Chairwoman Cummings launched the Senate Finance Committee right in on Tuesday morning, explaining that they had drafted an amendment to H.887 the previous day. She reiterated that the Commission on the Future of Education will remain in the bill, but the amendment creates an Education Finance Study Committee who’s work will result in proposed legislation after taking into account “everything that goes into school financing.” The task of this study committee will be to design an “affordable educational funding system designed to ensure substantially equal access to educational opportunities for all Vermont students.”

Chairwoman Cummings opened the Senate Finance Committee meeting on Tuesday by reminding Senators that “we now have about four days (possession of H.887)… to figure out how to actually save the public school system.” It was noted that 30 school budgets had been defeated, some now twice. Senator Chittenden added the South Burlington budget 3^rd vote is next Tuesday.

Chairwoman Cummings started off the Senate Finance Committee meeting on Wednesday afternoon by introducing three superintendents who were going to speak to them about cost drivers in the current budget cycle and things they could do long-term to reduce costs.

The Senate Finance Committee convened on Friday to hear from Julia Richter (Senior Fiscal Analyst, Joint Fiscal Office)) about the current state of the Education Fund. She noted that the most recent data they have is from March 27^th. The Education Fund Outlook shows a projected education spending of roughly $1.9B and an average property tax bill increase of 17.7%.

Chair Cummings explained on Tuesday afternoon that they are expecting several tax bills from the House but, as of yet, none of them address the big question of “the biggest problem we’ve got which is the massive increase in property taxes, which really is coming close to making Vermont unaffordable to most people.”

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.

Heather Bouchey (Interim Secretary, Agency of Education) and Nichole Lee (Director of Finance, Agency of Education) joined the Senate Finance Committee on Tuesday to discuss the cost drivers in education spending. The survey was put out in the field mid-January and most results came back in late January and early February. The survey sought to understand what districts are spending money on this budget cycle that may be driving the $230M in new spending. Lee identified rising health care premiums, the “ESSER cliff” as federal funds go away, capital construction projects, salaries & benefits, and inflation as primary reasons for spending increases.

On Friday, Jeff Fannon (Executive Director, VT-NEA) joined the Senate Finance Committee. “Too often the conversations around education revolve around money,” he said, blaming the current education challenges on a “shattered societal safety net, a global pandemic, economic upheaval,” and that schools must be “staffed adequately.” He also pointed to school construction and inflation as additional factors.

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.

Joyce Manchester (Senior Economist, Joint Fiscal Office) presented a wealth tax proposal to the Senate Finance Committee on Tuesday. The bill is also referred to as the "Fair Share for Vermont" proposal. The proposal is to increase taxes on the wealthiest Vermont residents to "build a better Vermont." The proposal will increase taxes on the top 2% of Vermont taxpayers, and raise nearly $100M each year in state revenue. According to Manchester, a wealth tax is usually defined as an annual tax levied on the net worth, or total assets net of all debts, of an individual or household above an exemption threshold.