Property Tax Reform for School Funding - Should VT Go Hybrid?
Rethinking Vermont's School Funding Approach Vermont currently funds K-12 education through a mix of statewide and local property taxes. About two-thirds of the $1.6 billion yearly total comes from homeowners via tax rates and formulas set at the state level. This convoluted system aims to equalize spending across districts, but creates confusion on how increasing revenues tie to per-pupil funding and outcomes. Property tax bills also provide income-based credits for affordability, but these credits lag behind current year taxes owed. This mismatch leaves many families unaware of what drives changing tax burdens. As wages and budgets feel squeezed by taxes going up faster than incomes, public trust in the school funding model has eroded. Click here for the Joint Fiscal Office Brief on Property Tax Credit There are better approaches. Several states predominantly allocate operational funding to schools through state income or sales taxes. Others ...