State Addresses Town Cash-Flow Issues

AP/Toby Talbot

Vermont State Treasurer Beth Pearce announced a plan Tuesday to help Vermont municipalities deal with cash-flow problems caused by the recovery from Tropical Storm Irene.

State Treasurer Beth Pearce and other officials announced several steps to improve cash flow for towns struggling to pay for Irene repairs. Pearce said the measures are a sign of the partnership between towns and the state.

(Pearce) "A key to Vermont's continued and successful recovery is partnership, within communities and between the state and municipalities. The package we are announcing today recognizes that our towns do not stand alone, and we will work together to achieve success for all our citizens."

(Host) The state will speed up local highway aid payments due in January, getting them out this week. Also being accelerated are school aid payments that normally would go to towns in December.

Towns that owe state education payments due December 1st will be able to defer those payments to February 28^th without incurring interest.

The changes are designed to help towns like Halifax on the Massachusetts border. Halifax has fewer than 400 year-round residents and an annual budget of about $800,000. So far, it has racked up more than $7 million in costs to rebuild roads and bridges destroyed by Irene.