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Act No.
Senate proposal of amendment H.
73 Page 1 of 3 This act summary is provided for the convenience of the public and members of the General Assembly.
454 An act relating to transforming Vermont’s education governance, quality, and finance systems The Senate proposes to the House to amend the bill by striking out all after the enacting clause and inserting in lieu thereof the following:
It is intended to provide a general summary of the act and may not be exhaustive.
* * * Findings and Intent * * * Sec.
It has been prepared by the staff of the Office of Legislative Counsel without input from members of the General Assembly.
1.
It is not intended to aid in the interpretation of legislation or to serve as a source of legislative intent.
FINDINGS;
Act No.
INTENT;
73 (H.454).
PLAN (a) The General Assembly finds that:
An act relating to transforming Vermont’s education governance, quality, and finance systems Subjects:
(1) In 1997, the first piece of law the General Assembly enacted in response to the Brigham decision stated, “[t]he right to public education is integral to Vermont’s constitutional form of government and its guarantees of political and civil rights…[and] fundamental for the success of Vermont’s children in a rapidly-changing society and global marketplace as well as the State’s own economic and social prosperity.” 16 V.S.A.
Education;
§ 1.
school districts;
(2) From the very first attempt at creating a basic frame of government, Vermont’s founders chose to include a right to public education, the only governmental service included in Vermont’s first Constitution of 1777.
taxation and finance;
(3) As the U.S.
education property tax;
Supreme Court stated in Brown v.
State Board of Education;
Board of Education, U.S.
State funding of public education;
483 (1954), “education is perhaps the most important function of state and local governments…[i]t is required in the performance of our most basic public responsibilities…[i]t is the very foundation of good citizenship.” (4) The most enduring legacy of Brigham v.
education finance;
State, 166 Vt.
Agency of Education This act makes changes to Vermont’s education policy and finance systems.
246 (1997) is the State’s responsibility to ensure substantially equal educational opportunities for all Vermont students.
It states the General Assembly’s intent to, in the 2026 session, enact updates to the career and technical education (CTE) system and prekindergarten system, as well as enact new, larger school districts that would become operational on July 1, 2028.
(5) The education system is still reeling from the effects of a global pandemic, yet the same challenges that have faced Vermont’s education system remain.
This act limits the changes of the Commission on the Future of Public Education, creates the School District Redistricting Task Force to recommend new school district boundaries to the General Assembly, and also creates the School District Voting Ward Working Group to make recommendations to the General Assembly for proportionally representative voting wards within new school districts.
Thirty to 40 years ago, Vermont educated more than 110,000 students each year.
It requires public schools and approved independent schools that are eligible for public tuition to comply with class size minimums and requires the State Board of Education (SBE) to update rules to reflect class size minimum requirements and statewide graduation requirements.
Today, there are approximately 84,000 students in the public education system.
It also requires the SBE to recommend standards for schools to be deemed small by necessity and sparse by necessity.
Many schools have lost a significant number of students and, with them, the ability to offer robust services and programs at every school.
This act requires the Agency of Education (AOE) to create a statewide school calendar to be effective for the 2028–2029 school year, as well as report back to the General Assembly regarding several topics, including the state of special education delivery and funding.
Vermont’s youth need to be prepared for a rapidly evolving future.
It requires the SBE to review their rules and make recommendations to the General Assembly regarding updating rules.
(6) Vermonters deserve an exceptional educational system that is stable and predictable and where a student’s home address does not dictate the quality of education they receive.
This act creates the State Aid for School Construction Program that will be administered by the AOE with advice from the State Aid for School Construction Advisory Board.
School district size and boundaries, school size, and class size are all influential factors in shaping the quality of instruction and overall student outcomes.
It requires approved independent schools to meet certain criteria in order to be eligible to receive public tuition, including being located in a nonoperating district or supervisory union with nonoperating districts and complying with class size minimums.
The effectiveness of our schools depends on teacher quality, resource availability, and the unique strengths of local communities.
It also permits the General Assembly to appoint two members of the SBE.
Change in our educational system is needed.
This act also requires school districts, under the new foundation formula that will contingently take effect on July 1, 2028, to pay tuition in an amount of the base amount plus any applicable weights to a receiving school.
Systems are made of people, so change must come carefully and thoughtfully, with meaningful engagement by all Vermonters.
It also allows receiving schools to charge an additional five percent fee for secondary students if certain criteria are met and requires school districts to pay the full tuition charged its students attending an approved independent school in Vermont functioning as an approved area career and technical center.
(b) Intent;
It requires the AOE to create a three-year strategic plan for the delivery of special education services and establishes one new permanent classified position within AOE to support the development of the strategic plan.
plan.
This act also appropriates $2,865,000.00 to AOE to support education transformation and establishes five limited service positions within AOE to support education transformation work.
(1) To ensure each student is provided substantially equal educational opportunities that will prepare them to thrive in a 21st-century world, it is the intent of the General Assembly to work strategically, intentionally, and thoughtfully to ensure that each incremental change made to Vermont’s public education system provides strength and support to its only constitutionally required governmental service.
VT LEG #384340 v.4 Act No.
(2) It is further the intent of the General Assembly to:
73 Page 2 of 3 As contingently effective July 1, 2028, this act replaces Vermont’s existing education finance system that fully funds locally voted school budgets, accounting for local variation in spending through varying homestead property tax rates, with a foundation formula that provides school districts with a fixed, inflation-adjusted base amount of $15,033.00 per pupil, as adjusted for student weighting.
(A) in the 2026 session:
It amends Vermont’s student weighting provisions to provide weights for prekindergarten, economic disadvantage, English learners distinguished by both proficiency level and formal education level, and special education distinguished by disability cost.
(i) enact new, larger school district boundaries that would be effective July 1, 2027;
It replaces existing sparsity and small- school weights with small schools and sparse schools support grants.
(ii) enact updates to career and technical education governance systems, both at the local and statewide levels, that are reflective of the larger public education governance transformation to new, larger school districts;
In conjunction with these changes, this act repeals certain existing education finance provisions, such as census block grants for special education, categorical aid for English learners’ services, and merger support for merged districts.
and (iii) create a coordinated and coherent statewide strategy for career and technical education that is responsive to students and the State’s workforce needs and that provides opportunities for more integration between career and technical education and traditional high school work;
This act finances the foundation formula payouts to school districts, known as “educational opportunity payments” (EOP), through the imposition of a statewide education tax on homestead and nonhomestead property that may be adjusted by statutory factors based on the new tax classification system and that will be set each year by the General Assembly.
