Commentary

Guv’s office debunks legislators’ defense of 14% property tax bill

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Lawmakers’ claim of 30% property tax hike on businesses ‘simply not true’

VDC graphic of Senate 22-7 roll call vote to overturn Gov. Phil Scott’s veto of H.887, the Yield Bill which set property tax rates at about 14% statewide

by Office of Gov. Phil Scott

In May, 111 legislators voted for H.887, known as the “Yield Bill,” which sets statewide property tax rates based on a funding formula, school budget votes and several other factors (House and Senate vote count). In June, 125 legislators voted to override Governor Scott’s veto of this bill (House and Senate vote count), imposing an average property tax bill increase of 13.8%.

Governor Scott has been working to prevent this type of unsustainable increase since first coming to office. He’s proposed several initiatives to allow the state to manage the Education Fund and address cost drivers like school employee healthcare, while re-investing in educational programming, all of which have been rejected by the Legislature.

When vetoing their Yield Bill, Governor Scott proposed an alternative package to bring down this year’s property tax rates, while setting parameters to help slow growth and prevent significant increases next year.

Since passing this historic property tax increase, many in the Legislature, and the Lt. Governor, have sought to justify their decision by providing inaccurate information and mistruths about the Governor’s proposal.

But here are the facts:

  1. LEGISLATORS’ CLAIM: The Governor’s proposal “would have resulted in 30% higher taxes on our businesses.”

TRUTH: This statement about the Governor’s proposal is simply not true. The proposals Governor Scott put forward would have reduced the average bill increase for both residential and non-residential (business) ratepayers to about 5%. (Source: Proposal Sent to legislators and media)

  1. LEGISLATORS’ CLAIM: The Governor’s proposal “triggered deficit spending.”

TRUTH: The Governor’s proposal did not deficit spend. He proposed using unspent budget dollars from Fiscal Year (FY) 2024, unallocated revenue surpluses from FY 2025, funds in the Education Stabilization Reserve (meant to stabilize the Education Fund in times of crisis), and reverting to a needs-based school lunch program. Surpluses and reserves are comprised of money taxpayers already paid to the government. (Source: Proposal Sent to legislators and media)

TRUTH: The Governor presented his proposal as a “menu” of options. With any one of these funding sources, the Legislature could have reduced the rate and lowered the property tax increase for Vermonters. But they did not adopt any of them. (Source: Proposal Sent to legislators and media)

TRUTH: The Governor asked that the Legislature – at a minimum – account for the $4 million in savings local school boards achieved over the spring and summer. Instead, the Legislature’s Yield Bill collects this $4 million, which is more than needed to fund the budgets voters passed. (Source: Proposal Sent to legislators and media)

  1. LEGISLATORS’ CLAIM: The Governor’s proposal would have resulted in “much bigger increases next year.”

TRUTH: The Governor’s proposal brought down rates this year, and, importantly, it would have set an “allowable growth rate” for next year to limit system-wide spending growth, as well as beginning work on a new education funding formula for medium- and long-term structural reform. This is in contrast to the Legislature’s approach to buying down rates without significant reforms to limit spending in future years. (Source: Proposal Sent to legislators and media)

  1. LEGISLATORS’ CLAIM: The Governor’s proposal would have negatively “impacted the State’s credit rating.”

TRUTH: The Treasurer and Scott Administration met with all three credit rating agencies in May, and all three elected to maintain the State’s credit rating, announcing the ratings several weeks before the Legislature rejected the Governor’s proposal. (Source: Rating Agency reports available via Office of the Treasurer)

TRUTH: The ratings agencies were aware of the property tax dispute, the proposals on the table, as well as the Governor’s plans to veto the bill, and yet it did not impact the rating. (Source: Rating Agency reports available via Office of the Treasurer)

TRUTH: Ratings agencies have consistently cited the State’s aging demographics and structural imbalances as risks to Vermont’s credit rating rather than pointing to any particular proposal. (Source: Rating Agency reports available via Office of the Treasurer)

  1. LEGISLATORS’ CLAIM: The impact of Act 127 of 2022 (which applied a pupil weighting element to the formula) on property tax rates was a surprise or “anyone’s guess.”

