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Subchapter 002: GENERAL STATE FUNDING OF PUBLIC EDUCATION
§ 4010. Determination of weighted long-term membership and per pupil education spending [Effective until contingency met; see also 16 V.S.A. § 4010 effective July 1, 2028 if contingency met, set out below]
(a) Definitions. As used in this section:
(1) “EL pupils” means pupils described under section 4013 of this title.
(2) “FPL” means the Federal Poverty Level.
(3) “Weighting categories” means the categories listed under subsection (b) of this section.
(b) Determination of average daily membership and weighting categories. On or before the first day of December during each school year, the Secretary shall
determine the average daily membership, as defined in subdivision 4001(1) of this title, of each school district for the current school year and shall perform the following
tasks.
(1) Using average daily membership, list for each school district the number of:
(A) pupils in prekindergarten;
(B) pupils in kindergarten through grade five;
(C) pupils in grades six through eight;
(D) pupils in grades nine through 12;
(E) pupils whose families are at or below 185 percent of FPL, using the highest number
of pupils in the district:
(i) that meet this definition under the universal income declaration form; or
(ii) who are directly certified for free and reduced-priced meals; and
(F) EL pupils.
(2)(A) Identify all school districts that have low population density, measured by the number
of persons per square mile residing within the land area of the geographic boundaries
of the district as of July 1 of the year of determination, equaling:
(i) fewer than 36 persons per square mile;
(ii) 36 or more persons per square mile but fewer than 55 persons per square mile; or
(iii) 55 or more persons per square mile but fewer than 100 persons per square mile.
(B) Population density data shall be based on the best available U.S. Census data as provided
to the Agency of Education by the Vermont Center for Geographic Information.
(C) Using average daily membership, list for each school district that has low population
density the number of pupils in each of subdivisions (A)(i)–(iii) of this subdivision
(2).
(3)(A) Identify all school districts that have one or more small schools, which are schools
that have an average two-year enrollment of:
(i) fewer than 100 pupils; or
(ii) 100 or more pupils but fewer than 250 pupils.
(B) As used in subdivision (A) of this subdivision (3), “average two- year enrollment”
means the average enrollment of the two most recently completed school years, and
“enrollment” means the number of pupils who are enrolled in a school operated by the
district on October 1. A pupil shall be counted as one whether the pupil is enrolled
as a full-time or part-time student.
(C) Using average two-year enrollment, list for each school district that has a small
school the number of pupils in each of subdivisions (A)(i)–(ii) of this subdivision
(3).
(c) Reporting on weighting categories to the Agency of Education. Each school district shall annually report to the Agency of Education by a date established
by the Agency the information needed in order for the Agency to compute the weighting
categories under subsection (b) of this section for that district. In order to fulfill
this obligation, a school district that pays public tuition on behalf of a resident
student (sending district) to a public school in another school district, an approved
independent school, or an out-of-state school (each a receiving school) may request
the receiving school to collect this information on the sending district’s resident
student, and if requested, the receiving school shall provide this information to
the sending district in a timely manner.
(d) Determination of weighted long-term membership. For each weighting category except the small schools weighting category under subdivision
(b)(3) of this section, the Secretary shall compute the weighting count by using the
long-term membership, as defined in subdivision 4001(7) of this title, in that category.
[Subdivision (d)(1) effective until contingency met; see also subdivision (d)(1) effective
July 1, 2026 if contingency met, set out below.]
(1) The Secretary shall first apply grade level weights. Each pupil included in long-term
membership shall count as one, multiplied by the following amounts:
(A) prekindergarten—negative 0.54;
(B) grades six through eight—0.36; and
(C) grades nine through 12—0.39.
[Subdivision (d)(1) effective July 1, 2026 if contingency met; see also subdivision
(d)(1) effective until contingency met, set out above.]
(1) The Secretary shall first apply grade level weights. Each pupil included in long-term
membership shall count as one, multiplied by the following amounts:
(A) [Repealed.]
(B) grades six through eight—0.36; and
(C) grades nine through 12—0.39.
(2) The Secretary shall next apply a weight for pupils whose family is at or below 185
percent of FPL. Each pupil included in long-term membership whose family is at or
below 185 percent of FPL shall receive an additional weighting amount of 1.03.
(3) The Secretary shall next apply a weight for EL pupils. Each EL pupil included in long-term
membership shall receive an additional weighting amount of 2.49.
(4) The Secretary shall then apply a weight for pupils living in low population density
school districts. Each pupil included in long-term membership residing in a low population
density school district, measured by the number of persons per square mile residing
within the land area of the geographic boundaries of the district as of July 1 of
the year of determination, shall receive an additional weighting amount of:
(A) 0.15, where the number of persons per square mile is fewer than 36 persons;
(B) 0.12, where the number of persons per square mile is 36 or more but fewer than 55
persons; or
(C) 0.07, where the number of persons per square mile is 55 or more but fewer than 100.
(5) The Secretary shall lastly apply a weight for pupils who attend a small school. If
the number of persons per square mile residing within the land area of the geographic
boundaries of a school district as of July 1 of the year of determination is 55 or
fewer, then, for each pupil listed under subdivision (b)(3)(C) of this section (pupils
who attend small schools):
(A) where the school has fewer than 100 pupils in average two-year enrollment, the school
district shall receive an additional weighting amount of 0.21 for each pupil included
in the small school’s average two-year enrollment; or
(B) where the small school has 100 or more but fewer than 250 pupils, the school district
shall receive an additional weighting amount of 0.07 for each pupil included in the
small school’s average two-year enrollment.
(6) A school district’s weighted long-term membership shall equal long-term membership
plus the cumulation of the weights assigned by the Secretary under this subsection.
[Subsection (e) not in effect July 1, 2025-June 30, 2029.]
(e) Hold harmless. A district’s weighted long-term membership shall in no case be less than 96 and one-half
percent of its actual weighted long-term membership the previous year prior to making
any adjustment under this subsection.
(f) Determination of per pupil education spending. As soon as reasonably possible after a school district budget is approved by voters,
the Secretary shall determine the per pupil education spending for the next fiscal
year for the school district. Per pupil education spending shall equal a school district’s
education spending divided by its weighted long-term membership.
(g) Guidelines. The Secretary shall develop guidelines to enable clear and consistent identification
of pupils to be counted under this section.
(h) Updates to weights. On or before January 1, 2027 and on or before January 1 of every fifth year thereafter,
the Agency of Education and the Joint Fiscal Office shall calculate, based on their
consensus view, updates to the weights to account for cost changes underlying those
weights and shall issue a written report on their work to the House and Senate Committees
on Education, the House Committee on Ways and Means, and the Senate Committee on Finance.
The General Assembly shall update the weights under this section and transportation
reimbursement under section 4016 of this title not less than every five years and the implementation date for the updated weights
and transportation reimbursement shall be delayed by a year in order to provide school
districts with time to prepare their budgets. Updates to the weights may include recalibration,
recalculation, adding or eliminating weights, or any combination of these actions. (Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1999, No. 49, § 2, eff. June 2, 1999; 2003, No. 68, § 39, eff. June 18, 2003; 2003, No. 130 (Adj. Sess.), § 11; 2007, No. 62, § 7; 2007, No. 66, § 19; No. 82, §§ 7, 8; 2013, No. 92 (Adj. Sess.), § 236, eff. Feb. 14, 2014; 2013, No. 142 (Adj. Sess.), § 32; 2013, No. 174 (Adj. Sess.), § 53; 2015, No. 46, § 22, eff. July 1, 2016; 2015, No. 46, § 24, eff. July 1, 2020; 2021, No. 73, § 19, eff. June 8, 2021; 2021, No. 127 (Adj. Sess.), § 4, eff. July 1, 2024; 2021, No. 185 (Adj. Sess.), § E.500.8, eff. July 1, 2024; 2023, No. 76, § 3.)
