I’d do three rail lines. Double track and electrify the whole system — the state already owns all of the rail right-of-way in Vermont, which should bring cost down.

Electrify from Bennington to St Albans, and from Newport to Brattleboro, with a connector line from WRJ to Burlington. Use busses to connect smaller communities to the rail system. Build out solid pedestrian / bike infrastructure in all towns.