Vermont’s law assigns districts to regional service areas, requires merger studies, sets rules for school construction aid, and delays a new funding formula.
Seven regional education service areas cover Vermont’s supervisory unions. Members can request services, and the areas receive $15,000 start-up grants.
Committees must recommend whether to form unified districts by September 1, 2027. If a committee recommends forming one, voters decide on March 7, 2028.
Approved school projects may receive state aid covering 30 to 75 percent of costs. Only certain merged districts or districts with at least 2,000 students can receive aid above the base amount.
When the foundation formula takes effect, districts may receive help paying 75 percent of annual debt service on qualifying construction debt, unless identified as bad-faith participants in the merger process.
The foundation formula and related tax changes take effect one year later. When the formula begins, eligible schools cannot charge publicly tuitioned students more than the district payment, subject to a later repeal condition.
The law assigns supervisory unions to cooperative educational service areas, which offer specified services to members upon request. The law establishes seven areas and assigns each Vermont supervisory union to one. Members must request the services. The law sets the start-up grant at $15,000.
Facilitators assign school districts to committees that study whether to form unified union school districts. Every Vermont school district is assigned to a merger committee under criteria that include suggested groupings in the law. An isolated district may ask the Legislature to merge it with a unified union district. Towns may not withdraw from a union school district through fiscal year 2035. Committees must report by September 1, 2027. A vote on a recommended district is set for March 7, 2028.
The law provides state construction aid, including state bonding support, for approved school projects. The aid is for school construction projects approved under the State Aid for School Construction Program. Aid may cover 30 to 75 percent of approved project costs. Aid above the base amount is limited to districts formed through a merger found advisable in the committee process, or districts with average daily membership of at least 2,000 students. Applicants seeking aid for older facilities must test for PCBs.
The law provides aid for some existing school construction debt when the foundation formula takes effect. The provision applies to each school district’s qualifying school construction debt. Aid covers 75 percent of annual debt service for school construction debt held as of December 31, 2024. A district identified as a bad-faith participant in the merger committee process does not qualify. Aid begins when the foundation formula takes effect and applies to construction debt held as of December 31, 2024.
The law delays the foundation formula, related tax provisions, and transition measures by one year. The delay covers the foundation formula, related tax provisions, and transition measures. The tuition rule applies to eligible schools and students attending on public tuition. When the foundation formula takes effect, a school eligible to receive public tuition may not charge a publicly tuitioned student more than the district pays under the formula. The tuition limit is prospectively repealed if lawmakers fail to enact a secondary-student weight after receiving the required cost evidence. The tuition limit starts when the foundation formula takes effect.
No hearings or votes scheduled.