§ 4010. Determination of weighted long-term membership and educational opportunity payment [Effective July 1, 2028 if contingency met; see also 16 V.S.A. § 4010 effective until contingency met, set out above]
(a) Definitions. As used in this section:
(1) “EL pupils” means pupils described under section 4013 of this title.
(2) “FPL” means the Federal Poverty Level.
(3) “Weighting categories” means the categories listed under subsection (b) of this section.
(4) “Child with a disability” means any child in Vermont eligible under State rules to
receive special education who is enrolled in any of kindergarten through grade 12.
(5) “Disability” means any of:
(A) a specific learning disability or a speech or language impairment, each of which is
identified as “Category A”;
(B) an emotional disturbance, intellectual disability, developmental delay, or other health
impairment, each of which is identified as “Category B”; or
(C) autism spectrum disorder, deaf-blindness, hearing impairment, orthopedic impairment,
traumatic brain injury, or visual impairment, each of which is identified as “Category
C.”
(6) “English language proficiency level” means each of the English language proficiency
levels published as a standardized measure of academic language proficiency in WIDA
ACCESS for ELLs 2.0 and available to members of the WIDA consortium of state departments
of education.
(7) “Newcomer or SLIFE” means a pupil identified as a New American or as a student with
limited or interrupted formal education.
(b) Determination of average daily membership and weighting categories. On or before the first day of December during each school year, the Secretary shall
determine the average daily membership, as defined in subdivision 4001(1) of this title, of each school district for the current school year and shall, using average daily
membership, list for each school district the number of
(1) pupils in prekindergarten;
(2) pupils in kindergarten through grade five;
(3) pupils in grades six through eight;
(4) pupils in grades nine through 12;
(5) pupils whose families are at or below 185 percent of FPL, using the highest number
of pupils in the district:
(A) that meet this definition under the universal income declaration form; or
(B) who are directly certified for free and reduced-priced meals;
(6) EL pupils who have been most recently assessed at an English language proficiency
level of:
(A) Level 1;
(B) Level 2 or 3;
(C) Level 4; or
(D) Level 5 or 6;
(7) EL pupils who are identified as Newcomer or SLIFE; and
(8) children with a disability whose disability is identified as:
(A) Category A;
(B) Category B; or
(C) Category C, provided that a child with multiple disabilities shall be counted solely
under this subdivision (C).
(c) Reporting on weighting categories to the Agency of Education. Each school district shall annually report to the Agency of Education by a date established
by the Agency the information needed in order for the Agency to compute the weighting
categories under subsection (b) of this section for that district. In order to fulfill
this obligation, a school district that pays public tuition on behalf of a resident
student (sending district) to a public school in another school district, an approved
independent school, or an out-of-state school (each a receiving school) may request
the receiving school to collect this information on the sending district’s resident
student, and if requested, the receiving school shall provide this information to
the sending district in a timely manner.
(d) Determination of weighted long-term membership. For each weighting category, the Secretary shall compute the weighting count by using
the long-term membership, as defined in subdivision 4001(7) of this title, in that category.
(1) Prekindergarten weight. Each pupil included in long-term membership who is enrolled in prekindergarten shall
receive an additional weighting amount of negative 0.54.
(2) Economic disadvantage weight. Each pupil included in long-term membership whose family is at or below 185 percent
of FPL shall receive an additional weighting amount of 1.02.
(3) EL proficiency weights. Each EL pupil included in long-term membership shall receive an additional weighting
amount, based on the EL pupil’s English language proficiency level, of:
(A) 2.11, if assessed as Level 1;
(B) 1.41, if assessed as Level 2 or 3;
(C) 1.20, if assessed as Level 4; or
(D) 0.12, if assessed as Level 5 or 6.
(4) EL Newcomer/SLIFE weight. Each EL pupil included in long-term membership who is a Newcomer or SLIFE shall receive
an additional weighting amount of 0.42.
(5) Special education weights. Each child with a disability included in long-term membership shall receive an additional
weighting amount, based on the categorization of the child’s disability, of:
(A) 0.79, if the disability is identified as Category A;
(B) 1.89, if the disability is identified as Category B; or
(C) 2.49, if the disability is identified as Category C.
(6) A school district’s weighted long-term membership shall equal long-term membership
plus the cumulation of the weights assigned by the Secretary under this subsection
(e) Hold harmless. A district’s weighted long-term membership shall in no case be less than 96 and one-half
percent of its actual weighted long-term membership the previous year prior to making
any adjustment under this subsection
(f) Determination of educational opportunity payment. The Secretary shall determine each school district’s educational opportunity payment
by multiplying the school district’s weighted long-term membership determined under
subsection (d) of this section by the base amount.
(g) Guidelines. The Secretary shall develop guidelines to enable clear and consistent identification
of pupils to be counted under this section.
(h) Updates to weights, base amount, and transportation reimbursement. On or before January 1, 2026 and on or before January 1 of every fifth year thereafter,
the Agency of Education and the Joint Fiscal Office shall calculate, based on their
consensus view and with the advice and consultation of a professional judgment panel
convened by the Agency, updates to the weights and the base amount, including any
inflationary measure, to account for cost changes underlying those weights and shall
issue a written report on their work to the House and Senate Committees on Education,
the House Committee on Ways and Means, and the Senate Committee on Finance. The General
Assembly shall update the weights under this section, the base amount, and transportation
reimbursement under section 4016 of this title not less than every five years and the implementation date for the updated weights
and transportation reimbursement shall be delayed by a year in order to provide school
districts with time to prepare their budgets. Updates to the weights may include recalibration,
recalculation, adding or eliminating weights, or any combination of these actions. (Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1999, No. 49, § 2, eff. June 2, 1999; 2003, No. 68, § 39, eff. June 18, 2003; 2003, No. 130 (Adj. Sess.), § 11; 2007, No. 62, § 7; 2007, No. 66, § 19; No. 82, §§ 7, 8; 2013, No. 92 (Adj. Sess.), § 236, eff. Feb. 14, 2014; 2013, No. 142 (Adj. Sess.), § 32; 2013, No. 174 (Adj. Sess.), § 53; 2015, No. 46, § 22, eff. July 1, 2016; 2015, No. 46, § 24, eff. July 1, 2020; 2021, No. 73, § 19, eff. June 8, 2021; 2021, No. 127 (Adj. Sess.), § 4, eff. July 1, 2024; 2021, No. 185 (Adj. Sess.), § E.500.8, eff. July 1, 2024; 2023, No. 76, § 3; 2025, No. 73, § 35, contingently eff. July 1, 2028.)
§ 4011. Education payments
[Subsection (a) effective until contingency met; see also subsection (a) effective
July 1, 2028 if contingency met, set out below.]
(a) Annually, the General Assembly shall appropriate funds to pay for statewide education
spending and a portion of a base education amount for each adult education and secondary
credential program student.
[Subsection (a) effective July 1, 2028 if contingency met; see also subsection (a)
effective until contingency met, set out above.]
(a) Annually, the General Assembly shall appropriate funds to pay for each school district’s
educational opportunity payment and supplemental district spending, as defined in
32 V.S.A. § 5401, the small schools and sparsity support grants under section 4019 of this chapter,
and a portion of a categorical base amount for each adult education and secondary
credential program student.
[Subsection (b) effective until contingency met; see also subsection (b) effective
July 1, 2028 if contingency met, set out below.]
