The VT State Department of Taxes has estimated that property taxes will be a 12% average increase next year. Foremost, it is important to remember that VT has a State approach to funding education and uses a very complicated formula to calculate education spending and tax rates.
For comparison purposes:
The FY26 Budget Scenario
Last year, the VT State Department of Taxes predicted an average 7% increase in Tax Rates - there is a great deal of variability in how this average actually pans out.
The Milton tax rate ended up being a -5.66% decrease - even though our education spending amount increased.
Tax rates across the State ranged from a -7.23% decrease to a 23% increase.
The Legislature used $118.2 million in one-time fund - $77.2 million from the General
Fund and $41 million from the Education Fund surplus - to reduce FY26 property tax bills. This gap will impact us in FY27.
The FY27 Budget Scenario
There is a $118.2 million gap in the State Education fund:
This will need to be filled through higher property taxes next year,
According to the Joint Fiscal Office, each $14 million represents roughly one cent added to the property tax rate or approximately .08 cents.
Almost half of the projected statewide average increase in property taxes next year is due to this gap.
Milton Town School District
The FY27 Budget is a Level Service budget -it maintains all the same programming as the current FY26 budget.
The projected expenditure increase is approximately $2,942,012 or 7.49% over the current FY26 budget.
Factors Contributing to the Expenditure Increase:
Reduction in Federal Title Grants
Anticipated reduction in the Milton Long-Term Weighted Average Daily Membership
Increase in Health Care Premiums and Salaries
Increase in Transportation and Tuition
Given the gap in the State Education Fund and early CLA estimates, it is likely that Milton will see an increase in their tax rate. On December 15, the District will have received the information necessary to calculate our Education Spending per Pupil and the estimated tax rate.
Board Direction - Forecasting Challenges
At the November 6th MTSD Board of Trustees Finance Committee meeting, we were asked to consider expenditure reduction scenarios ranging from 1-4%. Every 1% is equivalent to approximately $420,000. The next Board meeting is on Thursday, December 4. (Board Meeting Info). The Board will be reviewing the results from the Community Budget Survey, the December 1 Tax letter, and further discussing the expenditure increase and potential reductions.
Never has there been a more important time to tune in, understand the decisions that are being made and give input.