Douglas Symington Shumlin Framework
Requires Due Diligence by Lawmakers and Locals Alike
After more than a week of Statehouse buzz anticipating a joint statement
by Governor Douglas, Speaker Symington and President pro tem Shumlin, the trio
held a press conference last Wednesday to release their Framework for Containing Property Tax Increases.
The Framework, included in its entirety below, reflects a “commitment to
examining proposals to modify how
The Framework speaks for itself and includes an assortment of ideas, most
of which have been deliberated before at various levels. Notable for their inclusion are Richard
Cate’s Proposal for School District
Consolidation and several of the Douglas Administration’s proposals for affecting what schools are
spending to keep up with rising school cost pressures.
A local evaluation of these concepts is in order. We encourage school officials and the public
to examine each of them for its fairness, efficacy and potential for
responsibly addressing the complex issue of rising school costs. Furthermore, we encourage local officials to
carefully and clearly convey their thoughts on these ideas to their elected
members of the General Assembly. With
such energy and focus on the important matter of the funding and operation of
our community schools, it is imperative that your representatives and senators
know where you stand.
On the topic of costs, the Framework includes Item 5, which states a
commitment to “understand the major cost drivers in public schools and discuss
ways the state can alleviate cost pressures or assist schools to address them
effectively.” From our perspective, that
important work should preceed any rush to address the symptoms of the cost
issue.
One proposal slated for analysis is the
lowering of the excess spending threshold imposed under Act 68 from 125% to
115% of average per pupil spending. For
your information we have included a spreadsheet from the Department of
Education that shows which districts would be effected if that threshold amount
was in place in FY2007.
Douglas Symington
Shumlin Framework
For Containing Property Tax Increases
Released
Governor Douglas, Speaker Symington and President pro tem Shumlin have agreed to pursue a framework for containing property tax increases.
This framework
includes a commitment to examining proposals to modify how
This framework establishes the goal of passing meaningful legislation during the 2007-2008 session. It is expected that major progress be achieved in the 2007 session, followed by further legislation in 2008.
Guiding Principles for this Framework:
· Support the excellence Vermonters expect of their schools;
·
Maintain
· Examine what Vermonters expect of their schools and how to more effectively deliver those education services;
· Lower the rate of growth of public school spending, making it more affordable for taxpayers;
·
Finance schools in a way that makes more
transparent the basic dynamics affecting school taxes, and where school taxes
are collected in an efficient manner.
The
Framework's Major Areas of Focus:
1.
Education Commissioner Cate has proposed that
2.
Recognizing that
Ø Budget growth caps above which 60% of voters would have to approve a budget;
Ø Modifying the existing high spending penalty to take effect at levels of spending 15% above average spending;
Ø Require that communities affirm their desire to vote their school budget by Australian Ballot each year, or every few years;
Ø Improve information provided to taxpayers so they better understand the connection between school spending and the tax rate applicable to their district.
3. Legislature and Administration will examine ways to modify current education tax policy to improve efficiency and reduce extreme variations caused by property value fluctuations, including:
Ø CLA modifications to address the extreme adjustments;
Ø Income sensitivity changes - return to 2% threshold for homestead taxes;
Ø Cap the size of income sensitivity adjustments and/or consider asset tests for adjustments of a certain size;
Ø Eliminate the property tax on farmland and examine property tax issues specific to agriculture and forestry lands.
4. The Legislature and Administration will examine the current structure of authority over school spending and effectiveness, including:
Ø Should the Education Commissioner have more authority to review and approve capital construction projects before they are voted on by school districts?
Ø Should the Governor Appoint the Education Commissioner?
5. The Legislature and Administration will work to understand the major cost drivers in public schools and discuss ways the state can alleviate cost pressures or assist schools to address them effectively.
These cost drivers include staffing levels, health care and salaries, school construction and energy, paperwork, state mandates and special education.
6. As specific proposals emerge the Legislature and Administration will consult each other regarding the merits of pursuing these proposals.
