[T]he head of the school boards association told lawmakers on Thursday that dramatic changes to the education finance system should wait for a year.
Nicole Mace, executive director for the Vermont School Boards Association, says school districts have already prepared budgets for fiscal year 2019 and changes midstream would be disruptive.
“As you know, the vast majority of our school boards have completed their budgets,” Mace said. “They will stand before their communities in a matter of weeks asking for support of the budget, and if they are not able to explain what the budget means in terms of tax impact they are in a very difficult position.”
Most towns vote on their school budgets on Town Meeting Day, the first Tuesday in March.
For decades, the property tax has been the main source of revenue for schools. While an income tax component has been batted around in the past, this is the first time in years that lawmakers have taken up a concrete proposal.
The House Ways and Means Committee plan unveiled last week would cut property taxes by a third and institute a school income tax that would be levied on the adjusted gross incomes of all residents — sole proprietors, investors and wage earners (through a payroll deduction).
The plan is revenue neutral, although it includes a 7 percent increase in anticipated education spending. Most of the increase is due to a decision lawmakers made last session to lower taxes, raid reserves and spend one-time money. Gov. Phil Scott has said he will oppose the increase in taxes.
Mace said she understands the urgency lawmakers feel because of the tax increase. “We raised concerns about that last year,” she said. “We said we would be in this situation. I don’t believe school boards will support a change in fiscal year 2019 because they won’t be able to explain to their communities the impact of voting on the budget in March.”
Jeff Francis, executive director of the Vermont Superintendents Association, also urged lawmakers to put changes into effect the following year. Francis said a new education financing formula would cause a lot of confusion, possibly giving school boards the mistaken idea that they have more money to spend.
“I’m really worried about the translation and how it could manifest itself on votes that could take place in March,” said Francis.
Rep. Cynthia Browning, D-Arlington, said it would make sense to enact the change this year with an effective date next year. “That gives time for adjusting and transitioning,” Browning said. “We have to bite the bullet as a result of what we did last year, but then you have hope for the future.”
Rep. Janet Ancel, D-Calais, chair of House Ways and Means, said the time frame for writing the bill is the same whether it goes into effect this year or next year.
Ancel advised school boards to explain budgets in the context of a 7 percent increase. “That is probably what you should do whatever happens, even if we were to pass something,” she said.
