Local taxpayers will see a further slight reduction in education tax rates and Fayston voters will see a slight reduction in their 10% education tax increase this year after the state established this year’s yield.
Earlier this week, Vermont Governor Phil Scott signed H.481, this year’s yield bill which sets the amount of per pupil funding each school district will receive. This year’s yield bill will result in statewide education tax increases of 1.1%, down from the. 5.9% that was projected at the beginning of the legislative session.
H.481 achieves that additional savings by utilizing $118 million in one-time funds to buy down education tax rates this year. That money comes from a $41 million surplus in the state’s education fund as well as a. $77 million transfer from the state’s general fund. While it reduces tax rates for this year, it creates a drop in the education fund for next year that will need to be addressed.
Harwood Unified Union School District finance and operations director Lisa Estler modeled the impacts of the new $8,596 yield will impact local taxpayers. The previous yield was $8,553. Her graph shows reduced town by town tax rates, impacts of those tax rates on homes of varying values and impacts of the yield on local CLAs, or Common Level of Appraisal. The higher the yield, the lower the tax impact, Estler reminded folks and also noted that the lower the CLA, the higher the tax impact. See chart below for updated information.
District superintendent Dr. Mike Leichliter reminded taxpayers that using one-time funds to buy down this year’s tax rate will leave a hole next year.
Governor Scott said the same thing when he signed the bill on May 19.
“After last year’s significant property tax increase, we knew it was important to provide Vermonters tax relief. But I want to be clear, buying down rates year after year isn’t good fiscal management and we should only view this as a bridge to the real education transformation our system needs. Before this session adjourns, it’s critical we work together to deliver an education bill that sets us on a path to a better more sustainable funding system, a more efficient and effective governance structure, and a commitment to doing the education quality work needed to make sure all students have access to educational opportunities, at a price Vermonters can afford,” Scott said.