(B) provide or enable the provision of the necessary staffing, resources, and support to the Agency of Education, the Secretary of State’s Office, town clerks, and other integral parties to the election system to hold the first school board member elections within the newly created school districts in a special election in March 2028;
This act authorizes school districts to vote additional funds beyond their EOPs (supplemental district spending), subject to a cap of five percent of the product of the school district’s unweighted pupil count and the base amount, which funds are raised through a locally imposed supplemental district spending tax.
and (C) provide or enable the provision of the necessary staffing, resources, and support to the Agency of Education, State Board of Education, and other integral parties to ensure that the necessary guidance and funding is in place to allow for a smooth and successful transition between the operation of Vermont’s current 119 school districts to the new, larger school districts, with new school districts assuming responsibility for the education of all resident students on July 1, 2029.
This act creates a supplemental district spending yield to equalize this local tax rate for any locally voted spending that results in the application of the rate that would be required to raise that spending in the school district with the lowest taxing capacity, regardless of property wealth.
* * * Commission on the Future of Public Education * * * Sec.
This act recaptures any locally raised funds in excess of the school district’s supplemental district spending resulting from use of the supplemental district spending yield and holds those funds in a newly established Supplemental District Spending Reserve within the Education Fund to be used to buy down statewide education property tax rates in the following fiscal year.
2.
This act amends the provisions governing the December 1 letter to require the Commissioner of Taxes to annually recommend the statewide education property tax rate and supplemental district spending yield.
2024 Acts and Resolves No.
It additionally provides for transitionary measures in the first years of the foundation formula rollout to gradually move school districts from Vermont’s existing education finance system and onto the new foundation formula.
183, Sec.
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This act tasks the Joint Fiscal Office (JFO) with contracting with an expert in Vermont’s education funding system to recommend updates to the foundation formula, including related to sparsity measures, secondary student costs, and CTE, on or before December 1, 2026.
1 is amended to read:
The act’s provisions governing the new foundation formula are effective July 1, 2028, contingent upon operationalization of new school districts and receipt of this foundation formula report.
Sec.
As contingently effective July 1, 2028, this act repeals the statewide property tax credit and replaces it with a capped homestead exemption that reduces the portion of housesite value subject to the statewide education tax and supplemental district spending tax.
1.
It establishes income sensitivity measures for households that do not exceed $115,000.00 in household income that provide an increasing homestead exemption as household income declines, with households at or below $25,000.00 in household income entitled to a homestead property tax exemption of 95 percent of the first $425,000.00 of housesite value.
THE COMMISSION ON THE FUTURE OF PUBLIC EDUCATION;
This act makes conforming changes to provide the benefits of the homestead exemption to households that indirectly pay property taxes as is currently VT LEG #384340 v.4 Act No.
REPORTS (a) Creation.
73 Page 3 of 3 done for the statewide property tax credit.
There is hereby created the Commission on the Future of Public Education in Vermont.
It additionally tasks the Department of Taxes with submitting an alternative homestead exemption structure proposal to committees of jurisdiction on or before December 15, 2026, that includes appropriate inflationary measures and analyzes the implications of moving to income sensitivity measures that provide benefits to households with household income of up to $175,000.00.
The right to education is fundamental for the success of Vermont’s children in a rapidly changing society and global marketplace as well as for the State’s own economic and social prosperity.
As contingently effective July 1, 2028, this act creates a new property tax classification for nonhomestead residential properties.
The Commission shall study the provision of education in Vermont and make recommendations for a statewide vision for Vermont’s public education system to ensure that all students are afforded substantially equal educational opportunities in an efficient, sustainable, and stable education system.
The new classification will be repealed on July 1, 2028, if the General Assembly does not create a new tax rate multiplier for tax classifications before that date.
The Commission shall also make recommendations for the strategic policy changes necessary to make Vermont’s educational vision a reality for all Vermont students.
This act requires the Department of Taxes to study the implementation of a new tax classification and report back for the legislative session.
(b) Membership.
As contingently effective January 1, 2029, this act creates regional assessment districts for the purpose of full reappraisal of grand list properties in a designated region, which will replace the current system of having individual municipalities responsible for full reappraisals.
The Commission shall be composed of the following members and, to the extent possible, the members shall represent the State’s geographic, gender, racial, and ethnic diversity:
It further creates a stakeholder working group, to be managed by the Department of Taxes, to recommend future changes to the regional assessment district system.
(1) the Secretary of Education or designee;
This act makes further technical and policy adjustments to property valuation and property tax statutes.
(2) the Chair of the State Board of Education or designee;
Multiple effective dates, beginning on July 1, 2025 VT LEG #384340 v.4
(3) the Tax Commissioner or designee;
(4) one current member of the House of Representatives, appointed by the Speaker of the House;
(5) one current member of the Senate, appointed by the Committee on Committees;
(6) one representative from the Vermont School Boards Association (VSBA), appointed by the VSBA Executive Director;
(7) one representative from the Vermont Principals’ Association (VPA), appointed by the VPA Executive Director;
(8) one representative from the Vermont Superintendents Association (VSA), appointed by the VSA Executive Director;
(9) one representative from the Vermont National Education Association (VTNEA), appointed by the VTNEA Executive Director;
(10) one representative from the Vermont Association of School Business Officials (VASBO) with experience in school construction projects, appointed by the President of VASBO;
(11) the Chair of the Census-Based Funding Advisory Group, created under 2018 Acts and Resolves No.
173;
(12) the Executive Director of the Vermont Rural Education Collaborative;
and (13) one representative from the Vermont Independent Schools Association (VISA), appointed by the President of VISA.
(c) Steering group.
On or before July 1, 2024, the Speaker of the House shall appoint two members of the Commission, the Committee on Committees shall appoint two members of the Commission, and the Governor shall appoint two members of the Commission to serve as members of a steering group.
