Urgent request seeks to decouple capital construction debt from per-pupil spending formula
By Guy Page
The Mountain Views Supervisory Union (MVSU) in Woodstock on September 12 issued a statewide call for the Vermont Legislature to convene a special session this fall to decouple capital construction debt from the Act 73 per-pupil spending calculation—a move the district argues is essential to protect taxpayers and enable long-overdue investments in school infrastructure.
Like many school districts, MVSU has an aging school building and little to no money to replace it. The district was optimistic after the Agency of Education in 2024 approved a $99 million rebuild of the high school and middle school – provided the Legislature made the funds available.
It didn’t. But it has an advisory group working on the growing problem. Vermont has been without a school capital construction budget since 2007. Rebuilding and repairing substandard schools will cost about $300 million per year for 20 years, a state study estimates.
Gov. Phil Scott said a special session isn’t needed because an advisory board is already tasked with finding solutions. “We will not be having a special session,” he said at his September 10 press conference. “January will be coming soon enough and we’ll address whatever needs to be addressed at that point. I would just say that the school construction aid advisory board has been formed and is meeting and I think that’s the type of consideration that they might review and make recommendations accordingly.”
The State Constitution allows special sessions to be called by the governor “when necessary.” According to the Vermont Secretary of State website, there is no definition of what constitutes “when necessary” and special sessions, also known as extraordinary or extra sessions, have been called for a variety of reasons.
The first special session was called in 1857, in response to the first statehouse fire. As of June 2018 there had been 27 special sessions. The most common reasons for calling special sessions have been fiscal issues, federal legislation, war, and natural disaster.
The MVSU call to action, formalized in a letter unanimously approved by school directors at their September 8 meeting, has been released publicly and offered for co-signature by other supervisory unions and districts across Vermont.
A crisis decades in the making
Currently, when school districts borrow funds to renovate or build facilities, that spending is counted toward their total per-pupil education cost. Once spending exceeds the state’s “excess spending threshold,” taxpayers must pay a punitive double tax—two dollars for every dollar spent over the cap.
MVSU officials say this creates an impossible tradeoff: invest in safe, modern learning environments or risk unfair tax penalties on local communities.
“It’s a 70-year-old building at the end of its lifespan,” said Joe Rigoli, MVSU Director of Buildings and Grounds, referring to the Woodstock Union High School and Middle School (WUHSMS). “It’s really quite simple: it’s the end of the line, folks.”
Rigoli noted that WUHSMS is now more than 90% depreciated, far beyond the state’s 60% threshold for receiving construction aid. As a result, the district is left to shoulder massive capital expenses without state support.
In the letter to legislators, the MVSU Board outlines three key demands:
1. Decouple capital construction debt from the per-pupil spending formula.
2. Shield taxpayers from double taxation caused by unavoidable infrastructure investments.
3. Acknowledge that school facility needs are a shared statewide responsibility—not a local burden.
Board Chair Keri Bristow emphasized that this is not just a local issue. “The injection of capital-debt dollars into our per-pupil spend adversely affects every district in Vermont. Any district forced to take on bonds can trigger penalties that ripple across the entire education finance system,” she said. “Decoupling is the only fair and sustainable path forward.”
New law, old buildings
The Board says its appeal aligns with the goals of Act 73, Vermont’s recently passed education reform law, and the establishment of the State Aid for School Construction Program, which began on July 1. However, despite these steps, the state hasn’t funded any school construction projects since 2007.
Superintendent Sherry Sousa described an infrastructure crisis that’s no longer theoretical. “Some schools are on the brink of closure. Others may have to move students into trailers on athletic fields if one more system fails,” she said. “Right now, we’re dealing with a failed drainage system that’s threatening our cafeteria—and that’s just today’s emergency.”
In one case, a cast iron pipe rusted completely through, leaving no bottom and allowing wastewater to flow directly into the surrounding ground. “This is the kind of problem we can’t ignore—and shouldn’t be punished for trying to fix,” Sousa added.
Call for statewide solidarity
The letter invites other supervisory unions and districts to co-sign the letter. Budgeting for the 2026–2027 school year begins soon, how the legislature addresses (or fails to address) this issue will determine how districts across the state plan for the future, the board claims.
The Vermont State Board of Education is expected to deliver recommendations on the transfer of debt obligations by December 15, but MVSU leaders argue immediate legislative action is necessary to prevent further harm to students and communities.
“This is about fairness, sustainability, and ensuring every child in Vermont has access to safe, functional school buildings,” said Bristow. “We can’t wait any longer.”