Vermont Chamber News Archives - Vermont Chamber of Commerce

Vermont Chamber of Commerce Announces Winner of the National Civics Bee® Vermont Competition

June 30, 2025

Vermont Chamber of Commerce Announces Winner of the National Civics Bee® Vermont Competition

Barre, VT (June 30, 2025)—Last Wednesday, June 25, the Vermont Chamber of Commerce hosted the 2025 Vermont State Civics Bee at the historic Barre Opera House. The National Civics Bee, organized in partnership with The Civic Trust® of the U.S. Chamber of Commerce Foundation, is a nationwide competition designed to encourage young Americans to engage in civics and deepen their understanding of the U.S. government, Constitution, and civic responsibilities. Open to middle school students, the Bee challenges participants through a series of local, state, and national competitions that include essay writing and live quizzes. By fostering civic knowledge and participation, the National Civics Bee aims to inspire the next generation of informed, responsible citizens and leaders.

“Our communities are built on the foundations of civics. By hosting the first ever Vermont State Civics Bee, the Vermont Chamber of Commerce wants to help students in our state appreciate the importance of civics in our everyday lives,” said Vermont Chamber president, Amy Spear.

“We are facing a civics crisis in America. Surveys show that 70% of adults cannot pass a basic civics quiz, and 79% of 8th graders fall below proficiency in civics. This threatens the strength, prosperity, and resilience of our nation. The National Civics Bee is dedicated to enhancing civics knowledge, skills, and disposition among young people and adults alike, inspiring the next generation to make a positive impact in their communities.” said Hilary Crow, Vice President, Civics, U.S. Chamber of Commerce Foundation.

After a distinguished panel of national judges reviewed the essays, the top essay finalists from the first-round civics essay competition were selected to advance to the local competition, with the top ten students invited to compete at Wednesday’s statewide competition. The live event, emceed by WCAX’s Darren Perron, featured two rounds of civics questions followed by a Q&A round to test their civics knowledge. Marshall M. from Burke Town School took first place, followed by William B. of Christ the King School, Taylor P. of Miller’s Run School and Damien S. of Burke Town School for second, third, and fourth places, respectively. The judges for this year’s competition were: Megan Sullivan, Vice President of Government Affairs at the Vermont Chamber of Commerce, Robyn Palmer, Director of Civic and Voter Engagement for the Office of Vermont Secretary of State, and Martha Deiss, the Agency of Education’s Global Citizenship Specialist, overseeing K-12 Social Studies, World Language, and Financial Literacy.

The finalists impressed the judges with their eloquence and critical thinking, their ability to identify problems in their communities and identify solutions, and their commitment to improving the nation’s future alongside other bright and engaged youth.

First place winner Marshall explained: “I am so happy to be getting my message across and be getting out into the world…I am a proud Vermonter and an ashamed American, and I want to make sure America is not straying away from its core beliefs.” His essay topic focused on voter representation and the electoral college system.

The finalists and top winners received various prizes, including $1,000 cash for the first-place winner. The first-place winner of the Vermont competition also earned a trip to Washington, D.C. to compete in the National Championship later this fall. Prizes at the National Championship include a grand prize of a $100,000 529 plan for first place, $25,000 for second place, and $15,000 for third place.

For more information on the National Civics Bee, visit: National Civics Bee – The Civic Trust®.

First photo below (left to write): William B., Damien S., Marshall M., and Taylor P.

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A picture of the chamber at the Vermont State House

26 Ways Legislative and Executive Action or Inaction Could Impact Businesses After the 2025 Session

June 19, 2025

Vermont Chamber to Host 2025 National Civics Bee® Vermont State Finals on June 25

June 18, 2025

26 Ways Legislative and Executive Action or Inaction Could Impact Businesses After the 2025 Session

June 19, 2025

26 Ways Legislative and Executive Action or Inaction Could Impact Businesses After the 2025 Session

The 2025 legislative session delivered a mix of progress, pause, and uncertainty for Vermont employers. Lawmakers advanced proposals to support workforce development, housing, and infrastructure—but also continued a pattern of high spending, new mandates, and regulatory burdens.

