BENNINGTON — During a meeting with the Select Board, newly appointed school superintendent Tim Payne discussed the intricacies of the school funding process in Vermont and the potential implications of upcoming education reforms. Payne, who leads the Southwest Vermont Supervisory Union (SVSU), provided insights on the current budget formation and how it shapes local education financing.
Payne described the multi-step process that begins with local school boards creating budgets, which are then voted on by communities during town meetings. Following approval, the school boards submit the budget amounts to the State of Vermont, which uses these figures to calculate the overall educational spending required for the coming year. He emphasized that the method of determining school taxes can sometimes result in increases that outpace local budget growth.
“My purpose this evening is to talk a little bit about school funding,” Payne stated. “Vermont has a relatively unique system.” He clarified that the existing structure could undergo significant changes under Act 73, a legislative measure aimed at reforming education in the state.
Understanding the Budget Formation Process
Payne presented a detailed outline of the budget formation process, highlighting several key steps:
1. Local school boards create a budget.
2. Communities vote on the budget at town meetings.
3. If approved, the school board sends the budget amount to the state.
4. The state uses its education fund to cover the budget.
5. Collected bills from school districts are assessed to determine total educational spending.
6. This amount is divided by the number of students in each district to calculate a weighted figure.
7. The result is divided by the Homestead Property Yield, establishing the “Equalized Homestead Tax Rate.”
8. Finally, this rate is adjusted based on each town’s Statewide Adjusted Common Level of Appraisal, leading to variations in property tax rates across different towns.
Payne noted that fluctuations in property tax rates can occur even when communities share the same school district, due to these complex calculations. Additionally, he mentioned that the governor may propose the use of state surplus funds to reduce property taxes, a measure he acknowledged as a temporary solution.
“Last year, the governor decided to buy down property taxes,” Payne explained. “That means he used surplus funds from other areas to alleviate the tax burden on residents. While this is beneficial in the short term, it is not a sustainable strategy.”
The Impact of Act 73 on Vermont Education
Act 73, enacted during the previous legislative session, aims to overhaul Vermont’s public education system. According to Payne, the act includes a five-year plan with numerous milestones for the legislature to address. He highlighted that the redistricting committee is currently working to develop new school district maps, which are due by December 1, 2023. These maps will influence tax districts and other related aspects of the education system.
Significant changes are on the horizon, including the implementation of class size minimums in July 2026 and the establishment of new school districts by January 2027. Additionally, a statewide school calendar will be proposed, with a foundation formula for funding set to be introduced in July 2028.
“A formula will dictate the dollar amount allocated per student,” Payne noted. “This means local budgets will not be developed in the same manner as before, as funding will be determined by state calculations.”
Payne encouraged community members to engage with their elected officials regarding the anticipated outcomes of Act 73. He acknowledged that opinions on the reform vary, with some believing it could lead to significant cost savings while others hope for equal educational opportunities across the state.
“People should start conversations with their representatives about what they anticipate from this reform,” he stated. “It’s crucial to consider the various perspectives, as there are many ideas circulating about the potential benefits and challenges of these changes.”
As the education reform process unfolds, Payne’s insights underscore the complexities of school funding and the need for continued dialogue among stakeholders to navigate the evolving landscape of Vermont’s education system.
