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Statement on Gov. Phil Scott’s Jan. 28, 2025 Budget Address
January 28, 2025 | Sarah Lyons | 6 comments
Insight
|Education, School Funding, State Budget & Tax
Gov. Phil Scott said again today he would reform education by doing more with less. We’re hearing understandable concerns about his plan. While we don’t know all the details yet, we’ve heard this promise before—and don’t have a lot to show for it.
Here’s what we do know: Vermonters want good schools and fair taxes.
Right now, low- and middle-income Vermonters pay more of their income to support schools than the richest Vermonters. And the biggest cost drivers in recent years, like healthcare and inflation, are out of school districts’ control. Until we address those underlying problems, any changes won’t do much to help kids, communities, or taxpayers.
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We should tax the rich. There is data contesting that wealthy folks are moving out of state due to high taxes. I believe that the vast majority of people, including the wealthy, are willing to pay their fair share.
Thanks John. Here’s our latest data and analysis on migration to and from Vermont: Migration: Millennials and the wealthy moved in. Most Vermonters stay put
…. Right now, low- and middle-income Vermonters pay more of their income to support schools than the richest Vermonters. ” What is this statement based on? are you referring to share of income? One of the biggest problem was that a few years ago the legislature raised the threshold to like $94k so that incomes up to that could get a rebate on property taxes. everybody over that pays full load. and that $94k number has been frozen for years. Please explain.
Vermonters get to pay their school taxes based on the lower of a property-based bill or an income-based bill. For most Vermonters, paying based on income is a better deal. But for higher-income Vermonters, paying based on property is cheaper. That’s based on the share of their income they’re paying in school taxes.
This statement is pretty thin gruel. Can Public Assets venture a view what we should be spending and whether it is necessary and good value to be one of the highest spenders in the nation – particularly when the other high spenders have highly urban wealth profiles? I can support high spending with a legitimate justification. Can I count on Public Assets to take a similar approach?
A better question to get at whether we’re spending the right amount is whether Vermont is meeting the needs of all kids with the resources it provides. Most educators and parents would say schools need more resources, not fewer. But to answer the question directly:
Vermont has been one of the higher spenders by these comparisons for decades as have the other Northeast states. That’s not a bad thing – it indicates a strong commitment to public education.
Many states that spend less on education than Vermont often do so because they underfund poor districts and underpay teachers while allowing wealthy communities to concentrate resources in their local schools; they have lower statewide spending per pupil because they operate a less equitable system.
In recent years, Vermont has in fact had slower growth in education spending than many states – we’re right in the middle. That’s because the cost drivers that hit Vermont so hard in FY25 – mental healthcare costs for kids, increasing healthcare costs for staff, inflation and the loss of Covid funds – all hit other states too.
Total education spending has been flat for 20 years after adjusting for inflation, just like the rest of the state budget. And per-pupil spending has grown about 1% a year after adjusting for inflation. And that’s taking into account increased costs for mental healthcare, information technology, and school security.