By Guy Page
Education property tax bills will increase by a statewide average of 5.9 percent next fiscal year, the December 1 education tax rate letter released Dec. 1 by Vermont Commissioner of Taxes Craig Bolio projects.
“We know Vermonters are already struggling to pay for this year’s unprecedented increase in property taxes, I expect another projected increase will be difficult to hear,” Bolio said. “It’s important that we continue to work together to find solutions to make our education funding system sustainable.”
This letter is based on specific calculations outlined in State law and is a result of collaboration by the Department of Taxes and other state agencies, Bolio said.
Property tax projection “unsustainable,” House Speaker says
Speaker of the House Jill Krowinski Tuesday afternoon called the recent rate of property tax increases, including the 5.9%, “unsustainable. “
“This pattern cannot be continued,” Krowinski said. House committees are on notice that it’s “all hands on deck” as they will be asked for input into solutions, she said. The problem of school funding touches every community and all parts of the Vermont economy, the leaders said.
If not 5.9%, what is the goal number? Legislators “need to do the work” before that figure can be decided, Ways and Means Chair Emilie Kornheiser said.
The solution will include cutting spending. When asked, both Krowinski and House Education Chair Peter Conlon said reducing the universal school lunch program is “on the table.”
Scott, GOP, Dem Senate and House leaders respond
While noting that ‘many will claim victory’ at a single digit increase after two years of double-digit hikes, the projected increase was greeted with dismay by Gov. Phil Scott.
“With an already high tax burden, the last thing Vermonters need is yet another property tax increase,” Scott said in a Dec. 2 statement. “I know many will claim victory, and celebrate this increase being limited to single digits. But the fact is, with this projected increase, Vermonters will have seen a 33% increase in education property taxes in the last three years. This is the result of unsustainable costs, an aging demographic, and smaller workforce.”
Scott said he hopes legislators will actually cut Vermonters’ property taxes.
“I am hopeful legislators will take a moment to reflect on how difficult any increase will be and work with my administration to reduce the tax burden on Vermonters who simply cannot afford more and make changes necessary to achieve long term sustainability. This increase could have been substantially more – and still could be – so I want to thank school administrators and school boards who have made difficult decisions because I know it’s not easy.”
Senate Minority Leader Scott Beck and House Minority Leader Patti McCoy echoed that a 33% property tax increase over three years is no cause for satisfaction.
“This year’s Letter projects an average tax bill increase of 5.9% next year. This is on top of this year’s 13.9% increase. The average Vermonters education property tax will have increased by one-third over the past three years if today’s projection holds,” the two GOP leaders said in a joint statement Dec. 2.
“For many years, Vermont Pk-12 spending increases have far surpassed Vermont’s tax base, inflation, and wage and economic growth. Vermont’s total spending on Pk-12 education next year is projected to increase 6% to $2.44B. This does not include Vermont’s Agency of Education, which is paid for by the General Fund. District education spending is projected to increase by 5.4% next year, the three-year growth has been 26.5%,” Beck and McCoy said.
“Vermonters clearly voiced their opposition to increasing education property tax rates in the most recent election and House and Senate Republicans are committed to working with Gov. Scott’s Administration, and our legislative colleagues to reform the Education Fund so that it is transparent, understandable to Vermonters and establishes a closer connection between district spending decisions and local tax rates.
In a study commissioned by the Vermont NEA, the Public Assets Institute asserts that Vermont schools can be fully funded and property taxes kept stable by increasing funding from other sources, including non-property tax revenue.
Beck and McCoy nix that idea – and with enough members in 2025 to support a possible veto by Gov. Scott, their opinions now hold weight.
“Some have proposed that education tax increases can be averted by simply dedicating additional revenue to the Education Fund or cost-shifting. Others believe if we craft a correct system of penalties and thresholds, the problem can be solved. We strongly disagree with such thinking and will oppose plans that do not include fundamental systemic reform to the Education Fund.
“House and Senate Republicans are resolved to do our part to ensure Vermont children receive an excellent education at a price Vermont taxpayers can afford. We look forward to working with Gov. Scott’s Administration and our legislative colleagues to provide tax relief for Vermonters,” Beck and McCoy said.
In November 2024, the Vermont Agency of Education published its Vermont Education Funding Report which explains Vermont’s education funding system and compares it to other states.
Additional resources for understanding education tax rates are available on the department’s website.