Governor Phil Scott of Vermont has announced that he wants to prevent any increase in property taxes next year, despite a forecast that predicts a 5.9% rise. Both Democratic and Republican lawmakers have suggested reducing this increase to 3%. However, Scott is working on a proposal to keep property tax bills unchanged for 2025.
To lower the tax increase, lawmakers have two main options: cut education spending or find other sources of revenue to fill the education fund gap. While it’s common for the state to use one-time money to reduce tax increases, some worry that this could lead to financial problems in the future. Senate President Phil Baruth, for example, warned that using other funds to lower taxes could create long-term issues.
One idea to reduce costs is eliminating Vermont’s universal free school meals program, which could save about $25 million a year, lowering taxes by 2%. School districts might also reduce their proposed budgets to help lower taxes.
Baruth expressed that he doesn’t want to see any increase in taxes but feels a small rise, around 3%, might be acceptable, considering inflation. House Minority Leader Pattie McCoy agrees that a 3% increase has been typical in the past and might be reasonable.
The debate about property tax rates is part of a larger discussion on how to manage education costs in the long term. Scott plans to share his proposals after presenting his budget in January, while a special commission will suggest possible reforms by December.
House Speaker Jill Krowinski emphasized that reforming Vermont’s education system will be challenging. She encourages everyone to stay focused on finding solutions, even though tough decisions may lie ahead. Governor Scott also acknowledged that the work ahead will be difficult for everyone involved.