Key decisions this year—from to-go cocktails to major education and tax reforms—will shape Vermont’s business climate for years to come. Below is a snapshot of 26 developments, delays, and decisions from the session that employers should know.

🪙$ 3 Billion in cost increases over the last five years as the state budget has ballooned from $5.8 billion to $9.1 billion in spending. This year-over-year increase is a troubling pattern for an affordable future.

🚛Costly EV truck and car regulations under the Clean Car and Clean Truck Acts were paused by Governor Scott, recognizing the lack of available EV infrastructure and affordable all-electric vehicle options for businesses and consumers.

🤝The Small Business Development Center received an additional $150,000 in state funding to provide expert advising to businesses across the state.

🍹A pandemic innovation, to-go cocktails will be a permanent program allowing restaurants to offer drinks to-go with takeout food orders.

🧪Chemicals used in manufacturing will receive additional regulatory oversight or a full ban with a timeline for implementation phased in over the next few years.

👩‍⚕️Small businesses will not have to shoulder the added weight of subsidizing premiums for the individual healthcare market. The individual and small group markets have been permanently separated.

🫂Unpaid Leave Expansion starts July 1, creating an expanded, more inclusive definition of family, and adding other types of leave, including bereavement and safe leave.

👩🏽‍🎓Advance Vermont received $150,000 in funding to continue building out Vermont’s premier online hub for career and education exploration and planning.

🧑🏽‍🍳Non-stick cookware ban has been pushed back to 2028 to allow more time for alternative products to be widely available for consumers and restaurants.

💵Property taxes were bought down with $77 million in one-time funds to keep this year’s increase at an average of 1%. It is not clear yet how that bill will be paid next year.

🪖Military Retiree Pensions will be exempt from taxation at $125,000 of income and scaled down to $175,000 of income, making Vermont a more desirable destination for retirees in search of a second career.

💦Stormwater Management reforms extend deadlines for business to comply with three-acre impervious surface permits, with varying dates depending on the watershed.

🏠Available Housing remains elusive for middle-income Vermonters, but some relief will be felt with $15 million of funding in the budget for the Missing Middle-Income Homeownership Development Program and the Renter Revolving Loan Fund.

🍀Irish Trade could be in focus with a newly created Irish Trade Commission aimed at opening new markets between Vermont and the Emerald Isle.

💻Data Privacy legislation that balanced consumer protections with business access to digital marketing tools passed the Senate unanimously before being inexplicably sidelined in the House. The bill is expected to be taken up again next year. For now, Vermont businesses remain unregulated, and Vermonters have no legal data privacy protections.

🌲Rural infrastructure capacity got a major boost with the creation of a new tax increment financing tool, which can be used by small and large communities to build infrastructure that will support housing.

🏫Education Reform crossed its major hurdle with a sweeping reform bill aimed at revamping the entire system’s financial and governance structures in an effort to control costs and refocus the education system on students.

💰Proposed Business Only Property Tax Classification, which meant to treat businesses as a valve to stabilize other taxpayers, was removed from the education reform bill after advocacy from the business community and the Governor. This demonstrated the power of coordinated business advocacy.

🏘️Infrastructure Sustainability Fund was created and funded with $7.5 million in the Vermont Bond Bank to expand infrastructure development financing opportunities across Vermont.

❤️‍🩹Healthcare Premiums are expected to see a fourth year of unsustainable increases, but with a new law which will limit the markup of certain prescription drugs, those increases will be 4% lower than originally projected.

🤖UVM Tech Hub will leverage $750,000 in newly appropriated state funds, with additional private investment, to fuel business growth and rural workforce development across the state.

👷🏽‍♀️Employer Mandates were largely tabled this year after critical testimony on the various proposals put forward. Increasing minimum wage to $25 an hour, implementing a fine for not providing enough employee seating, removing at-will employment, and mandating temperature related benefits are just a few of the proposals that businesses will not need to implement this year. However, they may re-emerge next year for consideration.

