[T]he first attempt at crafting an education reform bill calls for fewer school districts, the phasing out of small school grants and simpler explanations for the property tax implications of school budgets to voters.

The House Education Committee began looking at a 27-page draft that would also prevent any legislative mandate that would increase education property taxes this year.
Unlike last year’s failed legislation that would have mandated that districts merge into larger regional districts, the draft language allows for alternatives if, after studying and analyzing the regional district concept, a local board decides it is “inadvisable to change the district’s governance structure.”
The committee has taken testimony from dozens of witnesses on everything from declining enrollments in the state’s public schools — which have dipped to less than 80,000 the latest figures show — to concern over rising education property tax rates, and the complex issues facing today’s schools, from special education concerns to inequality of opportunity.
“We’ve had lots of suggestions come across our desks, come through our emails, and I have worked with Donna (Russo-Savage of the Legislative Council) looking at the governor’s proposal and the suggestions we’ve heard, and have put together this start of a bill for your consideration for a committee bill,” Chairman Rep. David Sharpe, D-Bristol, told the committee.
Last year, a bill from the House sought to require the state’s 282 school districts to realign into an estimated 45-55 expanded districts by July 1, 2020. This bill forces them to at least try.
Gov. Peter Shumlin was receptive to the first step.
“I’m pleased that both the House and Senate are taking up the proposals I laid out last month to get school spending under control and help ease the burden of rising property taxes on hardworking Vermonters,” Shumlin said in a statement. “Solving this problem won’t happen overnight, and it will take everyone working together with a willingness to listen to new ideas.”
The Senate Education Committee has asked legislative counsel to draft all of the governor’s calls for education reform into bill language, Russo-Savage said Thursday.
“It provides a place to start the conversation, and makes clear that there is no one simple answer, but that there are several steps we can take to keep local voice and accountability, even as we look for efficiencies and better outcomes for students,” said Jill Remick of the state Agency of Education.
Wrapped into the draft is H.38, a bill introduced by Rep. Alison Clarkson, D-Woodstock, that would prohibit Vermont public tuition dollars from going out of state or out of country except in certain circumstances.
Those exceptions would include a district which sends all resident students in one or more grades to a school for example in New York or New Hampshire, for border towns with existing agreements to meet educational needs; for career technical education students; and for students whose special education needs require an out-of-state residential placement.
The bill would also phase out small school grants over two years. Those grants would end when a district’s two-year average enrollment was 100 or fewer students, or had an average grade size of 20 or fewer, unless the school is in a geographically isolated location.
If schools currently receiving the grants join larger Regional Education Districts, the larger district would continue to receive that support under a five-year Merger Support Grant.
The proposal would also reduce the effect of the “phantom student” benefit that gives schools a three-year buffer when enrollment drops.
The funding side
Peter Griffin of the Legislative Council addressed some of the financial pieces of the draft legislation.
One change would include altering the computation of income sensitivity adjustments to a homeowner’s tax bill based on the same calendar year, not the previous year.
“The property tax adjustment is not actually computed on this year’s data,” Griffin said. “It’s bringing the computation of the property tax adjustment into the current year … it matches up what’s happening at town meeting. It brings the variables all into the same year.”
The draft legislation also includes H.44, introduced by Rep. Ann Manwaring, D-Wilmington, which imposes a moratorium through June 30, 2016, on any new legislation that would increase property taxes.
“Can it be said that this lends some simplicity and clarity to the process?” Sharpe asked.
“That’s definitely the intent here,” Griffin said.
Manwaring stressed, since there was so much media in the room and others watching the process begin, “This really is just step one out of the gate, and there will be lots of things added to it.”
The bill will need to go to Ways & Means and Appropriations before it hits the floor.
Darren Allen, spokesman for the VT-National Education Association, said the union will continue to work with lawmakers on the bill.
“For the first time, some of the ideas being discussed by lawmakers, state officials and policymakers are now in written form, and we look forward to working with the committee as it continues to develop its approach to public education this session,” Allen said.
