By Rep. Lori Houghton
Every year, the legislature passes a yield bill to set the property tax rates that will fund education for the coming fiscal year. The FY27 yield bill is on the calendar for a final vote today in the House.
This yield bill, plus the use of one-time funds, is a significant decrease from the initially projected rate increase, which was more than 10%. There is a careful balance between offering Vermonters much-needed financial relief, providing our children with the education they need, and being fiscally responsible.
Vermonters need property tax relief; this proposal does that. It’s also deliberately focused on multi-year fiscal responsibility, not sleight-of-hand tricks to win elections. If the House passed the governor’s proposal, Vermonters will be facing a 15% property tax increase next year.
The state is projected to have an $80 million budget deficit next year. Governor Scott and elected Republicans are well aware that they have no plan and no money to buy down a 15% tax increase on Vermonters next year. Creative math and significantly increasing the burden on taxpayers in the coming years will do long-term harm in the interest of their own short-term political motivations.
The House proposal offers a measured, fiscally responsible approach that grants us flexibility in reducing rates next year, while providing meaningful tax relief this year. The governor’s proposed buydown to 4% would result in future tax rates that are more than double what’s offered in the House proposal.
Affordability isn’t political. Vermonters don’t need partisan, self-interested politicians trying to buy their re-election by keeping tax increases lower today just to see them skyrocket out of control next year.
Yesterday, many excuses were used by Republicans as to why we are in the position we are today, but there was no mention of the ten years of a Republican administration’s failure to solve the problems we’re still facing today.
Vermont House Democrats will continue to do the work of supporting public schools and the students they serve, while doing so responsibly and sustainably for the taxpayers of Vermont.
The author, an Essex Democrat, is the House Majority Leader.