TRUTH: The Governor forecasted the impact on property taxes in a letter to the Legislature in 2022, and called on the Legislature to make changes to the law to prevent this added pressure, noting: “We also know this bill risks further increasing the cost of our education system in a way that compounds these underlying issues – particularly if we continue to see fewer and fewer students alongside annual school budget growth of three to four percent, on average. At the same time, the Legislature passed several other new policies, including universal school meals and PCB remediation, community schools, literacy reform and facilities repair that will likely lead to even higher costs for taxpayers. I urge the Legislature to work with my team, alongside our schools, to address cost containment and transparency to moderate the tax burden of the education funding system in the coming years.” (Source: Governor Scott’s Signing Letter)

These are just a few examples of false statements made about the Governor’s plan, his past proposals (of which there have been many), the options available to legislators this year, and the impact of tax increases.

Here’s the bottom line: Vermonters did not have to face an average 13.8% property tax this year, and much more could have, and should have, been done this year – and in prior years – to address this unsustainable pressure on Vermont taxpayers. Governor Scott just needs a willing partner in the Legislature.

VDC welcomes a rebuttal from any legislator.


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Categories: Commentary

18 replies »

  1. “VDC welcomes a rebuttal from any legislator.”
    Yes, by all means, rub their face in it.

  2. TRUTH: The legislative body relies upon a steady flow of campaign contributions to candidates and Political Action Committees, from individual donors, PAC’s and NGO donations- including the VT-NEA.
    TRUTH: Vermont’s super-majority legislative leadership’s agenda does not reflect The Vermont Constitutional requirements for legislators. Simply stated, they work for whom provides the dollars, not for the constituent.

  3. I have never read about so much absolute BS, in-your-face crapology in some time. NH is a good fiscal state, next door just across the dividing river. A table I supplied in an earlier article listed NH as being $5 (great) and VT $47 being a highest tax state.

    Why can’t the Montpelier D & P get their heads out of where the sun doesn’t shine, smell roses instead of what they have been smelling and get real, take NH as a can do state. The example of success is just across the river. Both states have the same climate and location. Some heads are in a fog and the other is clear (NH). But D&P can’t see the light for where their heads are. SICK. Why do people stay in VT(?). Let the Flatllanders buy the property , and leave and let the high brows ruin the state more, without you. VT isn’t God’s little acre.

    • The answer to your question as to why the Leftislature (TM) will not examine NH as a model is that its excessive hubris prevents it from contemplating it is not 100% perfect and omniscient. They think the rest of us are dumb clucks, and they and only they know what is best. And the people who vote for them in ever higher numbers have no idea what pain they are inviting to themselves.

    • Tom, I stay here because I love where I am, I’ve a lot of blood, sweat and tears in my homestead that I’ve been cultivating for 35 years. My father’s family was one three families that settled Jericho in 1789, I’m a 9th generation Vermonter, I’m not about to be pushed out by a bunch useful Marxist idiots! Yes the political climate here sucks and is close to the breaking point. I’ll stay and be a thorn in the “flatlanders” side for as long as I can.

  4. The concept/hope that Phil Scott is telling the truth was lost when he started changing gun laws.

    Not to mention what has he done for his party? Cry and complain when there aren’t enough of them to hold up his veto?

    Hey Phil, why don’t you go write it on the street in front of the state house?

  5. Name names, Governor. Clearly, you must understand that you’re criticism of the legislature will fall on deaf ears for as long as certain specific office holders remain in place. While I appreciate your sentiment to control the cost of education, I recognize that, with a super-majority cast against you, nothing will come of your efforts.

    Your five points address “LEGISLATORS’ CLAIMS”.

    Surely, not all ‘legislators’ are at fault. Take the lead. At some point you must articulate the specific data (who, what, when) to voters in order for them to hold their legislators accountable. Who are they? Give us a chance to participate in the process.

  6. Vermont’s ” Stupid Majority ” doesn’t care about the citizens of the state and will do or say whatever to get their agenda passed……………..

    Wake up people, vote these inept glory-seeking fools out !!

