Friday, October 3, 2014

Killington joins call for education tax overhaul

This news is a little stale but just got published.
 Vito
Rutland Herald
By Bryanna Allen
STAFF WRITER | October 03,2014
KILLINGTON — Killington has joined other Vermont towns calling on the Legislature to overhaul the education funding system in the coming year.

Select Board members, Town Manager Seth Webb and more than 100 municipal leaders throughout the state joined forces in South Burlington Aug. 14 for a statewide conference to discuss the limitations of the education funding system.

Some major issues raised at the conference include Vermont’s static academic performance despite increased spending per pupil and the shortage of funds for other municipal needs, such as road repairs and emergency services.

The Killington Select Board urged lawmakers in a letter last month to take action on education property tax reform during the 2015 legislative session.

The current education system under Act 60 — followed by Act 68 to address some of the imbalances — are designed to level the financial playing field for schools across the state, independent of the prosperity in each town or school district.

However, the letter said, this equalizer creates drawbacks.

Towns of higher income, such as Killington, are paying to compensate for lower-income towns in the attempt to create a balance between school districts.

Webb said this creates a Robin Hood situation — robbing the rich to help the poor — until the wealthier towns aren’t getting the results they want in their schools.

And those towns are starting to make some noise.

Webb referred to the current system as unsustainable and said it inhibits the growth of Vermont’s tourism industry.

“Tourism is one of the pillars of Vermont’s economy,” he said. “By placing huge tax burdens on tourism towns like ours, Act 60 and 68 have dramatically limited the ability of local businesses to reinvest in capital improvements.”

Webb said this creates issues when trying to compete with other areas that are more able to invest in their marketing.

“While well intentioned,” Webb said, “the state education tax policy is currently limiting tourism growth that we know is essential to Vermont’s economic well being.”

The steady rising cost of the tax hinders the town’s ability to properly manage and plan for a yearly budget.

Selectman Ken Lee said the need for change is shared statewide.

“Towns and school boards from across the state are in agreement that the current system is wrong for Vermont,” Lee said. “We need a new system that is simple for people to understand and reins in the unsustainable spending policies.”

Steve Jeffrey, executive director of the Vermont League of Cities and Towns, said because 70 percent of the property tax goes to the state education system, municipalities need to increase taxes to pay for other essentials.

“Towns will need to come up with other sources of revenue,” Jeffrey said.

Killington is on board with the plea for the Legislature to freeze or cap the tax rates.

So is Dorset.

After the August statewide conference, Dorset created a two-page document summarizing the challenges faced by towns and requested a two-year freeze on property taxes.

Dorset Town Manager Rob Gaiotti said his town at least wants to create a serious discussion at the state level.

“It’s a very real issue for tax payers all over the state,” he said.

Gaiotti said although no specific municipal plans or capital improvements are on hold because of a lack of money, it causes financial tension.

The VLCT said during the past 10 years, Vermont education spending has increased 30 percent, or $300 million, yet school enrollment numbers have decreased 10 percent.

Towns are seeking a better, simpler education funding system.

“It’s a very complex system,” Jeffrey said. “The average person struggles to understand, and that isn’t ideal. The average person is paying for the school system, they should be able to understand where their money is going.”

bryanna.allen

@rutlandherald.com

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