By Guy Page
The Vermont Department of Taxes on Monday released its annual December 1 projection, estimating an average statewide property tax increase of 11.9% for 2026.
Details from the report were made public by Gov. Phil Scott shortly after noon. The report projects an expected $115 million rise in school spending and an increase of nearly $1,000 per pupil — a jump of 6.8%.
Governor Phil Scott called the findings unacceptable and said policymakers must rein in spending growth.
“Without intervention from Montpelier and/or school boards reducing spending growth, Vermonters will face an average 12% increase next year,” the governor said in a statement. “It should come as no surprise that I find this totally unacceptable, as I’ve been ringing the alarm – and proposing meaningful reforms – for years.”
Scott said education taxes have risen more than 40% over the last five years while student enrollment, performance, and educational opportunities have declined. He urged lawmakers to fully implement Act 73, which directs structural changes in school governance and sets the state on a path toward a “more affordable and higher-quality system.”
To move forward, Scott said the Legislature must establish a “modern, equitable governance structure” that reflects decades of declining enrollment and directs more resources into classrooms rather than overhead.
“The continued growth in our property taxes is unsustainable and unaffordable for Vermonters across the state, and is forcing school districts to make difficult cuts that are impacting our students,” House Speaker Jill Krowinski said. “Last year, we passed comprehensive legislation to transform our education system and today’s property tax projection is a reminder why this critical effort must continue. There are more tough conversations and difficult decisions ahead, and we must keep Vermont’s kids at the center.”
Senate Minority Leader Scott Beck (R-Caledonia) echoed the governor’s warning and said the spending trend has reached a breaking point.
“Education property taxes have risen 41% over the past five years. This is not acceptable,” Beck said in a statement emailed to media shortly after noon on Monday. “What we cannot support are proposals that ask for even more taxes from already overburdened taxpayers. Vermont doesn’t have a revenue problem; we have a spending problem.”
Beck said the projected tax spike is not inevitable. School districts can still reduce proposed budgets, and lawmakers could use General Fund dollars to offset tax bills — though those funds are also needed for public safety, housing, healthcare and other services.
Republicans cited declining test scores, shrinking post-secondary enrollment, a rising dropout rate and the highest staffing ratio in the country (3.4 students per staffer, including administration) as signs that high spending is not producing better outcomes.
Lt. Gov. John Rodgers favors better sharing of services among schools.
“Real reform requires confronting the drivers of spending—declining enrollment, unfunded mandates, staffing pressures, and outdated governance,” Rodgers said. “We need a statewide approach that modernizes operations, shares services, demands accountability, and aligns resources with today’s realities.
“And we must never forget who pays the bill: the single parent in Barre, the retired couple in Rutland, the young family in St. Albans, the small business owner in the Northeast Kingdom. They deserve a predictable and affordable system, not a yearly shock that leaves them wondering whether they can stay in the state they love.”