At the Vermont State House, discussions are ongoing about the average 6% hike in the statewide education property tax faced by Vermonters this year. This follows a spike of 14% last year. The increase was announced by the Scott Administration in December. While there is general agreement on reducing the tax increase this year, consensus on long-term solutions remains elusive.
For property owners, education funding and public employee healthcare are key factors in property tax calculations. Vermont ranks among the top in the nation for per pupil K-12 education spending. However, the state grapples with issues including declining enrollment, lower student test scores, staffing challenges, and the need for facility repairs.
A study from the Lincoln Institute of Land Policy highlighted Vermont’s high property tax rates. Residential and commercial properties in both urban and rural areas rank among the highest in the country, with notable positions for urban areas like Burlington and rural areas like Hartford.
Governor Phil Scott has proposed an education funding and property tax reform plan that could save over $180 million. This plan aims to move towards a predictable foundation funding formula, consolidating school districts into five regions and streamlining resources. “Most notably, Scott’s plan would consolidate the state’s existing 119 school districts into five regional districts with one elected school board for each regional district,” the press release states.
The Vermont House is considering using $77 million in one-time funds to reduce this year’s property tax hike from an average 6% to 1%. However, there is some opposition from Democrats concerned about the implications of using one-time funds.
In the Senate, there is intent to reduce the tax increase significantly, with proposals ranging from buying it down to zero to simply mitigating the rise. The Senate is also more amenable to adopting a foundation funding formula and consolidation, with a proposed structure of nine regional districts aligning with the governor’s timeline.
However, challenges remain in implementing these changes within the current legislative session and ensuring the governor’s plan achieves the intended cost savings. Senate Education Committee Chair Seth Bongartz has emphasized the timeline for full implementation by 2027-28, yet skepticism persists regarding the feasibility and effectiveness of these reforms.