The steering group shall provide leadership to the Commission and shall work with a consultant or consultants to analyze the issues, challenges, and opportunities facing Vermont’s public education system, as well as develop and propose a work plan to formalize the process through which the Commission shall seek to achieve its final recommendations.
The formal work plan shall be approved by a majority of the Commission members.
The steering group shall form a subcommittee of the Commission to address education finance topics in greater depth and may form one or more additional subcommittees of the Commission to address other key topics in greater depth, as necessary.
The steering group may appoint non-Commission members to the education finance subcommittee.
All other subcommittees shall be composed solely of Commission members.
(d) Collaboration and information review.
(1) The Commission shall may seek input from and collaborate with key stakeholders, as directed by the steering group.
At a minimum, the Commission shall consult with:
(A) the Department of Mental Health;
(B) the Department of Labor;
(C) the President of the University of Vermont or designee;
(D) the Chancellor of the Vermont State Colleges Corporation or designee;
(E) a representative from the Prekindergarten Education Implementation Committee;
(F) the Office of Racial Equity;
(G) a representative with expertise in the Community Schools model in Vermont;
(H) the Vermont Youth Council;
(I) the Commission on Public School Employee Health Benefits;
and (J) an organization committed to ensuring equal representation and educational equity.
(2) The Commission shall also review and take into consideration existing educational laws and policy, including legislative reports the Commission deems relevant to its work and, at a minimum, 2015 Acts and Resolves No.
46, 2018 Acts and Resolves No.
173, 2022 Acts and Resolves No.
127, and 2023 Acts and Resolves No.
76.
(e) Duties of the Commission.
The Commission shall study Vermont’s public education system and make recommendations to ensure all students are afforded quality educational opportunities in an efficient, sustainable, and equitable education system that will enable students to achieve the highest academic outcomes.
The result of the Commission’s work shall be a recommendation for a statewide vision for Vermont’s public education system, with recommendations for the policy changes necessary to make Vermont’s educational vision a reality recommendations for the State-level education governance system, including the roles and responsibilities of the Agency of Education and the State Board of Education.
In creating and making its recommendations, the Commission shall engage in the following:
(1) Public engagement.
The Commission shall conduct not fewer than public meetings to inform the work required under this section.
At least one meeting of the Commission as a whole or a subcommittee of the Commission shall be held in each county.
The Commission shall publish a draft of its final recommendations on or before October 1, 2025, solicit public feedback, and incorporate such feedback into its final recommendations.
When submitting its final recommendations to the General Assembly, the Commission shall include all public feedback received as an addendum to its final report.
The public feedback process shall include:
(A) a minimum 30-day public comment period, during which time the Commission shall accept written comments from the public and stakeholders;
and (B) a public outreach plan that maximizes public engagement and includes notice of the availability of language assistance services when requested.
(2) Policy considerations.
In developing its recommendations, the Commission shall consider and prioritize the following topics:
(A) Governance, resources, and administration.
The Commission shall study and make recommendations regarding education governance at the State level, including the role of the Agency of Education in the provision of services and support for the education system.
Recommendations under this subdivision (A) shall include, at a minimum, the following:
(i) whether changes need to be made to the structure of the Agency of Education, including whether it better serves the recommended education vision of the State as an agency or a department;
(ii) what are the staffing needs of the Agency of Education;
(iii) whether changes need to be made to the composition, role, and function of the State Board of Education to better serve the recommended education vision of the State;
(iv) what roles, functions, or decisions should be a function of local control and what roles, functions, or decisions should be a function of control at the State level, including whether there should be a process for the community served by an elementary school to have a voice in decisions regarding school closures and, if so, recommendations for what that process shall entail;
and (v) the effective integration of career and technical education in the recommended education vision of the State how to maintain and improve community engagement and local decision-making with transitional and new school boards and how to improve voter turnout for school elections throughout the creation and implementation of new school districts and a new school funding formula;
and (vi) an analysis of the impact of health care costs on the Education Fund, including recommendations for whether, and if so, what, changes need to be made to contain costs.
(B) Physical size and footprint of the education system.
The Commission shall study and make recommendations regarding how the unique geographical and socioeconomic needs of different communities should factor into the provision of education in Vermont, taking into account and building upon the recommendations of the State Aid to School Construction Working Group.
Recommendations under this subdivision (B) shall include, at a minimum, the following:
(i) an analysis and recommendation for the most efficient and effective number and location of school buildings, school districts, and supervisory unions needed to achieve Vermont’s vision for education, provided that if there is a recommendation for any change, the recommendation shall include an implementation plan;
(ii) an analysis of the capacity and ability to staff all public schools with a qualified workforce, driven by data on class-size recommendations;
(iii) analysis of whether, and if so, how, collaboration with Vermont’s postsecondary schools may support the development and retention of a qualified educator workforce;
(iv) an analysis of the current town tuition program and whether, and if so, what, changes are necessary to meet Vermont’s vision for education, including the legal and financial impact of funding independent schools and other private institutions, including consideration of the following:
(I) the role designation, under 16 V.S.A.
§ 827, should play in the delivery of public education;
and (II) the financial impact to the Education Fund of public dollars being used in schools located outside Vermont;
and (v) an analysis of the current use of private therapeutic schools in the provision of special education services and whether, and if so, what, changes are necessary to meet Vermont’s special education needs, including the legal and financial impact of funding private therapeutic schools.
[Repealed.] (C) The role of public schools.
The Commission shall study and make recommendations regarding the role public schools should play in both the provision of education and the social and emotional well-being of students.
Recommendations under this subdivision (C) shall include, at a minimum, the following:
(i) how public education in Vermont should be delivered;
(ii) whether Vermont’s vision for public education shall include the provision of wraparound supports and collocation of services;
(iii) whether, and if so, how, collaboration with Vermont’s postsecondary schools may support and strengthen the delivery of public education;
and (iv) what the consequences are for the Commission’s recommendations regarding the role of public schools and other service providers, including what the role of public schools means for staffing, funding, and any other affected system, with the goal of most efficiently utilizing State funds and services and maximizing federal funding.
[Repealed.] (D) Education finance system.
The Commission shall explore the efficacy and potential equity gains of changes to the education finance system, including weighted educational opportunity payments as a method to fund public education.
