Senate poised to take action on property tax fix

MONTPELIER, Vt. (WCAX) – The Vermont Senate is scheduled to give a preliminary vote on an emergency education financing bill on Wednesday aimed at tamping down a looming property tax crisis. But some school districts say the proposed fix will only cause them even more financial pain.

The forecasted 20% property tax is linked to a combination of factors including unintended consequences of a school finance reform law approved two years ago and rising health care costs for teachers. But in other ways, the school spending crisis has been years in the making.

State data shows declining student enrollments, with Vermont losing almost 20,000 students in the last two decades. Meanwhile, education spending rates have continued to grow, with a nearly 14.8% forecasted increase in spending next year.

Vermont has the second-highest per-pupil spending rate in the country while the state consistently ranks in the middle of the pack for academic achievement.

The spending this year is driven, in part, by Act 127, which aimed at equity for students who are learning English as a second language or are otherwise more expensive to teach. Districts benefiting from more cash are spending it but state lawmakers also believe a temporary tax cap meant to ease the impact of those reforms in wealthier districts led to increased spending by those communities before the law fully kicked in.

The Senate on Wednesday will vote on H. 850 to eliminate that tax cap. The bill will also give districts a chance to delay their school budget votes so they can go back and make cuts in spending.