Health insurance, inflation and federal funding cuts driving school budget increases
By Corey M cdonald VTDigger
Vermonters headed to the polls on Town Meeting Day will cast votes on critical decisions around school district budgets and the future of small elementary schools, as property taxes and education reform remain top of mind for lawmakers and voters.
The district's budget is "just below" level service and comes with a 2.7% budget increase, but is still "assuming increased risk on the operations side" by limiting the increase, Bunting said in an email. About 15% of the district's
Bunting noted that this year's budget follows two years of budget cycles where
While current statewide projections have school spending increasing by 4.2% from the current year - less than the 5.8% projected rate of growth in the
Burdened by skyrocketing health benefit costs, rampant inflation and critical building maintenance costs, school leaders say they are running out of financial runway to keep their district spending level without making cuts to staffing or programming.
Education property taxes have risen more than 40% in the last five years. In 2024, in a tax revolt, voters struck down close to a third of school district budgets - a historic proportion that's prompted ongoing legislative efforts to bring down the cost of public education.
This year's roughly 7% increase in statewide health insurance costs is weighing heavily on school district budgets. The increase follows the 12% and 16% increases borne by school districts during the two previous budget cycles,
"The fact that we're celebrating a 7% increase is a sign of the times," Myers said.
Those hikes have eaten into school districts' budgets. In 2018, health benefits made up less than 10% of school budgets in
The school budget votes come as school officials are facing immense pressure from lawmakers to keep district spending in check as they work towards education reform set in motion by last year's Act 73.
Gov.
Scott during his address acknowledged that school leaders were "trying their very best" to maintain level services. But, "As one superintendent put it last year: 'We have no more to cut.'" While health insurance hikes have been a mainstay over the last few years, school districts have a unique problem this year in managing the uncertainty around federal funding.
These and other economic factors, such as labor costs, contracted raises and general inflation are forcing school boards and superintendents to find ways to consolidate operations in their districts and, in many cases, shutter smaller schools.
This fall, board members with the
Next week, residents in the
"That's the problem that we're seeing," Thibault said. "And these problems are everywhere, but they're magnified in rural, small places."
Residents in the
While the district has seen some savings from transferring students out of the
If the district rolled the budget over into next fiscal year, she anticipated that the district would still need a 6% budget increase to match health insurance hikes and contracted raises for faculty and staff.


OPINION: Medical malpractice success a win, but more needed
Alliant Builds on Record Growth with Powerhouse Addition of Olya Yepremian
Advisor News
- Can your advisory firm survive without you?
- I started using AI, but what now?
- How to support an entrepreneur client with multiple businesses
- Could a narrower focus help grow your practice?
- U.S. debt hits $40 trillion: how to support concerned clients
More Advisor NewsAnnuity News
- Solen Software Group Acquires Cooperative Technologies, Provider of 1035 Exchange and Annuity Replacement Software
- MassMutual Expands Lending Options With New Secured Credit Line
- Corebridge Financial Introduces Progressive Trigger, a First-of-Its-Kind Index Annuity Strategy Designed to Turn Missed Years into Future Opportunity
- Insurer proposes $1.1M deal to resolve CA teachers’ annuity fee lawsuit
- IMOs get frustrated with slow carrier adoption of faster technology
More Annuity NewsHealth/Employee Benefits News
- Researchers from Department of Research and Innovation Report on Findings in Managed Care (Quantifying Medicare prescription payment plan benefits under Medicare Part D): Managed Care
- New Managed Care Study Results from Brigham and Women’s Hospital and Harvard University Described (Supplemental Rebates From Drug Makers To State Medicaid Programs Grew Fivefold From 2017 To 2024): Managed Care
- Nebraska SHIP offers support during Medicare open enrollment
- Patients demand access to prescription drugs but need support
- Oscar Health Inc. (NYSE: OSCR) Makes an Unexpected Move During Monday’s Session
More Health/Employee Benefits NewsLife Insurance News