Letter to the Education Reform (Act 73) Task Force

Dear Members of the Act 73 Task Force,

You have no easy task before you to reconcile all the different perspectives you bring to the table and produce a pathway forward for education reform in Vermont. We were part of the conversations that led to Act 46 and that effort may have just been a foreshadow of this one.

Since 2010, Vermont has consolidated 271 school districts down to 119. During that same timeframe, we have seen spending accelerate and outcomes fall. Today, we are spending 79% above the national average but performing below average when you account for Vermont’s demographics.

We also know that these efforts have not bent the cost curve. You can see in the chart above an acceleration in spending that started in 2016 as Act 46 mergers were just getting underway. That acceleration remained in place until Covid caused another bump in the 2020/21 school year.

A CFV statistical regression analysis done in 2014 and again in 2024 shows  large school districts in Vermont do not perform better, on either a cost or outcomes basis. The lack of cost savings from district consolidation efforts was confirmed in an independent analysis performed at Yale.

Instead, the most recent research shows class sizes in our state are so small that they may actually lead to reduced outcomes for students. Because roughly 80% of our education cost is personnel, this means these high staffing levels are also contributing to the high costs in our education system.

Act 153 and Act 46 have not been effective in addressing any of these concurrent issues: outcomes, staffing, and property taxes. Act 73 risks being caught in the same traps as these previous efforts.

In light of these facts, we have offered our own proposal for education reform, offering a balanced approach that prioritizes students and communities. This approach was recognized by the Senate, which inserted language into Act 73 requiring that at least one of the proposals the Task Force submits must consider reform of governance structures more broadly (not just school districts). Further, the requirements for these new governance structures includes a preference for maintaining “current school district and town boundaries and other historic community connections.” We urge the Task Force to preserve local school districts and their volunteer boards, which are vital to maintaining community identity and engagement.

Vermont’s schools serve as community hubs. Severing local control risks weakening these connections. The importance of these local community ties was highlighted in a recent MassInc report conducted in nearby Massachusetts. Instead of consolidating into regional school districts, we recommend consolidating the current 52 supervisory unions (SUs) around the state’s 17 career and technical education centers. This approach achieves economies of scale through shared services while keeping decision-making closer to communities. Additionally, this satisfies another Act 73 requirement to enhance “access to career and technical education (CTE) for all eligible students.” The scale of these administrative structures would also satisfy the 4-8,000 student requirement.

Today, there are roughly two districts for each SU. This arrangement does not achieve scale; however, it can be re-imagined to do so. SUs could provide a number of shared services (one of your identified goals) in addition to special education, like facilities maintenance, bulk purchasing, AR/AP, human resources, and specialized classes like language, arts, or AP. This streamlined administrative structure would help achieve the economies of scale envisioned by Act 73 while maintaining community connections with schools and their leadership and avoiding the cost-drivers and diseconomies of scale seen in Act 46.

Vermont’s education system faces unsustainable costs and declining student performance. Our recommendations aim to realign incentives to prioritize student outcomes, preserve local control, and ensure fiscal responsibility. We believe these reforms, grounded in lessons from Act 46 and tailored to Vermont’s unique needs, can deliver a sustainable and equitable education delivery system. We look forward to collaborating with the Task Force to refine and implement these ideas.

We are happy to meet with each of you individually or collectively to help chart this path forward.

Sincerely,

CFV is a nonprofit, nonpartisan advocacy organization comprised of nearly 25,000 Vermonters and dedicated to the vision of a more prosperous Vermont and growing middle class. They seek to accomplish these goals by reconnecting Vermonters to their government and advocating for more transparent and accountable policymaking.