Joint Fiscal Office walks Ways & Means through Education Fund outlook, reserves and CLA changes

Ezra Holden, fiscal analyst with the Joint Fiscal Office, briefed the House Ways & Means Committee on Jan. 15 on the December 1 Education Fund Outlook, describing how revenues flow into the fund, how appropriations and reserves are set, and how recent formula changes affect reported tax rates.

The presentation laid out the top-line revenue mix for fiscal 2026, the mechanics of education appropriations and categorical aid, the statutory stabilization reserve, and how prior‑year reversions and one‑time transfers affect the fund’s unreserved balance. Holden and staff also explained a change in the way the statewide common level of appraisal (CLA) is applied in the yield model, which raises pre‑CLA district rates on paper while aiming to reduce disruptive swings between preliminary rates and final bills.

Holden began by differentiating the major revenue sources in the Outlook. For fiscal 2026 the forecasted mix presented was about 34% gross homestead property tax, about 39% non‑homestead property tax and roughly 33% from non‑property taxes; those shares reflect gross figures before subtracting property tax credits. "We have something in Vermont called the property tax credits," Holden said, noting that credits appear as negative revenue and reduce the gross shares to arrive at the fund total shown on the Outlook (line 10).

Committee members asked how other programs interact with the…