House passes H 850 to transition education financing, removes Act 127 cap for FY2025

The Vermont House passed House Bill 850 on Feb. 14, 2024, a bill described by proponents as an emergency measure to transition the state to a new education‑funding approach and to ease an immediate spike in property tax rates. The chamber suspended its rules to take up the bill immediately and later voted to place it in all remaining stages and to message the measure to the Senate forthwith.

Member from St. Johnsbury presented the bill, saying H 850 removes the 5% cap adopted in Act 127 and provides a transition mechanism intended to blunt sudden tax increases that would otherwise result from recent changes in pupil‑weighting. The presenter said the cap’s removal will allow the funding system to revert to the traditional assignment of rates tied to district education fund usage while…