Senate panel content with education cost curbs

Senate panel content with education cost curbs

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 | May 06,2015

MONTPELIER — 

After several days of discussion and testimony, the Senate Finance Committee moved along an education bill that seeks to encourage the creation of larger school districts, but passed on proposals that would increase financial penalties for districts, but passed on proposals that would increase financial penalties for districts that spend above the state average.

Senators have struggled to find a way to contain spending after expressing concerns that a proposal from the House to cap spending increases at 2 percent might not be constitutional.

Sen. Kevin Mullin, R-Rutland, suggested lowering what is known among education officials and school board members who create budgets as the excess spending threshold, which creates financial penalties for districts whose per-pupil spending exceeds a certain percentage of the state average.

Currently, the statewide average per-pupil spending is $14,009. Districts that spend more than 123 percent of that — $17,103 per student — are double taxed on any amount above that figure.

In 2017, the excess spending threshold will fall to 121 percent, but Mullin proposed lowering it even more, which would result in more districts facing financial penalties if they did not curb their spending.

“I think it’s something that’s easily understandable for people who are working on budgets to see that there are ramifications if they’re spending significantly above everyone in the state,” Mullin said. “It’s a simple mechanism, if you truly want to bring down some costs.”

Mullin proposed lowering the threshold to 118 percent in 2018.

At the current rate of 123 percent, only Weybridge, in Addison County, is subject to the excess spending penalty. However, when looking at the budgets voters approved this year, if the threshold were set at 118 percent, 27 school districts would be subject to financial penalties, including East Montpelier, Mount Holly and North Bennington.

In a straw vote, only Mullin and committee Chairman Tim Ashe, D/P-Chittenden, supported lowering the excess spending threshold.

The committee also turned down a proposal from Sen. John Rodgers, D-Essex-Orleans, that not only would have created tax penalties for any district that spends more than the state average, but would have offered tax breaks to districts that spend less than the state average.

Rodgers argued that his proposal would take steps desired by the public, steps he said cannot be found in either the House or Senate versions of the school district merger bill.

“What I heard during the election is that people wanted something they could understand and would lower property taxes. Neither proposal I’ve seen does that,” Rodgers said. “What I’m trying to affect are the people who are spending $17,000 or $18,000 per pupil. Those people should be penalized.”

Sen. Claire Ayer, D-Addison, expressed concern over the idea of rewarding districts for spending less, while Sen. Michael Sirotkin, D-Chittenden, said he would need to be convinced that Rodgers’ proposal wouldn’t result in “a race to the bottom.”

The bill will return to the Senate Appropriations Committee before making an appearance before the full Senate for a vote.

@Tagline:josh.ogorman @rutlandherald.com