Politics
Vermont Passes Education Funding Bill, Alters Property Tax Rates Statewide
The new education funding measure changes state aid formulas and will alter property tax bills mailed to homeowners in districts from Burlington to Brattleboro this fall.
How we reported this
The Vermont legislature passed the Education Funding Reform Act in June, and the bill tracker on the state website now shows how the measure redistributes aid to 120 school districts. Homeowners in districts that spend above the new per-pupil threshold will face higher tax rates while lower-spending towns receive extra state dollars to offset local levies.
The change arrives as districts finalize budgets for the 2026-2027 school year. Lawmakers tied the new formula to enrollment data collected last October, which recorded 77,800 students statewide. Districts must submit revised spending plans by August 15 to receive the updated payments.
Changes for Property Owners and School Services
In Addison County, residents in Middlebury will see their education tax rate drop by roughly eight cents per $100 of assessed value because the district qualifies for additional aid under the new calculation. In contrast, property owners in parts of Chittenden County that exceed the spending cap can expect an increase of up to twelve cents on the same assessed value. School boards in both areas have already posted draft budgets that reflect these shifts on their websites.
Local advocates note that the legislation states districts must maintain current class sizes and transportation routes even when aid changes. Families with children in public schools will receive notices from their town clerks by early September that list the new rate and the amount due in December and April installments.
Tracking the Bill and Next Steps
The state bill tracker lists the measure as Act 92 and includes links to the full text and fiscal notes prepared by the Joint Fiscal Office. Residents can enter their town name on the site to view projected tax rates and compare them with the prior year. Town meetings scheduled for late July in places such as Rutland and St. Johnsbury will allow voters to review the revised school budgets before final adoption.
State officials say payments under the revised formula will begin in September. Districts that miss the August filing deadline risk delayed aid checks, which could force temporary borrowing at local banks. Homeowners who want to appeal their new rate must file forms with the Department of Taxes by October 1.