WARDSBORO — On Feb. 21, the Vermont House passed “An Act Relating to the Education Property Tax Rates and Base Education Amount for Fiscal Year 2014,” which I voted against, raising the statewide homestead property tax rate 5 cents and the nonresidential rate 6 cents.
Proponents of the bill argue that they are merely supporting decisions by local school boards to increase budgets. However, rates are based on property-tax contributions to the education fund, and property owners are being overcharged in two ways.
First, programs that do not directly relate to K-12 education have been billed to the fund over the years, thus raising the burden on all property-tax payers.
Second, as about one-third of education funding comes from sources other than property taxes. Such sources include dedicated statewide revenues and general fund transfers. Any shortfalls, such as the outstanding $27 million in the general fund, are picked up by property owners.
During the debate on the bill, Rep. Anne Donahue, R-Northfield, unsuccessfully offered an amendment that I supported, one that would have shifted the cost of the current-use program out of the education fund.
I supported an amendment from Rep. Heidi Scheuermann, R-Stowe, which challenged the Legislature to replace present education funding. Her amendment was replaced by a compromise amendment from Rep. Bill Lippert, D-Hinesburg, which I opposed.
Until we confine ourselves to using the education fund for K-12 purposes and until we guarantee proper general fund transfers, the property-tax payer will be overburdened.
I have introduced legislation that would restore the $27 million owed to the education fund. I will continue to call for fiscal notes for legislation that affects property taxes. I will also continue to work with others, not only for fairness in education funding, including small-school grants, but also for equal educational opportunity in education spending.