Representative Kornheiser outlines Ways and Means amendment to H.955, tying property-tax, school construction and foundation-formula changes to Act 73

Representative Kornheiser, speaking to a caucus of the whole, gave a comprehensive update on House Bill H.955 and the Ways and Means committee’s amendment package, which she said bundles follow-up work to last year’s Act 73 into separate "instances of amendment" rather than a strike-all rewrite.

Kornheiser said the amendment consolidates separately drafted changes the committee has worked on since the start of the session and that committee materials — including a fiscal note, section-by-section and a staff timeline — are posted on the Ways and Means page. "We voted out affirmatively on Friday afternoon. The bill was just referred to Appropriations," she said, noting the bill should be up for action later in the week.

Why it matters: the amendment is designed to align tax, funding and construction policies so they take effect together and reduce what the Tax Department described to the committee as potential "tax whiplash." Kornheiser said the package advances three major areas: property-tax classification work (including a second-home category), regional reappraisal and assessment districts to improve statistical fairness, and several foundation-formula and school-construction measures intended to support district consolidation and facility needs.

On property taxation, Kornheiser said Tax Department reports informed definitions and form development necessary to identify which Vermont properties would fall into a new second-home classification. "We do not yet have the processes and data completed that's necessary to successfully implement this new tax," she said, adding that the department’s administrative work and final reports will be required before new rates can be set.

Reappraisals and regional assessment districts are part of the effort to reduce local volatility in assessments, Kornheiser said, explaining that town-by-town reappraisals can be "incredibly disruptive" and that larger regional cycles (every six years) would produce more consistent statewide valuation data.

School construction and debt relief: the amendment creates a multi-year school construction and debt program timed to the foundation formula’s phase-in. Kornheiser said the package includes categorical grants, potential state borrowing similar to capital bills, and authority for possible public-private partnerships to finance new buildings and to alleviate pre-existing district debt that could deter mergers.

Support for mergers and CESAs: rather than reinstating blunt tax penalties or incentives, the amendment removes disincentives to mergers, funds technical assistance and creates a pathway for collaborative education service agencies (CESAs, formerly referred to as BOCES) to deliver mental-health and special-education services at scale. Kornheiser said the committee heard testimony from an existing CESA that showed cost reductions and that the CESAs are intended to improve coordination with designated mental-health agencies and reduce reliance on expensive outside contracts.

Contingencies and timing: Kornheiser stressed many provisions are contingent on the foundation formula and other changes being implemented together. She said members should expect additional analysis in 2027–2028 and flagged a December 2026 report on the foundation formula numbers. "All of those have an effective date that lines up really sort of near the end of our timeline," she said, and noted final merger-related votes are not expected until as late as November 2028.

Funding buckets and federal obligations: the amendment includes language intended to preserve federal maintenance-of-effort requirements for special education as the state reconfigures funding under the foundation formula. It also directs further study and redesign of transportation and pre-K grants so those programs fit into the new funding framework.

Members raised specific questions during a follow-up Q&A. Representative Grolsch asked whether merger-support funding would be a reimbursement or an outlay and how boards should budget; Representative Conlon replied, "We have provided in the bill money that would sit with the AOE to reimburse merger study committees for their expenses" and clarified reimbursements would be made on a reimbursement basis and would not count against a district’s excess-spending threshold. Conlon cited typical committee expenses ranging from facilitators (which she said are already being provided) to legal help, meeting space and refreshments.

On transportation timing, committee leaders said they are requesting a comprehensive transportation report to inform January legislative work and that Joint Fiscal Office analysis should be available well before final merger action. When a member asked whether private-equity ownership of transportation contractors would be included, Conlon said private-equity risks were not explicitly named in the study language but that staffing and cost analyses could capture that issue and she supported adding the topic to the study instructions.

Kornheiser and other members emphasized the multi-year nature of the overhaul, repeatedly urging legislators to consult staff about how particular provisions might affect their communities. She closed by reminding members of office hours the next morning and promising an emailed packet of the fiscal note, the section-by-section and the timeline.

What’s next: the amendment has passed Ways and Means and has been referred to Appropriations; additional JFO analyses, Agency of Education reports and Board of Education rulemaking are expected to inform final legislative decisions in 2027–2028.

Attribution: quotes and substantive answers in this report are attributed to Representative Kornheiser (presenter) and Representative Conlon (responses on merger reimbursement and transportation study scope). Other participating members who asked questions include Representatives Grolsch, James, Cooper, Sebilia and Olsen.