Legislature
Considers Statewide School Year Calendar
Although it is early in the session, governance of school calendars has already received significant attention by the House and Senate Education Committees. H.15 and S.9 are identical bills that would direct the Commissioner of Education “to announce a uniform statewide school calendar each year.” The calendar would include 175 student attendance days, and five common teacher in-service days. The calendar would also have periods of vacation and holidays, makeup days, and “to the extent possible, common days for statewide assessments.” School boards would still be able to schedule additional school days if they did not conflict with the uniform calendar, and school districts would be able to petition the state board for a waiver “due to a circumstance unique to the community.” The House Committee has been and will be hearing testimony on H.15, and the Senate Committee will hear from Commissioner Cate on this issue on Wednesday.
The House Education committee has heard testimony from representatives of the ski industry, the Champlain Valley Exposition, and Steve Cook, Deputy Commissioner of the Department of Tourism. All three of the witnesses expressed the importance from their perspective of a school year start date after Labor Day. The primary reason given was that it would allow older high school students to continue seasonal employment through a busy holiday weekend for tourism.
The Committee also heard testimony supportive of the bill from Commissioner of Education Richard Cate. The Commissioner noted that our current school calendar system was developed to serve the needs of a bygone agrarian society. He argues that H.15 would allow him to announce a calendar created to provide the best possible outcomes for students (such as opportunities for distance learning). In a letter dated February 1st, addressed to Senator Don Collins, chair of the Senate Education Committee, the Commissioner listed several benefits he believed could be realized from the legislation including: professional development days that could be attended by educators across regional boundaries, and more instructional time that would be available for students who attend technical centers.
You can view the full text of H.15 as it was introduced at
http://www.leg.state.vt.us/docs/legdoc.cfm?URL=/docs/2008/bills/intro/H-015.HTM. Bob Stevens and Jeff
JFO Recommends a Correction to the Shortfall
In our January 23rd Legislative
Report, we noted that the annual general fund transfer to the Education Fund
has, in recent years, been lower than the statutorily required levels. Media
reports throughout
On Wednesday of last week, the Joint Fiscal Office (JFO) reported to the House Ways & Means Committee on its analysis of the shortfall, and made recommendations for legislative action. The first question investigated by the JFO was how much money was actually missing from the transfers. That required a more precise definition of the statutory term “general fund base spending,” the amount whose percentage growth must be matched by the transfer. The JFO concluded that the legislative intent had been to include as “base fund general spending” all ongoing general fund spending in the budget as passed the General Assembly and signed into law by the Governor.
This interpretation results in the exclusion from the base amount of any one-time spending and general fund spending authorized by the annual budget adjustment the following year. It also excludes contingent base spending, or spending that is authorized only if State revenues exceed official forecasts. A more encompassing interpretation of “general fund base spending” was the basis for initial estimates placing the total shortfall at $25.7 million. With new assumptions in place, the JFO determined the actual amount of the shortfall.
In fiscal year 2006 (FY06), both the transfer and general fund base spending grew at 4%, therefore there was no shortfall in that year’s transfer. In FY07, general fund base spending growth was 6.6%, while the transfer grew at just 3.6%, resulting in an estimated shortfall of $7.06 million. In FY08 (the current budget being considered by the General Assembly), JFO calculates that the education fund is due a transfer $7.18 million more than proposed in the Governor’s budget. In total, JFO has set the general fund transfer shortfall in FY07 and FY08 at $14.24 million.
The General Assembly will now be looking for the funds necessary to restore the Education Fund to its proper level. The $7.06 million shortfall from FY07 will be considered a one-time expenditure, but the $7.18 million shortfall from the current budget would be treated as an ongoing expense, and therefore part of general fund base spending for this year. The JFO estimates that there is currently $4.24 million available in the budget for this purpose, leaving another $2.9 million to be raised. If the $2.9 million is raised from outside the current budget proposal, it will be increasing general fund base spending this year, which will necessitate a larger transfer (approximately $700,000 more than the $7.18 million). We will continue to monitor and report on any activity in this matter.
Property Tax Payers’ Bill of Rights
Senator Kevin Mullin of
Seven of the provisions would impose caps or limits of one sort or another (such as a maximum property tax adjustment of $7500, a prohibition on spending more than 35% of a school budget on expenses not directly related to the classroom, etc.) The bill would limit statewide education spending growth to the average of the inflation rate and growth in State gross domestic product. It would also impose a two-part limit on school district spending growth by prohibiting spending beyond 125% of last year’s statewide average per pupil spending, and by specifying that any spending beyond 110% of the statewide average must be raised entirely through local taxes.