The Commission’s recommendations shall be intended to result in an education funding system designed to afford substantially equal access to a quality basic education for all Vermont students in accordance with State v.
Brigham, 166 Vt.
246 (1997).
Recommendations under this subdivision (D) shall include, at a minimum, the following:
(i) allowable uses for the Education Fund that shall ensure sustainable and equitable use of State funds;
(ii) the method for setting tax rates to sustain allowable uses of the Education Fund;
(iii) whether, and if so, what, alternative funding models would create a more affordable, sustainable, and equitable education finance system in Vermont, including the consideration of a statutory, formal base amount of per pupil education spending and whether school districts should be allowed to spend above the base amount;
(iv) adjustments to the excess spending threshold, including recommendations that target specific types of spending;
(v) the implementation of education spending caps on different services, including administrative and support services and categorical aid;
(vi) how to strengthen the understanding and connection between school budget votes and property tax bills;
(vii) adjustments to the property tax credit thresholds to better match need to the benefit;
(viii) a system for ongoing monitoring of the Education Fund and Vermont’s education finance system, to include consideration of a standing Education Fund advisory committee;
(ix) an analysis of the impact of healthcare costs on the Education Fund, including recommendations for whether, and if so, what, changes need to be made to contain costs;
and (x) implementation details for any recommended changes to the education funding system.
[Repealed.] (E) Additional considerations.
The Commission may consider any other topic, factor, or issue that it deems relevant to its work and recommendations.
(f) Reports.
The Commission shall prepare and submit to the General Assembly the following:
(1) a formal, written work plan, which shall include a communication plan to maximize public engagement, on or before September 15, 2024;
(2) a written report containing its preliminary findings and recommendations, including short-term cost containment considerations for the 2025 legislative session, on or before December 15, 2024;
and (3) a written report containing its final findings and recommendations for a statewide vision for Vermont’s public education system and the policy changes necessary to make that educational vision a reality based on its analysis of the State-level governance topics contained in subdivision (e)(2)(A) of this section, on or before December 1, 2025;
and (4) proposed legislative language to advance any recommendations for the education funding system on or before December 15, 2025.
(g) Assistance.
The Agency of Education shall contract with one or more independent consultants or facilitators to provide technical and legal assistance to the Commission for the work required under this section.
For the purposes of scheduling meetings and providing administrative assistance, the Commission shall have the assistance of the Agency of Education.
The Agency shall also provide the educational and financial data necessary to facilitate the work of the Commission.
School districts shall comply with requests from the Agency to assist in data collections.
(h) Meetings.
(1) The Secretary of Education shall call the first meeting of the Commission to occur on or before July 15, 2024.
(2) The Speaker of the House and the President Pro Tempore shall jointly select a Commission chair.
(3) A majority of the membership shall constitute a quorum.
(4) Meetings shall be conducted in accordance with Vermont’s Open Meeting Law pursuant to 1 V.S.A.
chapter 5, subchapter 2.
(5) The Commission shall cease to exist on December 31, 2025.
(i) Compensation and reimbursement.
Members of the Commission shall be entitled to per diem compensation and reimbursement of expenses as permitted under 32 V.S.A.
§ 1010 for not more than 30 meetings, including subcommittee meetings.
These payments shall be made from monies appropriated to the Agency of Education.
* * * School District Redistricting * * * Sec.
3.
SCHOOL DISTRICT REDISTRICTING TASK FORCE;
REPORT (a) Creation.
There is created the School District Redistricting Task Force to recommend new school district boundaries and configurations to the General Assembly.
(b) Membership.
The Task Force shall be composed of the following members:
(1) the Director of the Vermont Center for Geographic Information;
(2) the Chair of the Vermont School Boards Association or designee;
(3) the Secretary of Education or designee;
(4) the Chair of the Vermont Superintendents Association or designee:
(5) the Chair of the Vermont Association of Planning and Development Agencies or designee;
(6) two members, appointed by the Speaker of the House:
(A) one member who shall be a current member of the House of Representatives;
and (B) one member with expertise in education data analysis who shall not be a current member of the House of Representatives;
(7) two members, appointed by the Senate Committee on Committees:
(A) one member who shall be a current member of the Senate;
and (B) one member with expertise in GIS analysis who shall not be a current member of the Senate;
(8) the chair of the Commission on the Future of Public Education or designee;
and (9) the Executive Director of the Vermont Association of School Business Officials or designee.
(c) Powers and duties.
In consultation with the Commission on the Future of Public Education, the Task Force shall study and consider different configurations for school district consolidation and propose not fewer than three options for new school district boundaries.
At least one boundary proposal recommendation shall consider the use of supervisory unions and supervisory districts, allow for the continuation of a tuitioning system that provides continued access to independent schools that have served geographic areas that do not operate public schools for the grades served by the independent schools, and to the extent practical, not separate geographic areas that contain nonoperating school districts as such districts exist on July 1, 2025.
(1) Proposed new school districts shall not have an average daily membership of more than 8,000 prekindergarten through grade 12 students.
(2) Proposed new school districts shall also be, to the greatest extent possible, grand list and pupil count balanced, demographically equitable, logistically feasible, and create the least amount of disruption to students as possible.
(3) In creating the proposed districts, the Task Force shall consider:
(A) current school district and town boundaries and other historic and current community connections, including access to regional services for students, such as designated agencies;
(B) geographic barriers, including mountains and rivers;
(C) population distribution;
(D) location, capacity, and the facility condition index score of current school buildings;
(E) transportation and employment patterns and practices:
(F) grand list values and current education spending;
(G) student demographics;
(H) the debt, liabilities, and assets of current school districts;
(I) staffing levels and salary scales;
and (J) any other factor the Task Force deems relevant.
(4) The report of the Task Force shall include detailed maps for each proposal, which shall include:
(A) boundaries of the new proposed school districts;
(B) average daily membership for the new proposed school districts;
(C) grand list value of the new proposed school districts;
and (D) the pros and cons for each proposal.
(5) The Task Force shall hold not fewer than two public hearings to receive and consider feedback from members of the public regarding school district consolidation and proposed boundaries and may coordinate with the Commission on the Future of Public Education’s public engagement process to maximize public input regarding the development of the proposed new school district boundaries.
(d) Assistance.
