more on school funding

[Carolyn Branagan]

Last week 2 other legislators and I presented details on a plan that will change the way Vermont funds our public schools. It has generated quite a bit of discussion. The plan isn't perfect but I am delighted to see the focus it has received. We wanted to get legislative attention focused on something that really matters to Vermonters: taxes.

Under the plan the Homestead tax rate in Fairfax would be zero and in Georgia would be 17 cents. Non-resident tax rates in both towns  would not change.  Though there are some important outstanding issues with the Local Education Funding Formula, it is a solid plan and gives us a positive focus for real change.  I'm feeling like we have turned a corner. There’s real potential with this plan.

Hope! It feels great!

Contact me at cbranagan@leg.state.vt.us or call me at home 527-7694 and leave a message.

Rep. Carolyn Branagan
Franklin-1, Fairfax/Georgia
Vermont House of Representatives

[Henry]

Hi Carolyn,

I personally don't understand tax rates and probably never will at my age.  Is it possible for you to get with Donna and take a residence supposedly valued at $100,000, using last years tax rate, since that is a known factor and tell me what this would do to my last years tax bill, had it been in place then.  I also would like to know where else this would effect a Fairfax resident.  This would take all of the interpretation out of what I or anyone else reads and understand with a bottom line dollar figure that everyone could easily figure out.

[Carolyn Branagan]

Under the LEAF plan the only way there would be a Homestead tax would be if the community voted to spend  more than 85% of the previous year's statewide school spending. If this plan was in place last year, the homeowner you describe in Fairfax would have had no Homestead tax at all. The only way taxpayers would pay more than the 85% is if there was a vote to that  effect by the community. Local voters, not the state, would make the decision.  And they  wouldn't be forced into an artificially high tax rate due to the CLA.

If the taxpayer owned Non-resident property, like a camp, a business, or land not contiguous to his Homestead, then there would be tax on that property at the current rate of $1.36. We are not making a change to the Non-resident property.

LEAF as we have drafted it would cap property taxes for Vermonters with income under $47,000, so that municipal and education tax cannot exceed 5% of this income.

This is the provision of existing law referred to as the "super circuit breaker" and it would remain in law. We are very concerned about allowing Vermonters to stay in their homes and hang onto their land. That's one of the reasons for the legislation.

Remember that the Ed Fund would no longer pay Special Education, Early Education and Technical Education, the money for these programs would  come from somewhere else.

The LEAF plan is a framework. There are still some holes in it, but this is the general idea:
*spending decisions get made by locals, including the Homestead tax rate
*Sp Ed, EEE and Tech Ed are  no longer paid by the Ed Fund, they are responsibilities shared by all Vermont taxpayers
*Non-resident and 'other' Ed Fund sources stay in place


Hope  this  helps.

from,  Carolyn

[Mummy]

Under the LEAF plan the only way there would be a Homestead tax would be if the community voted to spend  more than 85% of the previous year's statewide school spending. If this plan was in place last year, the homeowner you describe in Fairfax would have had no Homestead tax at all. The only way taxpayers would pay more than the 85% is if there was a vote to that  effect by the community. Local voters, not the state, would make the decision.  And they  wouldn't be forced into an artificially high tax rate due to the CLA.

If the taxpayer owned Non-resident property, like a camp, a business, or land not contiguous to his Homestead, then there would be tax on that property at the current rate of $1.36. We are not making a change to the Non-resident property.

LEAF as we have drafted it would cap property taxes for Vermonters with income under $47,000, so that municipal and education tax cannot exceed 5% of this income.

This is the provision of existing law referred to as the "super circuit breaker" and it would remain in law. We are very concerned about allowing Vermonters to stay in their homes and hang onto their land. That's one of the reasons for the legislation.

Remember that the Ed Fund would no longer pay Special Education, Early Education and Technical Education, the money for these programs would  come from somewhere else.

The LEAF plan is a framework. There are still some holes in it, but this is the general idea:
*spending decisions get made by locals, including the Homestead tax rate
*Sp Ed, EEE and Tech Ed are  no longer paid by the Ed Fund, they are responsibilities shared by all Vermont taxpayers
*Non-resident and 'other' Ed Fund sources stay in place


Hope  this  helps.

from,  Carolyn

[Mummy]

As I recall some 8 - years ago at a School Board meeting the average income in Fairfax was $55,000 which raised much discussion that night from the School Board Directors to the presenters.  It was disclosed that Fairfax has MANY professionals living here with good incomes.  Do you have any idea what the AVERAGE income in Fairfax is now? 

It seems $47,000 per year is...well...LOW for todays income unless you are living on a Disability or Retirement income which will help a few families and most likely the elderly.   How does this help the average family living in Fairfax?  We all know that the income of $47,000 would not qualify a family to purchase anything here in this town.

Although, I am pleased to see some movement in this area, so THANK YOU for the tiny start!

[Carolyn Branagan]

The data I have shows the median income for Fairfax is $40,045. The average homestead is valued at $208,152.  Tax burden in Fairfax is listed as 5.8% of income, fairly high when compared to the rest of the state.

This means Fairfax taxpayers are willing to pay a fairly high rate of tax to support their local school.

The LEAF plan results in no local Homestead tax for Fairfax. I feel this is a good plan for Fairfax and for Georgia, the other town in the legislative district. It will lower homestead tax rates in both communities and give more local control. The plan is not perfect, but there is no perfect school funding formula. Someone will have to pay. What I am trying to do with this plan is show voters we are not stuck where we are. There are other ways to collect school tax revenue and other ways to disperse it. I hear frequently the concerns about Act 60/68/.  Here's an alternative to look at and discuss. We have options.

The website is www.vermontleaf.com for more information, or just ask me.  I'm going out to church this morning, but I'll check in here again this afternoon.

from, Carolyn