(b) For each fiscal year, the base education amount shall be $6,800.00, increased by the
most recent New England Economic Project Cumulative Price Index, as of November 15,
for state and local government purchases of goods and services from fiscal year 2005
through the fiscal year for which the amount is being determined, plus an additional
one-tenth of one percent.
[Subsection (b) effective July 1, 2028 if contingency met; see also subsection (b)
effective until contingency met, set out above.]
(b) For each fiscal year, the categorical base amount shall be $6,800.00, which shall
be adjusted for inflation annually on or before November 15 by the Secretary of Education.
As used in this subsection, “adjusted for inflation” means adjusting the categorical
base dollar amount by the National Income and Product Accounts (NIPA) implicit price
deflator for state and local government consumption expenditures and gross investment
published by the U.S. Department of Commerce, Bureau of Economic Analysis, from fiscal
year 2005 through the fiscal year for which the amount is being determined, and rounding
upward to the nearest whole dollar amount.
[Subsection (c) effective until contingency met; see also subsection (c) effective
July 1, 2028 if contingency met, set out below.]
(c) Annually, each school district shall receive an education spending payment for support
of education costs. An unorganized town or gore shall receive an amount equal to its
per pupil education spending for that year for each student. No district shall receive
more than its education spending amount.
[Subsection (c) effective July 1, 2028 if contingency met; see also subsection (c)
effective until contingency met, set out above.]
(c) Annually, each school district shall receive for support of education costs its educational
opportunity payment determined pursuant to subsection 4010(f) of this chapter and
a dollar amount equal to its supplemental district spending, if applicable to that
school district, as defined in 32 V.S.A. § 5401.
(d) [Repealed.]
(e) [Repealed.]
[Subsection (f) effective until contingency met; see also subsection (f) effective
July 1, 2028 if contingency met, set out below.]
(f) Annually, the Secretary shall pay to a local adult education and literacy provider,
as defined in section 942 of this title, that provides an adult education and secondary credential program an amount equal
to 26 percent of the base education amount for each student who completes the diagnostic
portions of the adult education and secondary credential program, based on an average
of the previous two completed fiscal years. Forty percent of the payment required
under this subsection shall be from State funds appropriated from the Education Fund
and 60 percent of the payment required under this subsection shall be from State funds
appropriated from the General Fund.
[Subsection (f) effective July 1, 2028 if contingency met; see also subsection (f)
effective until contingency met, set out above.]
(f) Annually, the Secretary shall pay to a local adult education and literacy provider,
as defined in section 942 of this title, that provides an adult education and secondary credential program an amount equal
to 26 percent of the categorical base amount for each student who completes the diagnostic
portions of the adult education and secondary credential program, based on an average
of the previous two completed fiscal years. Forty percent of the payment required
under this subsection shall be from State funds appropriated from the Education Fund
and 60 percent of the payment required under this subsection shall be from State funds
appropriated from the General Fund.
(g) The Secretary shall pay to a school district a percentage of the base education amount
for each resident student for whom the district is paying a technical tuition to a
regional career technical center but who is not enrolled in the district and therefore
not counted in the average daily membership of the district. The percentage of the
base education amount to be paid shall be the percentage of the student’s full-time
equivalent attendance at the career technical center multiplied by 87 percent.
(h) The Secretary shall make all payments required by subchapter 5 of chapter 23 of this
title.
[Subsection (i) effective until contingency met; see also subsection (i) effective
July 1, 2028 if contingency met, set out below.]
(i) Annually, on or before October 1, the Secretary shall send to school boards for inclusion
in town reports and publish on the Agency website the following information:
(1) the statewide average district per pupil education spending for the current fiscal
year; and
(2) a statewide comparison of student-teacher ratios among schools that are similar in
number of students and number of grades.
[Subsection (i) effective July 1, 2028 if contingency met; see also subsection (i)
effective until contingency met, set out above.]
(i) Annually, on or before October 1, the Secretary shall send to school boards for inclusion
in town reports and publish on the Agency website a statewide comparison of student-teacher
ratios among schools that are similar in number of students and number of grades. (Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), §§ 90, 117a, eff. March 11, 1998; 1999, No. 49, § 197; 1999, No. 108 (Adj. Sess.), § 3, eff. May 10, 2000; 2001, No. 8, § 16; 2001, No. 63, § 170b; 2003, No. 36, §§ 21, 22; 2003, No. 66, § 187b; 2003, No. 68, § 16, eff. June 18, 2003; 2003, No. 76 (Adj. Sess.), § 25, eff. Feb. 17, 2004; 2003, No. 122 (Adj. Sess.), § 174; 2003, No. 130 (Adj. Sess.), § 15; 2005, No. 54, § 16; 2005, No. 176 (Adj. Sess.), § 1; 2007, No. 66, § 9; 2009, No. 4, § 81, eff. April 24, 2009; 2009, No. 44, § 17, eff. May 21, 2009; 2013, No. 77, § 8; 2017, No. 49, § 29, eff. May 23, 2017; 2021, No. 127 (Adj. Sess.), § 25, eff. July 1, 2024; 2023, No. 113 (Adj. Sess.), § E.504.4, eff. July 1, 2024; 2025, No. 27, § E.504.2, eff. July 1, 2025; 2025, No. 73, § 36, contingently eff. July 1, 2028.)
§ 4011a. Repealed. 2017, No. 49, § 31, effective May 23, 2017.
§ 4012. State-placed students
(a) A district that provides for the education of its students by paying tuition to an
approved independent school or a public school outside the district shall receive
from the Secretary an amount equal to the calculated net cost per pupil in the receiving
school, as defined in section 825 of this title, prorated for the percentage of annual tuition billed for a State-placed student.
If the calculated net cost per pupil in a receiving independent school or school located
outside Vermont is not available, the Secretary shall pay the tuition charged. A district
shall not receive funds under this section if all the student’s education costs are
fully paid under subsection 2950(a) of this title.
(b) A school district shall request reimbursement under this section by submitting tuition
bills and documentation of payment to the Secretary. The Secretary shall make reimbursement
twice a year, once for requests submitted prior to January 1 and once for requests
submitted prior to May 1. Requests submitted on or following May 1 shall be reimbursed
in the next payment. The Secretary shall reconcile tuition overcharges in the year
following payment to the school district pursuant to section 836 of this title. For the purpose of recovering any tuition overcharge, the Secretary shall be considered
a receiving district. (Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 91, eff. March 11, 1998; 2013, No. 92 (Adj. Sess.), § 238, eff. Feb. 14, 2014.)
§ 4013. [Reserved for future use.]
§ 4013. English learners services; State aid
(a) Definitions. As used in this section:
(1) “Applicable federal laws” mean the Equal Education Opportunities Act (20 U.S.C. § 1703), Title VI of the Civil Rights Act of 1964 (42 U.S.C. §§ 2000d et seq.), and Titles I and III of the Elementary and Secondary Education Act of 1965
(20 U.S.C. §§ 6301 et seq. and 20 U.S.C. §§ 6801 et seq.), each as amended.
(2) “EL services” mean instructional and support personnel and services that are required
under applicable federal laws for EL students and their families.
(3) “EL students” or “EL pupils” mean students who have been identified as English learners
through the screening protocols required under 20 U.S.C. § 6823(b)(2).
(b) Required EL services. Each school district shall:
(1) screen students to determine which students are EL students and therefore qualify
for EL services;
(2) assess and monitor the progress of EL students;
(3) provide EL services;
(4) budget sufficient resources through a combination of State and federal categorical
aid and local education spending to provide EL services;
(5) report expenditures on EL services annually to the Agency of Education through the
financial reporting system as required by the Agency; and
(6) evaluate the effectiveness of their EL programs and report educational outcomes of
EL students as required by the Agency and applicable federal laws.
