Representative Beck presented the bill on the floor Monday. Major changes from the Senate involved a slightly increased average tax increase and a reduction in the tax newly-created reserve to help buffer property taxes in FY2025. In the Senate version, this fund was reduced from $22M to $13M.

On Tuesday, the Senate Finance Committee took up H.492, which sets the property tax yield amounts that determine local property tax rates. Representative Kornheiser and Representative Beck from House Ways & Means joined the Committee to explain the bill.

On Tuesday, the Joint Fiscal Office (JFO) and the Agency of Education (AOE) provided their customary update to the House Ways & Means Committee. Chairwoman Kornheiser shared that she had asked JFO to include a new line item for cloud taxes, which would amount to $16.9M in revenue if added. This addition would result in a 5% increase in average property tax bills if coupled with the additional spending items the Committee is considering.

Brad James shared with the House Ways & Means Committee on Tuesday that 93% of budgets are in and education spending is now projected at 7.8%. The December letter originally projected 8.5%. Burlington is still not in yet, and this has the potential to move the needle. Milton also out, their building manager has been out sick.

Brad James shared with the House Ways & Means Committee on Tuesday that now 73% of districts are reporting (a significant jump from last week). With the latest budgets, the Agency is now showing an 8.2% increase from FY2024. Champlain Valley and Burlington are still not in yet, which are both large budgets and could sway the final numbers. James noted that if both went up by 10% it would increase the statewide average to 8.4%.

Brad James (Director of Finance, Agency of Education) provided the House Ways & Means Committee with an update on school budgets. The December letter from the Tax Commissioner estimated an 8.52% increase in spending over FY2023. James has heard from about 20% of schools about their budgets (as passed by school boards) as of right now, budgets are coming back closer to 9%.