Five other sections of the bill could be categorized as measures encouraging consolidation of school districts or consolidation of educational responsibilities. The bill would direct a legislative commission to determine a tax benefit for districts that consolidate. It would also increase the responsibility of the Department of Education by shifting budgeting and administration functions related to Special Education to the Department, and by directing the Commissioner of Education to determine whether to begin a bulk purchasing program for schools.
S.61 and H.209 are not literally “bills of rights,” but could more accurately be described as a bundle of independent measures governing education. Individual ideas may be better received in the General Assembly than others, and thus moved into a separate bill, and we will continue to monitor the status of all the bill’s sections.
House Education Committee Plans Future Activity
The House Education Committee, chaired by Rep. Janet Ancel, has spent the early part of the legislative session hearing testimony from individuals with various views on the state of public education. The Committee has heard from panels of citizens, teachers, principals, superintendents, school board members, and special education administrators, among others. The committee focused the discussion on three questions: 1) What do we expect from our schools? 2) What is the most cost-effective way of meeting those expectations? 3) What is the fairest way to pay for this? Chairwoman Ancel indicated recently that she believes the Committee has received good and sufficient responses to the first question, and that she is ready to move their attention to the second question for the next period of weeks.
Last Tuesday, the Committee discussed what it had heard and had been thinking, and each member listed one or several areas to consider further. From that discussion the Committee developed a list of eight areas for potential cost-containment. This is the list as developed by the Committee.
- Increase student/adult ratios.
- Streamline governance.
- Improve distance learning.
- Develop regional centers to serve students with autism, and other intensive needs.
- Look at flexible school schedule to better utilize facilities.
- Utilize more effective/efficient state data gathering.
- Use tests such as the ACT.
- Authorize Commissioner to develop state calendar.
Kennedy Addresses NSBA on NCLBA Reauthorization;
VSBA Representatives Meet with Congressional Delegation
Senator Ted Kennedy, chair of the
Senate Committee on Health, Education, Labor and Pensions, spoke to over 900
school board members at last week’s meeting of the NSBA Federal Relations
Network (
Kennedy revealed his priorities for reauthorization of the controversial Act—stressing his belief that the NCLBA has had a positive impact on improving educational opportunities for certain categories of minority students, especially in urban areas. He praised the NCLBA for “…its focus on individual students, its targeted resources to help students most in need and its support for migrant and homeless students.” Kennedy’s priorities for reauthorization include the following.
- Provide more resources “to ensure that we meet our obligation to fund both the NCLBA and the IDEA.” Kennedy compared the funding of NCLBA with his brother’s commitment to land a man on the moon by the end of the 1960’s. “It’s as though,” Kennedy said, “we had send a man to the moon but only provided enough funds to get him half way back.”
- Include “more effective ways to measure progress—focusing on the lowest performing schools rather than simply providing labels…”
- Provide more support for schools needing improvement.
- Bring about high school reform, including the expansion of the school day where needed.
- Support community efforts to reduce drop outs through greater parental involvement.
In explaining these priorities, Kennedy repeatedly emphasized his belief the “all children means all children—no exceptions.” Emphasizing the primary role of education as essential to the preservation of liberties, and quoting John Adams on the subject, Kennedy insisted on “a college prep curriculum for all students.”
The
Senator Leahy has joined a coalition of Senators who have signed a letter addressed to Kennedy and the three senior members of the Health and Labor Committee stressing the need to reform the NCLBA and to focus upcoming reauthorization hearings on the following priorities.
- Adequate Funding and Financial Burdens Facing School Districts;
- Sensible Accountability Models;
- Differences in
- Effect on Teachers, Students and Curriculum; and
- Supportive Interventions for Struggling Schools.
For more information about the NSBA’s position on NCLBA reauthorization, go to http://www.nsba.org/site/page.asp?TRACKID=&CID=1805&DID=37749.
New Bills
The following education related bills have been introduced since our last update on January 23rd. To read a bill as introduced, or to follow its progress after introduction, go to
http://leg.state.vt.us/database/status/status.cfm and enter the number of the bill. The statements of purpose following each bill below may be abbreviated forms of the statements contained in the bills as introduced.
