Vermont Business Magazine Governor Phil Scott today addressed the projected double-digit property tax increase announced earlier this week by the Department of Taxes at his press conference. The governor also took issue with the "failure" of the Vermont education transformation task force to present at least three school redistricting plans. The task force concluded its tenure last month without presenting any plan. The task force was established to implement education reform, particularly in line with Act 73 of 2025, which mandates the creation of larger school districts and a weighted student funding formula.
GOVERNOR PHIL SCOTT:
Today I’m joined by Commissioner Shouldice and Secretary Saunders to talk about the property tax rate letter.
It comes as no surprise that there’s another significant tax increase forecasted due to an increase in education spending.
It’s also exactly why my Administration has proposed many ideas over the last 10 years to fix the broken system and change the trajectory.
As you are all well aware, last session, we worked with the legislature to pass a bipartisan bill to transform the education system, create better outcomes for students, provide more resources for teachers and adopt a new funding system that is more predictable and affordable.
In the last five years alone, property taxes have increased by over 40% with fewer kids in our schools, fewer opportunities in the classroom, and more inequities from town to town.
Equity and making sure our kids get a quality education, regardless of where they live, is an important part of the plan we presented last year and the bill that was eventually passed.
We knew when we started this process that none of this would be easy. But we all agreed it was long past time to fix the broken system because the longer we wait, the harder it gets.
Last session, Act 73 was passed and I was proud to stand with Republican leaders McCoy and Beck as well as Speaker Krowinski, Pro Tem Baruth, Chairs Conlon, Kornheiser, Bongartz, Cummings and many more, on both sides of the isle, as I signed it into law.
From the beginning I made it clear that change of this magnitude must be bipartisan and we must be willing to have the courage to see this through because last November, Vermonters sent a clear message: they’ve had enough and simply can’t afford the status quo any longer.
After this week’s tax news, we should all remember that message.
The way Act 73 is structured, everything is dependent on the Legislature approving a new governance structure to reflect the fact that we’re now educating 20% fewer K-12 students than we were 20 years ago, in order to “right size” the system.
Although far from easy, we must address funding, governance and quality all at once. Because we’ve seen well-intentioned efforts of the past fail by doing it piece meal and only focusing on one of the three parts.
Over the last year, we’ve had good conversations with legislative leaders about education transformation and I’m ready to follow through on our shared objectives, despite the efforts of those who seem determined to preserve a failing system that promises more of the same: declining test scores at ever increasing costs.
The choice before lawmakers in 2026 is clear. We can continue to work together to keep moving forward with our plan or they can explain to their constituents why double-digit tax increases are acceptable while inequality grows from region to region and test scores plummet.
Despite the head winds, I’m confident we can once again prove we can do big things by working together and having the courage to follow through.
Governor Scott with Education Secretary Zoie Saunders at today's press conference in Montpelier. ORCA Media screenshot.
Source: 12.3.2025. 109 State Street | The Pavilion | Montpelier, VT 05609-0101 | www.vermont.gov
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