By Guy Page
House Republicans Thursday rejected the latest proposed fix of the $200 million education revenue shortfall and instead suggested a combination of budget cuts and longterm ed funding reform.
The so-called Yield Bill, H.887, was passed 8-4 out of the Ways and Means Committee on Wednesday. It creates two new forms of taxation – a “cloud tax” (Internet services) and a short-term rental (“BnB”) tax, and proposes a 15% property tax increase – down from the proposed 20%.
The proposed 20% tax hike sent shockwaves through Town Meeting voters, who rejected budgets in 30 school districts. Since then, 14 of those budgets have been revoted, and 11 have failed again. Rep. Carolyn Branagan of the Ways and Means Committee said Wednesday – the day after Fairfax, one of the towns she represents – said Vermont is experiencing “an old-fashioned school revolt.”
“Put simply, the projected property tax increase for this year will hurt Vermonters and our economy and we cannot let that happen,” Rep. Patti McCoy (R-Poultney), House Minority Leader, told the assembled press as about 25 GOP House members stood behind her.
McCoy fixed the blame squarely on the Democratic House supermajority.
“At a time when housing costs and interest rates are elevated, high property taxes will make our housing crisis worse,” McCoy said. “We have been acknowledging the property tax rates are going to be an issue since the December one tax letter was delivered by the tax commissioner. It is frustrating that the committees of jurisdiction have waited until April to start addressing when we have known this crisis was coming.
“We should have been talking about this every day of the session, along with housing. And now the yield bill has passed out of House Ways and Means after 10 drafts and we are being told there’s not enough time to do anything serious,” McCoy said.
Some of those earlier drafts contained a plan for mid-term and long-term cost containment – something the Republicans on the committee demanded.
However, in the final version that section was stripped out – much to the disappointment of Republican Ways & Means member Scott Beck (R-St. Johnsbury).
“Albert Einstein once said that the definition of insaniyty is doing the same thing over and over again and expecting different results,” Beck said. “Without those provisions, we’re simply left with insanity,”
“It [the Education Fund] has grown from $1.5 billion to $2.3 billion in only 10 years,” Beck said. “It’s now bigger than the General Fund – first year it’s actually been bigger.”
Why not cut spending, instead?
Beck and others were asked where they might cut spending, and in particular education spending. Suggestions:
- Stop spending $30 million in universal school meals, first approved during the pandemic era using federal funds. Vermont could return to its previous practice of using federal funding for free and reduced meals for only low-income children.
- Take a second look at allocating $1 million for ‘community schools’, a program that expands public school access to social services, Rep. Casey Toof (R-St. Albans) said.
- Oversee all Vermont public schools with one, single school district – an idea advanced without success by former Rep. Larry Cupoli (R-Rutland). This super-district would greatly reduce administrative costs without impacting in-school services, he said.
- Take aim at Vermont’s 4.4-1 student-to-staff ratio – the highest in the nation, Beck said.
Gov. Scott weighed in on criticism of H.877, scheduled for a full House vote next week:
“Vermonters already face a daunting tax burden. Too many are struggling to get by, and simply cannot afford to see their costs continue to go up. Vermonters have also made themselves abundantly clear: taxes are crushing them.
“Months ago, when the December 1 property tax projection letter came out, my team warned about the consequences of such a historic tax increase. Unfortunately, many in the Legislature brushed it off and downplayed it. For years, I’ve voiced my concerns about the sustainability of our education system and have offered ideas for the Legislature to consider that would contain costs. They have rejected those ideas, time and time again – without following through on solutions of their own.
“Today, it is clear the House’s only plan is to accept an unbearable property tax increase, without any cost containment, while adding other taxes and studying the problem for a couple years. That means we’ll be in this same mess for years to come. I cannot accept this, I know Vermonters won’t, and I hope the Senate doesn’t either.”