David Sharpe
Rep. David Sharpe, D-Bristol, is chair of the House Education Committee. File photo by Amy Ash Nixon/VTDigger
[T]he House Education Committee isnโ€™t willing to trade increased investment in early and higher education for what it says would be higher property taxes under Gov. Phil Scottโ€™s budget proposal.

The panel canโ€™t support many of the key elements of Scottโ€™s plan because it doesnโ€™t take into account increases in school budgets, members wrote to the House Appropriations Committee.

The education committee lauded the governorโ€™s commitment to investing in child care, early education programs and the stateโ€™s college system. But members said that because he based his proposal on the idea that school boards would rewrite their budgets for the next fiscal year, reducing spending to the current yearโ€™s level, the plan couldnโ€™t work.

โ€œAt this time, school district education spending is trending approximately 3.4 percent above FY17,โ€ the memo says. โ€œThe Committee is not prepared to undo the hard work of our school boards by imposing a hard cap across all districts.โ€

Members also wrote that paying for the request through the education fund would put additional pressure on the property tax. โ€œThe committee finds that use of the property tax to fund education is already putting extraordinary pressure on taxpayers, and we are not prepared to recommend raising them more,โ€ the memo says.

Phil Scott
Gov. Phil Scott speaks at a news conference defending his education proposal. File photo by Erin Mansfield/VTDigger
By getting school districts to level fund for fiscal 2018, the governor hoped to capture enough money to invest $9.6 million in early education and $6.5 million in the Vermont State Colleges System, the University of Vermont, Vermont Student Assistance Corp. and training programs, while lowering property taxes. But the Legislature decided not to ask school boards to scrap their already prepared budgets and start over with a May vote, as Scott requested.

โ€œIf I were to level fund schoolsโ€™ budgets, I would disagree with pouring this stuff into the ed fund. I would use some of it to lower property taxes. Thatโ€™s what people want,โ€ said Rep. David Sharpe, D-Bristol, chair of the education panel.

The governor wants to change the way the state thinks about and pays for education to include schooling and training from birth to 16 and beyond. Rep. Adam Greshin, I-Warren, a member of House Education, said the idea makes sense.

โ€œThe governor has encouraged us to reconsider how we pay for certain components of the continuum of education, notably early education and postsecondary education,โ€ he said, adding that the line between the end of high school and start of college is increasingly blurry because of programs such as dual enrollment and early college. Greshin said he hopes the governorโ€™s ideas will make it into next yearโ€™s budget plans.

In a February memo, the Appropriations Committee asked the House education panel to weigh in on the governorโ€™s proposals. It asked specifically about increased funding for early and higher education, transferring costs now covered under the general fund to the education fund โ€” such as teacher retirement, child care and higher education โ€” and spending more on dual enrollment and early college programs for high school students.

The governorโ€™s plan would have changed what is now a statutory requirement for the transfer of money from the general fund to the education fund and instead made it an annual appropriation. Lawmakers said that having the Legislature set the amount of the fund transfer would put in place the sort of practice that led the courts to reach the Brigham decision, which declared the education funding system unconstitutional. Before Act 60, which grew out of the Brigham decision, the state could shortchange the education fund during lean budget years.

Returning to this method of directing general fund support to pre-kindergarten through 12th grade education would likely result in a similar situation, the committee said. โ€œWe suggest this be returned to its original language without change,โ€ the committee wrote.

Members also objected to moving teacher retirement and health care support from the general fund to the education fund. The education fund is almost completely paid for with property tax revenues. Lawmakers said the fund didnโ€™t have the capacity to take on this and additional increases in other programs.

But House Education members did generally agree with the governorโ€™s wish to raise funding for high school completion programs, dual enrollment and distance learning. They said they would try to find programs in the education fund that arenโ€™t fully contributing to the success of students and can be reduced or cut, freeing up money.

โ€œThe governorโ€™s proposal has merit, and many of his initiatives deserve consideration in our committee. However, the funding source โ€” level-funded school budgets and reduced health care contributions โ€” are off the table,โ€ Greshin said.



Twitter: @tpache. Tiffany Danitz Pache was VTDigger's education reporter.

9 replies on “Seeing tax hike, House Education panel resists Scott budget”