Full Disclosure—Live! with Michael Gaughan, Vermont Bond Bank

In the premier episode of Full Disclosure – Live!, DebtBook product leaders, Stephen Yokim and James Perez, sit down with Michael Gaughan, Executive Director of the Vermont Bond Bank, to explore how bond banks drive access to affordable capital for communities across Vermont.

Michael shares his unique journey from community planning and public finance banking to leading the Bond Bank, where a staff of just four manages nearly $1 billion in loans supporting schools, infrastructure, clean water, disaster recovery, and more. He takes listeners through the Bond Bank’s origins in the 1970s, its innovative state intercept mechanism, and its evolution toward what he calls Bond Bank 2.0, a new financing structure designed to strengthen resiliency while preparing for billions in school construction needs.

The conversation details how Vermont municipalities use pooled lending to finance everything from library renovations to gravel pit acquisitions, the latter proving surprisingly vital during recent flooding. Michael also explains how DebtBook’s technology helps the Bond Bank maintain data integrity, streamline consent tracking, and ensure long-term organizational resilience.

From financing history to modern-day innovation, this episode offers a deeper look at how a small but powerful team is reshaping the way local governments in Vermont access and manage capital.

Top Takeaways:

(1) Resilience Through Data Integrity: Moving beyond spreadsheets, Michael explains how DebtBook helps the Bond Bank strengthen institutional memory, track resolutions, and ensure continuity for decades to come.

(2) From Bond Bank 1.0 to 2.0: To prepare for billions in future school construction, Vermont is shifting its pooled loan structure toward a senior/junior lien model that reduces reliance on state moral obligations.

(3) Creative Community Solutions: Beyond traditional schools and libraries, pooled financing has enabled surprising projects like joint gravel pit purchases—proving critical for disaster recovery when floods hit.