The Task Force shall have the administrative, technical, and legal assistance of the Agency of Digital Services, Vermont Center for Geographic Information.
The Task Force may also retain the services of one or more independent third parties to provide contracted resources as the Task Force deems necessary.
(e) Report and maps.
On or before November 1, 2025, the Task Force shall submit a written report to the House Committees on Education and on Government Operations and Military Affairs and the Senate Committees on Education and on Government Operations with its proposals for new consolidated school district boundaries.
The report shall include how each proposal meets the requirements contained in subdivisions (c)(1) and (2) of this section, how the considerations in subdivision (c)(3) of this section factored into each proposal, and the pros and cons of each proposal.
The detailed maps required under subdivision (c)(4) of this section shall also be included with the report.
(f) Meetings.
(1) The Chair of the Vermont School Boards Association shall call the first meeting of the Task Force to occur on or before July 15, 2025.
(2) The Chair of the Vermont School Boards Association shall be the chair.
(3) A majority of the membership shall constitute a quorum.
(4) The Task Force shall cease to exist on May 31, 2026.
(g) Compensation and reimbursement.
Members of the Task Force shall be entitled to per diem compensation and reimbursement of expenses as permitted under 32 V.S.A.
§ 1010 for not more than eight meetings.
These payments shall be made from monies appropriated to the Agency of Digital Services.
(h) Appropriation.
The sum of $100,000.00 is appropriated to the Office of Legislative Counsel from the General Fund in fiscal year 2026 to hire one or more consultants pursuant to subsection (d) of this section.
Sec.
3a.
TRANSITIONAL SCHOOL BOARDS;
TRANSITION GRANTS (a) Definitions.
As used in this section:
(1) “Base amount” means a per pupil amount of $15,033.00, which shall be adjusted for inflation annually on or before November 15 by the Secretary of Education.
As used in this subdivision, “adjusted for inflation” means adjusting the base dollar amount by the National Income and Product Accounts (NIPA) implicit price deflator for state and local government consumption expenditures and gross investment published by the U.S.
Department of Commerce, Bureau of Economic Analysis, from fiscal year through the fiscal year for which the amount is being determined, and rounding upward to the nearest whole dollar amount.
(2) “Forming districts” means all school districts, including union school districts, that are located within the geographical boundaries of a new school district created by the General Assembly during the 2026 session, prior to the operational date of the new school district.
(3) “New school district” means a larger, consolidated school district created by the General Assembly during the 2026 session.
(4) “New school district school board” means the elected school board of a new school district.
(5) “Operational date” means the date on which the new school district will assume full and sole responsibility for the education of all resident students in the grades for which it is organized.
(b) Creation of transitional school boards.
On or before January 1, 2027, a transitional school board shall be formed for each new school district created by the General Assembly during the 2026 session.
Each transitional school board shall be composed of the chair of each school board from each of the forming districts, as such school boards existed on December 31, 2026;
provided, however, that by majority vote the board of a forming district may designate another board member to serve on the transitional board instead of the chair.
(c) Initial meeting of transitional board.
The superintendent of the supervisory union with the forming district with the highest average daily membership shall convene the first meeting of the transitional board to occur not later than 14 days after the organizational meeting of the new school district.
The agenda for the first meeting of the transitional board shall include the election by the transitional board members of:
(1) one of their members to serve as chair of the transitional board;
and (2) one of their members to serve as clerk of the transitional board.
(d) Duties and authority of transitional board.
During the period of its existence, the transitional board shall serve as the new district’s school board and shall perform all functions required of and have all authority granted to the transitional board and the new school district school board, including:
(1) preparing an initial budget for the new school district;
(2) following the principles of apportionment followed by the legislative apportionment board, create voting districts within each new school district that are compact, contiguous, and drawn to achieve substantially equal weighting of votes and that meet the requirements of applicable State and federal law to allow for initial elections of the new school district school board members to occur in March 2028;
and (3) performing all necessary transitional processes, including:
(A) the transitional processes enumerated in 16 V.S.A.
§ 716;
(B) the hiring of a superintendent;
and (C) any other business process necessary to ensure the new school district is ready to assume the full and sole responsibility for the education of all resident students in the grades for which it is organized on July 1, 2029.
(e) New school district school board.
The transitional board shall cease to exist and the new school district school board shall be solely responsible for the governance of the new school district upon the swearing in of all new school district school board members, which shall occur within 14 days after the initial election of new school district school board members in March 2028.
(f) Transition facilitation grants.
(1) Upon notice of formation of a transitional school board pursuant to subsection (b) of this section, the Secretary of Education shall pay the transitional school board of each new school district a transition facilitation grant from the Education Fund equal to the lesser of:
(A) five percent of the base amount, as defined in subdivision (a)(1) of this section, multiplied by the greater of either the combined enrollment or the average daily membership of the forming districts on October 1, 2026;
or (B) $250,000.00.
(2) Grants awarded under this subsection shall be used by new school districts for the legal and other consulting services necessary ensure new school districts are fully operational on July 1, 2029.
* * * Scale * * * Sec.
4.
SCALE;
INTENT It is the intent of the General Assembly to transform education in Vermont by leveraging attainable and research-based scale to increase equity of opportunity and promote efficiency and affordability.
Sec.
5.
16 V.S.A.
§ 165 is amended to read:
§ 165.
EDUCATION QUALITY STANDARDS;
EQUAL EDUCATIONAL OPPORTUNITIES;
INDEPENDENT SCHOOL MEETING EDUCATION QUALITY STANDARDS (a) In order to carry out Vermont’s policy that all Vermont children will be afforded educational opportunities that are substantially equal in quality, each Vermont public school, including each career technical center, shall meet the following education quality standards:
* * * (9) The school complies with average class size minimum standards;
provided, however, that when class size minimums apply to content areas, an individual class may be smaller than the minimum average.
As used in this subdivision, “content area” means a group of courses within a specific licensing endorsement area.
(A) Class size standards.
(i) The average class size minimum for kindergarten and first grade classes shall be 10 students.
(ii) The average class size minimum for grades two through five shall be 12 students.
(iii) The average class size minimum for grades six through eight in all required content areas shall be 15 students.
(iv) The average class size minimum for grades nine through 12 in all required content area classes shall be 18 students.