(c) Agency of Education support and quality assurance. The Agency of Education shall:
(1) provide guidance and program support to all school districts with EL students as required
under applicable federal law, including:
(A) professional development resources for EL teachers and support personnel; and
(B) information on best practices and nationally recognized language development standards;
and
(2) prescribe, collect, and analyze financial and student outcome data from school districts
to ensure that districts are providing high-quality EL services and expending sufficient
resources to provide these services.
[Subsection (d) repealed July 1, 2028 if contingency met.]
(d) Categorical aid. In addition to the EL weight under section 4010 of this title, a school district that has, as determined annually on October 1 of the year:
(1) one to five EL students enrolled shall receive State aid of $25,000.00 for that school
year; or
(2) six to 25 EL students enrolled shall receive State aid of $50,000.00 for that school
year.
(e) Annual appropriation. Annually, the General Assembly shall include in its appropriation for statewide education
spending under subsection 4011(a) of this title an appropriation to provide aid to school districts for EL services under this section.
(f) Payment. On or before November 1 of each year, the State Treasurer shall withdraw from the
Education Fund, based on warrant of the Commissioner of Finance and Management, and
shall forward to each school district the aid amount it is owed under this section. (Added 2021, No. 127 (Adj. Sess.), § 10, eff. July 1, 2024; amended 2025, No. 73, § 42(d), contingently eff. July 1, 2028.)
§ 4014. Early education
(a) The Secretary may grant funds for voluntary early education programs. The funds may
be used for personnel costs, training of parents and staff, materials and educational
equipment, and other costs related to early education programs.
(b) The Secretary shall solicit proposals for early education programs from community
organizations serving young children. Community organizations include school districts;
other public agencies, including Head Start programs; and private agencies, including
child care programs and parent-child centers.
(c) The Secretary also shall investigate to determine those areas that are not served
by early education programs and whose children are in greatest need of such services.
In those areas, the Secretary shall provide assistance in preparing proposals for
grants. In conducting the investigation, the Secretary shall collect and analyze demographic
factors that are likely to predict unusual community needs for early education services.
The Secretary shall distribute the results of the analysis to all interested persons.
(d) The Secretary shall evaluate proposals based on the following criteria:
(1) The program will serve additional children with special needs, such as those who are
economically disadvantaged, those who have limited English language skills, those
who have a disability, or those who have experienced or are at risk of abuse or neglect.
(2) The program will rely on early screening of children’s development to determine need.
(3) The program will provide experiential learning activities that are developmentally
appropriate for three- and four-year old children. Such activities may be provided
in home or group settings or a combination of the two.
(4) The program will include active parental involvement in program design and in making
decisions about services.
(5) The program has been cooperatively developed by community and school organizations
that serve young children in a town or group of towns.
(6) There is a demonstrated need for the program.
(7) The program considers the transportation needs of children and parents.
(8) The program enables children with disabilities to be served in settings with peers
who do not have a disability.
(9) The program includes voluntary training for parents.
(e) The Secretary shall give preference to programs to be offered in parts of the State
that do not have early education services at the time of the application.
(f) Grant proposals shall be submitted to the Secretary. Grants shall be for one year
but may be renewed. No grant may exceed $30,000.00. The Secretary may, in his or her
discretion, set other terms of the grant. (Added 1987, No. 68, § 3; amended 2011, No. 58, § 6, eff. May 31, 2011; 2013, No. 92 (Adj. Sess.), § 239, eff. Feb. 14, 2014; 2013, No. 96 (Adj. Sess.), § 81; 2021, No. 20, § 70.)
§ 4015. Merger support for merged districts [Repealed July 1, 2028 if contingency met]
(a) A school district that was voluntarily formed under 2010 Acts and Resolves No. 153,
2012 Acts and Resolves No. 156, or 2015 Acts and Resolves No. 46, each as amended,
and received a merger support grant shall continue to receive that merger support
grant, subject to the provisions in subsection (c) of this section.
(b) A school district that was involuntarily formed under the Final Report of Decisions
and Order on Statewide School District Merger Decisions Pursuant to Act 46, Secs.
8(b) and 10 dated November 28, 2018 and that received a small schools grant in fiscal
year 2020 shall receive an annual merger support grant in that amount, subject to
the provisions in subsection (c) of this section.
(c)(1) Payment of a merger support grant under this section shall not be made in any year
that the school district receives a small school weight under section 4010 of this title.
(2) Payment of a merger support grant under this section shall continue annually unless
explicitly repealed by the General Assembly; provided, however, that the Secretary
shall discontinue payment of the grant in the fiscal year following the cessation
of operations of the school that made the district originally eligible for the grant,
and further provided that if the building that houses the school that made the district
originally eligible for the grant is consolidated with another school into a renovated
or new school building, then the Secretary shall continue to pay the grant during
the repayment term of any bonded indebtedness incurred in connection with the consolidation-related
renovation or construction. (Added 1997, No. 71 (Adj. Sess.), § 92, eff. March 11, 1998; amended 1999, No. 49, § 3, eff. June 2, 1999; 1999, No. 66 (Adj. Sess.), § 39, eff. Feb. 8, 2000; 2003, No. 68, § 23, eff. July 1, 2004; 2003, No. 76 (Adj. Sess.), § 27, eff. Feb. 17, 2004; 2007, No. 82, § 28; 2009, No. 44, § 19, eff. May 21, 2009; 2011, No. 129 (Adj. Sess.), § 7, eff. May 11, 2012; 2013, No. 92 (Adj. Sess.), § 240, eff. Feb. 14, 2014; 2015, No. 48, § 6; 2015, No. 46, § 20, eff. July 1, 2019; 2021, No. 73, § 20, eff. June 8, 2021; 2021, No. 127 (Adj. Sess.), § 26, eff. July 1, 2024.)
§ 4015. Merger support for merged districts [Repealed effective July 1, 2028]
(Added 1997, No. 71 (Adj. Sess.), § 92, eff. March 11, 1998; amended 1999, No. 49, § 3, eff. June 2, 1999; 1999, No. 66 (Adj. Sess.), § 39, eff. Feb. 8, 2000; 2003, No. 68, § 23, eff. July 1, 2004; 2003, No. 76 (Adj. Sess.), § 27, eff. Feb. 17, 2004; 2007, No. 82, § 28; 2009, No. 44, § 19, eff. May 21, 2009; 2011, No. 129 (Adj. Sess.), § 7, eff. May 11, 2012; 2013, No. 92 (Adj. Sess.), § 240, eff. Feb. 14, 2014; 2015, No. 48, § 6; 2015, No. 46, § 20, eff. July 1, 2019; 2021, No. 73, § 20, eff. June 8, 2021; 2021, No. 127 (Adj. Sess.), § 26, eff. July 1, 2024; contingently repealed on July 1, 2028 by 2025, No. 73, § 42(e).)
§ 4016. Reimbursement for transportation expenditures
(a) A school district or supervisory union that incurs allowable transportation expenditures
shall receive a transportation reimbursement grant each year. The grant shall be equal
to 50 percent of allowable transportation expenditures; provided, however, that in
any year the total amount of grants under this subsection shall not exceed the total
amount of adjusted base year transportation grant expenditures. The total amount of
base year transportation grant expenditures shall be $10,000,000.00 for fiscal year
1997, increased each year thereafter by the annual price index for state and local
government purchases of goods and services. If in any year the total amount of the
grants under this subsection exceed the adjusted base year transportation grant expenditures,
the amount of each grant awarded shall be reduced proportionately. Transportation
grants paid under this section shall be paid from the Education Fund and shall be
added to education spending payment receipts paid under section 4011 of this title.
