Vermont’s education system is at a crossroads, facing an affordability crisis that demands genuine reform. Despite being among the highest spenders per pupil, the state struggles with declining educational outcomes, and taxpayers continue to face rising costs. With a projected 18.5% increase in property taxes for fiscal year 2025, largely driven by a 12% jump in education spending, it is clear that structural issues in the system cannot be ignored (VTDigger)(Vermont Business Magazine).
If Vermont’s super-majority—or a new simple majority—remains in control after the election, they must be honest with taxpayers and confront the need for meaningful changes. A return to a cost-effective education model, reminiscent of the 1980s, could provide a path forward. Back then, Vermont had more students but fewer costs, and student outcomes were stronger. The state must start by reducing administrative bloat and focusing resources on core academics, which could immediately ease the tax burden on residents and help stabilize the cost of living.
Learning from the Past: The Efficiency of the 1980s
In the 1980s, Vermont’s education system operated more efficiently with higher student-to-teacher ratios and fewer administrative staff. The state served roughly 100,000 students, compared to today’s 80,000—a decrease of around 20% over the decades. Despite this decline, staffing levels have increased, leading to one of the lowest student-to-teacher ratios in the nation, and administrative costs have ballooned (VTDigger).
Today, Vermont spends over $27,000 per pupil, a figure that has risen sharply since the COVID-19 pandemic due to increased staff levels and special programs. Yet, academic performance has suffered, with National Assessment of Educational Progress (NAEP) scores trending closer to the national average (VTDigger)(Vermont Business Magazine). The evidence suggests that added spending on staff and administration has not translated into better educational outcomes, which supports the idea of returning to a model where resources are concentrated on teaching and learning rather than administrative overhead.
The Need for Structural Changes
Reforming Vermont’s education system should begin with reducing administrative costs. The current landscape features a high number of small supervisory unions and school districts with fewer students, driving up per-pupil costs. According to a recent report by the Vermont Joint Fiscal Office, smaller districts tend to have higher expenditures per student due to fixed administrative costs(VNews).
A potential solution lies in consolidating administrative functions and sharing resources across districts, similar to the practices in the 1980s. A recent analysis by Picus Odden & Associates suggests that Vermont could save up to $400 million by restructuring schools and districts, including measures such as increasing class sizes to more traditional levels and merging small districts to reduce administrative duplication (VTDigger)(Vermont Public).
For more details on the study’s findings, see the full report here.
Addressing Modern Needs Without Sacrificing Efficiency
Critics may argue that the challenges today—such as increased demands for special education and mental health services—require a different approach than in the past. However, Vermont can still meet these needs while reducing administrative overhead. By managing specialized services regionally, rather than in each district, the state could provide necessary support more cost-effectively. This approach would pool resources for services like special education and student mental health while keeping the core academic functions leaner and more focused.
For more insights into how Vermont’s education profile has shifted over the years, see the State Education Profile Report.
Honesty and Transparency from the Legislature
Moving forward, Vermont’s lawmakers have a responsibility to be transparent with taxpayers about the need for restructuring. The state’s education finance system, heavily reliant on property taxes, exacerbates affordability issues. The most recent fiscal outlook projects that education spending will continue to grow, and without structural changes, property taxes will keep climbing (VTDigger)(Vermont Business Magazine).
To truly make education affordable, the state must take a hard look at its spending and embrace a more streamlined approach. Simplifying the funding model to align with actual per-student costs would make budgeting more predictable and equitable. Additionally, reducing administrative costs could allow for reinvestment in areas that directly impact student achievement, such as teacher quality and curriculum improvements.
The Campaign for Vermont has long advocated for a more sustainable education system that prioritizes core academics while reducing unnecessary administrative expenses. As Vermont grapples with rising costs and declining student outcomes, their call for re-energizing education echoes the need for substantive change.
A Path to Relief and Quality Education
Reforming Vermont’s education system to mirror the efficiency of the 1980s could alleviate the tax burden on residents while restoring the focus on quality education. Reducing administrative expenses and returning to a more traditional structure would provide the transparency needed to determine true per-student costs. Such a shift could not only bring immediate tax relief but also set the stage for a sustainable, long-term solution to the state’s educational and financial challenges.
Ultimately, the Legislature—whether a super-majority or a new simple majority—must acknowledge that the current path is unsustainable. Vermont’s taxpayers deserve a more affordable education system that delivers on its promise to prepare students for the future. By embracing honest conversations about the need for restructuring and taking decisive action to reduce costs, the state can once again be a leader in education without compromising its fiscal health.
For a deeper dive into Vermont’s fiscal outlook and budgetary challenges, refer to the Fiscal Focus Newsletter.
Dave Soulia | FYIVT
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