Lawmakers Hear Wide-Ranging Education, Tax and Budget Testimony in March 27 Committee Meetings
State lawmakers on March 27 heard extensive testimony and discussion across multiple committees on education funding and implementation of Act 73, proposals to change indoor air testing requirements in schools, tax relief measures including changes to Social Security exemptions and property tax proposals, and several agency budget requests tied to housing and federal disaster recovery funding.
House Education (15:05) — Act 73 implementation, foundation formula, accountability and local input
At the House Education Committee, agency witnesses and stakeholders discussed implementation details of Act 73 and related education reform topics, emphasizing funding, accountability, and local engagement.
Speakers described Act 73 as intended to address disparities in the current system and to move Vermont to a foundation formula. Testimony noted the funding in Act 73 represents a significant per-pupil investment and that the law contemplates evaluating whether funding meets state needs on a five-year timeframe. Committee participants discussed equity-based budgeting and the potential role of school advisory councils to involve parents, students, community partners and teachers in decisions about how dollars are applied at the local level.
The agency outlined plans to strengthen accountability frameworks, including clearer measures of school quality applied across public and independent schools and amendments to the state ESSA plan to address compliance issues. Agency testimony referred to work to clear a backlog in independent school approvals so those schools receive proper review and input for continuous improvement.
Committee discussion also covered how districts and maps could be adjusted under Act 73, concerns about school choice as a barrier to consolidation, and related questions about administrative overhead and how savings could be reinvested. Witnesses said students who attend independent schools on public tuition are included in average daily membership counts and that demographic and weighted-count data are part of normal data collections.
Senate Education (14:15) — H.542 indoor air testing, CACFP funding, and local fiscal impacts
The Senate Education Committee considered H.542 and multiple education-related funding matters.
Testimony on H.542 described two principal effects: ending the state’s indoor air testing program in schools and removing a requirement that all schools test for certain indoor PCBs. Witnesses framed the change as a response to the absence of continued state appropriations for the testing program and characterized the existing mandate as unfunded, with potential large remediation costs per school. The bill also would restrict existing special fund money held by the Department of Environmental Conservation to remediation in schools that have issues.
The committee also received updates on the Child and Adult Care Food Program (CACFP). Witnesses said a FY26 appropriation of $150,000 to sponsor organizations was included in the Senate budget and that those sponsor organizations had been notified they would receive the funding and had incorporated it into their current fiscal-year budgets. Testimony said the USDA administrative reimbursement gap for sponsor organizations has grown and that the $150,000 appropriation was critical to program stability; some witnesses cited gaps near $40,000 for sponsoring organizations in recent years. A committee member asked whether a reported $1,200,000 federal drawdown was a result of the $150,000 appropriation.
Separately, a representative of the Windham School District told the committee that community votes had shown unanimous concern and that local officials believe statewide education funding systems, including the implementation of Act 73, have failed to provide equitable education and have created unstable property tax burdens for small rural communities.
House Ways & Means (13:25) — Social Security tax exemptions and other tax measures
The House Ways & Means Committee reviewed amendments and testimony on tax measures, including S.152 and other bills affecting personal income tax and property taxes.
Testimony on S.152 described an amendment to provide state income tax relief for Social Security benefits, increasing exemption thresholds to about $150,000 for joint filers and a lower amount for individual filers. Committee discussion referenced an initial JFO estimate of a revenue impact in the range of $35,000,000 and debate over how to fill a potential budget shortfall, with members noting prior adjustments to Social Security exemptions and that many recipients are already largely exempt under last year’s changes.
Separately, members discussed proposals aimed at limiting property tax increases and options for replacing property tax revenue, with speakers noting property tax comprises a substantial portion of school funding and that capping or shifting that revenue would require finding alternative funding sources. Committee remarks referenced Act 73’s intent language about using changes to property taxes to lower homestead tax bills.
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Members considered language changes addressing how the state would participate in a federal tax credit program for scholarship-granting organizations, shifting designation authority to legislative enactment rather than executive action.
Senate Appropriations (14:00) — Agency budgets, housing requests, and federal disaster recovery funding
The Senate Appropriations Committee received agency budget presentations addressing housing, community development, and education funding tied to Act 73 and other priorities.
The Agency of Commerce and Community Development (ACCD) described its FY27 budget and priority requests, framing the agency’s role around supporting economic growth, housing development and community vitality. ACCD noted an ongoing request for $4,000,000 for the Vermont Housing Improvement Program, with $3,750,000 intended for grants and $250,000 for administration, plus positions to support the program. The agency also described a federal Community Development Block Grant (CDBG) disaster recovery award of $67,000,000 and requested spending authority for about $19,000,000 of those dollars in FY27, with an ongoing smaller operating cost thereafter for staffing.
The Agency of Education reported reorganizational changes, strategic planning with five pillars, and budget items including a request to convert limited-service positions to permanent positions and a reversion and reappropriation request tied to federal ARPA funds for literacy initiatives. The agency also provided an update on use of Act 73 appropriations and noted materials provided to House Appropriations.
Committee testimony addressed federal funding flows and monitoring of federal requirements, including potential IDEA funding increases and concerns about federal administrative coordination.
House Appropriations, Institutions, Corrections & Institutions, and Judiciary — Funding details and justice-related measures
Appropriations hearings included presentations on agency spending authority, personnel and contract cost drivers, and use of one-time funds. Speakers outlined requests to revert and reappropriate federal funds and described reductions in pandemic-era federal funding and Medicaid grants shifting between agencies.
The Senate Institutions Committee and House Corrections & Institutions Committee reviewed capital budget drafts and special fund spending authority. Testimony discussed supervision fee revenues and fee structures, electronic payment processing fees, and existing spending authority in a supervision fee fund. The Institutions Committee also addressed deferred capital projects and reallocations of previously appropriated funds.
Judiciary committee meetings covered proposed criminal justice measures, including an amendment to H.937 and a proposed rapid accountability docket model intended to accelerate proceedings for repeat-offender cases and connect individuals with treatment, housing and social services. Committee discussion included proposed purposes for the dockets, operation periods, roles for court administrators and stakeholders, and questions about judicial resources and constitutional considerations raised by some members. Judiciary sessions listed bills expected for consideration, including S.123, S.209 and S.181.
General & Housing — Tenant notice and local ordinance language
The House General & Housing Committee held straw polls and discussed amendments to landlord-tenant provisions, including proposed changes to affidavit requirements accompanying notices for termination and municipal authority to adopt ordinances on security deposits. Committee members expressed differing views on proposed language, the need for testimony, and potential legal consistency issues regarding municipal ordinances and state minimum protections.
Conclusion
This report covers committee hearings held March 27 across House and Senate panels including House Education, Senate Education, House Ways & Means, Senate Appropriations, Judiciary, Institutions, Corrections & Institutions, General & Housing, and others. Testimony focused primarily on implementation and funding under Act 73, education accountability and the foundation formula, H.542 indoor air testing provisions, tax proposals including Social Security exemption changes and property tax discussions, agency budget requests for housing and disaster recovery funding, and criminal justice proposals for rapid accountability dockets.
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