Might school property taxes rise as a result of COVID-19? A recent VTDigger article discusses the pressure on Vermont’s K-12 funding system as a result of the reduction in business activity.
The State Education Fund pays for most of school spending in Vermont. “About two-thirds of its funding comes from property taxes, and the rest from a mix of sales, meals and rooms, vehicle, and lottery revenues,” according to the VTDigger article by Lola Duffort.
The State expects revenues from sales meals and room taxes to fall. That means a property taxes increase or funding from another source must occur. VTDigger quotes House Ways and Means Committee chair Rep. Janet Ancel, as saying: “We also have a potentially large loss of revenue, which is basically just going to flow to property taxpayers.”
Coverage for some of the shortfall could come the $2 billion Vermont expects to receive in federal stimulus money. However, $1.25 billion is not available for lost or delayed revenue. I suspect there will be many agencies making claims to the $2 billion.