Vermont Education Overhaul: Unpacking Act 73’s Uncertain Future for Schools

Big changes are coming to Vermont’s education system! Act 73 is set to transform how our schools are run and funded, with potential impacts on everything from class sizes to independent institutions. Are we ready for this sweeping overhaul, and what will it mean for our children’s future?

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Vermont’s educational landscape is on the brink of a profound transformation, as comprehensive legislation known as Act 73 sets the stage for a sweeping overhaul of how the state’s Pre-K through 12th grade schools are governed and financed. This landmark statute, signed into law by Governor Phil Scott, aims to introduce greater efficiencies and elevate educational outcomes across the state, yet its long-term impacts remain largely uncertain and a topic of intense discussion among educational leaders.

While the immediate effects are not yet fully visible, local institutions like Burr & Burton Academy and Manchester Elementary Middle School anticipate significant shifts. Educational leaders express a prevailing sentiment of watchful anticipation, acknowledging the transformative intent of Act 73 but grappling with numerous unknowns regarding its practical implementation and eventual consequences for students, teachers, and communities.

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The intricate reform will unfold in a phased manner over several years, ensuring a gradual transition. One of the earliest changes, scheduled for July 1, 2026, involves the introduction of new class size minimums. These mandates specify a minimum of 10 students for first grade, escalating to 18 students for high school grades, and imposing restrictions on multi-age classrooms, directly addressing concerns about educational efficiency and resource allocation raised by voters in 2024.

At the core of Act 73 lies a radical restructuring of education funding through the implementation of the Foundation Formula, slated for July 1, 2028. This system will centralize state control over most school spending, allocating a set amount per pupil—initially $15,033—with additional “weights” for students with special needs. This replaces the complex local budget approval process with a single statewide tax rate across new homestead, non-homestead, and non-homestead residential categories, aiming to create a more equitable financial playing field.

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Crucially, the full implementation of the Foundation Formula is contingent upon the successful creation and adoption of a new statewide school district map. An 11-member task force, comprising legislators and non-legislative members, is currently charged with developing three district map options by December 2025. This ambitious endeavor seeks to consolidate the current 52 supervisory unions and 119 school districts into drastically fewer entities, each serving between 4,000 and 8,000 students, presenting significant logistical and political challenges.

A contentious aspect of Act 73 addresses the role of independent schools, particularly relevant in areas like Bennington County where they educate a significant portion of students. The legislation introduces new criteria for independent schools to continue receiving public tuition dollars, including residency requirements, a minimum percentage of publicly funded students, and adherence to class size minimums. While existing students are not immediately affected, the long-term impact involves independent schools aligning their tuition with the Foundation Formula’s per-pupil allocation, potentially requiring them to seek alternative revenue streams.

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Local educational leaders, such as Dr. Randi Lowe of the BRSU and heads of independent schools like Tim Newbold and Colin Igoe, express a mix of cautious optimism and profound concern. They highlight the need for greater certainty in policy, the increased demands on schools as human service organizations, and the importance of preserving successful local educational ecosystems. The sentiment is clear: while reform is necessary, the path forward must balance statewide efficiency with local needs and ensure improved outcomes for all Vermont students amid evolving financial and governance structures.

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