🍁Montreal Business Development Office will continue to operate, encouraging Canadian businesses to consider expansion opportunities in Vermont with an investment of $150,000 for the next year.

🏢Convention Center Feasibility will be studied over the summer by interested parties to understand what is involved in bringing larger conventions, and the dollars that follow, to the Green Mountain State.

🧹Brownfield remediation projects will get another $1 million in funding for the assessment, remediation, and redevelopment of sites.

💸Clean Heat Standard was neither implemented nor repealed. As a result, this high expense program will not move forward this year, though further legislative action is needed with the Global Warming Solutions Act lawsuits still looming.

June 19, 2025

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Vermont Chamber to Host 2025 National Civics Bee® Vermont State Finals on June 25

June 18, 2025

Vermont Chamber to Host 2025 National Civics Bee® Vermont State Finals on June 25

Barre, VT (June 18, 2025) – On Wednesday, June 25, 2025, from 4:30 to 6:30 PM, the Vermont Chamber of Commerce will host the 2025 National Civics Bee® Vermont State Finals at the Barre Opera House. Ten middle school finalists will demonstrate their knowledge of civics through quiz rounds and a live Q&A, as part of a nationwide effort to inspire civic engagement among young Americans.

Presented in partnership with The Civic Trust® of the U.S. Chamber of Commerce Foundation and the Northeast Kingdom Chamber, the event celebrates students who have proposed solutions to improve their communities. The state champion will advance to the National Civics Bee® Championship in Washington, D.C., with a chance to win college savings prizes of $100,000, $25,000, or $15,000.

“Civic knowledge and engagement are foundational to a vibrant democracy,” said Amy Spear, President of the Vermont Chamber of Commerce. “This contest offers an outstanding opportunity to spotlight remarkable young Vermonters and inspire broader enthusiasm for civic life—an essential part of building strong communities and a resilient Vermont economy.”

Thanks to a partnership with the Barre Partnership, the first 75 attendees will receive a $10 food truck voucher redeemable in nearby Currier Park, turning the evening into a true community celebration. Admission is free and open to the public.

To learn more and register to attend, visit vtchamber.com/national-civics-bee-vermont-2025/.

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Vermont Chamber of Commerce Announces Winner of the National Civics Bee® Vermont Competition

June 30, 2025

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June 19, 2025

Business Advocacy Helps Drives Key Change in Education Finance Bill

June 13, 2025

Business Advocacy Helps Drives Key Change in Education Finance Bill

In a major shift from earlier proposals, the latest version of Vermont’s education reform bill no longer includes a separate tax category that would have targeted businesses. This change follows sustained advocacy from employers across the state and represents a significant shift for Vermont’s business community.

Following heavy outreach from businesses, the conference committee on H.454 has adopted a new draft that eliminates the creation of a standalone “business” tax class. Instead, the latest version consolidates commercial, industrial, and rental properties into a single nonhomestead nonresidential category, replacing the four-tier classification system with a three-tier classification system.

What the New Language Does

The revised draft includes detailed implementation rules for how real estate will be classified for property tax purposes, beginning with calendar year 2027:

Every parcel on the grand list will be assigned one or more of three general classes:
- Homestead: A parcel or portion of a parcel declared as a homestead by October 15.
- Nonhomestead Residential: Year-round dwellings where no homestead was declared, and no long-term lease was reported.
- Nonhomestead Nonresidential: All other property not meeting the definitions above, including businesses.
Parcels with multiple uses will be classified proportionally based on the floor space used for each purpose. However, if a homestead contains 25% or less business use, it will still be treated fully as a homestead.
Listers and assessors must update the grand list annually by June 1, with updates allowed after that date if taxpayers file or correct their declarations.
The Commissioner of Taxes will amend and issue new forms for classification and will collect data in 2027 to assign and report classifications statewide by October 1 of that year.

Appeals of property classifications can be made through the existing valuation appeal process. These provisions do not impact the treatment of parcels enrolled in Vermont’s current use (use value appraisal) program.

