A legislative proposal in Vermont that would move $9.5 million in interest earnings from the state’s Technology Modernization Special Fund to the general fund has drawn concern from a coalition of technology organizations and private companies.
The Alliance for Digital Innovation, Vermont Technology Alliance, Tanium, Business Software Alliance, NuHarbor Security, and the Information Technology Industry Council sent a joint letter to state legislators outlining their concerns.
The letter warned that the transfer could disrupt ongoing and future digital modernization efforts, jeopardizing the state’s ability to deliver efficient, reliable, and cost-effective services.
The Technology Modernization Special Fund, administered by the Agency of Digital Services, is intended to finance business process transformation, and the purchase, implementation, and upgrade of technology platforms, systems, and cybersecurity services used by state agencies.
The bill continues major appropriations for statewide digital services, including about $49.2 million for communications and information technology operations, and about $47.3 million for demand-driven services.
In their letter, the coalition emphasized the tangible benefits of sustained investment in modern technology, including same-day transaction processing, expanded access to online services, and improved alignment with national public safety standards.
“These improvements also reduce manual workload and administrative overhead, allowing more resources to be directed toward core services,” the letter reads. “As the Committee evaluates funding priorities, maintaining a stable source of funding for modernization efforts helps ensure that these improvements continue, and that recent progress is not disrupted.”
The bill is currently in the conference committee stage, after the House passed the bill on March 27 and the Senate passed an amended version on April 29. The House declined to concur with the Senate amendments, prompting the appointment of a conference committee on May 1 to reconcile differences.
The proposed $9.5 million transfer could change during these negotiations before the bill returns to both chambers for another vote and potentially goes to Gov. Phil Scott for approval or veto.