(b) In this section, “allowable transportation expenditures” means the costs of transporting
students to and from school for regular classroom services and shall not include expenditures
for transporting students participating in curricular activities that take place off
the school grounds or for transporting students participating in cocurricular activities.
The State Board shall further define allowable transportation expenditures by rule.
(c) A district or supervisory union may apply and the Secretary may pay for extraordinary
transportation expenditures incurred due to geographic or other conditions such as
the need to transport students out of the school district to attend another school
because the district does not maintain a public school. The State Board shall define
extraordinary transportation expenditures by rule. The total amount of base year extraordinary
transportation grant expenditures shall be $250,000.00 for fiscal year 1997, increased
each year thereafter by the annual price index for state and local government purchases
of goods and services. Extraordinary transportation expenditures shall not be paid
out of the funds appropriated under subsection (b) of this section for other transportation
expenditures. Grants paid under this section shall be paid from the Education Fund
and shall be added to education spending payment receipts paid under section 4011 of this title. (Added 2003, No. 107 (Adj. Sess.), § 12; amended 2013, No. 92 (Adj. Sess.), § 241, eff. Feb. 14, 2014; 2023, No. 183 (Adj. Sess.), § 22, eff. July 1, 2024.)
§ 4017. Universal meals supplement
(a) Definition. For the purpose of this section, “universal meals supplement” has the same meaning
as that term has in subdivision 1261a(5) of this title.
(b) Public schools. From State funds appropriated to the Agency from the Education Fund for the universal
meals supplement, the Agency shall provide a universal meals supplement for the cost
of each meal actually provided to each student in the district during the previous
quarter when meals are offered to all students at no charge pursuant to subdivision 1264(a)(1)(B) of this title.
(1) Reimbursement from State funds shall be available only to districts that maximize
access to federal funds for the cost of the school breakfast and lunch program by
participating in the Community Eligibility Provision, under 7 C.F.R. § 245.9(f), or Provision 2, under 7 C.F.R. § 245.9(b), of these programs, or any other federal provision that in the opinion of the Agency
draws down the most possible federal funding for meals served in that program. At
the start of each school year, the Agency of Education may require that a school food
authority requesting the universal meals supplement begin a new cycle of the relevant
federal provision and group sites in a manner the Agency determines will maximize
the drawdown of federal funds.
(2) Second breakfasts, as allowed under 7 C.F.R. § 220.9(a), do not qualify for reimbursement under this subsection.
(3) A nonprofit prequalified private prekindergarten provider that is qualified pursuant
to subsection 829(c) of this title and is not also an approved or recognized independent school is eligible for the
universal meals supplement under this subsection if it operates a food program under
a public school school food authority.
(c) Approved independent schools.
(1) From State funds appropriated to the Agency from the Education Fund for the universal
meals supplement, the Agency shall provide a universal meals supplement for the cost
of each meal actually provided to each qualifying student on public tuition when meals
are offered to all students at no charge pursuant to subdivision 1264(a)(1)(B) of this title, provided that:
(A) If the approved independent school participates in the food programs as a site under
a public school school food authority, the public school school food authority shall
be reimbursed only for students attending the approved independent school on public
tuition.
(B) If the approved independent school participates in the Community Eligibility Provision
under 7 C.F.R. § 245.9(f), or is in a year other than the base year of Provision 2 under 7 C.F.R. § 245.9(b), the school shall provide the Agency with the number of students attending the school
on public tuition and the total number of students enrolled in the school. The Agency
shall calculate the percentage of students attending the school on public tuition
and multiply that number by the paid student percentage, the results of which shall
be the number of meals the school shall be reimbursed for.
(2) Second breakfasts, as allowed under 7 C.F.R. § 220.9(a), do not qualify for reimbursement under this subsection.
(3) Students attending an approved independent school on public tuition shall include
a prekindergarten child if the approved independent school also qualifies as a prequalified
private provider and the child’s school district of residence pays tuition to the
school pursuant to section 829 of this title.
(4) An approved independent school is eligible for the universal meals supplement only
if it operates a food program that makes available a school lunch, as provided in
the National School Lunch Act as amended, and a school breakfast, as provided in the
Child Nutrition Act as amended, to each attending student who qualifies for those
meals under these acts every school day.
(5) Reimbursement from State funds shall be available only to approved independent schools
that maximize access to federal funds for the cost of the school breakfast and lunch
program by participating in the Community Eligibility Provision under 7 C.F.R. § 245.9(f), or Provision 2 under 7 C.F.R. § 245.9(b), of these programs, or any other federal provision that in the opinion of the Agency
draws down the most possible federal funding for meals served in that program. At
the start of each school year, the Agency of Education may require that a school food
authority requesting the universal meals supplement begin a new cycle of the relevant
federal provision and group sites in a manner the Agency determines will maximize
the drawdown of federal funds.
(d) Universal meals supplement. The universal meals supplement amount for breakfast shall be a sum equal to the federal
reimbursement rate for a free school breakfast less the federal reimbursement rate
for a paid school breakfast, using rates identified annually by the Agency of Education
from payment levels established annually by the U.S. Department of Agriculture. The
universal meals supplement amount for lunch shall be a sum equal to the federal reimbursement
rate for a free school lunch less the federal reimbursement rate for a paid school
lunch, using rates identified annually by the Agency of Education from payment levels
established annually by the U.S. Department of Agriculture. (Added 2023, No. 64, § 3, eff. July 1, 2023.)
§ 4018. Repealed. 2023, No. 87 (Adj. Sess.), § 99, eff. March 13, 2024.
(Added 2023, No. 78, § E.500.1, eff. July 1, 2023.)
§ 4019. Small schools; sparse schools; support grants [Effective July 1, 2028 if contingency
met]
(a) Definitions. As used in this section:
(1) “Enrollment” means the number of students who are enrolled in a school operated by
the school district on October 1. A student shall be counted as one whether the student
is enrolled as a full-time or part-time student.
(2) “Small school” means a school that:
(A) has fewer than 100 pupils in two-year average enrollment; and
(B) has been determined by the State Board of Education, on an annual basis, to be “small
by necessity” under standards consistent with those submitted to the General Assembly
pursuant to 2025 Acts and Resolves No. 73, Sec. 8(b).
(3) “Sparse area” means a city, town, or incorporated village where the number of persons
per square mile residing within the land area of the geographic boundaries of the
city, town, or incorporated village as of July 1 of the year of determination is fewer
than 55 persons.
(4) “Sparse school” means a school that:
(A) is within a sparse area; and
(B) has been determined by the State Board of Education, on an annual basis, to be “sparse
by necessity” under standards consistent with those submitted to the General Assembly
pursuant to 2025 Acts and Resolves No. 73, Sec. 8(b).
(5) “Two-year average enrollment” means the average enrollment of the two most recently
completed school years.
(b) Small schools support grant. Annually, the Secretary shall pay a small schools support grant to each school district
for each small school within the school district in an amount determined by multiplying
the two-year average enrollment in the small school by $3,157.00.
(c) Sparse schools support grant. Annually, the Secretary shall pay a sparse schools support grant to each school district
for each sparse school within the school district in an amount determined by multiplying
the two-year average enrollment in the sparse school by $1,954.00.
(d) Inflationary adjustment. Each dollar amount under subsections (b) and (c) of this section shall be adjusted
for inflation annually on or before November 15 by the Secretary. As used in this
subsection, “adjusted for inflation” means adjusting the dollar amount by the National
Income and Product Accounts (NIPA) implicit price deflator for state and local government
consumption expenditures and gross investment published by the U.S. Department of
Commerce, Bureau of Economic Analysis, from fiscal year 2025 through the fiscal year
for which the amount is being determined, and rounding upward to the nearest whole
dollar amount. (Added 2025, No. 73, § 37, contingently eff. July 1, 2028.)
