technology Modernization Special Fund to its general fund.
The Technology Modernization Special Fund is administered by Vermont’s Agency of Digital Services, and it is intended to be used “to fund business process transformation and to purchase, implement, and upgrade technology platforms, systems, and cybersecurity services used by State agencies and departments to carry out their statutory functions,” the bill reads.
The letter was signed by leaders from four tech associations — the Alliance for Digital Innovation, the Information Technology Industry Council, the Business Software Alliance and the Vermont Technology Alliance — along with two tech providers, Tanium and NuHarbor Security. In the letter, they urge State Sen. Andrew Perchlik, who chairs the Senate’s appropriations committee, and members of that committee, and not to divert the funding.
Their concerns about removing that money, they said, include how it may impact upgrades that improve citizen experience and operational efficiency.
“Preserving these resources will allow the State to continue delivering these types of outcomes for Vermonters and build on recent progress in improving how residents access and receive services,” the letter reads. “This includes reducing wait times for critical services, improving the timeliness and accuracy of eligibility determinations, expanding reliable digital access for rural communities, and strengthening the systems that support public safety and benefits delivery. These improvements also reduce manual workload and administrative overhead, allowing more resources to be directed toward core services.”
Some lawmakers have expressed a need to continue funding the upgrades, too, noting that some outdated systems are costing the state federal funding opportunities. State Rep. Laura Sibilia said, “We do not have a good system in place … for replacing IT, software,” Valley News reported.
The bill does stipulate that should money run out from the Information Technology Internal Service Fund, then the interest from the modernization fund should be used to cover it. The bill also requires the creation of a deficit mitigation plan for the IT fund, signaling another safeguard against budget pressure.
“We recognize the importance of addressing near-term budget needs,” the letter continued. “At the same time, preserving the funding necessary to sustain and expand these improvements will help ensure that Vermont continues to deliver efficient, reliable, and cost-effective services to its residents.”
