Scott proposes new student‑centered funding formula and simpler school governance
January 09, 2025 | SENATE, Committees, Legislative , Vermont
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Governor Philip B. Scott told the joint assembly on Jan. 9 he will propose a multi‑year plan to overhaul Vermont’s pre‑K–12 system that focuses on a student‑centered funding formula, simpler governance, support and “guardrails” for school boards and administrators, and steps to limit the local property tax impact if spending growth is contained.
Scott framed the proposal against demographic headwinds and rising education spending. He cited Joint Fiscal Office data that from 2010 to 2022 Vermont had “14,000 fewer Vermonters under the age of 18,” “28,000 fewer age 40 to 54,” and “48,000 more over the age of 65,” and tied those shifts to fewer students, smaller workforces and rising per‑student costs.
The governor said the Education Fund has grown “from 1,600,000,000 to an astounding 2,300,000,000” since he took office and that “over a third, about $800,000,000 comes from other sources” beyond property taxes. He listed revenue streams directed to the Education Fund, saying “100% of our sales and use tax” goes into the fund, along with portions of other taxes and surcharges.
Scott criticized the current funding and governance structure and said Vermont’s system is “out of scale and very expensive.” He cited operational figures: the state pays for about 83,500 pre‑K through 12 students in the Ed Fund; the system includes roughly 52 supervisory unions, 119 districts and 287 individual schools. He argued those structures contribute to cost pressures and inequities across districts.
Scott proposed three broad reforms to be included in his budget and bill package: an “entirely new student centered funding formula,” a “new simpler governance structure,” and supports for school boards and administrators to reduce cost pressures. He said his budget, to be released in two weeks, would include proposals to lower the immediate tax impact if school boards contain spending growth to projected levels.
Ending: Scott acknowledged the reforms will be difficult and warned of familiar local objections—concerns about school closures, sharing staff, or perceived loss of local control—but said failing to address structural issues would leave the system unsustainable. He did not provide statutory language or implementation timelines in the speech; those details were reserved for the budget and forthcoming legislative proposals.
Scott framed the proposal against demographic headwinds and rising education spending. He cited Joint Fiscal Office data that from 2010 to 2022 Vermont had “14,000 fewer Vermonters under the age of 18,” “28,000 fewer age 40 to 54,” and “48,000 more over the age of 65,” and tied those shifts to fewer students, smaller workforces and rising per‑student costs.
The governor said the Education Fund has grown “from 1,600,000,000 to an astounding 2,300,000,000” since he took office and that “over a third, about $800,000,000 comes from other sources” beyond property taxes. He listed revenue streams directed to the Education Fund, saying “100% of our sales and use tax” goes into the fund, along with portions of other taxes and surcharges.
Scott criticized the current funding and governance structure and said Vermont’s system is “out of scale and very expensive.” He cited operational figures: the state pays for about 83,500 pre‑K through 12 students in the Ed Fund; the system includes roughly 52 supervisory unions, 119 districts and 287 individual schools. He argued those structures contribute to cost pressures and inequities across districts.
Scott proposed three broad reforms to be included in his budget and bill package: an “entirely new student centered funding formula,” a “new simpler governance structure,” and supports for school boards and administrators to reduce cost pressures. He said his budget, to be released in two weeks, would include proposals to lower the immediate tax impact if school boards contain spending growth to projected levels.
Ending: Scott acknowledged the reforms will be difficult and warned of familiar local objections—concerns about school closures, sharing staff, or perceived loss of local control—but said failing to address structural issues would leave the system unsustainable. He did not provide statutory language or implementation timelines in the speech; those details were reserved for the budget and forthcoming legislative proposals.
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