A Step in the Right Direction

While this adjustment resolves the most significant concern for Vermont businesses in H.454, the bill remains large in scope. The revised classification system still segregates second homes as a standalone classification, raising long-term concerns about the sustainability of a model that places increasing financial pressure on second home property owners, particularly in communities that depend on tourism and second home investment.

Moreover, the broader challenge remains: Vermont’s education finance system continues to struggle under the weight of high and rising costs. Rather than restructuring who pays more, long-term reforms must focus on what is being spent and why. Cost containment, not cost shifting, must be the foundation of future action.

What’s Next

The H.454 Committee of Conference continues to remain at odds on other areas of the bill but is expected to finalize the full bill before Monday, June 16, when the Legislature reconvenes to pass a final education funding package and adjourn for the session. The Vermont Chamber will continue to monitor the negotiations and advocate for a fair, sustainable system that shares responsibility across all property types, and does not jeopardize the state’s economic competitiveness.

In the meantime, Vermont’s business community recognizes and appreciates the lawmakers who listened to Vermont employers and revised the bill in response to real-world concerns. This outcome reflects the power of direct advocacy and the importance of Vermont businesses remaining active participants in shaping the policy decisions that affect them.

June 13, 2025

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NBT Chief Economist Ken Entenmann and Tax Commissioner Bill Shouldice Join Vermont Business Leaders for Wellspring Forum

June 12, 2025

NBT Chief Economist Ken Entenmann and Tax Commissioner Bill Shouldice Join Vermont Business Leaders for Wellspring Forum

Burlington, VT (June 12, 2025) – Vermont business and policy leaders gathered last week at NBT Bank in Burlington for the latest installment of the Vermont Chamber’s Wellspring Forum series. The event featured a timely conversation with Ken Entenmann, the Senior Vice President, Chief Investment Officer, and Chief Economist at NBT Wealth Management, and Vermont Tax Commissioner Bill Shouldice, moderated by Vermont Chamber President, Amy Spear.

“Connecting business and policy leaders around timely economic issues is central to our mission,” said Spear. “In today’s climate of uncertainty, data-informed dialogue is essential. Ken and Commissioner Shouldice provided valuable insight into how national and state-level trends intersect—and how we can move forward with clarity and focus.”

Entenmann offered a national perspective, using his now-familiar “soft vs. hard” ice cream analogy to explore the tension between market sentiment and economic fundamentals. He shared analysis on GDP, labor markets, and inflation, noting that while investor caution remains, the hard data points to continued resilience in the U.S. economy.

“Uncertainty is the one constant in today’s economic climate,” said Entenmann. “But we can still find clarity by focusing on what the data tells us—not just the headlines. That’s what allows businesses, investors, and policymakers to make smart, long-term decisions.”

Commissioner Shouldice brought the conversation closer to home, outlining Vermont’s fiscal footing and how recent legislative choices are shaping the state’s economic outlook. With experience spanning both public service and private sector leadership, Shouldice emphasized the importance of affordability, long-term planning, and aligning policy with real-time data.

“We are at an economic crossroads,” Shouldice said. “Creating an environment that is sustainable, predictable, and affordable for all Vermonters should be our primary focus. Vermonters work hard, and the Scott administration is thinking about ways to keep money in their pockets.”

The Wellspring Forum series is supported by NBT Bank. The event’s name draws inspiration from former Governor James H. Douglas, who once said: “I am often reminded that the wellspring of Vermont liberty flows from Main Street, not State Street.”

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June 30, 2025

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June 19, 2025

Businesses Are Not Valves: Chamber Raises Alarm on House Education Tax Proposal

June 13, 2025June 6, 2025

Businesses Are Not Valves: Chamber Raises Alarm on House Education Tax Proposal

As the Legislature continues work on education finance reform, the Vermont Chamber is sounding the alarm on a House proposal that would create a new tax classification targeting Vermont businesses. Though the conference committee on H.454 has not reached final agreement, the House’s current position includes separating commercial and industrial properties into their own tax category—a move that could severely harm the state’s employer base.

