House Education committee hears concerns that moratorium language could block Mill School’s nonprofit conversion

The House Education Committee on Wednesday, May 14, 2025, heard testimony that language in Section 17 of the miscellaneous education bill could inadvertently treat a for-profit therapeutic school that converts to nonprofit status as a new school, potentially subjecting it to a moratorium.

Jolie Frechette, of Moore Strategies, told the committee she represents the Mill School, an independent therapeutic day school in Winooski, and said, “the moratorium language gave them pause.” She asked the committee for clearer wording to ensure that a change in governance from a proprietary LLC to a nonprofit would not force the school to reapply as a brand-new institution.

The clarification matters, Frechette said, because the Mill School plans only an internal governance change — not a change in student population or services — and wants assurance the transition will not interrupt its ability to serve students. “So nothing else, at least for this school, is intended to change in terms of demographics of kids, number of students, anything like that,” she said.

Committee members asked questions about the school’s size, program and tuition. Frechette said the Mill School serves about 30 Vermont students in grades roughly 7 through 12 and is a day program rather than residential. She said the school organized around 2018–2020 and that it is currently in a rate-setting process and is “really close to having a new rate set.”

A committee member identified as Jake Hevers said he was “not sure if it’s necessary, but it certainly doesn’t hurt” to add clarifying language. Another committee member asked Frechette to provide details on tuition; she agreed to follow up with that information.

Frechette said the group had already asked the Agency of Education whether a governance change would trigger the moratorium and described the agency response as unclear, prompting the request for legislative clarity. The committee did not vote or direct staff to draft specific amendments during this exchange; the discussion was part of an ongoing, section-by-section review of the bill.

The testimony focused narrowly on whether an existing, approved independent therapeutic school that changes corporate form would be considered a “new school” under the moratorium language in Section 17. Frechette said the Mill School’s conversion is primarily a paperwork and governance change — including tax status — and that the school seeks assurance it would “carry with them” their approved status through the transition.

The committee’s discussion was informational; no formal action was recorded on Section 17 during the hearing. Committee members and the witness signaled they expect to await clarification from the Agency of Education or to consider a drafting change to the bill text to resolve the ambiguity.

Details provided at the hearing: the Mill School is located in Winooski, serves about 30 students from Vermont in a therapeutic day program, was organized around 2018–2020, and is in a current rate-setting process. Frechette said the conversion path is lengthy and that having certainty about moratorium treatment would affect the school’s decision timetable.

The committee continues a section-by-section review of the miscellaneous education bill; Section 17’s moratorium language remains under consideration and may return for further committee discussion once members or the Agency of Education provide clarifying guidance.