House Education reviews Ways and Means amendment to H.454, outlining new foundation formula and special-education study

The House Committee on Education met April 9, 2025, to review the Ways and Means Committee amendment to H.454, a comprehensive education finance bill that would create a new statewide foundation formula, revise property‑tax categories and school spending rules, and require a sequence of reports and planning steps on special education and construction financing.

The committee heard an overview of the Ways and Means changes followed by a section‑by‑section walk‑through from agency and legislative counsel. Beth St. James of the Office of Legislative Council presented a highlighted draft (referred to as draft 4.1) and described many of the specific text changes included in the amendment. John Gray, Office of Legislative Counsel, summarized the bill’s new funding concepts, and members asked clarifying questions about timing and implementation.

Why it matters: the amendment would replace existing Vermont education finance mechanics with a new “base amount” and an “educational opportunity payment” (EOP) that multiplies that base by a student‑level weighted count. The change seeks to align fiscal rules with forthcoming governance changes (larger school districts and new district‑level governance), to target resources by student need, and to create a pathway for a future evidence‑based recalibration of rates and weights.

Key proposals and details

- Foundation formula and base amount: The amendment establishes a per‑pupil base education amount of $15,000.33 (inflation adjusted and rounded as required by the bill) as the starting point for district funding. The “educational opportunity payment” (EOP) is calculated by multiplying the base amount by a student‑level weighted membership total. (Explained by John Gray.)

- New weights: The bill replaces some existing weights and adds refined weights for: economic disadvantage (adjusted to 1.02), English‑language proficiency (multiple tiers, with the lowest proficiency tier receiving the largest incremental weight), and special education (three cost tiers: low cost 0.79, medium cost 1.35, high cost 2.49). The bill also distinguishes English‑learner newcomers or students with limited/interrupted formal education and makes those students eligible for an additional weight. The bill removes separate grade‑level weights and replaces small‑school and sparsity weights with targeted “support grants.”

- Supplemental…