Rising Tax Burdens and Funding Challenges
Vermont’s education funding system is under intense scrutiny as legislators gear up for significant reforms in 2025. With a projected 5.9% increase in education property taxes next year, concerns over affordability and sustainability have become a central issue. Lawmakers on both sides of the aisle have criticized the current formula for its complexity and high costs, prompting calls for a more transparent and predictable funding structure.
Meanwhile, local school boards face the arduous task of finalizing fiscal year 2026 budgets without providing taxpayers with clear insights into how district-level decisions will affect their finances. In 2024, property tax hikes—some as high as 18.5%—sparked frustration statewide. These increases were attributed to rising health insurance costs, the need for competitive teacher salaries, and post-pandemic student support demands. Districts like Colchester saw enrollment growth, requiring additional staff to support students with disabilities and English language learners. However, other areas with declining enrollments struggled to balance rising expenses with shrinking student populations.
Budget Failures and Deferred Maintenance of Vermont’s Education Funding System
A troubling trend emerged across Vermont in 2024, with numerous school budgets failing to pass on the first vote. Districts like Milton and Georgia saw multiple rejections before securing taxpayer approval after significant cuts. Milton’s budget passed only after reducing over $750,000, leading to staff layoffs and deferred maintenance. Similarly, Georgia had to cut nearly half a million dollars, resulting in the loss of library assistants, custodians, and paraeducators.
Deferred maintenance has become a critical issue across the state. Colchester’s school board proposed and narrowly passed a $115 million bond to address overdue repairs and capacity improvements. Administrators reported dire conditions, such as flooding classrooms, 90-degree learning environments, and makeshift teaching spaces. However, not all districts have been as successful. Milton abandoned plans for a new school building after mold issues delayed the academic year, opting instead for limited repairs. In Essex Westford, a facilities assessment revealed $42 million in required renovations over the next decade, much of which remains unfunded.
Looking Ahead to Sustainable Solutions Vermont’s Education Funding System
With a new Republican majority in Vermont’s House and Senate, education funding reform is a top priority. Many GOP lawmakers, including Chris Mattos of Milton and Pat Brennan of Colchester, have emphasized the need to curb spending while addressing critical infrastructure needs. Both legislators pointed to the growing size of school staff despite declining enrollments as an area for potential cost savings.
Mattos and Brennan also highlighted the burden of rising private health insurance costs on school budgets. They advocated for a restructuring of the funding system to reduce taxpayer strain without introducing new taxes or fees. Deferred maintenance, which has plagued Vermont schools for decades, is another pressing concern. Lawmakers hope to allocate existing funds more efficiently to address long-neglected repairs and improve learning environments.
As the state grapples with its education funding crisis, stakeholders remain divided on how best to balance taxpayer relief with the pressing needs of students and schools. With rising tensions and competing priorities, 2025 promises to be a pivotal year in the fight for sustainable education reform in Vermont.
