The latest data from the Vermont Agency of Education shows a slight decrease in projected education spending, confirming previous anecdotal evidence regarding the main factors driving projected education property tax increases. .
The agency's study found that health care costs, construction costs, special education, disappeared federal funds and salary increases all accounted for a $230 million increase in education spending (from $1.71 billion in fiscal year 2024 to 2025). 1.94 billion).
Based on new budget information from late January to early February, the average education property tax is projected to increase by 19% instead of 20%, which would reduce the amount that would need to be raised from the education fund by approximately $1,500. This would result in a decrease of $1,000,000. The revised numbers are due to some school districts cutting funding from their budgets and updated education funding data.
Education Department Finance Director Nicole Lee released the results of a survey Tuesday that asked school districts about costs related to special education, construction costs, federal funding, mental and behavioral health, school staff and staff benefits.
More than 80% (43 of 52) of supervisory unions and districts responded to the survey, and Lee acknowledged that the data was highly preliminary and subject to change and error, according to House Ways and Means Committee testimony. mentioned in. The data also does not take into account the number of students in each district, but Lee said both large and small districts responded.
Here are some takeaways from the data:
- The total cost of special education is projected to increase by approximately 30% over the past three years.
- Construction spending is expected to increase 32% year-over-year, which will reduce funding from capital reserves and increase funding from bonds.
- Costs associated with staff retention, which were once paid for with federal funds, increased by more than 150%, totaling about $15 million in increases for the districts that provided the data.
- Although the total number of full-time employees was essentially flat year-over-year, salaries increased by approximately 8% and benefits increased by 33%. (Lee cautioned that these numbers require further consideration and may reflect a larger leap than reality.)
- The districts surveyed added funding for 648 full-time employees directly or indirectly related to mental and behavioral health in the three most recent budget years.
As part of the ongoing discussion on how states can lower education property taxes, the commission also proposed a “cloud tax” that would eliminate the sales tax exemption for software programs stored and accessed over the Internet. We also considered the effects of
According to the Consolidated Fiscal Administration's model, the tax is expected to raise $20.4 million next year, reducing the average educational property tax increase from 19% to 17.6%.
“It's not surprising, but it's just disappointing that adding 20 million doesn't move the needle much,” said Rep. Katherine Sims, D-Craftsbury. She said: “The scale of this challenge… is huge.”