After discussing this problem with school districts and supervisory unions across Vermont, we, the members of the Mountain Views Supervisory Union Board of Directors, are writing to urgently request that the Legislature convene a special session this fall to pass emergency legislation decoupling capital construction debt from the per-pupil spending formula. We understand other districts and unions plan to also sign this letter, as we all believe it is needed to align with Act 73 and the Agency of Education’s new State Aid for School Construction Program (set to begin next year), as well as provide clear guidance for districts in the upcoming budgeting process for 2026-27.
Without immediate action by the Legislature, the current school funding system requires any district that must borrow to repair, renovate, or rebuild facilities to have its construction debt counted in its “education spending” allotment. As you know, this artificially inflates the district’s per-pupil spending, which in turn places schools at risk of hitting the excess spending threshold. If that threshold is crossed, taxpayers are penalized— paying two dollars for every dollar over the limit. Needless to say, this discourages critical capital investment and forces districts with aging, unsafe buildings into an impossible position: either neglect facilities further or burden taxpayers with punitive double taxation.
Since the State of Vermont has not funded a school capital construction program since
2007, districts have been left without state partnership in addressing aging infrastructure. The consequences are now acute: some schools are on the brink of closure, and others may soon be forced to move students into temporary trailers on athletic fields if one more system fails. Fortunately, Act 73 and the new State Aid for School Construction Program are set to reverse course, but this change can not happen without decoupling capital construction debt from the per-pupil spending formula.
Since many capital projects can take years to plan, we see urgency in addressing this issue now so schools can get to work. Each year that passes brings new emergencies. Districts are plagued by collapsing sewer and water pipes, overburdened electrical systems, failing boilers, and roofs at the end of their lifespan. Deferred maintenance drives up operating costs year after year. Meanwhile, new challenges — such as costly PCB mitigation and fire-safety compliance — stretch budgets even thinner. Teachers and students are left working in conditions that compromise learning and safety.
Ultimately, every district in Vermont is affected by this issue—even those not currently borrowing for construction. Because of the way the formula is written, any district forced to take on bonds risks triggering penalties that ripple through the entire education finance system. Decoupling capital debt from the per-pupil formula is the only fair and sustainable path forward.
Our request: We urge you to convene a special session this fall to pass emergency legislation that:
- Decouples capital construction debt from the per-pupil spending calculation in
the education funding formula. - Protects taxpayers from punitive double taxation that discourages critical
investment. - Acknowledges that school construction needs are a statewide responsibility,
not a burden that can be left to local districts alone.
We ask you this because we know from Act 73 and subsequent actions that you support
these positions. We deeply appreciate your support and request that you please take this next step in this process by taking action as soon as possible.
The Mountain Views Supervisory Union Board of Directors unanimously approved this letter at their meeting on Monday.