In November, the Vermont School Redistricting Task Force chose a voluntary approach to school governance reform. This decision leaves the future of education cost savings and property tax relief uncertain, despite earlier promises tied to an education overhaul passed in June.
Act 73, signed into law earlier this year by Governor Phil Scott and Vermont lawmakers, aims to change how local schools are funded by shifting to a “foundation formula” and revising school governance structures. The main goal for supporters, including Gov. Scott, was to reduce the burden of property taxes by controlling education spending.
The law also created a task force charged with exploring ways to consolidate Vermont’s more than 150 school governing units into between 10 and 20 larger districts. The group was expected to present three options for achieving this consolidation.
Over eight meetings, task force members could not agree on new district maps. Some supported mandatory new districts based on existing Career and Technical Education Districts—a proposal that did not gain majority support. Others suggested adopting a model similar to New York’s BOCES system (Cooperative Education Service areas), which focuses on reducing costs through shared services.
In the end, the task force voted 8-3 for a draft report recommending a voluntary plan: over ten years, school districts would be encouraged—rather than required—to join one of five cooperative service areas using incentives.
Supporters of this voluntary approach argue that shared service arrangements can achieve savings without requiring disruptive consolidations. However, Gov. Scott expressed disappointment with the outcome: “Gov. Scott expressed disappointment with the task force for failing to present options for governance reform that would deliver the promised property tax relief.”
The Vermont Legislature is not required to adopt any new regional boundaries next year. If it does not act, an important element of education reform and property tax relief will remain unresolved when lawmakers reconvene.
Still, Act 73 is already causing changes even without a statewide plan for governance reform. Reports from Vermont Public indicate that minimum class size requirements in Act 73 are prompting discussions about district consolidation or school closures; at least fourteen districts are currently considering such moves.
Rural districts have voiced concerns that Act 73 could lead to significant disruptions across much of Vermont.
In early December, the administration plans to release estimates showing how much statewide property taxes may increase next year. Rising health insurance costs for school employees and other public workers are expected to contribute significantly—lawmakers previously used $120 million in surplus funds this year to offset increases but must decide if they will do so again.
If there is another large increase in property taxes, it could prompt legislators to consider stronger actions aimed at long-term solutions for lowering education costs and relieving taxpayers’ burdens.
As parts of Act 73 continue taking effect regardless of legislative decisions about redistricting next year, additional measures may still be needed if Vermont is to see substantial reductions in property tax rates.
