(This story by Chris Mays was published in the Brattleboro Reformer on Nov. 3, 2017.)
WHITINGHAM — The town is moving ahead with a lawsuit against the state over a property tax system it considers unconstitutional.
The town of Whitingham filed a lawsuit with Twin Valley student Sadie Boyd and Whitingham resident Madeline Klein on Oct. 27, according to a news release.
“The plaintiffs are asking for an injunction against the aspects of the education funding and property taxation systems that they allege are unconstitutional, and believe that the changes they seek will benefit students and taxpayers not only in Whitingham, but across Vermont,” the release stated.
The lawsuit came about after the two towns making up the Twin Valley school system, Whitingham and Wilmington, saw large increases in their school tax bills.
Whitingham School Board member Seth Boyd said the Twin Valley School Board has been supportive of the lawsuit, although members had not taken a vote. He recently “retired” from the Twin Valley board after being its chairman for several years.
“I think the School Board is very supportive of a change to the education funding formula,” Boyd said. “We think we have an extremely good case that says Whitingham students or Twin Valley students are not afforded the same opportunity as other schools and the Twin Valley taxpayers are paying a good portion of property taxes for them.”
He called the situation “a classic example” of how the education funding formula in Vermont does not work.
The suit alleges that “the state’s education funding and property taxation systems violate the state constitution,” according to the press release. The plaintiffs say “the state is violating Whitingham students’ right to equal educational opportunity and Whitingham resident taxpayers’ right to not be taxed disproportionately.”
“The plaintiffs allege that the state is violating Whitingham students’ constitutional right to equal educational opportunity, a right recognized by the Supreme Court of Vermont in the landmark 1997 decision in Brigham v. State, by funding their education based on the number of ‘equalized pupils’ rather than on the actual cost of educating students,” the release stated. “The plaintiffs allege that the state’s constitutional violation is reflected in the disparity between the courses and other educational opportunities offered by the Twin Valley schools and those offered by larger schools in Vermont.”
The plaintiffs allege that the state is harming Whitingham resident taxpayers, who saw an increase of more than 30 cents this year, meaning more than $300 from last year for property assessed at $100,000. This hike in the rate came after the Twin Valley board cut almost $300,000 from the previous year’s budget.
The plaintiffs “point to several factors responsible for the increase in the tax rate, none greater than the state’s penalty for so-called ‘excess spending,’” the release stated, adding that spending above the threshold was “necessary to provide Whitingham students with the limited educational opportunities that are also the subject of the lawsuit.”
Selectboards in Wilmington and Whitingham had discussed the possibility of a lawsuit in March after voters in both towns rejected the Twin Valley budget. The budget was then slightly revised and approved.
At annual Town Meeting in Whitingham in March, voters had approved of establishing a legal fund with $100,000 to fight the state. The town also decided to move forward with the lawsuit alone rather than with Wilmington.
Wilmington Selectboard Vice Chairman and state Rep. John Gannon, Windham-6, brought up the lawsuit Wednesday at a meeting.
“I haven’t read the complaint yet,” he said. “But that process has started.”
It is past time for a challenge, state Rep. Laura Sibilia, I-Windham-Bennington, told the Reformer.
“The Vermont education funding mechanism has not substantially equalized education opportunity for Vermont students,” she said. “In addition, Vermont taxpayers are unable to assess the value of their investment in the statewide fund. Our municipalities are dealing with instability on tax rates year after year that they cannot change.”
The constitutional issues brought forth in the lawsuit are about equity and access, Sibilia said.
“On top of those constitutional issues, I believe Vermonters want to ensure we provide world-class education to all of our students and are accountable to all of our taxpayers,” she said. “We do not have an education financing or delivery system that delivers either.”
Brattleboro-based attorney James Valente attended the meeting in March with the two boards. He is now representing the plaintiffs. Attempts to reach Valente and Klein were unsuccessful.
