MONTPELIER – Education funding, and its impact on property taxes, remains a central focus this legislative session. During a joint hearing of House and Senate members, we reviewed highlights of Governor Scott’s plan to overhaul not only the education funding formula but also the governance structure.
Commissioner of Education Zoie Saunders provided a high-level overview, beginning with the current system’s structure: 52 supervisory unions, 119 school districts, 287 schools, and 83,733 students. She noted that enrollment has declined by 21.5% since the 2003-04 school year. Saunders also shared data on student outcomes, graduation rates, and staffing levels. She explained that smaller schools with higher-need students often pay their teachers less and have more staff per student. Concluding her presentation, she said: “The current system is designed to equalize tax capacity but does not necessarily ensure similar resources for students statewide. In practice, lower-wealth communities frequently spend less than higher-wealth communities, even when their needs could be greater.”
Commissioner Saunders proposed a new funding system that includes a base funding amount per student, augmented by “weights” to account for specific student needs, such as those who are economically disadvantaged, English learners (EL), or special education students. This approach aims to ensure that students receive equitable resources to meet their needs, regardless of geography.
She also outlined a governance reform proposal to reduce the number of supervisory unions from 52 to just five, a more significant reduction than I have proposed in the past. My proposal aimed to align the number of supervisory unions with the state’s technical and career centers, plus one for youth in state custody (foster care, treatment programs, etc.), for a total of 16 statewide.
The presentation concluded with Tax Commissioner Craig Bolio providing an overview of the current property tax system. He described it as overly complex, with limited budgetary control for the state. Bolio referred to property taxes as the “shock absorber” for raising revenue to fund education expenditures. He emphasized that under the current system, education tax rates in one district can be affected by spending in another.
The administration’s forthcoming proposal is expected to include a single statewide education property tax rate. Give a tax break on their property taxes to low income Vermonters, while enabling communities to raise additional revenue if desired.
I am eager to see this proposal in bill form to better understand its potential effects on education opportunities for our children and the much needed property tax relief. Additionally, I want to explore how these changes might alter local control and what decisions will be made by the Department of Education. There are still many questions remaining about how this proposal could be implemented. I expect more clarity in the coming weeks.
This week, the House Human Services Committee (HHS) finalized the budget adjustment proposal for the House Appropriations Committee. I supported, but am deeply concerned about, the $56 million needed to ensure Vermont’s 33 nursing homes can continue to care for Vermonters. This funding includes costs related to more individuals requiring nursing home level of care, also referred to as over-utilization and extraordinary financial relief that is the result of costs exceeding revenue often causing by having to staff with traveling nurses and inflationary costs. Unfortunately, 23 residential care homes have closed due to underfunding, further compounding the crisis and adding to the cost of care.
I believe our lack of investment in home and community-based care providers like home health agencies is contributing to driving up costs into the most expensive areas of care. To address this, the HHS committee will review H.13 this week, which examines how home- and community-based reimbursement rates are calculated and budgeted, and where our taxes are best invested.
Last week I shared information about H.74, the legislation Rep. Jim Harrison and I proposed to exempt Social Security income from state income tax. Many constituents have asked why we suggested an eight-year phase-out rather than a faster timeline. The simple answer is that requesting a $54 million revenue reduction upfront is unlikely to pass the Ways and Means Committee. By phasing the change over eight years, the initial impact is reduced to $5.3 million, making it more feasible. This incremental approach provides an opportunity to begin eliminating this tax.
This week, Governor Scott will present his FY26 budget proposal. I will be paying close attention to which areas see increased investment, which are level-funded and where cuts are proposed. The HHS Committee will spend considerable time reviewing the proposed budget in the weeks to come and providing feedback to the House Appropriations Committee.
Personally, I’ll be focusing on the Department of Disabilities, Aging and Independent Living (DAIL) budget. I hope to see increased investment in home- and community-based service providers, along with the resources necessary to implement much needed changes to our education funding system.
It remains a privilege to serve my community in this capacity, and I welcome your input and engagement. If you are planning to visit the State House, please let me know. I would be happy to meet with you. You can reach me at [email protected] or (802) 730-7171.
Daniel Noyes represents Lamoille-2 (Wolcott, Hyde Park, Johnson, Belvidere) in the Vermont House, and is the clerk on the Committee on Human Resources.