Education reform and property taxes
Vermont continues major education and property-tax reforms after years of rising school spending (now about $2.5 billion for pre-K–12) that drive double-digit property-tax pressure. Act 170 / H.955 advances a foundation formula and Cooperative Educational Service Areas without forced school mergers; the FY27 budget used over $100 million in one-time funds to buy down projected property-tax hikes while the governor and legislature remain divided on deeper structural cuts versus local control.
How should Vermont address rising education costs and property tax increases?
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Sources
Vermont League of Cities and Towns — https://www.vlct.org/weeklylegislativereport/2026-legislative-wrap
Act 170 / H.955 is the second bill in as many years to carry substantial education and state property tax reforms, and it continues implementation of Regional Assessment Districts. Despite early threats by the governor to veto the state budget over disagreements in the education reform package, this 152-page bill represents a compromise position... This law does not force school mergers or eliminate supervisory unions, which the governor had supported, but it does advance the concept of a foundation formula, and it introduces an emerging effort to cut back administrative costs through Cooperative Educational Service Areas (CESAs)
Gov. Phil Scott — https://www.vermontpublic.org/local-news/2026-01-20/watch-listen-phil-scott-2026-budget-address
While we do the hard work to fix the structural issues in education, I propose dedicating $105 million through Budget Adjustment and the Big Bill for property tax relief. This will cut the projected increase by about half.
Gov. Phil Scott — https://governor.vermont.gov/press-release/governor-phil-scott-delivers-2026-state-state-address
Vermonters are set to spend $2.5 billion on pre-K through 12. When I became Governor, it was $1.6 billion... we expect education spending to require another $200 million, and another double-digit property tax increase that Vermonters can’t afford.
Positions on this issue · liberal → conservative
- Fully fund schools with more state revenue and reject spending caps or administrative consolidation
- Increase state aid and targeted investments while limiting forced local cuts
- Continue compromise foundation formula, CESAs, and temporary tax buy-downs
- Require deeper local spending cuts and administrative savings before more state relief
- Force mergers, eliminate supervisory unions, and sharply cut education spending to lower taxes