By Curt Peterson
State Representative Charlie Kimball hosted a Public Forum on the Future of Education in Vermont at North Chapel in Woodstock last Thursday, Oct. 17, featuring Rep. Emily Kornheiser, chair of the House Committee on Ways and Means and chair of the Education Financing Subcommittee, and Rep. Peter Conlon, chair of the Vermont House Education Committee.
When Vermonters are asked to name the most important needs of the state, housing, jobs, healthcare and inflation, while important, pale in comparison with the recent increase in education property tax rates.
Over 100 area residents attended the forum, either in person or via Zoom, to participate in the discussion. Some felt the Legislature and Governor Scott should have seen the “tax crisis” coming and have done something about it. Many said they felt the tax increase came as a last-minute surprise.
A commission was created to find a solution, but any action wouldn’t take effect until at least the FY 2027 tax calculation. So the taxpayers will most likely face another year of painful property tax bills.
Kornheiser and Conlon began the meeting last week by explaining how the increase came about, and what the Legislature is doing about it, including relief for FY2026.
During the Covid pandemic the federal government provided funds for schools to deal with remote learning, absenteeism and inadequate tools for dealing with effects of the virus. When that funding ended, continuing expenses wound up in school budgets.
The state negotiates with the Vermont Education Association (VEA) on all compensation and healthcare benefits for teachers and staff in all school districts. There was a 16% increase in healthcare premiums, which are 20-30% of total payroll.
Educators and administrators salaries were increased as well.
Total state investment in education increased $240-$250 million.
Mental health costs escalated as a product of the pandemic, and have continued. Advocates of property tax relief say mental health costs, and the price of other non-funded state mandates, shouldn’t be on the school districts — they should be covered by individual agencies at the state level, agencies such as public health.
When discussion turned to sources for funding education without relying so heavily on property taxes, Kimball suggested taxing second-home owners at the same rate as primary homeowners.
During the Covid period the Agency of Education suspended a penalty for spending more per pupil than the state mandated figure.
“The school budgets in half our towns include higher per pupil spending than the state figure,” Kimball said.
If the penalty is reinstated, it might control some spending and bring in extra revenue as well — but could hurt local towns most.
Hawaii was used as an example of state with a system whereby towns are given a block of education funds. Local voters decide whether to spend more or less than they received, and if more, how to raise those funds. The panel pointed out that many states use a similar model.
Some questioned the fairness of state-funding Tax Incentive Finance (TIF) Districts like the one in Killington to enhance tourism, which uses a portion of the state education tax assessed on the increased increment because of the investment to pay off debt for 10 years. However, the main qualification to be approved as a TIF district is that the development wouldn’t be done without investment in public infrastructure — thus, the education fund wouldn’t be getting that money anyway, whereas now at least it will get it once the debt is repaid.
The state also suspended school-construction funding during the 2008 recession, but hasn’t re-instituted it since — it’s the only New England state that hasn’t yet reinstated it. School buildings are showing that neglect as maintenance costs dwindle in an ever-tightening school budget. Kimball said the condition of the Woodstock campus is rated “second worst in the state.” There is a petition available for signatures demanding a return to state construction support.
Reducing education costs by consolidating districts is a commonly discussed option, but not popular with the smaller towns, who feel their local school is the central part of their community.
School choice and public education dollars used to pay private school tuition — including to schools out of state and even out of country — also drew many comments.
Kimball ended the forum by citing the idea of a bigger picture of Vermont education. “Remember the kids in the next town are our kids too.”
A full recording of the The Future of Education Funding in VT Forum, from Oct. 17 is available at: Youtube.com/watch?v=uZaDi1iWhH8, or see below.
