That was how Vermont Public reporter Lola Dufort described one of the potential challenges to move to a foundation formula that is included in the education reform bill under consideration. Under a foundation financing system, which is common in most states, each school district receives a standard amount per student adjusted for certain factors like non-English learners, poverty level, high school, etc. It also sets a uniform tax rate across the state (adjusted for property appraisal values), much like we currently have for non-homestead property today.
As Dufort points out, this also may mean that current high spending districts may see lower taxes, but also less money for their schools and lower spending districts may see higher taxes but more funding for their schools. This is just one example why education reform is not easy and is taking the legislative session into overtime.
The Senate version of the bill (H.454) is scheduled to be advanced to the full Senate this week and then to a conference committee of House and Senate members to work out the differences in the two versions of the bill. The two chambers and the administration have varying positions on the implementation timeline, school choice, minimum class sizes, district consolidation and the funding formula. A grand compromise will not come easily.
Two other key issues potentially standing in the way of adjournment are housing and health care. The governor and many legislators from rural parts of the state believe the current version of the housing bill (S.127) is too restrictive for smaller towns to use to help Vermont achieve its housing needs.
The health care bill (S.126) expands the authority of the Green Mountain Care Board and begins the process of allowing reference-based pricing. Included in the legislation are hospital incentives to reduce costs and prices by at least 2.5% (about $100 million). Blue Cross Blue Shield of Vermont, which is already struggling financially, has filed rate increase requests of 23% for its individual market and over 13% for small businesses. There is widespread agreement that changes need to happen to lower overall costs and resultant insurance rates.
Other issues of interest:
The governor issued an executive order to pause enforcement (18 months) of a multi-state plan requiring vehicle manufacturers to meet certain electric vehicle (EV) sales targets for passenger cars and medium- and heavy-trucks in Vermont. The regulation requires manufacturers to ensure that 35% of the cars sold in Vermont in 2026 be electric, which is unrealistic. In 2024, only 12% of new cars sold were plugins.
The $9 billion state budget conference report, H.493, was approved by the Senate by a voice vote and a resounding 132-3 vote in the House and has been sent to the governor for his signature.
Gov. Scott vetoed H.219 over language in the bill that included a requirement that the governor include funding for a new program in future budget proposals to the Legislature. The budget mandate is considered an unconstitutional separation of powers. The governor noted that he supported the program (expanded family access for incarcerated individuals), and the funding is already included in the budget headed to his desk.
While Scott signed into law, S,27, which appropriates $1 million to the Treasurer’s Office to help erase Vermonters’ medical debt (up to $100 million), he noted concerns that the debt had already been written off and that we may be disincentivizing repayment going forward. The bill, which will take effect July 1, also will prohibit credit reporting agencies from considering Vermonters’ medical debt when determining their credit scores.
The House approved a miscellaneous Fish & Wildlife bill, H.230, which repealed a provision in current law that allows farmers to receive some relief from the state for crops and other damage caused by deer or bears. The bill is now in the Senate.
The Legislature gave final approval to changes to the 3-acre stormwater law that extends the deadline for final permits by three years to 2028 for areas within the Lake Champlain or Lake Memphremagog watersheds.
The annual capital construction and state bonding bill, H.494, was approved by both chambers and sent to the governor for his signature.
The Legislature approved S.53, which establishes certification of community-based perinatal doulas and Medicaid coverage for doula services. Approximately half of the other states provide similar licensing and Medicaid coverage.
The Senate Education Committee included a provision recommended by House members that would require all schools to adopt a cell phone use policy by students as part of a miscellaneous education bill, H.480, under consideration.
Jim Harrison is the state representative for Chittenden, Killington, Mendon, and Pittsfield. He can be reached at [email protected].
