The annual December 1 letter from the Tax Commissioner is traditionally a sober, objective forecast of education yields, providing necessary data for local school districts to plan their budgets. This year, however, the letter crossed a line, serving instead as a political platform for the Governor’s school governance agenda.
This month I write to state unequivocally: the deep-rooted challenges impacting Vermont’s education fund are structural and must be solved statewide. I firmly believe that a mandate to dismantle and consolidate successful, efficient local districts like ours is misplaced and will not resolve these issues.
1. The Real Reason for Rising Tax Burdens: Missing Funds and Health Costs
The Commissioner's message places the focus squarely on local spending and the need for redistricting, yet it neglects to mention the two massive, fundamental cost drivers forcing the current pressure:
- The $118 Million Funding Gap: The sharp increase in the coming fiscal year is largely due to the Legislature’s one-time decision last year to spend $118 million in General Fund surplus and Education Fund reserves to "buy down" the FY26 property tax rate. That one-time money is gone, creating an immediate and unavoidable $118 million funding gap that must be filled by property taxes or new state revenue in FY27. This is a statewide issue created by a state-level decision for tax relief, not local school board spending.
- The Health Care Crisis: The single largest, uncontrolled cost driver is health care for school employees. The state’s Education Fund faces an annual health care cost of $365 million. We have seen premium increases of 16% in FY25 and 12% in FY26. Health insurance is projected to consume up to 20% of school budgets in FY27. This colossal financial burden is not controllable by local school boards; it is a statewide issue that requires legislative solutions.
2. The MVSD: An Example of Efficiency, Not Excess
While statewide leaders push a narrative that only massive consolidation can achieve savings, the Missisquoi Valley School District (MVSD) stands as a living testament to local efficiency and success.
- Financial Performance: MVSD is a consolidated district that has already realized efficiencies, offering a strong education at a below-average cost to taxpayers. Our per-pupil spending is consistently in the lowest quartile of districts, illustrating responsible fiscal management.
- Educational Success: Despite our cost-consciousness, our students are thriving, with performance steadily improving and moving toward the state average in most academic areas.
- Community Stability: Unlike the dire statewide portrait of declining enrollment, our county has stable pupil numbers, and our district has remained stable, meaning the need for forced, disruptive restructuring simply does not apply here. Our cost predictions for the coming budget year are minimal, demonstrating that efficiency is already a core component of our operation.
The premise that one-size-fits-all, mandated consolidation—which lacks clear evidence of cost savings and is a key legislative uncertainty —is the "only path" is a dangerous political talking point that ignores districts like ours that are already doing the work.
3. What the Legislature Can—And Should—Do
I share the community’s demand for a stable, affordable education system, and want to reassure you that our Legislature has clear, meaningful ways to rectify the current funding challenges without tearing apart community school governance.
The solution is not political disruption, but sound policy:
- Establish Sustainable Revenue: Secure long-term, recurring revenue to support the education fund, replacing the $118 million hole created by last year's one-time tax relief and building equity into our funding system.
- Confront Cost Drivers: Use statewide policy tools to address the crippling cost of health care, which is on track to consume 20% of school budgets.
- Support Current Reforms: Ensure the successful and consistent implementation of existing, equity-focused reforms, such as the special education funding changes (Act 173), which have seen cost increases and uneven rollouts.
MVSD is committed to working with our local representatives to advocate for these evidence-based, structural solutions. We thank our community for its continued support as we navigate this challenging budgeting cycle.