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Committee hears short‑form bill to study regional cost adjustments to school funding formula

Ways & Means Committee · February 20, 2026

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Summary

Representatives and witnesses told the Ways & Means committee a short‑form bill (H80EZ6) is intended to start analysis of regional labor‑cost and housing differences as the state develops the foundation funding formula under Act 73; more expert testimony was scheduled for later sessions.

The Ways & Means committee received an initial presentation on a short‑form bill, H80EZ6, intended to prompt study of how regional differences in labor and living costs should be accounted for in Vermont’s foundation funding formula under Act 73.

Representative Aaron Brady (Williston) said the committee is “on the precipice likely of massive educational change, and we have to get it right,” urging close attention to regional variations in cost that could force large districts operating at scale to reduce programming or increase class sizes. He and presenters warned a funding formula that fails to reflect local labor costs could penalize districts that have already consolidated or face high wages.

Presenters reviewed approaches used in other states — adjusting the formula base, applying regional multipliers or using categorical grants — and cited an APA Consulting memo and a VASBO response supporting further study. The presentation included a spreadsheet comparing average teacher salaries to county home values to illustrate disparities: the transcript gives a statewide average home value of $379,669 (December 2025), Chittenden County at $497,901 and Essex County at about $216,000.

Committee members asked for more detailed work on teacher longevity, regional wage calculations and other data refinements. The chair said national experts will be invited back for fuller testimony in a follow‑up session. No committee vote was taken; the item was set for continued review.