Vermont legislature advances education funding reforms and tax rate adjustments

The Vermont Legislature convened on June 16, 2025, at 5:15 p.m. to discuss significant updates regarding education funding and tax implications for the state. The meeting focused on the ongoing journey of a key bill aimed at maintaining low tax rates while addressing educational needs.

The discussion began with an emphasis on the importance of keeping tax bills as low as possible for residents across Vermont. Legislators proposed moving potential supplemental district spending excess revenue into the education fund, which could help lower future tax bills. However, the exact amount of available funds remains uncertain, pending decisions from new districts.

Sections 44 and 45 of the bill were reviewed, with no changes noted in Section 44. In Section 45a, an additional report was mandated, effective upon passage. This report will involve the joint fiscal office contracting with one or more contractors to study various aspects of education funding. Key areas of focus include evaluating the weighting of special education, determining appropriate geographic measures for sparsity, and assessing whether secondary education costs more than elementary education. While national research indicates higher costs for secondary education, Vermont studies have shown differing results, leaving the question open for further investigation.

The bill also addresses the provision of career and technical education (CTE) within Vermont's foundation formula. Legislators allocated $400,000 for studies to ensure that CTE costs are adequately covered, as decisions regarding CTE are still pending for the following year.

In Section 45b, a notable improvement was highlighted: a five-year transition mechanism for tax rates and education opportunity payments was introduced. This mechanism will gradually increase the education opportunity payment to 100% over five years, with independent schools receiving corresponding tuition payments at the same rate.

Lastly, Section 45c included an amendment to the language from Act 127, which established an education fund advisory committee. Given the ongoing changes, the committee's formation will be postponed for one year to allow for a more comprehensive approach.

Overall, the meeting underscored the legislature's commitment to balancing educational funding needs with the goal of keeping tax rates manageable for Vermont residents. Further discussions and studies are expected to shape the future of education funding in the state.