Education (School Funding)

This bill (H.698) revises Vermont's 2025 education funding and policy framework. It removes provisions requiring schools to maintain minimum class sizes, eliminates a rule allowing receiving districts to charge sending districts extra fees for high school students, and reverts unused funds from a school district voting group back to the state General Fund. The bill also updates the state's education funding formula to add a "secondary student weight" for high school students and removes recent changes to property tax classifications affecting schools. These changes directly impact school districts, state education funding calculations, and the administration of public school tuition payments.

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.