S 220 Vermont Senate · 2025-2026 Regular Session

An act relating to the excess spending threshold

This bill limits annual increases in per-pupil education spending for Vermont school districts during fiscal years 2028 and 2029. It requires districts to cap spending growth at a calculated "allowable growth percentage" based on how their per-pupil spending compares to the highest-spending district (excluding certain districts), with a minimum 3% growth allowed. The formula subtracts a district’s prior-year spending from the highest district’s spending, divides that difference by the district’s own spending, then multiplies by 9% to determine the maximum allowable increase. The bill applies to all Vermont public school districts and takes effect July 1, 2026.

Bill status passed 3 of 5 stages cleared

Introduction

Jan 2026

Committee Review

Mar 2026

Senate Passage

Mar 2026

House Passage

Governor

Introduced Jan 8, 2026 Last action Mar 26, 2026

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What changed between versions

As Passed By the Senate (UnofficialOpens in a new window) → As Passed By the Senate (OfficialOpens in a new window) · 4 edits · Mar 24, 2026

MODERATE

The official Senate version of S.220 adds a new Section 1 establishing an 'allowable growth' mechanism that caps per pupil education spending increases for fiscal years 2028 and 2029. The allowable growth percentage is calculated as 9 percent of the gap between a district's per pupil spending and the highest-spending district (excluding gores), with a floor of 3 percent. The remaining sections (definitions of education spending and excess spending, effective date) are unchanged from the unofficial version. This matters because it introduces a concrete spending cap formula for two specific fiscal years rather than just defining terms.

Scope change

The bill's scope expanded from merely amending definitions related to the excess spending threshold to also imposing a direct cap on per pupil education spending growth for fiscal years 2028 and 2029 via a new allowable growth formula.

SCOPE

A new Section 1 titled 'Allowable Growth in Education Spending for Fiscal Years 2028 and 2029' was added. It provides that, notwithstanding any other provision of law, a school district's per pupil education spending in FY2028 and FY2029 shall not exceed the prior year amount plus the district's allowable growth.

A second act title was added: 'An act relating to addressing education spending in fiscal years 2028 and 2029,' broadening the stated purpose beyond just the excess spending threshold.

DEFINITION

New definitions were introduced: 'allowable growth' is the product of the district's allowable growth percentage and its prior year per pupil education spending. The 'allowable growth percentage' equals 9 percent of the difference between the district's per pupil spending and the highest-spending district (excluding gores), expressed as a percentage of the district's own per pupil spending, with a minimum floor of 3 percent.

TECHNICAL

The header changed from 'AS PASSED BY SENATE' to 'BILL AS INTRODUCED AND PASSED BY SENATE.' Introductory metadata was added including sponsor (Senator Baruth), committee referral (Finance), date (January 8, 2026), subject keywords, and a statement of purpose. The page count increased from 3 to 4.

As IntroducedOpens in a new window → As Passed By the Senate (UnofficialOpens in a new window) · 6 edits · Mar 24, 2026

MODERATE

The Senate completely replaced the introduced bill's approach. The introduced version proposed a temporary (FY 2028-2029 only) growth cap formula that limited per pupil spending increases based on the gap between a district and the highest-spending district. The Senate version instead permanently redefines the 'excess spending' threshold, lowering it from 118% to 112% of the statewide average (inflation-adjusted), clarifies what counts as education spending, and adds safe harbors that zero out excess spending under certain conditions.

SCOPE

The bill's entire approach changed from a temporary two-year growth cap (FY 2028-2029) to a permanent redefinition of the 'excess spending' threshold in existing law. The title changed from 'addressing education spending in fiscal years 2028 and 2029' to 'the excess spending threshold.'

DEFINITION

The definition of 'education spending' in 16 V.S.A. section 4001(6) was rewritten to explicitly include school district budget, joint contract school assessments, CTE payments, and deficit payments, while excluding endowments, parental fundraising, federal funds, nongovernmental grants, and special education funds under chapter 101.

A new definition of 'excess spending' was added to 32 V.S.A. section 5401(12), setting the threshold at 112% (down from 118%) of the statewide average district per pupil education spending, adjusted for inflation using the NEEP cumulative price index for state and local government purchases from FY 2025 forward.

Voter-approved bond payments for bonds approved before July 1, 2024 are now explicitly excluded from 'education spending' when calculating excess spending.

ELIGIBILITY

Three safe harbor conditions were added under which a district's excess spending is zero: (1) total education spending did not increase from the prior year, (2) per pupil spending did not increase from the prior year, or (3) the Secretary of Education determines the increase was for good cause or beyond the district's control, such as emergency capital expenditures or substantial loss of pupils.

REQUIREMENT

The introduced bill's entire 'allowable growth' mechanism was removed, including the formula that calculated a district's allowable growth percentage as 9% of the gap between its per pupil spending and the highest-spending district (excluding gores), with a minimum floor of 3%.

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Mar 26, 2026

Introduced

Read first time and referred to the Committee on Ways and Means

lower

Mar 20, 2026

Upper · Passed

Recommendation of amendment by Committee on Finance agreed to

upper

Mar 20, 2026

Upper · Passed

Reported favorably by Senator Baruth for Committee on Appropriations

upper

Mar 20, 2026

Upper · Passed

Read 2nd time, reported favorably with recommendation of amendment by Senator Chittenden for Committee on Finance

upper

Mar 20, 2026

Upper · Passed

Favorable report by Committee on Appropriations

upper

Mar 20, 2026

Upper · Passed

Favorable report with recommendation of amendment by Committee on Finance

upper

Mar 19, 2026

Upper · Passed

Favorable report by Committee on Appropriations

upper

Mar 19, 2026

Upper · Passed

Favorable report with recommendation of amendment by Committee on Finance

upper

Mar 17, 2026

Committee

Referred to Committee on Appropriations per Senate Rule 31

upper

Mar 17, 2026

Upper · Passed

Favorable report with recommendation of amendment by Committee on Finance

upper

Jan 8, 2026

Introduced

Read 1st time & referred to Committee on Finance

upper

1 primary · 0 co-sponsors