§ 4025. Education Fund
(a) The Education Fund is established to comprise the following:
(1) all revenue paid to the State from the statewide education tax on nonhomestead and
homestead property under 32 V.S.A. chapter 135;
[Subdivision (a)(2) effective until contingency met; see also subdivision (a)(2) effective
July 1, 2028 if contingency met, set out below.]
(2) [Repealed.]
[Subdivision (a)(2) effective July 1, 2028 if contingency met; see also subdivision
(a)(2) effective until contingency met, set out above.]
(2) all revenue paid to the State from the supplemental district spending tax imposed
pursuant to 32 V.S.A. § 5402(f);
(3) revenues from State lotteries under 31 V.S.A. chapter 14 and from any multijurisdictional lottery game authorized under that chapter;
(4) 25 percent of the revenues from the meals and rooms taxes imposed under 32 V.S.A. chapter 225;
(5) one-third of the revenues raised from the purchase and use tax imposed by 32 V.S.A. chapter 219, notwithstanding 19 V.S.A. § 11(1);
(6) revenues raised from the sales and use tax imposed by 32 V.S.A. chapter 233;
(7) Medicaid reimbursement funds pursuant to subsection 2959a(f) of this title.
(8) land use change tax revenue deposited pursuant to 32 V.S.A. § 3757(d);
(9) uniform capacity tax revenue deposited pursuant to 32 V.S.A. § 8701(b)(3);
(10) wind-powered electric generating facilities tax deposited pursuant to 32 V.S.A. § 5402c; and
(11) revenues from the short-term rental surcharge under 32 V.S.A. § 9301.
(b) Monies in the Education Fund shall be used for the following:
(1) To make payments to school districts and supervisory unions for the support of education
in accordance with the provisions of section 4028 of this title, other provisions of this chapter, the provisions of 32 V.S.A. chapter 135, and the Flexible Pathways Initiative established by section 941 of this title, but excluding adult education and literacy programs under section 945 of this title.
(2) To cover the cost of fund auditing, accounting, revenue collection, and of short-term
borrowing to meet fund cash flow requirements.
[Subdivision (b)(3) effective until contingency met; see also subdivision (b)(3) effective
July 1, 2028 if contingency met, set out below.]
(3) To make payments required under 32 V.S.A. § 6066(a)(1) and only that portion attributable to education taxes, as determined by the Commissioner
of Taxes, of payments required under 32 V.S.A. § 6066(a)(3). The State Treasurer shall withdraw funds from the Education Fund upon warrants issued
by the Commissioner of Finance and Management based on information supplied by the
Commissioner of Taxes. The Commissioner of Finance and Management may draw warrants
for disbursements from the Fund in anticipation of receipts. All balances in the Fund
at the end of any fiscal year shall be carried forward and remain a part of the Fund.
Interest accruing from the Fund shall remain in the Fund.
[Subdivision (b)(3) effective July 1, 2028 if contingency met; see also subdivision
(b)(3) effective until contingency met, set out above.]
(3) The State Treasurer shall withdraw funds from the Education Fund upon warrants issued
by the Commissioner of Finance and Management based on information supplied by the
Commissioner of Taxes. The Commissioner of Finance and Management may draw warrants
for disbursements from the Fund in anticipation of receipts. All balances in the Fund
at the end of any fiscal year shall be carried forward and remain a part of the Fund.
Interest accruing from the Fund shall remain in the Fund.
(4) To make payments to the Vermont Teachers’ Retirement Fund and the Retired Teachers’
Health and Medical Benefits Fund for the normal contributions in accordance with subsections
1944(c) and 1994b(h) of this title.
(5) To make payments for contracted services to support statewide administrative education
systems, including the costs of the statewide school finance and financial management
data system to complete the reporting required by subdivision 242(4) of this title and pursuant to 2018 (Sp. Sess.) Acts and Resolves No. 11, Sec. E.500.1.
(c) [Repealed.]
(d) Upon withdrawal of funds from the Education Fund for any purpose other than those
authorized by this section, 32 V.S.A. chapter 135 (education property tax) is repealed. (Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 4, eff. March 11, 1998, § 68; 1997, No. 147 (Adj. Sess.), § 159(a); 1999, No. 1, § 102, eff. March 31, 1999; 1999, No. 62, § 127; 1999, No. 66 (Adj. Sess.), § 52, eff. Feb. 8, 2000; 1999, No. 152 (Adj. Sess.), § 166b; 2001, No. 63, § 277; 2001, No. 102 (Adj. Sess.), § 35a, eff. May 15, 2002; 2003, No. 19, § 50, eff. May 6, 2003; 2003, No. 68, § 36, eff. July 1, 2004; 2005, No. 38, § 4a, eff. June 2, 2005; 2005, No. 215 (Adj. Sess.), § 285; 2007, No. 65, § 184; 2009, No. 1 (Sp. Sess.), § E.513.1, eff. June 2, 2009; 2009, No. 67 (Adj. Sess.), § 63, eff. Feb. 25, 2010; 2009, No. 156 (Adj. Sess.), § E.139; 2011, No. 63, § E.513.1, eff. July 1, 2012; 2011, No. 63, § E.513.2; 2011, No. 143 (Adj. Sess.), § 56, eff. July 1, 2013; 2013, No. 179 (Adj. Sess.), § E.513.1; 2015, No. 48, § 7; 2015, No. 172 (Adj. Sess.), § E.513; 2017, No. 85, § E.500.2; 2017, No. 85, § H.3, eff. July 1, 2018; 2018, No. 11 (Sp. Sess.), § H.8; 2019, No. 72, § E.500.1; 2019, No. 88 (Adj. Sess.), § 66, eff. March 4, 2020; 2021, No. 114 (Adj. Sess.), § 25, eff. July 1, 2022; 2023, No. 87 (Adj. Sess.), § 74, eff. July 1, 2023; 2023, No. 183 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 73, § 38, contingently eff. July 1, 2028.)
§ 4026. Education Fund budget stabilization reserve; creation and purpose [Effective until contingency met; see also 16 V.S.A. § 4026 effective July 1, 2028 if contingency met, set out below]
(a) It is the purpose of this section to reduce the effects of annual variations in State
revenues upon the Education Fund budget of the State by reserving certain surpluses
in Education Fund revenues that may accrue for the purpose of offsetting deficits.
(b) There is hereby created an Education Fund budget stabilization reserve determined
on a budgetary basis and administered by the Commissioner of Finance and Management.
Any budgetary basis undesignated Education Fund surplus occurring at the close of
a fiscal year shall be reserved within the Education Fund budget stabilization reserve,
provided that the balance reserved shall not exceed five percent of the prior fiscal
year education fund appropriations, reduced by the amount distributed to school districts
by municipalities for netting purposes under 32 V.S.A. § 5402(c), and any additional amounts as may be authorized by the General Assembly. Any undesignated
Education Fund surplus and accrued interest remaining after the Education Fund budget
stabilization reserve has been brought to the maximum authorized level shall remain
in the Education Fund. When the General Assembly next meets, it may specifically appropriate
the use of the undesignated Education Fund surplus for increased support for education.
(c) In any fiscal year, if the Education Fund is found to have an undesignated fund deficit,
the Education Fund budget stabilization reserve shall be used by the Commissioner
of Finance and Management to the extent necessary to offset the undesignated fund
deficit as determined by generally accepted accounting principles.
