State Senate Votes to Reform Act 60 Education Bill

Author: Ryan Gamble

Recent surpluses in the state's education fund have prompted attempts to reform Act 60, the bill that regulates the way Vermonters pay for public schools. On Feb. 26, the Vermont State Senate unanimously passed a reform bill that would return surplus money from previous years to taxpayers in the form of a cut on property taxes, and would simplify the process of the collection and distribution of state money.
Currently, under Act 60, property taxes are collected by the state and distributed to educational districts as a "block grant" per student, an amount intended to pay for basic school services. The goal of Act 60 is to ensure that all students in Vermont are given equal educational opportunity.
Yet Act 60 has long been controversial. Many Vermonters support increased local control over school spending. Some school districts already supplement the block grant with additional, locally raised funding. While the state block grant for the current school year is $5,566, the average amount spent on a Vermont student is approximately $8,000. Middlebury spends a little over $10,000 per student, while Weybridge spends about $11,000 per student.
The current surpluses are primarily due to two factors. First, in spite of the recent economic recession, the local housing market has undergone rapid inflation over the last few years. This has led to an increase in state revenue from property taxes thanks to higher property values. Secondly, statewide population has led to a decrease in the number of students attending schools.
The new Senate reform proposal would increase the state block grant to $7,000 in 2005, bringing it closer to the actual costs of education. The bill would also appropriate more control to local authorities. While property taxes are currently assessed by the state as a percentage of property value, the new reform bill would allow local school districts to determine the property tax rate within their district based on whether they wanted to spend more or less than the $7,000 grant. If a town chose to spend 10 percent less than the $7,000 per student, for example, that town's school property tax would fall by 10 percent.
Many representatives have voiced optimism about the new reform. In a statement to The Middlebury Campus, Representative Steven Maier (D - Middlebury) said, "I am for that reform which is as equitable as possible. The new Senate proposal is a step in that direction." He also praised educational quality standards set by Act 60 which have achieved widespread success despite little recognition.
State Senator Claire Ayer (D - Addison County), a member of the committee that drafted the reform proposal believes that, the new reform has many advantages beyond a return of surplus dollars to taxpayers. She noted that the reform bill ensures that in subsequent years all money paid by homeowners will be funneled into the education system. Additionally, Ayer said, the new bill will provide tax relief to farmers.
Despite these strengths, Ayer believes there are still problems with the current reform. She pointed out that the reform bill did not address the unpredictability of property appraisal under Act 60. A summer study group has been established to research this problem. Ayer also expressed concern over the rising costs of special education programs and health insurance for teachers, administrators and staff. These are issues she believes need to be addressed in order for education in Vermont to maintain its current quality at an acceptable cost.
While the Senate bill has gained popularity among Republicans and Democrats alike, it is only one development in an ongoing effort to reform educational funding in Vermont. It has been created alongside a House bill and the Governor's bill also aimed at Act 60 reform. However, the Senate bill is more comprehensive than the House bill, which only outlines a plan for educational spending during the next year. The Senate bill provides for a transitional year in 2004, and the implementation of full reforms in 2005. While the reform bill gained unanimous support in the Senate, changes will likely be made before the bill is ultimately approved. Representatives are not optimistic about approving a reform bill that incorporates long-term Act 60 changes until May.