SEARSBURG — Who doesn’t want free money? The town of Searsburg, it seems.
The southwestern Vermont town declined to accept coronavirus recovery funds from the federal government despite qualifying for them. Of the state’s 278 eligible towns, cities and villages, Searsburg was the only one to say no to money from the American Rescue Plan Act.
The American Rescue Plan Act, which became law in March, designated nearly $180 million for Vermont municipalities through the Coronavirus Local Fiscal Recovery Funds — part of $1.25 billion that went to the state government.
Searsburg, a town of just over a hundred people, initially submitted the certification to claim the federal financial assistance. But a week later, in late July, the town had a change of heart.
“We decided we don’t want the money, so uncertify us, please,” was the message that Katie Buckley of the Vermont League of Cities and Towns said she received from a Searsburg official. As director of the league’s American Rescue Plan Act assistance and coordination program, she helped Searsburg and other municipalities go through the certification process.
The league encouraged potential recipients to accept the federal aid, describing it as discretionary money with broad spending flexibility. Local governments could use it in various ways, including assisting households, small businesses and nonprofit groups that suffered from the pandemic.
Municipalities could also use the money to provide premium pay to people who did essential work during the public health emergency or to invest in broadband infrastructure.
Buckley said she advised municipalities to accept the federal dollars, since they had until December 2024 to determine how to use it. If they later decided not to use the money, they could return it.
“Sit on it and give it back if you don’t want to use it,” Buckley said she told qualified recipients.
At a meeting July 22, Searsburg Selectboard members voted to decline the federal funding “after much discussion,” according to minutes of the meeting. The two-page document doesn’t provide details of the discussion.
In an interview, selectboard Chair Tony Kilbride said Searsburg chose not to accept the money because the town doesn’t need it. He said the municipal government’s annual budget of around $250,000, which comes from tax collections, is enough to sustain the local government.
“We try to stay self-sufficient, as much as possible,” Kilbride said.
He also expressed concerns there might be as-yet-unknown strings attached to the federal funding. “There is no such thing as free money,” he said, and the ramifications of accepting the federal assistance might not become apparent until the next generation.
Searsburg’s registered voters are largely Republicans. When asked if the selectboard’s decision to decline the federal money was influenced by the Democratic White House and the Democrats in Congress, Kilbride said it had nothing to do with politics.
“Doesn’t make sense to take the money you don’t need,” he emphasized.
It’s unclear exactly how much Searsburg would have received under the American Rescue Plan Act. The allocation, which is based on municipal population, puts the number of town residents at 108.
Windham County’s Newfane Village, with 111 residents, is slated to receive a total of $31,300 between this summer and the next, according to state data. The town of Brunswick, in Essex County, population 102, has been earmarked for $30,700.
The money that would have gone to Searsburg has been reallocated to the other Vermont municipalities, Buckley said.
