The Joint Fiscal Office reviewed the Education Fund stabilization reserve for the House Ways & Means Committee on Wednesday. The reserve is always set at 5% of the prior year’s education spending and is meant to be used if tax revenues miss projections. It also contributes to the bond rating of the state.

In February 1997, Vermont’s Supreme Court found “the current system for funding public education in Vermont, with its substantial dependence on local property taxes and resultant wide disparities in revenues available to local school districts” is in violation of the Vermont Constitution. In response, in June 1997, the Vermont Legislature and Governor enacted the Equal Educational Opportunity Act—Act 60— a Vermont law intended to achieve a fair balance of educational spending across school districts independent of the degree of prosperity within each district. Act 60 was followed by Acts 68 and 130, which addressed some imbalances caused by Act 60.  Acts 68 and 130, established a system to pool the state's educational budgetary requirements from across jurisdictions and pay for them, in part, with pooled statewide property taxes.

The House General & Housing Committee returned to a conversation around setting regional housing targets on Tuesday. Maura Collins (Executive Director, Vermont Housing Finance Agency) had comments regarding the Draft 1.1 that the Committee was reviewing. She was very supportive of the “great changes” regarding the Housing Needs Assessment, with one caveat. She pointed to the Building Homes Together Campaign (Chittenden County) which also set a target but also assumed 25% would be “affordable units.” She noted that in some years that program has come close to meeting the targets but fell short of the “affordable” goals.

February 20, 2024

House Ways & Means Committee,

We agree that the ‘Who Pays’ report showing that our state’s tax burden is flat, and even slightly regressive, for taxpayers with incomes in the top 40% is concerning. Middle class Vermonters are struggling to make ends meet and inflation, taxes, and other impacts on cost of living have not been kind to them. Learning that they also shoulder an outsized share of the tax burden adds insult to injury. It is also important to highlight, as the report authors did, that this distribution of tax burden is not because our income tax system is inadequately progressive, but rather that we have a number of other taxes that are quite regressive.

Chairwoman Ram Hinsdale reminded the Senate Economic Development Committee about the Housing Survey from the HOME Act in order to know “roughly how much housing we are creating through our funding mechanisms.” She preferred to add language to S.311 least referencing a “healthy vacancy rates… about 5% for rental unit vacancy and 23% for home ownership vacancy…”

Representative Howard introduced H.608 to the House Ways and Means Committee on Friday morning.  She said it was to help her address the increased crime in the community.  She proposed to put a modest 0.05% property tax surcharge on absentee landlords who do not live in the community.  The money would be used to increase public safety and improve blighted buildings (those that are vacant or abandoned).

Elizabeth Mauch (Chancellor, Vermont State Colleges) appeared before the Senate Education Committee on Friday afternoon.  She noted that she has been very busy in her first six weeks in the job getting around to the campuses, meeting teachers and students, watching them participate in athletics and academics. She was very impressed with where the system is at this point and looking forward to the work ahead. She commended the outstanding work the VSC Board of Directors has done and their role in strategic oversight to establish the mission, vision, and policies for the VSC system to assure financial stability and accountability. Mauch reports directly to the Board and believes there is mutual accountability and responsibility.

On Friday afternoon, Chairwoman Cummings started out the Senate Finance Committee’s review of H.850 by stating that further action would be necessary because “the cost per pupil that is going up in a lot of cases, not your actual spending.” Legislators are looking at school budget spending caps but there are different ways of containing costs.

The Senate Education Committee reviewed S.207 on Thursday Afternoon. The bill requires the Secretary of Education to provide the Legislature with a report and recommendations on governance structures for Vermont’s CTE system by February 1, 2024. The report shall include all information and recommendations necessary to complete the Agency’s work as required under Act 127, Sec. 17.