SENATE BILLS
S.45 RELATING TO THE RIGHT
TO ATTEND TOWN MEETING
Introduced
by Senator White of
Windham District, Senator Bartlett of Lamoille District, Senator McCormack of
Windsor District and Senator Nitka of Windsor District
Statement
of purpose: This
bill proposes to prohibit employers and schools from penalizing employees and
students who are absent in order to attend town meeting.
S.51 RELATING TO
PROHIBITING DISCRIMINATION ON THE BASIS OF GENER IDENTITY
Introduced
by Senator
Snelling of Chittenden District, Senator Ayer of Addison District, Senator
Campbell of Windsor District, Senator Collins of Franklin District, Senator
Condos of Chittenden District, Senator Cummings of Washington District, Senator
Doyle of Washington District, Senator Flanagan of Chittenden District, Senator
Giard of Addison District, Senator Hartwell of Bennington District, Senator
Kittell of Franklin District, Senator Lyons of Chittenden District, Senator
Maynard of Rutland District, Senator Mazza of Grand Isle District, Senator
McCormack of Windsor District, Senator Miller of Chittenden District, Senator
Racine of Chittenden District, Senator Starr of Essex-Orleans District and
Senator White of Windham District
Statement
of purpose: This
bill proposes to include gender identity as a protected class in the state’s
antidiscrimination statutes.
S.59 RELATING TO
CLARIFICATION OF VIDEOTAPE, AUDIOTAPES,
Introduced
by Senator Sears of
Bennington District
Statement of purpose: This bill proposes to
clarify that videotapes, audiotapes, and digital versatile discs are public
records if they are produced or acquired in the course of a public agency’s
business.
HOUSE BILLS
H.56 RELATING TO
TRANSITIONAL AID FOR
Introduced
by Representatives
Heath of Westford, Evans of
Statement
of purpose: This bill proposes to extend the sunset on transitional aid for
consolidating school districts and to ensure that the aid is provided when most
needed.
H.58 CONSERVATION; MOTOR
VEHICLES; IDLING
Introduced
by Representatives
Hosford of Waitsfield, Botzow of Pownal, Brooks of Montpelier, Copeland-Hanzas
of Bradford, Deen of
Statement
of purpose: This
bill proposes to prohibit the operator of a school bus from idling the engine
while waiting for children to board at a school.
H.60 RELATING TO
NONCOMPLIANCE WITH THE NO CHILD LEFT BEHIND ACT
Introduced
by Representatives Jewett
of Ripton, Edwards of
Statement
of purpose: This bill proposes to direct the state board of education
not to comply with the testing and consequence provisions of the federal No
Child Left Behind Act of 2001.
H.78 RELATING TO
RECONSIDERATION OR RESCISSION OF VOTES IN LOCAL ELECTIONS
Introduced
by Representatives
Grad of Moretown, Dostis of
Statement
of purpose: This
bill proposes to: (1) allow the voters of a municipality to increase the
percentage of registered voters required for a petition for reconsideration or
rescission from five to up to 20 percent; and (2) require that a vote in
favor of reconsideration or rescission shall not be effective unless the number
of votes cast in favor of reconsideration or rescission exceeds two-thirds of
the number of votes cast for the prevailing side at the original meeting.
H.88 RELATING TO EDUCATION
PROPERTY TAX
Introduced
by Committee on Ways and
Means
Statement
of purpose: This
bill proposes to reduce the statewide education property tax rates from the
statutory rates of $1.10 homestead and $1.59 nonresidential to new rates, for
fiscal year 2008 only, of $0.90 homestead and $1.39 nonresidential; and to
reduce the household income base percentage for property tax adjustments from
the statutory 2.0 percent to 1.80 percent for fiscal year 2008 only.
H.89 RELATING TO OPEN
MEETINGS
Introduced
by Representative Rodgers
of Glover
Statement
of purpose: This
bill proposes to require: (1) a reasonable date, time, and place for
meetings of public bodies; (2) public announcement, at least 48 hours prior to
a meeting, of any change in the date, time, place, or agenda; (3) public
announcement of a special meeting at least 48 hours prior to the meeting; (4)
municipal public bodies to post notice of special meeting agendas; (5) posting
meeting agendas at least 48 hours prior to the meeting; and (6) public
bodies to restrict action at their meetings to only those items on the agenda.
