By Curt Peterson
The Hartland Select Board officially set the FY2025 property tax rate at its July 29 rescheduled meeting. The total “homestead” tax will be $2.9905 per $1,000 assessed value. The FY2024 rate was $2.4709, making this year’s increase a little less than 20%.
Selectman Tom Kennedy suggested board members review the School Board’s expense management, assuming their FY2025 budget was at the heart of the significant tax rate increase. In fact, the school budget has grown very little year-to-year, held flat by difficult choices made by the tax-sensitive School Board. The two biggest expense increases for FY2025 are health insurance premiums (16%) and teacher salaries, the former negotiated by the state and the later by contractual agreements negotiated through the statewide teachers’ union.
The Legislature has also been adding mandated services, without providing any state funding.
Thus, according to school board chair Nikki Buck, the board has control over only 5% of the total budget.
“The School Board isn’t to blame,” one Zoom participant pointed out. “The school board is just an additional victim of the Legislature’s actions.”
Although the effect of applying of the Common Level of Appraisal (CLA) factor, adjusting Grand List property values to state-estimated current market values was known in January, the Legislature didn’t take action on the issue until March, cobbling together a bill that reduced the state average tax increase from over 20% to 13.8%.
Hartland is affected more than less-affluent towns as the Agency of Education formula attempts to equalize the investment in education for all Vermont students.
“This tax situation is a crisis,” Select Board Chair Hobbie said. “It’s unsustainable, and the school board is not responsible for the problem.”
As part of a three-point proposal, Hobbie asked Town Manager John Broker-Campbell to write an official letter to the town’s state legislators expressing Hartland’s objection to the rate increase, and demand for rapid development of a better way to fund Vermont education.
Hobbie also suggested changing tax payment dates from the current two-installment scheme, to a four-payment schedule. Board member Clyde Jenne pointed out that voters set the payment dates when they approve the school and town budgets, and any change will require voter approval.
Changing the payment schedule would also require a new tax bill design, as the current bill lists the two-payment dates.
A third request was to set up a Select Board meeting including the town listers and their district advisors, hoping to get a clear and concise explanation of the education funding formula, and how it affects Hartland in particular.
