The homestead property tax rate is projected to increase by about one cent this year to $1.8185. The increase is less than one percent from last year. Previously, at the time of Town Meeting, the projected increase was about 10 cents.
The budgeted amount has not changed, going up five percent, from last year. However, student enrollment is up. That means cost per pupil is down. Under the State school tax formula, cost per pupil matters — a lot.
As noted in a prior post: “State law sets school tax rates, with the objective of equalizing the tax burden among school districts across Vermont based on per pupil spending.” A video by the Vermont School Board Association explaining the State’s education funding system is here.
The nonresidential tax rate, set by statute, is the same across the State. Hence, in contrast to the homestead tax rate, changes in per pupil spending in Norwich do not impact the nonresidential rate.
The income sensitivity rate for homeowners will decline a wee bit.
Note, however, the tax rates in the chart below are estimates. Projections are subject to legislative changes, still in flux.
Enrollment
Enrollment is up by 23.15 “equalized pupils”. See chart below. The amount is the total for all three public schools — Marion Cross, Richmond Middle and Hanover High. Exact numbers per school were not immediately available.
But, in several monthly principal reports to the Norwich School Board, MCS principal Shawn Gonyaw noted small additions in student population at the elementary school. Are families moving to Norwich?
In addition, the nearly four percent increase in equalized pupils seemingly bucks the trend of declining K-12 enrollment in Vermont.
Covid-19
Note, moreover, Covid-19 is wreaking havoc on municipal finances. People are unemployed and businesses are strapped for cash. Some may not be able to pay their property tax bill.
Furthermore, a lot of unknowns exist on how the State will plug the significant gap in the Education Fund, due to the loss of sales and meals tax revenue. Filling that gap is not likely to impact the homestead property tax rates this year.
Finally, tax bills may go out late this year. The Town is responsible for the school share of taxes. As a result, the Town might need to borrow money to cover that amount. However, at the June 10 Selectboard meeting, Jamie Teague, Business Administrator for SAU 70, indicated that the schools are taking steps to minimize expenses early in the school year.
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