Vermont Bond Bank Infrastructure Investment Analysis

The Vermont Bond Bank (VTBB) is a public financing institution that helps Vermont municipalities and other governmental units access long-term capital for infrastructure and other public projects. This work is important in a small, largely rural state where infrastructure needs are dispersed, and local financing capacity affects long-term public investment. Our capstone team was asked to study how VTBB-supported infrastructure investment has been distributed across infrastructure types, time periods, and borrower groups, and how Vermont compares with national benchmarks and selected peer institutions. To do this, we collected and analyzed VTBB’s historical lending data, FY2022 U.S. Census Bureau capital outlay data, and FY2022 - FY2024 materials from comparable bond banks. Initial findings suggest that VTBB’s long-run lending has been concentrated in water and facilities, while Vermont falls below the national median in several major capital outlay categories, especially education and utilities. The final white paper will further assess Vermont’s comparative position and offer recommendations for VTBB’s future financing strategy.