Education reform is dominating the agenda at the State House, yet there is still no single clear path forward. As crossover nears, lawmakers are being asked to make foundational decisions about cost, quality, governance, equity, and workforce readiness simultaneously. The pressure to act is colliding with unresolved tradeoffs.

Education spending has become the central policy arena where affordability, opportunity, and long-term economic competitiveness intersect.

Cost and Quality Are Inseparable

Education spending remains the largest driver of property tax pressure, creating real affordability challenges for households and employers. Yet lawmakers are clear: cost control alone cannot be the goal. Reform must protect educational quality, expand opportunity, and deliver equitable outcomes statewide.

Affordability without quality is unsustainable. Quality without fiscal discipline is unattainable.

Act 73 established a foundation-style funding system and statewide property tax framework intended to better align spending with student needs. But many critical implementation decisions remain unsettled. Yield setting, cost allocation, and fiscal modeling assumptions are still under debate as school budget deadlines approach.

Without clarity, communities and employers cannot reliably anticipate property tax impacts, reinforcing broader concerns about fiscal predictability.

Governance and Rural Realities

Governance and redistricting have emerged as some of the most visible and contentious elements of reform. The House Education Committee continues reviewing consolidation models, with cautious support from statewide education organizations for smaller districts than originally proposed. That support remains conditional and focused on minimizing disruption for students and families.

Debate continues over how to structure superintendent oversight and define consolidation metrics. Should it be driven by student population, number of schools, principals, or a blended formula? These questions play out differently in rural and urban communities, where geography, transportation, and staffing capacity vary widely.

For many rural communities, governance reform is not just structural, it is about identity, access, and operational feasibility.

Equity, Choice, and Tuitioning Towns

Equity considerations run through nearly every aspect of the debate. Lawmakers continue to examine the role of independent schools, eligibility standards, and the future of tuitioning towns.

For tuitioning communities, the issue is continuity and access. For the broader system, it is fairness, consistency, and cost exposure. Rural areas emphasize transportation and limited capacity, while more densely populated communities focus on scale and administrative burden.

Durable reform must recognize Vermont’s geographic diversity and avoid one-size-fits-all solutions that create unintended inequities.

Career and Technical Education and Workforce Alignment

Career and technical education remains central to the conversation. Act 73 anticipated additional work to incorporate CTE into the foundation formula, recognizing its role in workforce readiness and economic mobility.

Workforce alignment is not peripheral, it is foundational to Vermont’s long-term competitiveness.

A sweeping proposal would significantly restructure CTE governance and funding through a new statewide education service agency model. Supporters argue it could expand access and better align programs with workforce demand. Legislators have raised unresolved questions about transportation, regional voice, accountability, staffing, administrative costs, and funding flow.

The core question is whether centralization would increase efficiency and consistency, or distance programs from local workforce needs and community partnerships.

Fiscal Uncertainty and Pressure

Fiscal uncertainty has been especially visible in House Ways and Means. Updated school budget data, yield setting, and cost drivers remain under review. Briefings from the Joint Fiscal Office reinforce that unsettled district boundaries, unresolved labor costs, and regional variation limit the reliability of current modeling.

Lawmakers have expressed frustration about evaluating proposals without clear evidence of how they will affect both property taxes and student outcomes, even as expectations for near-term affordability relief rise.

Delivering immediate tax stabilization while redesigning the system presents a significant structural challenge.

The Broader Economic Context

This debate is unfolding against a broader economic backdrop. The Vermont Futures Project Economic Action Plan and Vermont Competitiveness Dashboard consistently highlight workforce shortages, demographic decline, cost of living pressures, and tax burden.

Education policy directly shapes workforce development, employer confidence, and long-term growth.

A system that is unaffordable is not sustainable. A system focused narrowly on cost without protecting quality and equity will fail students and weaken Vermont’s long-term economic prospects.

What Happens Next

As crossover approaches, committees are advancing major proposals on governance, funding, equity, and workforce alignment, but many difficult questions remain unresolved.

Education reform will remain the center of gravity at the State House throughout this biennium. The decisions made in the coming weeks will shape school governance, property tax bills, student opportunity, workforce readiness, and Vermont’s long-term competitiveness.

The Vermont Chamber will continue engaging with a focus on affordability, predictability, workforce alignment, and data-informed outcomes that support both students and Vermont employers.