H.91 RELATING TO THE ROZO
MCLAUGHLIN
Introduced
by Representatives
Johnson of South Hero, Barnard of Richmond, Clark of Vergennes, Jerman of
Essex, Kilmartin of Newport City, LaVoie of Swanton, Livingston of Manchester,
Mook of Bennington and Potter of Clarendon
Statement
of purpose: This
bill proposes to establish the local foods mini‑grant program created in
Act No. 145 of 2006 as a permanent program and to name it the Rozo McLaughlin
farm‑to‑school program.
H.109 RELATING TO
EDUCATION FINANCE “PROPOSAL 1” (Short Form)
Introduced
by Representatives
Otterman of Topsham, Jerman of
Statement
of purpose: This
bill proposes to shift a portion of the education tax from a homestead property
tax base to a resident income tax base; to reduce homestead education property
taxes by $137 million; to eliminate the prebate portion of property tax
adjustments; to create an education income tax; to diminish the impact of
common levels of appraisal on education taxes; to provide a disincentive to
excessive education spending by local school districts by increasing the
homestead tax rate by a factor of three times the percentage of spending in
excess of the base education payment; to simplify administration of the
education property tax; and to add no new tax burden to nonresident owners of
Vermont property.
H.135 RELATING TO
INCREASING THE
Introduced
by Representatives
Rodgers of Glover and Myers of
Statement
of purpose: This
bill proposes to increase the age at which an inmate is required to participate
in the corrections education program from 21 to 25.
H.166 RELATING TO REDUCING
THE EFFECTS OF VOLATILE PROPERTY VALUES ON EDUCATION PROPERTY TAXES
Introduced
by Representatives Chen
of Mendon and Donahue of
Statement
of purpose: This
bill proposes to reduce the effects of volatile property values on education
property taxes by using a three-year average common level of appraisal,
limiting the amount by which the common level of appraisal may decrease in any one
year, or creating regional common levels of appraisal.
H.176 RELATING TO ACCESS
TO SCHOOL‑RELATED EVENTS FOR STUDENTS WITH
Introduced
by Representative
Trombley of Grand Isle
Statement
of purpose: This
bill proposes to ensure that students with life‑threatening food-related
allergies are not effectively denied access to school‑sponsored events in
which food is present.
H.178 RELATING TO A
STATEWIDE TEACHERS’ CONTRACT
Introduced
by Representative Wright
of
Statement
of purpose: This
bill proposes to stipulate that all
H.179 RELATING TO PHASING
IN EDUCATION PROPERTY TAX RATES WHEN FORMING A UNIFIED UNION DISTRICT
Introduced
by Representatives Potter
of Clarendon, Fallar of Tinmouth, Chen of Mendon, Clark of Vergennes, Evans of
Essex, Flory of Pittsford, Gilbert of Fairfax, Johnson of
Statement of purpose: This bill proposes to allow the approved plan for formation
of a unified union district to provide for the phase-in of new education
property tax rates for the preexisting school districts.
Published by:
H.209 RELATING TO A TAXPAYERS’
Introduced by Representatives Sunderland of Rutland
Town, Adams of Hartland, Ainsworth of Royalton, Baker of West Rutland, Branagan
of Georgia, Devereux of Mount Holly, Errecart of Shelburne, Flory of Pittsford,
Hudson of Lyndon, Johnson of Canaan, Kilmartin of Newport City, Komline of
Dorset, Krawczyk of Bennington, Lawrence of Lyndon, Marcotte of Coventry,
McAllister of Highgate, McFaun of Barre Town, O’Donnell of Vernon, Turner of
Milton, Valliere of Barre City and Wright of Burlington
Subject: Property taxpayers’ bill of rights (See
also S.61)
H.211 RELATING
TO CONSOLIDATION OF SUPERVISORY UNION SCHOOL DISTRICTS
Introduced by Representatives
Statement of purpose: This bill proposes to direct the
state board of education to consolidate supervisory unions into 16 supervisory
unions with approximately the same boundaries as the technical center regions.
800-244-8722 John
Nelson, Executive Director 802-229-5834 Jeffrey
Francis, Executive Director 802-229-0547 Robert
Stevens, Executive Director