Editor’s note: This article is by Lisa McCormack of the Stowe Reporter, in which it was first published Oct. 1, 2015.
[H]ow will a new state law affect local control over school spending?
Why are Stowe schools being forced to consider a merger when they already meet the requirements and goals set out in that law?
That’s what several dozen people wanted to know Sept. 28 as the Stowe School Board held a forum on Act 46, adopted by the Legislature in April. It calls on the state’s 277 school districts to merge into “preferred education districts” with at least 900 pupils — considerably larger than most Vermont districts are now.
The idea is to share resources and expertise, save money, and improve educational opportunities for students. In the long run, state leaders hope, efficiencies will also develop.
The people at the meeting, many of them parents with children in Stowe schools, pointed out that Stowe already has three schools that form a highly functioning K-12 school system; the district already works closely with Elmore and Morristown to find efficiencies and economies of scale; and it already collaborates to offer students excellent educational opportunities.
Additionally, while enrollment has declined 20 percent statewide in the past two decades, in Stowe it’s been growing an average of 2 percent each year.
A few parents suggested the state government should focus on poorly performing school districts instead of trying to fix something that’s not broken.
School board members agreed.
“This is a case where one size doesn’t fit all,” said school board chair Cam Page.
The Stowe board has decided to ask the state to allow Stowe to remain a standalone school district, with its own budget and its own school board.
As a standalone district, it may decide to remain part of the Lamoille South Supervisory Union and share resources with its partners Elmore and Morristown. School board members will discuss that option with the Elmore and Morristown boards later this year.
On Nov. 3, voters in those two towns will decide whether to merge into a unified union school district. The Morristown and Elmore school boards want to wait until after that vote to start discussing their response to Act 46.
The Stowe School Board plans to file its alternative governance plan with the Vermont School Boards Association and the Vermont Agency of Education by November 2017. If approved, the plan could become operational July 1, 2019.
A lot of things about Act 46 are in flux, including the terms under which a school district can avoid a merger. So, Stowe must keep open, for now, the option of merging with Morristown and Elmore.
It’s also looking at merging with Wolcott, which doesn’t have its own middle or high school and pays tuition to send its students to schools in other communities — in Morrisville, Hyde Park, Stowe and other communities.
Wolcott has fewer residents than Stowe and therefore would likely have less representation on a merged school board, giving Stowe an advantage.
“We decided to keep all of our options open,” Page said.
While much remains unknown about how Act 46 will ultimately affect Stowe, one thing is certain: No matter what path the school board takes, education taxes will rise sharply over the next several years.
The law doesn’t address the way Vermont pays for education or how education taxes are collected.
“It’s not about education finance,” said board member Richard Bland. “There is nothing in this law about how we finance education.”
Currently, Stowe’s education tax rate is $1.50 per $1,000 of property value. Based on preliminary projections provided by Andrew Lundeen, director of school finance and operations for Lamoille South:
• If the state lets Stowe remain a standalone school district, the tax rate will rise 26 percent to $1.90 by the 2022-23 school year.
• If Stowe were to pursue a merger with another district in the near future — an option that offers some temporary tax incentives — the tax rate would rise 47 percent, to $2.21, by 2022-23.
• If Stowe does nothing, which would result in a tax penalty and possible forced merger, the tax rate would rise 43 percent to $2.15 by 2022-23.
Morristown taxpayers face similar increases.
School districts that have been fiscally prudent and already have lean budgets will be hit the hardest by the effects of Act 46, because there’s little left to cut.
Stowe already spends less than the state per-student average, $14,307 vs. $14,412, according board member Jim Brochhausen.
While it doesn’t address school-tax reform, the law does aim to curtail school spending increases.
School districts that have not yet enacted merger plans must limit annual per-student spending increases to 2 percent. Any amount spent over that will be taxed at 200 percent the current rate for that district.
Historically, Stowe’s annual school budget increases have been about 3 percent. A spike in enrollment resulted in a lower-than-average per-student spending increase of just 1.5 percent for the current school year.
During the meeting, school board members worked to dispel misinformation about Act 46 that’s been circulating on social media.
For instance, some people were worried that their children might be bused to schools in other towns if the state forced a merger. Others feared some schools could be forced to close.
The law does not call for either of those things to happen, Page said.
Stowe resident John Clark suggested that Stowe join other high-performing school districts and “take legal action” against the state to avoid a forced merger.
“I think the board has done a good job, but it’s time to go on the offense,” Clark said. “Let’s stir the pot a little.”
As the meeting drew to a close, a parent thanked the school board for working diligently to do what’s best for students, and the room erupted in applause.
For email updates on Act 46, sign up at lamoillesouthsu.org. The school board meets on the first and third Monday each month at 6 p.m. at Stowe Elementary School.
