House Education hears details of governor’s proposed foundation funding formula, including $70M special-education gap and new small-school glide path

Secretary of Education Zoe Saunders and Agency of Education staff and consultants briefed the Vermont House Committee on Education on Feb. 4, 2025, on details of the governor’s proposal to move the state to a foundation-formula school funding system, showing a $13,200 base per student, a set of weights for student needs and school size, and categorical increases intended to cover gaps in special education and transportation funding.

The presentation sought to answer questions raised in prior hearings and to explain modeling choices, what the state would guarantee under the new formula, and what would remain subject to local decision-making and future policy choices.

The switch to a foundation formula matters because it redraws how state education dollars are allocated across districts and schools: the plan defines a common base amount and applies weights for student needs and school characteristics to direct more dollars to higher-cost students and smaller schools, while also leaving several categorical streams in place to cover known funding shortfalls.

The proposal’s core elements, as described by the Agency and its consultants, are a $13,200 base per long‑term average daily membership (ADM), plus weighted supplements for identified student needs and school characteristics. Justin, a consultant from APA, summarized the basic structure: “base funding at 13,200, that funding is for all long term, ADM.” The weights shown in the committee briefing include 0.75 for economically disadvantaged students, 1.5 for English‑learner (EL) students, and an additional 1.3 weight applied to career and technical education (CTE) students and programs. Several current categorical programs would remain outside the foundation formula but receive modeled increases.

Special education and transportation were…