Shumlin: Without Help From Congress, Vt. Faces "Financial Disaster"

(Host) Governor Peter Shumlin says Vermont will face a financial disaster if Washington doesn't fully reimburse the state for damage to the state's highway system caused by Tropical Storm Irene.

Shumlin says the state could be on the hook for more than half a billion dollars in repair costs.

VPR's Bob Kinzel reports:

(Kinzel) The Shumlin Administration now estimates that it will cost roughly $620 million to fix state roads and bridges damaged by Irene.

Currently under federal law, only the first $100 million is guaranteed to the state because there's a cap in place.

In many previous disasters, Congress has lifted this cap so that the federal government pays 100 percent of the costs but there are concerns that this policy could be changed because of the political climate in Washington.

If the cap isn't lifted, the Governor says the financial impact on the state will be devastating.

(Shumlin) "Whether or not that's granted by Congress will make the difference between a recovery that Vermont can put together thoughtfully and thoroughly, or an absolute financial disaster for the state of Vermont. It's that simple."

(Kinzel) If the cap isn't lifted, Shumlin says the state could use some of its annual federal transportation money to help pay for some repairs. But he says doing this means that dozens of critical road and bridge projects would be delayed for years.

(Shumlin) "It would be the biggest kick in the teeth that can be imagined to Vermont if we suddenly had to literally take all of the good planning and work that we're intending to do to prop up that infrastructure with the resources that we're getting from the federal government and re-divert them to recovery efforts. It would devastate for a decade Vermont's ability to bring our infrastructure back to 21st century standards."

(Kinzel) The Administration is also reviewing the future of the State Office Complex in Waterbury.  Roughly 1,500 state employees have been displaced by flood damage to the Complex.

Administration Secretary Jeb Spaulding says a special advisory commission will look at 3 options: stabilize and rehabilitate the Waterbury buildings, build a new state office building somewhere in central Vermont or bring some of the employees back to Waterbury and locate others in other parts of the state.

(Spaulding) "The decision about what to do with the Waterbury Complex in terms of rehabilitation or replacement is one that needs to be looked at as a 30 to 50 year decision and all Vermonters have a stake in that all taxpayers...it's a high likelihood that the state will maintain a high level of presence in Waterbury but we can't tell you at this stage how significant."

(Kinzel) Spaulding says the Legislature will play a key role in the final decision and he hopes that decision can be made by the middle of the winter.

For VPR News, I'm Bob Kinzel in Montpelier