Lawmakers review school finance, bonding, and multiple policy bills across committees
Legislative committees met Tuesday, May 26, reviewing competing school governance and finance proposals, budget adjustments and appropriations, and Natural Resources & Energy provisions on zoning, permitting and agency authority. Key topics included sequencing of school construction bonds and state aid, appropriations and one‑time funding for education and other programs, timeline changes to the foundation formula in Act 73, and changes to permitting, fees and pre‑treatment authority in H.325 and related measures.
Education (House) — 13:05
House Education convened a joint hearing with Ways & Means to compare House and Senate versions of multiple education bills, including S.75, H.592 and H.95, and to review implications for Act 73 implementation. Committee staff walked members through differences in school construction, merger committee timelines, class size minimums, tuition and fee language, and foundation formula transition provisions.
On school construction financing, members discussed ballot language and sequencing: districts may authorize bond amounts at the ballot stage without issuing bonds immediately, and issuance would not occur until the secretary notifies districts of state bonding support. The Senate proposal adjusted the range of construction aid from a House range of 50%–95% (50% base plus up to 45% bonus incentives) to a new Senate range of 30%–75%.
The committee reviewed appropriations inserted in the school construction sections. The Senate added a $500,000 FY2027 appropriation for staffing in the Agency of Education’s school construction division and a new Section 66A that appropriates $900,000 to the school construction aid special fund for facilities master planning tied to the merger committee process; the $900,000 had been reduced from an initial $1,000,000.
Members examined merger committee mandates and timelines in the Senate version. The Senate set facilitator hiring on or before September 1 and required districts to identify a board member to participate by September 15, with facilitator assignments and the merger committee’s first meeting to occur by October 15. The Senate added a charter‑change–style route (section 13A) allowing eligible districts not merged by July 1, 2028, to pursue merger proposals with General Assembly approval. The Senate moved certain vote dates and administrative review deadlines, with votes occurring on March 7, 2028, under the Senate framework.
Committee staff noted changes to Act 73 effective dates and contingencies. The Senate accelerated the foundation formula effective date to 07/01/2029 (fiscal year 2030) from the House’s prior proposal, and adjusted contingency language to require receipt of two reports including the facilitator report on merger committee results.
The Senate also moved class size minimums and related enforcement language into H.955 provisions tied to the foundation formula taking effect, preserving a "shall not count against you" concept until the foundation formula is in effect for public and independent schools. Senate changes to Section 29B clarified that independent schools must comply with class size minimums but excluded certain enforcement processes.
Appropriations (Senate) — 09:30
Senate Appropriations reviewed budget items and a gray‑sheet sources‑and‑uses proposal tied to bills S.270 and S.125. Committee members discussed reallocating funds from vetoed or nonmoving bills and using carryforward amounts for one‑time items. The committee agreed to one‑time funding for Vermont Law School and the Small Business Development Center to secure federal matches, and to remove funding for a new administrative services position in the Agency of Agriculture, Food & Markets.
Discussion covered several small appropriations and fiscal adjustments including a $50,000 public employee benefits study in S.190 and other line‑item changes. Members noted remaining gaps in the spreadsheet totaling roughly $40,000 in the current proposal.
Education (House) — 15:05
A later House Education session continued side‑by‑side review of differences between House and Senate education proposals and further conforming changes to the Act 73 foundation formula transition and reports. The Senate proposed repeals of superseded Act 73 sections and replacement language aligned to the revised FY2030 effective date, adjusting timelines across transition provisions.
Committee members discussed the mechanics of supplemental district spending versus school construction bonding. Staff explained that school construction authorization is a one‑time authorization for the bond term and that annual debt service is covered through supplemental district spending tax rates. Ballot language for incurrence or authorization of indebtedness appears in section 77A for bonded authorization and section 78 for supplemental district spending ballots.
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PCBs, special education, pre‑K, and other items were noted as largely unchanged or ready for concurrence. Committee leadership signaled intent to resolve outstanding differences through conference committee work on H.955.
Natural Resources & Energy (Senate) — 12:30
Senate Natural Resources & Energy reviewed the committee of conference report on H.325 and other bills including H.740. The committee retained the House repeal of tier three and associated road rule implementation while narrowing the definition of "accessory on‑farm business event" to require events to feature a qualifying product substantially and to end by 10:00 PM with a 70‑decibel boundary noise limit.
Members debated ANR permit fee changes. The Senate removed a $50 cap per designated water supply/wastewater system because expanded designated areas could cause permit revenue shortfalls—ANR estimated potential costs up to $500,000 if the cap remained. That cap removal would affect permit fee revenue and agency staffing capacity.
The committee also considered new pre‑treatment discharge authority language related to wastewater pretreatment requirements, specifying the kinds of low‑risk projects eligible for delegated or general permits and listing small potable water and wastewater systems by design flow. The Senate added a report requirement on "overshadowing" from photovoltaic installations—directing study of environmental or public health bases, alternatives, frequency, and resolution approaches.
H.740 language on statewide greenhouse gas inventory alignment and rule adoption timelines drew attention because of a 2028 sunset for the statewide inventory and a 2027 rulemaking deadline for more granular datasets, creating potential misalignment between datasets.
Other committees, notable items
Senate Finance reviewed Act 73 transition mechanics and excess‑spending thresholds tied to the foundation formula, with discussion of thresholds at 114% in FY2028 tapering to 113% in FY2029 and a possible ramp down to no lower than 105%. Committee members and fiscal staff compared current weighted pupil counts and projected costs under the education opportunity payment and grants, citing an estimated FY‑26 cost level near $1,863,000,000 under certain EOP and grant assumptions.
House Appropriations examined an amendment (draft 5.1) to S.193 creating an interim forensic and competency restoration program and clarifying roles for the Department of Corrections and Agency of Human Services during the interim before a permanent forensic facility, including emergency rulemaking and prohibitions on FY2027 construction or fit‑up absent further legislative enactment. The amendment includes provisions for feasibility planning, interim staffing considerations, and reporting to oversight committees.
Other committees addressed housing and zoning changes in S.328 and related amendments concerning accessory dwelling units, owner‑occupancy bylaws, and municipal planning elements; General & Housing reviewed components of S.230 omnibus labor language revisions; Ways & Means and House Ways & Means discussed producer responsibility and beverage container proposals including handling fees and reimbursements, and potential impacts on the Clean Water Fund and Waste Management Assistance Fund; Health & Welfare reviewed Act 51 reporting and primary care financing language, including a statutory reporting schedule for the Blueprint director and timelines for additional legislation recommendations.
Conclusion
The article summarizes multiple May 26 legislative committee meetings referenced in official transcripts, including House Education (13:05 and 15:05 sessions), Senate and House Appropriations, Senate Natural Resources & Energy, Senate Finance, House Appropriations, and other committee hearings. Committees reviewed education financing and bonding sequencing, Act 73 transition and foundation formula timelines, appropriations and one‑time funding proposals, permitting and fee provisions, and related authority and mandate changes across bills referenced in the meetings.
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