(v) Multiage classrooms for grades kindergarten through eight shall be limited to two grade levels per classroom.
(vi) Prekindergarten, career and technical education, flexible pathways, terminal courses, advanced placement courses, courses that require specialized equipment, and driver’s education classes shall be excluded from the class size minimum requirements in this subdivision (9).
Small group services for the purpose of providing special education, supplemental or targeted academic intervention, or English learner instruction shall also be excluded from the class size minimum requirements in this subdivision (9).
(vii) Class sizes shall not exceed the maximum occupancy limits established by local and State fire codes, including egress and safety requirements.
(B) Waivers.
If a school board determines that it operates a school that is unable to comply with the class size minimum standards due to geographic isolation, or a school has developed an implementation plan to meet the standards contained in this subdivision (9) that may include consolidation or merger, the school board may ask the State Board of Education to grant it waiver from this subdivision (9).
The State Board shall define what qualifies as geographic isolation in its rules adopted pursuant to subdivision (a)(3) of this section.
The State Board’s decision shall be final.
(C) State Board action.
If the Secretary determines that a school is not meeting the class size minimum standards set forth in this subdivision (9) over the course of three consecutive school years, the Secretary may recommend to the State Board one or more of the actions listed in subsection (b) of this section, regardless of whether the school is meeting all other education quality standards.
The State Board shall then follow the procedure of subsection (c) of this section.
(b) Annually, the Secretary shall determine whether students in each Vermont public school are provided educational opportunities substantially equal to those provided in other public schools.
If the Secretary determines that a school is not meeting the education quality standards listed in subsection (a) of this section or that the school is making insufficient progress in improving student performance in relation to the standards for student performance set forth in subdivision 164(9) of this title, he or she the Secretary shall describe in writing actions that a district must take in order to meet either or both sets of standards and shall provide technical assistance to the school.
If the school fails to meet the standards or make sufficient progress within two years of following the determination, the Secretary shall recommend to the State Board one or more of the following actions:
(1) the Agency continue to provide technical assistance for one more cycle of review;
(2) the State Board adjust supervisory union boundaries or responsibilities of the superintendency pursuant to section 261 of this title;
(3) the Secretary assume administrative control of an individual school, school district, or supervisory union, including budgetary control to ensure sound financial practices, only to the extent necessary to correct deficiencies;
(4) the State Board close an individual school or schools and require that the school district pay tuition to another public school or an approved independent school pursuant to chapter 21 of this title;
or (5) the State Board require two or more school districts to consolidate their governance structures.
(c) The State Board, after offering the school board an opportunity for a hearing, shall either dismiss the Secretary’s recommendation or order that one or more of the actions listed in subsection (b) of this section be taken.
The action ordered by the State Board shall be the least intrusive consistent with the need to provide students attending the school substantially equal educational opportunities.
A school board aggrieved by an order of the State Board may appeal the order in accordance with the Rules of Civil Procedure.
* * * (e) If the Secretary determines at any time that the failure of a school to meet the education quality standards listed in subsection (a) of this section is severe or pervasive, potentially results in physical or emotional harm to students or significant deprivation of equal education opportunities, and the school has either unreasonably refused to remedy the problem or its efforts have proved ineffective, he or she the Secretary may recommend to the State Board one or more of the actions listed in subsection (b) of this section.
The State Board shall then follow the procedure of subsection (c) of this section.
* * * (g) In addition to the education quality standards provided in subsection (a) of this section, each Vermont school district shall meet the school district quality standards adopted by rule of the Agency of Education regarding the business, facilities management, and governance practices of school districts.
These standards shall include a process for school district quality reviews to be conducted by the Agency of Education.
Annually, the Secretary shall publish metrics regarding the outcomes of school district quality reviews.
Sec.
6.
FAILURE TO COMPLY WITH EDUCATION QUALITY STANDARDS;
STATE BOARD ACTION Notwithstanding 16 V.S.A.
§ 165(b)(4) and (5) and any other provision of law to the contrary, the State Board shall be prohibited from ordering school district consolidation or school consolidation if a school fails to comply with class size minimum education quality standards and the resulting consolidation would result in school construction costs in excess of the applicable district’s capital reserve account until the General Assembly establishes new school district boundaries and takes further action regarding the consequences for failure to meet education quality standards.
Sec.
7.
STATE BOARD OF EDUCATION;
RULES;
REPORT (a) Rules.
On or before August 1, 2026, the State Board of Education shall initiate rulemaking to amend:
(1) The Education Quality Standards rule 2000 series, Agency of Education, Education Quality Standards (22-000-003), pursuant to 3 V.S.A.
chapter 25 to ensure compliance with the class size minimum standards set pursuant to 16 V.S.A.
§ 165(a)(9).
(2) The approved independent school rule 2200 series, Agency of Education, Independent School Program Approval (22-000-004), pursuant to 3 V.S.A.
chapter 25, to require approved independent schools that intend to accept public tuition to comply with the class size minimum standards set pursuant to 16 V.S.A.
§ 165(a)(9).
The amendments shall also create a process for review by the State Board for failure to meet the class size minimum requirements and the corresponding actions the Board may take for such noncompliance;
provided, however, that the Board shall provide an approved independent school a substantially similar opportunity to come into compliance with class size minimum standards that it would provide to a public school.
(b) Report.
On or before December 1, 2025, the State Board of Education shall submit a written report to the House and Senate Committees on Education with proposed standards for schools to be deemed “small by necessity.” Sec.
8.
PROHIBITION ON SCHOOL CLOSURE AND TRANSITION TO PAYING TUITION Notwithstanding any provision of law to the contrary, a school district shall be prohibited from closing an existing public school and then providing for the education of its resident students by paying tuition for its students to attend a public or approved independent school chosen by the parents of the district’s students.
If a school district that closes an existing public school is unable to provide for the education of its affected resident students in a different school or schools operated by the district, the school district shall provide for the education of its resident students by designating three or fewer public schools to serve as the public school or schools of the district;
provided, however, that if the closed public school is located in a geographically isolated area, as defined by the State Board of Education, and there is no reasonably accessible public school to designate, the applicable school district may provide for the education of its affected resident students by offering tuition pursuant to 16 V.S.A.
chapter 21.
