Chair Conlon and members of the House Education Committee,

The education finance crisis before you today is the gravest in decades and eerily similar to the crisis we faced a decade ago. You have difficult choices ahead of you around overhauling the entire education finance system or making targeted reforms to inject more transparency and accountability into the incentive structure.

The annual housekeeping bill for the Ways and Means Committee, H.546, reached the House floor on Friday. Chairwoman Kornheiser presented the bill to the House. She described the bill as “revenue neutral.”

Representative Boyden presented H.702 on the House floor on Friday. She told members of the House that, as policy makers, they need to routinely evaluate how well our system is working and ensure that Vermonters are receiving the results they expect and deserve. H.702 is the first step in strengthening this type of government accountability.

Ben Edgerly Walsh (Climate & Energy Program Director, VPIRG) testified on S.259 in the Senate Finance Committee on Thursday afternoon.

He shared in his presentation that VPIRG supports this bill because the cost of the climate crisis is “staggering”, and Vermonters should not be responsible for “shouldering the burden.” They see this legislation as a medium to long-term strategy. The legal process will take years, as will the rule-making process.

Brooke Olsen-Farrell (Superintendent, Slate Valley Supervisory Union) shared that their budget failed by a 464-vote margin. Voters in her district seem to “pride themselves on keeping education spending low.” Despite being among the lowest spending in the state and being “advantaged” by Act 127.

Representatives Walker and Harrison joined the House Energy and Environment Committee on Thursday to propose an amendment to H.289. The amendment would attempt to target new generation facilities in areas that already have additional distribution capacity. In areas where additional distribution capacity is necessary, the amendment would protect ratepayers from bearing the cost of these upgrades.

On Thursday, Gus Seelig (Executive Director, Vermont Housing and Conservation Board) talked to the House Commerce Committee about his annual report and the pictures and write-ups of all the projects they have been involved in throughout the State. But today they are focusing on housing and workforce development. Seelig mentioned that the Chair had asked him to work with the Career Technical Centers to focus on housing and workforce development in the construction/developer careers. He noted that he and Will Belongia (Executive Director, Vermont Community Loan Fund) had talked to CTE Directors throughout the state to find out what is needed. They said they need more students interested in the construction/housing field.

The House Education Committee attempted to get a “big picture” of the education financing challenges on Thursday morning. Julia Richter (Senior Fiscal Analyst, Joint Fiscal Office) noted that the material she was presenting would seem familiar because it is meant to be. Chairman Conlon wanted a refresher as they began to review the current situation. Richter stated these are the same slides she presented about a month ago with some updates based on recent data and budgets. Her presentation showed the various commitments of Education Fund dollars and the ways in which school districts receive them.

A joint presentation was made to the House Commerce Committee on Thursday about Community Development Financial Institutions (CDFIs). Will Belongia (Executive Director, Vermont Community Loan Fund) opened up the presentation with an overview of CDFIs do. He shared that they are community-based organizations that expand economic opportunity and provide financial products and services to individuals and businesses often underserved by traditional financial institutions. The CDFI designation is given by the US Department of Treasury to organizations that have a primary mission of community development and a proven track record of providing financial products and services to underserved communities. CDFIs include credit unions, loan funds, venture capital funds, and banks. They go through a rigorous application process and must recertify every year.