Tomorrow, December 1, the Tax Commissioner is going to release a letter called “the Dec. 1 Tax letter.” This letter communicates what the Governor expects will be our average statewide property tax next year, based on:
-expected revenues,
-expected property values
-the budgets school boards are proposing to local voters
-other currently existing costs in the education fund.
-any funding gap created by decisions the prior yearWe are expecting the estimated Tax rate in this letter to be high.
Please note, this is an estimate released before the Legislature goes into session in January, and not the final tax rate which will be determined by a number of factors;
-whether local voters agree with their local district boards and vote to approve their proposed local budgets
.-what amount of funding we can raise to pay for those budgets
-whether there are other funding sources we can raise to offset or “buy down”, the proposed property tax rate for next year
.-measures to address costs.
We will be working to make sure the final tax rate will look nothing like this December estimate looks like now, but to be fair to Taxpayers, we feel it’s essential to get this information out to Vermonters.
Legislators are clear about working together with the Governor to solve this problem, and we await his Leadership on this issue. As you know from the recent campaign, the Governor did a very good job pointing out that Property taxes are too high, so we are confident he has a long list of solutions to this problem.As Part-time legislators, we are getting ready for the 18 week Legislative session, which begins in January. We want to hit the ground running, especially on this issue. While we have lots of other issues to take on, from maintaining roads and bridges to housing,etc. addressing Education funding and Property Taxes is Priority Number 1.
Vermonters need to know we are taking Property Tax rates very seriously and are anxious to get to work on this.
A fair question is; Why will this tax rate estimate be high? As school boards build their budgets, all the fundamentals that drove high spending last year are still in place. These increases include cost pressures boards cannot fix on their own, including:
-Double-digit increases in healthcare premiums
-Our extraordinary shortage of housing paired with our aging population means we have fewer school-aged children. Fewer kids means higher costs per kid to maintain our same basic programs.
-School districts are responsible for more social services, including for an unprecedented number of unhoused children this year. It is unclear how much upward pressure this will put on school budgets, and whether this is the most efficient and effective way to address child poverty.
-We need a new funding formula that appropriately directs resources to make sure every district has what it needs to educate its children.
Our children are our future and we don’t want to short change them, so we are working to balance those competing needs of a quality education at a cost we can afford. As I’ve often said, the children of today will be taking our Blood pressure tomorrow, and we want them to have the kind of education that allows them to do it right. Recently I shared that reminder, at a meeting in Putney, and our local Primary Medical Care provider, Anna Olivier, raised her hand and said, “That’s me! I got my start here in Putney and here I am back in town providing Primary medical care. ” Education works!Now we just have to work on the part to make it affordable.
And, we will. Stay tuned.
As always, feel free to send me your questions and suggestions at, mmrowicki@leg.state.vt.us
Take care,
-mike
Mike Mrowicki
Vt. State Representative- Windham 4 District
mmrowicki@leg.state.vt.us