ED REFORM: What changes under Act 73?
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Seize the opportunity for a second chance on school reform

November 20, 2025  |  Jack Hoffman  |  5 comments
Insight |Education

The Act 73 Redistricting Task Force wrapped up their work today, and they’ve given the state a chance to rethink the course of education reform it has been pursuing for the last decade. Vermont communities, as well as elected leaders, should seize this opportunity to get us out of the ditch we’ve been in and refocus on what should be our priority: ensuring our kids have what they need to thrive.

The 168-page draft proposal from the November 10th meeting of the Task Force had a lot to digest. And it requires close reading because the proposal offers much more nuanced analyses of problems confronting the education system than we’ve seen from the administration or the Legislature in recent years. The Task Force also put out a more streamlined draft report today along with an explanation of the changes.

One of the group’s most important recommendations is to stop further forced consolidation of school districts, which fits with one of the Task Force’s guiding principles: Do no harm.  It’s not that the committee opposes mergers. It recommends voluntary consolidation for some districts in certain circumstances, which was the state’s policy before passage of Act 46 a decade ago.

Like all recent education reform plans, the Redistricting Task Force focused on costs. But it didn’t offer the usual we-have-to-do-something-about-Vermont’s-skyrocketing-education-spending refrain, which has pitted the administration and the Legislature against local school officials for too long. Instead of demanding that school districts curb their spending, the Task Force suggested a process in which districts collaborate, with lots of support and help from the Agency of Education, to find ways to save money.

The report includes examples of potential cost savings, and none of them appear to require an overhaul of the education financing system. For example, the Task Force pointed to areas where public schools have seen a rise in per pupil spending because they’ve lost students to independent schools. (School taxes are tied to per-pupil costs, so a decline in students can drive up taxes.) Fixing this would require changes to how we pay for tuition students, which is not addressed in Act 73.

The proposal also pushed back against some of the conventional wisdom that has grown up around Vermont’s education system, like the idea that larger schools are more efficient and produce better outcomes than smaller ones, or that small schools need to close because it’s the small communities that are losing students.

The report referenced other cost drivers, but not in much detail because they were beyond the scope of the committee’s mission. They deserve mention, though, because they go to the heart of perhaps the most consistent complaint about Vermont’s funding system: per pupil spending.

Vermont spends more than most other states and has for a long time. In recent years, the cost of health care—especially mental health care—has been a big factor. But that’s a problem for many businesses and individuals in Vermont, not the fault of the school funding system. The Task Force also noted that Vermont spends a bigger share of its education budget on social services than neighboring states. That’s in part because other states pay for services through the general state budget—and perhaps through county budgets in some cases—that Vermont covers through the Education Fund. Moving costs from the Education Fund to the General Fund wouldn’t eliminate them, but it would relieve pressure on education property taxes—and lower Vermont’s average per pupil spending.

Vermont saw an unusual jump in education spending and school taxes in fiscal 2025, which set off the current scramble to remake the state’s education funding system. But some homeowners are getting hit with tax increases not tied to spending increases. There are ways to address those jumps and make the tax system fairer without the disruption of more consolidation or upending the entire system.  But that, too, was beyond the scope of the Task Force’s mission and can be addressed separately.

What the Redistricting Task Force has laid out is a more nuanced approach that has a better chance of gaining public acceptance than something imposed by Montpelier. It will require addressing a lot of specific problems rather than a one-size-fits-all solution. And it offers greater opportunity for local community engagement, which is critical to making any change work. At a time when democracy is under threat across the country, it makes sense to protect and preserve it here at home—for our communities and our kids.

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5 comments

  1. Diane Janukajtis says:

    Thank you for this succinct summary of the Task Force work. I am a long time school board member and have been following this process as closely as I can, but there is a lot to explain here to the public.
    It is particularly helpful to bring in how high mental health and health insurance costs are affecting the whole state as well as school budgets and how these costs are paid for in other states – not through the Education Fund!
    I also think it’s important to highlight how many municipal budgets will increase due to school closures in rural towns. In many rural communities the school is also the community center, municipal or town clerks office or library. Towns are faced within the costs of repurposing these buildings with no state funding streams except local taxes. There has been no school construction state aid for 15 years so of course many buildings need upgrades and renovations for any public use. It is clear that consolidation does not guarantee lower education costs, but may just cost shift or even raise costs.
    It’s very concerning that we don’t have all the data we need to try and understand the intended and unintended consequences of such huge changes all at once. Scott and his administration have presented a very simplified view with no data to support what the Governor is ordering which is very concerning. In the short amount of time they were given, the Task Force looked at as much data as they could, including data from other states which have implemented forced school consolidation, failing to save funds while student outcomes decreased. The Administration has failed to provide a thoughtful, evidence based solution to higher educational taxes. Closing schools will gut our communities and make them less attractive to young families. Who wants high taxes AND long bus rides for students? The school consolidations that have been successful in Vermont are ones where the communities themselves identified benefits for their students and reduced costs and moved forward to make changes.

  2. Joan L Eckley says:

    For some time I have questioned the property taxes paying for independent schools which has significantly put upward pressure on property tax payers., unless a private school is the only one available ( Manchester’s Burr & Burton school) In a case like this a private school should be paid what the town would pay to a public school.

    I agree that social services in school should be paid out of the general fund. This would reduce property taxes for primary home owners. Second home owners should pay significantly more than primary home owners.

  3. Fran Putnam says:

    Thank you for your nuanced look at what Vermont can do to bring down per pupil costs and for your support of the draft report from the Task Force. We need to look at this report very carefully to find out what the alternatives might be to the knee jerk reactions of the Governor and the Legislature to the current situation with our property taxes. This is a complicated puzzle and we aren’t going to solve it with the one size fits all approach put forward by Act 73. Let’s see if Vermonters can work together to do what is best for kids.

  4. Carolyn Tonelli says:

    Thank you. As usual clear and understandable commentary on a difficult and complicated subject.

  5. John Freidin says:

    That is the best and most reasonable news about our educational system this year.

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