During a recent conference committee meeting, House Ways and Means Chair Emilie Kornheiser made the intent behind the classification change clear:

“If we want to keep property taxes stable for homeowners and, um, landlords, we can only do that if we create other sort of valves to turn on and off, and so that is why this is in here as an intrinsic part of this proposal.”

In this context, those “valves” include businesses.

This approach sends the wrong message. Vermont businesses are not tools to balance the tax code, they are the backbone of our economy. They provide jobs, generate innovation, support community institutions, and are owned and operated by Vermonters who are deeply invested in our state’s future.

The House proposal seeks to solve what is fundamentally a spending problem by creating a new nonhomestead tax class that could be used to shift the burden onto businesses in future years. This sets a dangerous precedent that risks further economic strain on the very employers we rely on for growth and prosperity.

The Vermont Chamber urges lawmakers to reject this approach. Education finance reform should share responsibility fairly, lower the property tax burden across the board, and recognize that businesses are essential partners in building a stronger, more affordable Vermont.

What’s Next

The H.454 conference committee is scheduled to reconvene on June 10, with the full Legislature returning to Montpelier on June 16 to debate and pass a final education finance reform bill that will then go to the Governor’s desk.

In the meantime, lawmakers are no longer meeting in the State House—they are back in their districts, back among the constituents and communities they were elected to serve. This includes you, Vermont’s employers, who are not just job creators, but neighbors, civic leaders, and core members of the local economy.

Now is the time to act to ensure they fully understand the consequences of the current proposal.

Employers should:

Call or email your local legislators
Invite them to tour your business
Share your concerns about the proposed tax changes

Your direct outreach can shape the debate before lawmakers return to the State House. Let’s ensure they understand the real-world impact their decisions will have on the employers who power Vermont’s economy.

June 6, 2025

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Senate Moves Fast to Save Housing Program for Rural Vermont

May 23, 2025May 23, 2025

Senate Moves Fast to Save Housing Program for Rural Vermont

In a decisive move to preserve one of Vermont’s most promising housing tools, the Senate unanimously passed a refined version of the Community and Housing Infrastructure Program (CHIP) as part of the H.479 housing bill. By suspending procedural rules to expedite action, the Senate demonstrated a clear commitment to addressing the state’s escalating housing crisis, particularly in rural regions where affordability and infrastructure deficits hinder growth.

The Vermont Chamber previously raised concerns that changes proposed by the House Ways and Means Committee would overcomplicate CHIP, layering in constraints that could deter use and stall implementation. Though intended to be protective, these added constraints risked undermining the program’s usability, turning a proactive housing measure into a bureaucratic obstacle at a time when fast, effective solutions are critical.

In contrast, the Senate’s approach in H.479 restores clarity, and flexibility to the program, offering a practical path forward for communities across the state. Key improvements include:

No Prescriptive Housing Ratios: H.479 avoids setting rigid thresholds on the proportion of a development that must be allocated to housing. This allows communities to pursue projects that suit their needs, such as converting underused public buildings or creating vibrant mixed-use centers.
Enhanced Local Revenue Retention: Municipalities may retain up to 80% of the education property tax increment for 20 years under H.479. This enhanced retention is essential for making infrastructure investments viable, especially in areas where development margins are narrow.
Realistic Infrastructure Eligibility: H.479 maintains consistency with the types of infrastructure already eligible under Tax Increment Financing (TIF), such as water, sewer, roads, and site preparation. This contrasts with the House version, which narrowed eligibility and risked sidelining critical projects.
No Annual Cap: The Senate’s version does not impose a $40 million annual limit on CHIP funding. This decision ensures smaller, under-resourced towns won’t be crowded out by early, well-funded applicants and can access funding when they’re ready.
No Sunset Clause: H.479 does not include a sunset provision, giving rural communities the time needed to develop thoughtful, collaborative proposals. A sunset provision would have created unnecessary urgency and inequity.
Avoiding a Burdensome “But-For” Test: The bill also omits the controversial “but-for” requirement, a subjective hurdle ill-suited for the current housing crisis. This change aligns with feedback from the House Rural Caucus as one of the most problematic elements of the program and supports common-sense development practices.

