MONTPELIER, Vt. (WCAX) – Vermont House lawmakers Thursday finalized a plan for a modest buy-down to ease soaring property taxes, but it continues to face withering criticism from the governor for not going far enough to protect taxpayers from double-digit increases.
A record number of communities last month rejected their school budgets — and continue to do so — as part of a property tax revolt over double-digit increases..
School spending is up across the board this year, fueled by inflation, deferred school maintenance, teacher’s health care, mental and behavioral support for students, and the end of pandemic cash, among other reasons. The $2 billion statewide Education Fund now eclipses the spending for the rest of state government for the first time ever.
“The issue is very complicated. that’s not just a trite thing to say, it really is,” said Rep. Peter Conlon, D-Cornwall.
Lawmakers have scrambled for a solution but on Thursday arrived at only a modest proposal for property tax relief. The yield bill approved by the House Ways and Means Committee would raise about $27 million through new taxes on short-term rentals and business software. But that will only offset a fraction of the $ 200 million increase in school spending.
“You are seeing the culmination of some really tough decisions coming here together to make sure we get it right, and that we don’t have any unintended consequences for what we want to do,” said Vt. House Speaker Jill Krowinski, D-Burlington.
The speaker was among lawmakers flanked by school administrators in announcing they are forming a group to study the issue and come up with a new school funding formula. “Its overarching goal is to provide a vision for public education in Vermont,” Rep. Conlon said.
But at a press conference of their own, GOP lawmakers blasted Democrats for not developing a plan this year. “And then we say we’re not going to make changes to the system and do the same thing next year? I think that lacks leadership,” said Rep. Scott Beck, R-St. Johnsbury.
Governor Phil Scott in a statement blasted the Democrats’ plan, threatening to veto the yield bill. “Today, it is clear the House’s only plan is to accept an unbearable property tax increase, without any cost containment, while adding other taxes and studying the problem for a couple of years. That means we’ll be in this same mess for years to come. I cannot accept this, I know Vermonters won’t, and I hope the Senate doesn’t either.” Scott said.
But neither Democrats nor Republicans appear to back a proposal from the governor that would loan state reserves to local districts.
As school budget revotes continue to fail, state lawmakers are asking Vermonters to continue to support schools while they rethink what education should look like and how it should be funded. “This is a moment schools are under tremendous pressure. we need to make sure we are supporting them as we work toward a more sustainable future together,” said Rep. Emilie Kornheiser, D-Brattleboro.
The full House is expected to vote on the yield bill next week then it will head to the Senate. But with time running starting to run out in the session, any big changes remain unlikely.