Vt. governor, lawmakers plan stimulus spending

MONTPELIER, Vt.—Vermont Gov. Jim Douglas on Thursday said he wants to use $17 million in federal economic stimulus money to expand broadband Internet access and strengthen a state business-loan program.

Douglas said he hopes the money added to the Vermont Economic Development Authority, which will use it to support $160 million of investments and low-interest loans that businesses can use to get started or expand.

The $17 million would come from the federal stimulus bill, known as the American Recovery and Reinvestment Act, or ARRA. Most of the $787 billion stimulus package is designated for big, expensive programs such as education, transportation and Medicaid insurance.

The money Douglas talked about Thursday comes from a smaller pool of discretionary funds that he said he wants to focus on economic development.

"By investing ARRA funds wisely to grow our economy, we will position our state to charge out of this recession ready to provide a world-class education to the e-generation of students and build strong companies that can compete in a competitive global economy," Douglas said in a statement.

The governor said he hopes to use some of the money to bring high-speed Internet access to rural parts of the state that don't have it, as well as for "ultra-high-speed" Internet connections to schools.

Douglas traveled to Williston to unveil the plan at the headquarters of a high-tech firm, Micro-Strain, after aides to the Republican governor briefed reporters on it in Montpelier.

Just after that briefing, Democratic House Speaker Shap Smith unveiled his own plan for spending state discretionary funds. Smith complained that Douglas had rejected a request by House members to consult on a possible joint plan.

Smith then unveiled a plan similar in some respects to the governor's -- both rely on subsidizing interest rates for business loans, for example.

Loans would be made in several categories, including for high-tech firms, small businesses and farms. Kevin Dorn, secretary of the Agency of Commerce and Community Development, said a new loan program would target software developers and other companies whose main assets are "intellectual property."