With consensus lacking in the House, the Senate’s united action sends a strong message: Vermont cannot afford to delay when it comes to addressing its housing emergency. This proposal offers real solutions that communities can access and implement without unnecessary red tape or artificial barriers.

The Vermont Chamber urges the House to seize this opportunity for collaboration. The Senate version offers a policy framework rooted in urgency, flexibility, and economic realism, values that should transcend political silos.

May 23, 2025

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Vermont Chamber of Commerce Honors Major General Knight as 2025 Citizen of the Year

May 23, 2025May 23, 2025

Vermont Chamber of Commerce Honors Major General Knight as 2025 Citizen of the Year

Stowe, VT (May 23, 2025) – On May 21, the Vermont Chamber of Commerce celebrated Major General Gregory Knight, Adjutant General of the Vermont National Guard, as the 2025 Citizen of the Year at an event in his honor. Colleagues, friends, and family members gathered at the historic von Trapp Family Lodge and Resort to recognize Major General Knight’s outstanding contributions to Vermont.

The Citizen of the Year award is presented annually by the Vermont Chamber to an individual who has made significant contributions to the betterment of Vermont, distinguished through exceptional service to their community and region, and epitomizes the true spirit of service and self-sacrifice that defines Vermont citizenship. Major General Knight has exemplified these qualities through his proactive leadership, workforce development initiatives, and dedication to ensuring every soldier and airman feels valued.

“When I look around Vermont in my role as the Adjutant General, I realize Vermont is a very special place. We need more believers in Vermont, and we need to bring more believers—and their talent and experience—here,” said Major General Knight. “I am convinced more than ever of two things: the excellence of our people and the importance of relationships.”

Amy Spear, President of the Vermont Chamber of Commerce, also shared her thoughts on the occasion, saying, “Those who know General Knight speak of his humility, his accessibility, and his unwavering care for the people he serves— whether they wear the uniform or not. His leadership is rooted in humanity, and it has left an indelible mark not just on the Vermont Guard, but on our entire state.”

Remarks celebrating General Knight were delivered by Kristina von Trapp Frame, von Trapp Family Lodge & Resort, Greg Maguire, Liquid Measurement Systems, Brigadier General Hank Harder, Deputy Adjutant General of the National Guard Association of Vermont, and the Vermont National Guard and Veterans Affairs Legislative Caucus.

The Vermont Chamber of Commerce has been honoring outstanding Vermonters with the Citizen of the Year award since 1964. Previous recipients include Tom Dee, Senator Patrick Leahy, Barbara Snelling, Antonio Pomerleau, and Ken Squier. This year’s celebration was a testament to Major General Knight’s remarkable contributions and his enduring legacy in Vermont. This event was supported by these generous sponsors: von Trapp Family Lodge and Resort, Casella, Greater Burlington Industrial Corporation, Farrell Distributing, the Vermont Agency of Commerce and Community Development, and the Vermont Department of Labor.

May 23, 2025

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Housing Bill Amendment Moves in the Wrong Direction

May 16, 2025May 16, 2025

Housing Bill Amendment Moves in the Wrong Direction

“Bureaucracy is the death of any achievement.” — Albert Einstein

Einstein’s warning feels especially relevant this week as legislative changes threaten to derail a key housing development tool when Vermont needs it most. As the state continues to grapple with a critical housing shortage impacting businesses and communities statewide, lawmakers focused on refining the Community and Housing Infrastructure Program (CHIP), the latest version of a targeted Tax Increment Financing (TIF) model that has been in development for five years. Designed to fund essential public infrastructure like water, sewer, and roads, CHIP is meant to unlock housing projects that would otherwise remain financially unfeasible. However, recent amendments have added layers of bureaucracy and limitations that risk stalling progress at a time when swift, effective action is essential.

