Reps. Stevens & Wood: Anticipating an ‘unacceptable’ state forecast on education costs
November 30, 2024 | By Reps. Tom Stevens and Theresa Wood To the community:
We are reaching out to let you know that the release of the “December 1” letter is coming in a few days. This letter is a precursor to our work in the legislature concerning education spending, and we expect it to predict an increase in property tax rates that is unacceptable.
This concerns us, as we know it concerns you. Between high housing costs, high healthcare costs and high costs of living, far too many families are very concerned about paying their bills. And while the expected reasons listed below indicate that a substantial percentage of the increase is due to circumstances, like an increase in health insurance rates, we know that any increase will create hardship for many Vermont families.
This letter, released by the Tax Commissioner, communicates what the administration expects will be our average statewide property tax next year, based on:
1. expected revenues
2. expected property values
3. the budgets school boards are proposing to local voters
4. other currently existing costs in the education fund.
5. any funding gap created by decisions the prior year
Why will this tax rate estimate be high? As school boards build their budgets, all the fundamentals that drove high spending last year are still in place. These increases include cost pressures boards cannot fix on their own, including:
1. Double-digit increases in healthcare premiums (Last year, increases in teacher healthcare and mental health costs drove total spending up about $100 million, or 10 cents on the tax rate.)
2. Our extraordinary shortage of housing paired with our aging population means we have fewer school-aged children. Fewer kids mean higher costs per kid to maintain our same basic programs.
3. School districts are responsible for more social services, including for an unprecedented number of unhoused children this year. It is unclear how much upward pressure this will put on school budgets, and whether this is the most efficient and effective way to address child poverty.
4. We need a new funding formula that appropriately directs resources to make sure every district has what it needs to educate its children.
To bring down the burden on property taxpayers, we have to address some of these fundamentals that are driving up spending.
We will be working to make sure every child has the opportunities they need at a price taxpayers can afford. That may mean we have to do a few things differently. We believe all options should be on the table. We are open to some hard tradeoffs to protect what we care about most for our children while protecting people from cost increases they cannot afford.
We appreciate those of you who shared your concerns and priorities over the last several months. We will bring your hopes and concerns to our conversations in the legislature. We have great faith in Vermonters’ ability to work together and compromise to solve hard problems, once we put our hearts and minds to it.
As always, please reach out with questions.
Rep. Tom Stevens
Rep. Theresa Wood
Reps. Stevens and Wood
Waterbury Democrats Tom Stevens and Theresa Wood are the state representatives for the Washington-Chittenden district covering Waterbury, Bolton, Huntington and Buels Gore. Stevens chairs the House General and Housing Committee; Wood is chair of the House Human Services Committee.
Contact them at tstevens@leg.state.vt.us and twood@leg.state.vt.us.