(d) Determination of the amount of the undesignated Education Fund surplus or fund deficit
in any fiscal year for the purposes of this section shall be made by the Commissioner
of Finance and Management. Adjustments shall be made to the amounts authorized in
subsections (b) and (c) of this section upon receipt of the final audited annual report
of the Commissioner of Finance and Management.
(e) The enactment of this chapter and other provisions of the Equal Educational Opportunity
Act of which it is a part have been premised upon estimates of balances of revenues
to be raised and expenditures to be made under the act for such purposes as education
spending payments, categorical State support grants, provisions for property tax income
sensitivity, payments in lieu of taxes, current use value appraisals, tax stabilization
agreements, the stabilization reserve established by this section, and for other purposes.
If the stabilization reserve established under this section should in any fiscal year
be less than 5.0 percent of the prior fiscal year’s appropriations from the Education
Fund, as defined in subsection (b) of this section, the Joint Fiscal Committee shall
review the information provided pursuant to 32 V.S.A. § 5402b and provide the General Assembly its recommendations for change necessary to restore
the stabilization reserve to the statutory level provided in subsection (b) of this
section. (Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 94, eff. March 11, 1998; 2001, No. 63, § 265; 2001, No. 110 (Adj. Sess.), § 46, eff. May 23, 2002; 2003, No. 68, § 26, eff. June 18, 2003; 2019, No. 6, § 83, eff. April 22, 2019; 2023, No. 183 (Adj. Sess.), § 23, eff. July 1, 2024.)
§ 4026. Education Fund budget stabilization reserve [Effective July 1, 2028 if contingency met; see also 16 V.S.A. § 4026 effective until contingency met, set out above]
(a) It is the purpose of this section to reduce the effects of annual variations in State
revenues upon the Education Fund budget of the State by reserving certain surpluses
in Education Fund revenues that may accrue for the purpose of offsetting deficits.
(b) There is hereby created an Education Fund budget stabilization reserve determined
on a budgetary basis and administered by the Commissioner of Finance and Management.
Any budgetary basis undesignated Education Fund surplus occurring at the close of
a fiscal year shall be reserved within the Education Fund budget stabilization reserve,
provided that the balance reserved shall not exceed five percent of the prior fiscal
year education fund appropriations, reduced by the amount distributed to school districts
by municipalities for netting purposes under 32 V.S.A. § 5402(c), and any additional amounts as may be authorized by the General Assembly. Any undesignated
Education Fund surplus and accrued interest remaining after the Education Fund budget
stabilization reserve has been brought to the maximum authorized level shall remain
in the Education Fund. When the General Assembly next meets, it may specifically appropriate
the use of the undesignated Education Fund surplus for increased support for education.
(c) In any fiscal year, if the Education Fund is found to have an undesignated fund deficit,
the Education Fund budget stabilization reserve shall be used by the Commissioner
of Finance and Management to the extent necessary to offset the undesignated fund
deficit as determined by generally accepted accounting principles.
(d) Determination of the amount of the undesignated Education Fund surplus or fund deficit
in any fiscal year for the purposes of this section shall be made by the Commissioner
of Finance and Management. Adjustments shall be made to the amounts authorized in
subsections (b) and (c) of this section upon receipt of the final audited annual report
of the Commissioner of Finance and Management.
(e) If the stabilization reserve established under this section should in any fiscal year
be less than 5.0 percent of the prior fiscal year’s appropriations from the Education
Fund, as defined in subsection (b) of this section, the Joint Fiscal Committee shall
review the information provided pursuant to 32 V.S.A. § 5402b and provide the General Assembly its recommendations for change necessary to restore
the stabilization reserve to the statutory level provided in subsection (b) of this
section. (Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 94, eff. March 11, 1998; 2001, No. 63, § 265; 2001, No. 110 (Adj. Sess.), § 46, eff. May 23, 2002; 2003, No. 68, § 26, eff. June 18, 2003; 2019, No. 6, § 83, eff. April 22, 2019; 2023, No. 183 (Adj. Sess.), § 23, eff. July 1, 2024; 2025, No. 73, § 39, contingently eff. July 1, 2028.)
§ 4027. Education Fund transfer amounts
(a) [Repealed.]
(b) Annually, on or before June 1, each superintendent shall report to the Agency, on
a form prescribed by the Secretary, each education budget that was adopted by May
1 for the following fiscal year by the member districts of the supervisory union and
for which no petition for reconsideration has been filed. A superintendent shall report
a budget adopted following May 1, to the Agency, between 30 to 40 days following adoption
or, if a petition for reconsideration has been filed, within 10 days of final adoption
of the budget. (Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), §§ 5, 95, eff. March 11, 1998; 1999, No. 49, § 20, eff. June 2, 1999; 1999, No. 62, § 174a; 1999, No. 108 (Adj. Sess.), § 4, eff. May 10, 2000; 1999, No. 152 (Adj. Sess.), § 166a; 2001, No. 63, § 165a, eff. June 16, 2001; 2003, No. 68, § 19, eff. June 18, 2003; 2003, No. 107 (Adj. Sess.), § 21; 2003, No. 122 (Adj. Sess.), § 294w; 2013, No. 92 (Adj. Sess.), § 242, eff. Feb. 14, 2014.)
§ 4028. Fund payments to school districts
[Subsection (a) effective until contingency met; see also subsection (a) effective
July 1, 2028 if contingency met, set out below.]
(a) On or before September 10, December 10, and April 30 of each school year, one-third
of the education spending payment under section 4011 of this title shall become due to school districts, except that districts that have not adopted
a budget by 30 days before the date of payment under this subsection shall receive
one-quarter of the base education amount and upon adoption of a budget shall receive
additional amounts due under this subsection.
[Subsection (a) effective July 1, 2028 if contingency met; see also subsection (a)
effective until contingency met, set out above.]
(a) On or before September 10, December 10, and April 30 of each school year, one-third
of each school district’s educational opportunity payment as determined under subsection
4010(f) of this chapter and supplemental district spending, as defined in 32 V.S.A. § 5401, shall become due to school districts.
(b) Payments made for special education under chapter 101 of this title, for career technical
education under chapter 37 of this title, and for other aid and categorical grants
paid for support of education shall also be from the Education Fund.
[Subsection (c) repealed July 1, 2028 if contingency met.]
(c)(1) Any district that has adopted a school budget that includes high spending, as defined
in 32 V.S.A. § 5401(12), shall, upon timely notice, be authorized to use a portion of its high spending penalty
to reduce future education spending:
(A) by entering into a contract with an operational efficiency consultant or a financial
systems consultant to examine issues such as transportation arrangements, administrative
costs, staffing patterns, and the potential for collaboration with other districts;
(B) by entering into a contract with an energy or facilities management consultant; or
(C) by engaging in discussions with other school districts about reorganization or consolidation
for better service delivery at a lower cost.
(2) To the extent approved by the Secretary, the Agency shall pay the district from the
property tax revenue to be generated by the high spending increase to the district’s
spending adjustment as estimated by the Secretary, up to a maximum of $5,000.00. For
the purposes of this subsection, “timely notice” means written notice from the district
to the Secretary by September 30 of the budget year. If the district enters into a
contract with a consultant pursuant to this subsection, the consultant shall not be
an employee of the district or of the Agency. A copy of the consultant’s final recommendations
or a copy of the district’s recommendations regarding reorganization, as appropriate,
shall be submitted to the Secretary, and each affected town shall include in its next
town report an executive summary of the consultant’s or district’s final recommendations
and notice of where a complete copy is available. No district is authorized to obtain
funds under this section more than one time in every five years.
(d) The Joint Fiscal Office shall prepare a fiscal note for any legislation that requires
a supervisory union or school district to perform any action with an associated cost,
but does not provide money or a funding mechanism for fulfilling that obligation.