The core principle of TIF is that the increase in property tax revenue generated by a new development (the “increment”) is used to repay the infrastructure bonds, leveraging future growth to finance necessary investments. Without this infrastructure, many housing developments cannot financially move forward meaning the new tax revenue wouldn’t exist anyway.

After the House Ways and Means Committee made sweeping changes to the CHIP proposal, a joint hearing was held by the House Commerce and Economic Development Committee and the House General and Housing Committee. Lawmakers who had spent weeks developing the Senate’s policy framework raised serious concerns, as the amendments appeared to create new barriers rather than improvements.

According to Ways and Means, the changes were intended to provide “reasonable guardrails” on the use of education property tax increment. In practice, the added provisions are more restrictive than protective. Key changes include:

Housing Percentage Requirement: Mandates 65% of a project’s floor area be housing, limiting flexibility for rural or adaptive reuse projects.
Education Tax Retention Rate: Lowers the retention rate from 75% to 60%, with an optional 80% for deeply income-restricted housing, raising viability concerns.
$40 Million Cap: Imposes a total annual cap that may disadvantage under-resourced as well as large communities and limit program impact during a housing crisis.
“But-For” Test: Requires developers to prove projects wouldn’t proceed without the incentive, adding new hoops to jump through during a well-documented housing crisis.
Sunset Date: Introduces a 2028 end date for the standard TIF program without policy committee discussion, creating long-term uncertainty to an established economic development tool.

The Vermont Chamber is deeply disappointed in the direction this bill has taken. The House Ways and Means Committee’s amendments undermine a carefully negotiated policy intended to spur urgently needed housing in communities struggling with affordability. Rather than advancing a tool to meet the scale of Vermont’s affordability and development crisis, the proposal now adds delay, complexity, and uncertainty. In the remaining two weeks of the session, the Vermont Chamber urges legislators to work collaboratively to move this proposal back into a form that meets the moment—with bold, flexible solutions that support all communities in building desperately needed infrastructure that will support all types of housing.

May 16, 2025

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Senate Poised for Debate on Sweeping Education Finance Overhaul

May 16, 2025

Senate Poised for Debate on Sweeping Education Finance Overhaul

Following last year’s 14%average property tax increase, Vermont’s education finance and delivery system stands at a critical juncture. H.454 aims to overhaul nearly every aspect of K–12 funding and delivery—from recalibrating property tax credits to introducing equalization measures designed to narrow funding gaps between districts. Passed by the Senate Finance Committee (5-2-0) late Thursday, the education transformation bill now moves to the Senate floor. With a spirited debate and at least one amendment expected, policymakers must balance ambitious reforms against the need to contain costs.

Key Fiscal Provisions

Property Tax Classifications: The House-passed version would have split Nonhomestead into four classes, raising the risk of disproportionate increases on commercial properties and adding administrative complexity. In its place, the Senate Finance Committee rolled back that expansion and instead directed the Department of Taxes to deliver, by December 15, 2025, a stakeholder-informed study on potential classification models—covering use-based definitions, mixed-use parcel treatment, data collection protocols, appeals processes, and compliance safeguards. The Vermont Chamber testified both in the House and the Senate, emphasizing that any reform to Vermont’s property tax system should prioritize simplicity, predictability, and fairness.
Homestead Exemption: The Committee’s draft holds Homestead relief at $1.6 million below the current income-sensitivity model for FY25, targets low- and moderate-income homeowners through a tiered cap on the exempted house site value, and phases out benefits above $100,000 of household income. Future review by the Tax Department may spur further adjustments.
Supplemental Spending & Equalization: Supplemental district spending remains capped at 10% of base funding. The Committee retained the House’s “lowest-rich-district” equalization approach for now, with plans to revisit averaging methodologies on the floor. Any excess revenue will flow into the School Construction Fund, helping to address long-term capital needs.

Looking Ahead
As discussions continue, the Vermont Chamber will remain engaged in the conversation, ensuring that potential business impacts are carefully balanced with the broader goals of funding a high-quality education system.

May 16, 2025

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