Notwithstanding any provision of law to the contrary, if designation is required pursuant to this section, the designation process contained in 16 V.S.A.
§ 827 shall apply to schools operating grades kindergarten through grade 12, or any subset of grades therein.
Sec.
9.
16 V.S.A.
§ 3440 is added to read:
§ 3440.
STATEMENT OF POLICY It is the intent of this chapter to encourage the efficient use of public funds to modernize school infrastructure in alignment with current educational needs.
School construction projects supported by this chapter should be developed taking consideration of standards of quality for public schools under section 165 of this title and prioritizing cost, geographic accessibility, 21st century education facilities standards, statewide enrollment trends, and capacity and scale that support best educational practices.
Further, it is the intent of this chapter to encourage the use of existing infrastructure to meet the needs of Vermont students.
Joint construction projects between two or more school districts and consolidation of buildings within a district where feasible and educationally appropriate are encouraged.
Sec.
10.
16 V.S.A.
§ 3442 is added to read:
§ 3442.
STATE AID FOR SCHOOL CONSTRUCTION PROGRAM The Agency of Education shall be responsible for implementing the State Aid for School Construction Program according to the provisions of this chapter.
The Agency shall be responsible for:
(1) reviewing all preliminary applications for State school construction aid and issuing an approval or denial in accordance with section 3445 of this chapter;
(2) adopting rules pursuant to 3 V.S.A.
chapter 25 pertaining to school construction and capital outlay, including rules to specify a point prioritization methodology and a bonus incentive structure aligned with the legislative intent expressed in section 3440 of this title;
(3) including as part of its budget submitted to the Governor pursuant to subdivision 212(21) of this title its annual school construction funding request;
(4) developing a prequalification and review process for project delivery consultants and architecture and engineering firms specializing in prekindergarten through grade 12 school design, renovation, or construction and maintaining a list of such prequalified firms and consultants;
(5) providing technical assistance and guidance to school districts and supervisory unions on all phases of school capital projects;
(6) providing technical advice and assistance, training, and education to school districts, supervisory unions, general contractors, subcontractors, construction or project managers, designers, and other vendors in the planning, maintenance, and establishment of school facility space;
(7) maintaining a current list of school construction projects that have received preliminary approval, projects that have received final approval, and the priority points awarded to each project;
(8) collecting, maintaining, and making publicly available quarterly progress reports of all ongoing school construction projects that shall include, at a minimum, the costs of the project and the time schedule of the project;
(9) recommending policies and procedures designed to reduce borrowing for school construction programs at both State and local levels;
(10) conducting a needs survey at least every five years to ascertain the capital construction, reconstruction, maintenance, and other capital needs for all public schools and maintaining such data in a publicly accessible format;
(11) developing a formal enrollment projection model or using projection models already available;
(12) encouraging school districts and supervisory unions to investigate opportunities for the maximum utilization of space in and around the district or supervisory union;
(13) collecting and maintaining a clearinghouse of prototypical school plans, as appropriate, that may be consulted by eligible applicants;
(14) retaining the services of consultants, as necessary, to effectuate the roles and responsibilities listed within this section;
and (15) notwithstanding 2 V.S.A.
§ 20(d), annually on or before December 15, submitting a written report to the General Assembly regarding the status and implementation of the State Aid for School Construction Program, including the data required to be collected pursuant to this section.
Sec.
11.
16 V.S.A.
§ 3443 is added to read:
§ 3443.
STATE AID FOR SCHOOL CONSTRUCTION ADVISORY BOARD (a) Creation.
There is hereby created the State Aid for School Construction Advisory Board, which shall advise the Agency on the implementation of the State Aid for School Construction Program in accordance with the provisions of this chapter, including the adoption of rules, setting of statewide priorities, criteria for project approval, and recommendations for project approval and prioritization.
(b) Membership.
(1) Composition.
The Board shall be composed of the following eight members:
(A) four members who shall serve as ex officio members:
(i) the State Treasurer or designee;
(ii) the Commissioner of Buildings and General Services or designee;
(iii) the Executive Director of the Vermont Bond Bank or designee;
and (iv) the Chair of the State Board of Education or designee;
and (B) four members, none of whom shall be a current member of the General Assembly, who shall serve four-year terms as follows:
(i) two members, appointed by the Speaker of the House, each of whom shall have expertise in education or construction, real estate, or finance and one of whom shall represent a supervisory union;
and (ii) two members, appointed by the Committee on Committees, each of whom shall have expertise in education or construction, real estate, or finance and one of whom shall be an educator.
(2) Members with four-year terms.
(A) A member with a term limit shall serve a term of four years and until a successor is appointed.
A term shall begin on January 1 of the year of appointment and run through December 31 of the last year of the term.
Terms of these members shall be staggered so that not all terms expire at the same time.
(B) A vacancy created before the expiration of a term shall be filled in the same manner as the original appointment for the unexpired portion of the term.
(C) A member with a term limit shall not serve more than two consecutive terms.
A member appointed to fill a vacancy created before the expiration of a term shall not be deemed to have served a term for the purpose of this subdivision (C).
(c) Duties.
The Board shall advise the Agency on the implementation of the State Aid for School Construction Program in accordance with the provisions of this chapter, including:
(1) rules pertaining to school construction and capital outlay;
(2) project priorities;
(3) proposed legislation the Board deems desirable or necessary related to the State Aid for School Construction Program, the provisions of this chapter, and any related laws;
(4) policies and procedures designed to reduce borrowing for school construction programs at both State and local levels;
(5) development of a formal enrollment projection model or the consideration of using projection models already available;
(6) processes and procedures necessary to apply for, receive, administer, and comply with the conditions and requirements of any grant, gift, appropriation of property, services, or monies;
(7) the collection and maintenance of a clearinghouse of prototypical school plans that may be consulted by eligible applicants and recommended incentives to utilize such prototypes;
(8) the determination of eligible cost components of projects for funding or reimbursement, including partial or full eligibility for project components for which the benefit is shared between the school and other municipal and community entities;
(9) development of a long-term vision for a statewide capital plan in accordance with needs and projected funding;
(10) collection and maintenance of data on all public school facilities in the State, including information on size, usage, enrollment, available facility space, and maintenance;
(11) advising districts on the use of a needs survey to ascertain the capital construction, reconstruction, maintenance, and other capital needs for schools across the State;
and (12) encouraging school districts and supervisory unions to investigate opportunities for the maximum utilization of space in and around the district or supervisory union.