Any fiscal note prepared under this subsection shall be completed not later than the
date that the legislation is considered for a vote in the first committee to which
it is referred. (Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1997, No. 71 (Adj. Sess.), § 70, eff. July 1, 1999; 1997, No. 71 (Adj. Sess.),§ 118, eff. March 11, 1998; 1997, No. 147 (Adj. Sess.), § 159(b); 1999, No. 152 (Adj. Sess.), § 166b; 2003, No. 68, § 20, eff. June 18, 2003; 2005, No. 38, § 10, eff. June 2, 2005; 2007, No. 66, § 10; 2009, No. 44, § 19, eff. May 21, 2009; 2013, No. 92 (Adj. Sess.), § 243, eff. Feb. 14, 2014; 2013, No. 174 (Adj. Sess.), § 68, eff. June 4, 2014; 2015, No. 23, § 41; 2021, No. 20, § 71; 2023, No. 183 (Adj. Sess.), § 24, eff. July 1, 2024; 2025, No. 73, § 40, contingently eff. July 1, 2028.)
§ 4029. Use of funds for education
(a) Funds received by a school district may be used only for legitimate items of current
education expense and shall not be used for municipal services.
(b) Funds received by a municipality other than a school district may not be used directly
or indirectly for education expenses.
(c) If the Secretary determines that a school district has spent funds paid under section 4028 of this title for an item that is not a legitimate item of current education expense, the treasurer
of the municipality shall, within 90 days, remit the amount of the expenditure to
the Education Fund. The treasurer shall use funds raised pursuant to 17 V.S.A. § 2664, 20 V.S.A. § 2601, or 24 V.S.A. § 1309 for this purpose. If the Secretary determines that a municipality other than a school
district has spent funds for an item that is a legitimate item of current education
expense, the treasurer of the municipality shall transfer the amount of the expenditure
from the local education fund to the municipal fund.
(d) The legislative body of a school district or other municipality may appeal a decision
of the Secretary under this section to the State Board, which shall hear the appeal
de novo in the manner provided by 3 V.S.A. chapter 25 for the hearing of contested cases. A legislative body of a school district or other
municipality may appeal a decision of the State Board to the Superior Court of the
district in which the municipality is located. The Superior Court shall hear the matter
de novo in the manner provided by Rule 74 of the Vermont Rules of Civil Procedure.
An appeal from the decision of the Superior Court shall be to the Supreme Court under
the Vermont Rules of Appellate Procedure.
(e) For the purposes of this section, notwithstanding any provision of municipal law to
the contrary, “legitimate items of current educational expense” may include reasonable
payments to a municipality for services performed on behalf of a school district by
its corresponding town or city clerk, the town or city treasurer, or the town or city
auditors.
(f) Annually, on a form prescribed by the Secretary, each school district shall report
for the previous school year the amount it paid to or received from its corresponding
municipality or municipal officials, including any payments made pursuant to subsection
(e) of this section, and any property or in-kind services it donated to or received
from its corresponding municipality.
(g) Notwithstanding anything to the contrary in this section or otherwise in law, a school
district and the town or city municipality or municipalities in which the school district
operates may jointly fund the services of one or more cultural liaisons to support
students and families who have limited English proficiency (LEP). A cultural liaison
provides language translation and interpretation services to help facilitate educational
and municipal services for LEP students and families; facilitates communication among
school and municipal staff, LEP students and families, and community organizations;
and assists in reconciling differing cultural perspectives and understandings. (Added 1997, No. 60, § 18, eff. July 1, 1998; amended 1999, No. 49, § 21, eff. June 2, 1999; 2003, No. 68, § 22, eff. June 18, 2003; 2013, No. 92 (Adj. Sess.), § 244, eff. Feb. 14, 2014; 2021, No. 66, § 8, eff. June 7, 2021.)
§ 4030. Data submission; corrections
(a) Upon discovering an error or change in data submitted to the Secretary for the purpose
of determining payments to or from the Education Fund, a school district shall report
the error or change to the Secretary as soon as possible. Any budget deficit or surplus
due to the error or change shall be carried forward to the following year.
(b) The Secretary shall use data submitted on or before January 15 prior to the fiscal
year that begins the following July 1 in order to calculate the amounts due each school
district for any fiscal year for transportation aid due under section 4016 of this title.
(c) The Secretary shall use data corrections regarding local education budget amounts
submitted on or before June 15 prior to the fiscal year that begins the following
July 1, in order to calculate the education payments due under section 4011 of this title. However, the Secretary may use data submitted after June 15 and prior to July 15
due to unusual or exceptional circumstances as determined by the Secretary.
(d) The Secretary shall not use data corrected due to an error submitted following the
deadlines to recalculate weighted long-term membership under section 4010 of this
title. The Secretary shall not adjust average daily membership counts if an error
or change is reported more than three fiscal years following the date that the original
data was due.
(e) The State Board may adopt rules as necessary to implement the provisions of this section. (Added 1999, No. 108 (Adj. Sess.), § 5, eff. May 10, 2000; amended 2003, No. 36, § 18; 2003, No. 68, § 27, eff. June 18, 2003; 2003, No. 107 (Adj. Sess.), § 13; 2011, No. 58, § 7; 2013, No. 92 (Adj. Sess.), § 245, eff. Feb. 14, 2014; 2021, No. 127 (Adj. Sess.), § 27, eff. July 1, 2024.)
§ 4031. Unorganized towns and gores [Repealed July 1, 2028 if contingency met]
(a) For a municipality that, as of January 1, 2004, is an unorganized town or gore, its
education property tax spending adjustment under 32 V.S.A. § 5401(13) shall be one for purposes of determining the tax rate under 32 V.S.A. § 5402(a)(2).
(b) For purposes of a claim for property tax credit under 32 V.S.A. chapter 154 by a taxpayer in a municipality affected under this section, the applicable percentage
shall not be multiplied by a spending adjustment under 32 V.S.A. § 5401(13). (Added 2003, No. 36, § 23; 2003, No. 68, § 17, eff. July 1, 2004; amended 2003, No. 76 (Adj. Sess.), § 21, eff. Feb. 17, 2004; 2015, No. 46, § 31.)
§ 4031. Unorganized towns and gores [Repealed effective July 1, 2028]
(Added 2003, No. 36, § 23; 2003, No. 68, § 17, eff. July 1, 2004; amended 2003, No. 76 (Adj. Sess.), § 21, eff. Feb. 17, 2004; 2015, No. 46, § 31; contingently repealed on July 1, 2028 by 2025, No. 73, § 42(a).)
§ 4032. Supplemental District Spending Reserve [Effective July 1, 2028 if contingency met]
(a) There is hereby created the Supplemental District Spending Reserve within the Education
Fund. Any recapture, as defined in 32 V.S.A. § 5401, paid to the Education Fund as part of the revenue from the supplemental district
spending tax imposed pursuant to 32 V.S.A. § 5402(f) shall be reserved within the Supplemental District Spending Reserve.
(b) In any fiscal year in which the amounts raised through the supplemental district spending
tax imposed pursuant to 32 V.S.A. § 5402(f) are insufficient to cover payment to each school district of its supplemental district
spending, the Supplemental District Spending Reserve shall be used by the Commissioner
of Finance and Management to the extent necessary to offset the deficit as determined
by generally accepted accounting principles.
(c) Any funds remaining in the Supplemental District Spending Reserve at the close of
the fiscal year after accounting for the process under subsection (b) of this section
shall be unreserved in the Education Fund for the purpose of decreasing the following
year’s statewide education property tax rate. (Added 2025, No. 73, § 43, contingently eff. July 1, 2028.)