On December 14, 2017

State to spend $31 million on school tax incentives (so far)

By Anne Galloway, VTDigger

Financial analysts say the state will spend $31 million over a three-year period on tax incentives to towns for school district mergers.

In fiscal year 2019 alone, taxpayers will subsidize $16.1 million in tax breaks for towns that merge school districts.

The Joint Fiscal Office says that will be the high water mark year for the incentives. The amount needed for tax breaks will decline in the outgoing years because of the structure of the incentives. In the first year, towns get an eight-cent tax break. That amount drops by two cents a year over a four-year period.  More towns will be eligible for the eight-cent tax break in the coming year.  Subsequently, the total amount will drop.

Thirty-two new unified districts representing 139 town school districts have taken advantage of tax breaks under Act 46, according to the Agency of Education.

The tax incentives have been factored into the statewide education fund budget and the seven percent average increase in the statewide property tax rate this year, according to state officials. The cost of the merger incentives for individual districts is borne by all taxpayers across the state.

Brad James, the finance manager for the education agency, says more districts than anticipated have gone ahead with consolidation votes.

“I don’t think anyone expected we’d get this far,” James said. “We’ve had bigger demand than folks anticipated. Is it a lot of money, yes, but are we going to see a benefit, I certainly hope so,” James said.

Act 46, the school consolidation law, is designed to help small town school districts join forces with neighboring towns in unified districts. The restructuring effort also promises to yield savings, lawmakers and state officials have said.

Just how much the mergers will render in savings, however, is not clear. In some cases, local schools have closed, and students are being sent to other towns for schooling.

James said the agency will be surveying business managers to find out what costs would have been if the mergers hadn’t gone through.

“A lot of this [savings] is going to happen through attrition,” James said. “Everyone wants to see savings overnight, but I don’t think that’s reasonable and it’s not in the best interest of the students.”

Do you want to submit feedback to the editor?

Send Us An Email!

Related Posts

Superstar Six-Pack construction hits new phase as helicopters fly in concrete

July 3, 2025
KILLINGTON — Construction of the new Superstar six-pack chairlift has reached an exciting phase this summer, with helicopters now flying in concrete for the tower and terminal footings. On Wednesday, July 1, a helicopter was seen flying to Killington Resort with a payload of concrete. Killington Resort is replacing its iconic Superstar Express quad with…

Local road construction plans for 4th of July week

July 2, 2025
The following is a weekly report that lists its planned construction activities that will affect traffic on state highways and interstates throughout Vermont for the week of June 30. Most construction projects will pause work for the 4th of July `Local roads in Rutland and Windsor County, include:     I-89 Royalton Construction continues Monday through…

Ribbon cuttings in Ludlow and Proctorsville highlight local business growth

July 2, 2025
A pair of ribbon cuttings on June 20 held by the Okemo Valley Regional Chamber of Commerce (OVRCC) marked a day of celebration for two local businesses and offered a boost of momentum to the region’s small business economy. In Ludlow, Aubuchon ACE Hardware unveiled its newly renovated store on Main Street with a grand…

Cirque Series celebrates successful Killington debut

July 2, 2025
By Polly Mikula The Cirque Series broke trail in New England with two new races. On June 7, runners raced up Cannon Mountain in Franconia, New Hampshire and this past Saturday, June 28, they tackled “The Beast of the East,” Killington Mountain. Cirque is also adding Crystal Mountain, Washington, to its national lineup of eight…