Vermont schools would use a 112% benchmark for excess spending

School districts would use a benchmark of 112% of statewide average spending per student, adjusted for inflation. The benchmark would apply to Vermont school districts and use fiscal year 2025 statewide average spending per student as its inflation base. The calculation would include required amounts from construction reserve funds. The inflation adjustment would use the New England Economic Project price index for state and local government purchases, from fiscal year 2025 through the year being calculated. The Secretary of Education would determine the benchmark by November 15 each year. If enacted, the bill would take effect on July 1, 2026.

School districts would count zero excess spending when any one of three exceptions applies. These exceptions would apply to Vermont school districts. Either total education spending or spending per student would need to be no greater than in the previous school year. Alternatively, the Secretary of Education could excuse an increase above the benchmark for good cause or circumstances beyond the district’s control. The Secretary would take advice from three business managers and three superintendents selected by the Secretary. If enacted, these exceptions would take effect on July 1, 2026.

School districts would exclude voter-approved bond payments when calculating excess spending. The exclusion would apply to Vermont school districts specifically when calculating spending above the state benchmark. The exclusion would cover payments toward both the borrowed amount and interest. It would apply regardless of when voters approved the borrowing. If enacted, this exclusion would take effect on July 1, 2026.