Budget Terminology

Appraised Value

Estimated value of a property as determined by a lister/assessor before any adjustments are made to that value for taxing purposes. Adjustments could include an assessment ratio if the property is to be taxed at a value other than full fair market value, either a full or partial exemption or at a value established under a stabilization agreement.

Source: VT Department of Taxes, Tax Glossary

Capital Fund

The Capital Fund serves as a long-term financial reserve dedicated to planned facility needs within our school district. This fund is distinct and is presented as a separate article on the ballot during elections.

Common Level of Appraisal (CLA)

A measure of how close a municipality’s local appraisals are to the actual Fair Market Value. The CLA is used to equalize education taxes statewide with the goal of having properties of equal value pay equal amounts of school taxes. VT municipalities must reappraise the properties in their town when the CLA falls below 80% (32 VSA § 4041(a)). A town’s CLA has no effect on the amount of property taxes owed on the town portion of a property tax bill. In VT law, it is “the ratio of the aggregate value of local education property tax Grand List to the aggregate value of the equalized education property tax Grand List.” (32 VSA § 5401(3))

Source: VT Department of Taxes, Tax Glossary

Education Fund

(State Level)

Vermont pays for education through the state’s education fund. There are four primary sources of money that comprise the fund: revenue transfer from the general fund, general purpose taxes, nonresidential property taxes, and homestead property taxes. Source: VSBA, Making Sense of Vermont’s Education Funding System

Education Spending

Education Spending represents the entirety of funds that the school district deems essential to expend during the school year, excluding any offsetting revenues. It is derived from the total district budget, subtracting 'non-tax revenues' like federal and state grants, as well as locally-generated revenues such as tuition and interest.

Estimated Tax

What the taxpayer expects to owe in taxes over the course of the year, generally paid quarterly with vouchers. Source: VT Department of Taxes, Tax Glossary

Effective Tax Rate (ETR)

Also called Equalized Tax Rate, what the tax rate would be if all taxable property were appraised at full value, (in other words, before the CLA has been applied). The effective school tax rate is calculated by dividing the school taxes assessed by the Equalized Education Grand List (EEGL).

Source: VT Department of Taxes, Tax Glossary

Fair Market Value (FMV)

A 12-month period is used for accounting and tax purposes. Vermont school districts’ financial year runs from July 1 to June 30.

Fiscal Year

(FY)

price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller.
Source: VT Department of Taxes, Tax Glossary

General Fund

The General Fund is the primary account where the school district manages its day-to-day finances. It covers essential expenses like teacher salaries, materials, and operational costs, ensuring the smooth functioning of our schools.

Grand List

(GL)

1% of the listed value established by the local assessing officials, and the value used to determine municipal taxes for a municipality. It includes any business personal property taxable at the local level and excludes locally voted exemptions. Properties subject to local stabilization agreements are included at their stabilized values. The education GL is 1% of the education property values per 32 VSA§ 5404. It is the value to be used to determine the State Education Tax and the Local Share Tax and generally doesn’t include inventory or business personal property.

Source: VT Department of Taxes, Tax Glossary

Homestead

the principal dwelling owned/occupied by a VT resident as the individual’s domicile. It includes the entire parcel of land surrounding the dwelling, determined without regard to any road, river, or stream that intersects the land. It does not include buildings or improvements detached from the home and used for business purposes and does not include that portion of a principal dwelling used for business purposes if the portion used for business purposes includes more than 25% of the floor space of the building. See 32 VSA § 5401(7) and Reg. § 1.5401(7) for details and examples.

Source: VT Department of Taxes, Tax Glossary

Long Term Average Daily Membership (LTADM)

Long Term Average Daily Membership is a calculated value that involves a two-year weighted average of Average Daily Membership (ADM). ADM is determined by counting resident and state-placed students who receive public-funded elementary (including EEE and PreK) or secondary education (7-12).

For resident students, the count occurs between the 11th and 30th day of the current school year. State-placed students are included in the count based on the school year preceding the current census period. This nuanced approach provides a comprehensive representation of student enrollment over time, helping to smooth out short-term fluctuations in the data.

Property Tax Credit

the Vermont Property Tax Credit assists many Vermont homeowners with paying their property taxes. Individuals who are eligible must file the HS-122 and HI-144. The property tax adjustment is sent directly to the town of residence and will be reflected on the property tax bill received by the taxpayer.

Source: VT Department of Taxes, Tax Glossary

Property Yield

The Property Yield is an estimate indicating the amount per pupil that school districts can allocate to maintain an equalized tax rate of $1.00 while adequately funding the State's Education Fund. This calculation is influenced by the overall statewide education spending. In times of economic prosperity, the Property Yield tends to be higher, resulting in lower tax rates. It is established by law, typically in late spring, following Town Meeting Day, and plays a crucial role in shaping the fiscal dynamics of education funding.