Agency of Education lays out $2.73 billion FY2027 request, seeks five permanent positions and literacy reallocation

The Agency of Education presented its fiscal year 2027 budget to the House Appropriations Committee on Feb. 4, outlining a $2.73 billion package and policy priorities that include career and technical education modernization, reducing chronic absenteeism and accelerating literacy supports.

"So today we're here to share that fiscal year 20 27 budget recommendations," said Zoe Saunders, the secretary of education, at the start of the agency presentation. Deputy Chief Financial Officer Sean Kusnow told the committee the total request is $2,730,000,000 across all appropriations, an estimated $102.8 million increase over last year driven mostly by the statewide education spending grant.

The agency described an internal reorganization completed last year that created new divisions — including grants management and a safe and healthy schools team — intended to align staff to pressing field needs. Saunders said the changes are intended "so that all Vermonters have access to a substantially equal education," and to strengthen the agency's day-to-day support for districts.

On personnel, the agency asked the committee to convert five limited-service positions funded in FY26 into permanent, classified roles to support Act 73 implementation and provide field-facing capacity in academics, operations and data. Saunders said the positions had been funded for eight months in the prior year and are now in late-stage recruitment; the agency argued permanence is needed to attract senior candidates.

Kusnow and Saunders also described a reversion-and-reappropriation proposal that would redirect carryover pandemic-era and other funds toward literacy work required under Act 139. Kusnow said some ARPA/SFRF carryover and general fund adjustments would not add new money to the budget but would allow the agency to spend the funds in FY27 on job-embedded coaching and teacher/principal training "in the science of reading." Saunders told the committee Vermont has seen steep declines on national assessments and framed the literacy work as an equity priority.

Committee members asked for detail on how $4 million labeled for education transformation had been spent. Saunders said the money was used in staged efforts to support reorganization and to procure contracted services (data dashboards, analytics, curriculum support and board development) and that the agency would provide a breakdown to the committee.

Agency officials also highlighted the work on career and technical education (CTE), saying multi-year studies informed proposed governance changes and initiatives to expand access through regional co-location and earlier exposure in middle school. On student supports, Saunders said chronic absenteeism is up — affecting students who are unhoused, living in poverty or receiving special education — and that the agency is emphasizing proactive interventions alongside compliance tools for truancy.

Kusnow walked the committee through how federal grant changes affect the FY27 picture, noting declines as pandemic-era federal funds wind down and a $17.4 million change tied to the Medicaid LEA grant. He said the agency expects some year-over-year shifts as federal programs close and new state appropriations become base funding.

The committee did not take any formal votes during the hearing. Members asked for follow-up information on hiring timelines for the five positions, a detailed accounting of the $4 million transformation allocation and the literacy reappropriation plan. The Appropriations Committee scheduled follow-up questions and a brief recess; the adjutant general was slotted to appear at 2:15 p.m.

The presentation materials and supplemental memos the agency referenced — including a reorganization memo and forthcoming flexible-pathways participation report — were offered to the committee and will be used for subsequent review of the FY27 budget request.