Written by Ethan Weinstein/VTDigger
Submitted
The latest data shows a slight decline in projected education spending, supporting previous anecdotal evidence regarding the key factors driving projected increases in education property taxes.
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 $1.71 billion in fiscal year 2025). 1.94 billion).
Budget information from late January to early February predicted that average education property taxes would increase by 19% to 20%, but many districts have cut funding from their budgets, resulting in a downward revision. Are expected. Educational funding data has been updated.
Education Department Finance Director Nicole Lee released the results of a survey Feb. 27 that asked school districts about costs related to special education, construction, 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 the data was highly preliminary and subject to change and error, House Ways and Means Committee testimony said. 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.
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While 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
The tax is expected to raise $20.4 million next year, reducing the average increase in education property taxes by 1.4 percent, according to the Consolidated Fiscal Administration's model.
“It's not surprising, but it's disappointing that the additional $20 million doesn't make much of a difference,” said Rep. Catherine Sims, D-Craftsbury. She said: “The scale of this challenge… is huge.”