  7. The first step, Teachers in the SOV should belong to the VSEA like evey other state employee. Boot the NEA/AFT !

  8. Mr Eshelman is absolutely correct. If Governor Scott is going to rebut an argument, he needs to name names. And he needs to do it in public, where it will be covered and seen, not through his “staff”. Generalities just don’t cut it. Shine the spotlight on the responsible legislators. Like cockroaches, they’ll reveal themselves and go scurrying in every direction. If Governor Scott doesn’t have the stomach for this, perhaps he should hang up his political spikes. We need a governor who relishes the fight. One who’ll never back down and never back off.

    However, as I’ve said many times before, if D or P lips are moving, you should know by now they’re lying. If you haven’t figured this simplest of lessons out yet, I don’t know what to tell you. It can’t ALL be dropped on Governor Scott.

    At some point, we need to stand up and take control of our own destiny. Do what you can. If you’re good at organizing, organize! If you’re good at writing, make yourself heard and fight with words. If you’re good at public speaking, speak in public. There are so many ways you can contribute. Use whatever talents you have. They want you dumbed down, apathetic, divided, and disorganized, and so far they’ve done a darn good job of accomplishing those goals.

    So why should you bother? I’ll tell you right now what your future will look like if you stay here and don’t fight back. Vermont will look exactly like Kalifornia. I surely don’t want that. You?

  9. My opinion is that we have a bad governor, a RINO at best, but more democrat. And we have one of the worse group of legislators ever assembled out side of the old Soviet Union. But it is the voters fault. If they are happy they should stay and continue. Not happy like me, think of moving. There really are much better places to raise a family and enjoy a less expensive existence.

  10. As an elder, single and disabled woman i could no longer afford the rising cost of living in VT so i had to sell my home and move out of state. I love and miss my home and friends in VT and as far as my golden years of retirement goes, that promise was a lie too and i did everything by the book!!!

    • Hello debbarn99, my name is Pam Baker. I’m running for State Representative in Windham 6, the Town’s of Halifax, Whitingham and Wilmington. I would like learn more of your story. Your experience is the EXACT thing I fear is happening to our citizens. Followed by their grandchildren having to leave because they are struggling with multiple jobs and facing the fact that they will never be able to afford to buy their own home. Please reach out to me via my Facebook page http://www.facebook/PamBakerforVT
      so we can connect. I look forward to hearing from you.
      Thank you.

    • I hear ya debbarn99. Those of us still standing in the gap won’t go down so easy – God is on our side. My elders came here to escape starvation, elimination and subjugation by the Crown. My elders created and worked their fingers to the bone to establish this State. My elders fought and bled to save this State and this Country from enemies that our now our fake authority figures. As far as I’m concerned, by their decree, their sacrifices, their covenant, all made for their clans going forward, our land is worth fighting for – to the death if that be God’s will.

      “Do you mean to tell me, Katie Scarlett O’Hara, that Tara, that land, doesn’t mean anything to you? Why, land is the only thing in the world worth workin’ for, worth fightin’ for, worth dyin’ for, because it’s the only thing that lasts.”

  11. Vermont’s government indoctrination centers (public schools) are on a collision course with demographics and economics. Steadily declining student enrollments, caused by a very low birth rate and no place for young families to live, combined with the education bureaucrats insatiable appetite for higher salaries and benefits have created a spectacular crash for everyone who lives here.

    If the current crop of central planners gets re-elected they will surely enact more detrimental legislation along the lines of Act 60 and Act 46 They will do it in the name of equity of course. This will continue to raise taxes even more and continue to harm student academic success.

    There is.an election in just a few weeks. I pray once again that Vermonters have a change of heart and mind and vote for Republicans that will bring fiscal responsibility and accountability back to the legislature and senate.

  12. Is this a veiled attempt at repetance and rebuking in the public forum? Is the most popular governor in the nation ready to drop on his knees, upon his dusty sword or is this a selection season chicken dance routine? Too late and a declining dollar short.

    Perhaps the COVID gravy train has dried up, disaster declarations not going to be reimbursed, and the Fed don’t have an answer or a plan. Panic under the Golden Thunder Dome and the top floor of the Pavilion. Hyper-inflation, war drums beating louder, and mass causalty events discussed…SHTF unfolding…get prepared.