(d) Meetings.
(1) The Chair of the State Board of Education shall call the first meeting of the Board to occur on or before September 1, 2025.
(2) The Board shall select a chair from among its members at the first meeting.
(3) A majority of the membership shall constitute a quorum.
(4) The Board shall meet not more than six times per year.
(e) Assistance.
The Board shall have the administrative, technical, and legal assistance of the Agency of Education.
(f) Compensation and reimbursement.
Members of the Board shall be entitled to per diem compensation and reimbursement of expenses as permitted under 32 V.S.A.
§ 1010 for not more than six meetings per year.
(g) Report.
On or before December 15, 2025, the Board shall submit a written report to the House Committees on Education and on Ways and Means and the Senate Committees on Education and on Finance on recommendations for addressing the transfer of any debt obligations from current school districts to future school districts as contemplated by Vermont’s education transformation.
Sec.
12.
PROSPECTIVE REPEAL OF STATE AID FOR SCHOOL CONSTRUCTION ADVISORY BOARD V.S.A.
§ 3443 (State Aid for School Construction Advisory Board) is repealed on July 1, 2035.
Sec.
13.
16 V.S.A.
§ 3444 is added to read:
§ 3444.
SCHOOL CONSTRUCTION AID SPECIAL FUND (a) Creation.
There is created the School Construction Aid Special Fund, to be administered by the Agency of Education.
Monies in the Fund shall be used for the purposes of:
(1) awarding aid to school construction projects under section 3445 of this title;
(2) awarding grants through the Facilities Master Plan Grant Program established in section 3441 of this title;
(3) funding administrative costs of the State Aid for School Construction Program;
and (4) awarding emergency aid under section 3445 of this title.
(b) Funds.
The Fund shall consist of:
(1) any amounts transferred or appropriated to it by the General Assembly;
(2) any amounts deposited in the Fund from the Supplemental District Spending Reserve;
and (3) any interest earned by the Fund.
Sec.
14.
16 V.S.A.
§ 3445 is added to read:
§ 3445.
APPROVAL AND FUNDING OF SCHOOL CONSTRUCTION PROJECTS (a) Construction aid.
(1) Preliminary application for construction aid.
A school district eligible for assistance under section 3447 of this title that intends to construct or purchase a new school, or make extensive additions or alterations to its existing school, and desires to avail itself of State school construction aid shall submit a written preliminary application to the Secretary.
A preliminary application shall include information required by the Agency by rule and shall specify the need for and purpose of the project.
(2) Approval of preliminary application.
(A) When reviewing a preliminary application for approval, the Secretary shall consider:
(i) regional educational opportunities and needs, including school building capacities across school district boundaries, and available infrastructure in neighboring communities;
(ii) economic efficiencies;
(iii) the suitability of an existing school building to continue to meet educational needs;
and (iv) statewide educational initiatives.
(B) The Secretary may approve a preliminary application if:
(i)(I) the project or part of the project fulfills a need occasioned by:
(aa) conditions that threaten the health or safety of students or employees;
(bb) facilities that are inadequate to provide programs required by State or federal law or regulation;
(cc) excessive energy use resulting from the design of a building or reliance on fossil fuels or electric space heat;
or (dd) deterioration of an existing building;
or (II) the project results in consolidation of two or more school buildings and will serve the educational needs of students in a more cost- effective and educationally appropriate manner as compared to individual projects constructed separately;
(ii) the need addressed by the project cannot reasonably be met by another means;
(iii) the proposed type, kind, quality, size, and estimated cost of the project are suitable for the proposed curriculum and meet all legal standards;
(iv) the applicant achieves the level of “proficiency” in the school district quality standards regarding facilities management adopted by rule by the Agency;
and (v) the applicant has completed a facilities master planning process that:
(I) engages robust community involvement;
(II) considers regional solutions;
(III) evaluates environmental contaminants;
and (IV) produces a facilities master plan that unites the applicant’s vision statement, educational needs, enrollment projections, renovation needs, and construction projects.
(3) Priorities.
Following approval of a preliminary application and provided that the district has voted funds or authorized a bond for the total estimated cost of a project, the Agency, with the advice of the State Aid for School Construction Advisory Board, shall assign points to the project as prescribed by rule of the Agency so that the project can be placed on a priority list based on the number of points received.
(4) Request for legislative appropriation.
The Agency shall submit its annual school construction funding request to the Governor as part of its budget pursuant to subdivision 212(21) of this title.
Following submission of the Governor’s recommended budget to the General Assembly pursuant to 32 V.S.A.
§ 306, the House Committee on Education and the Senate Committee on Education shall recommend a total school construction appropriation for the next fiscal year to the General Assembly.
(5) Final approval for construction aid.
(A) Unless approved by the Secretary for good cause in advance of commencement of construction, a school district shall not begin construction before the Secretary approves a final application.
A school district may submit a written final application to the Secretary at any time following approval of a preliminary application.
(B) The Secretary may approve a final application for a project provided that:
(i) the project has received preliminary approval;
(ii) the district has voted funds or authorized a bond for the total estimated cost of the project;
(iii) the district has made arrangements for project construction supervision by persons competent in the building trades;
(iv) the district has provided for construction financing of the project during a period prescribed by the Agency;
(v) the project has otherwise met the requirements of this chapter;
(vi) if the proposed project includes a playground, the project includes a requirement that the design and construction of playground equipment follow the guidelines set forth in the U.S.
Consumer Product Safety Commission Handbook for Public Playground Safety;
and (vii) if the total estimated cost of the proposed project is less than $50,000.00, no performance bond or irrevocable letter of credit shall be required.
(C) The Secretary may provide that a grant for a high school project is conditioned upon the agreement of the recipient to provide high school instruction for any high school pupil living in an area prescribed by the Agency who may elect to attend the school.
(D) A district may begin construction upon receipt of final approval.
However, a district shall not be reimbursed for debt incurred due to borrowing of funds in anticipation of aid under this section.
(6) Award of construction aid.