Vermont's Current Education System Overspends While Underperforming

With per-student spending second only to New York, Vermont’s resistance to change risks squandering resources that could push its schools from good to great.

MONTPELIER, Vt. — Vermont spends the second most per student on K-12 education in the nation, yet its public school system ranks sixth, trailing states like New Jersey, New York, and Pennsylvania, which rely on the foundation formula to fund their top-tier schools.

As Governor Phil Scott pushes for a transition to this widely adopted funding model, Vermont legislators are digging in, opposing the change despite evidence that it could enhance equity and efficiency. With three of the top five U.S. public school systems using the foundation formula, the resistance raises a critical question: Why is Vermont, with its high spending and solid but not stellar rankings, so reluctant to embrace a system that appears to deliver results elsewhere?

The Foundation Formula

The foundation formula, used by 33 states according to the Education Commission of the States, guarantees a base funding amount per student, with state aid filling gaps where local revenues—often from property taxes—fall short. Adjustments for student needs, such as poverty or English language proficiency, ensure equitable resource distribution. New Jersey (ranked 3rd nationally, spending $26,558 per student), New York (2nd, $33,437), and Pennsylvania (5th, $21,441) all leverage this model to achieve high education quality, as measured by WorldPopulationReview’s 2024 rankings. Washington (4th, $20,748) and Massachusetts (1st, $24,359), which do not use the formula, round out the top five, but Vermont’s $26,974 per-student spending—second only to New York—yields a less competitive sixth-place ranking.

Inefficiencies in Vermont’s Current Education System

Vermont’s current funding system, rooted in the 1997 Brigham v. State Supreme Court decision, emphasizes equity through a statewide property tax and pupil weighting to account for higher-cost students. Acts 60 and 68 decoupled school budgets from local property wealth, creating a state Education Fund that redistributes resources. However, recent analyses, including a 2024 report by Picus Odden & Associates, suggest the system is inefficient, with Vermont spending $400 million more than needed for adequate outcomes. The report proposes a foundation formula with a baseline of $12,300-$12,900 per student, far below Vermont’s current $16,900, to improve achievement while cutting costs.

Governor Scott’s January 2025 proposal to adopt a foundation formula aims to address these inefficiencies by setting a state-determined per-pupil funding level, adjusted for inflation and student needs, with caps on local spending to prevent wealthier districts from outspending poorer ones. Education Secretary Zoie Saunders told lawmakers that high-poverty districts, despite Act 127’s 2022 weighting reforms, remain underfunded, undermining equity. “We’re not seeing the meaningful difference in resources for students with higher needs,” Saunders said, highlighting a flaw the foundation formula could fix.

An Opposition Putting Opinion Over Evidence

Yet, Democratic lawmakers, led by Rep. Emilie Kornheiser (D-Brattleboro), chair of the House Ways and Means Committee, are skeptical. In April 2025, the committee voted along party lines to propose a modified foundation formula, but one that allows districts to spend up to 10% more than the state allocation, preserving local control. Kornheiser argues that Scott’s “evidence-based” model, which relies on national norms, underestimates Vermont’s unique needs, such as small, rural schools. “Significant costs were left out,” she told VTDigger, citing University of Vermont professor Tammy Kolbe’s analysis showing Scott’s plan could shortchange districts by $200 million compared to current spending.

Choosing Local Power Over Prudent Policy

The opposition reflects Vermont’s deep commitment to local governance, a hallmark of its education system. Unlike New Jersey and Pennsylvania, where state-driven foundation formulas standardize funding, Vermont’s system lets voters approve district budgets, influencing statewide property taxes. Act 127, intended to boost funding for high-need students, led to a 19% average tax hike in 2024, with nearly one-third of budgets rejected, per the Vermont Superintendents Association. This backlash has fueled calls for reform, but legislators fear a foundation formula could erode local autonomy, a concern less prevalent in states like Washington, which uses a hybrid model balancing state and local priorities.

Saying the Quiet Part Out Loud - to Taxpayers’ Dismay

Vermont-NEA president Don Tinney calls the focus on consolidation or formula changes a “distraction,” advocating instead for an income-based tax system to replace property taxes. “Vermont’s not spending too much on schools,” he told Vermont Public, pointing to the state’s high student outcomes relative to its rural challenges.

The Final Stretch

As the Commission on the Future of Public Education debates reforms, with recommendations due by December 2025, Vermont stands at a crossroads. New Jersey, Pennsylvania, and even Washington show that strategic funding—whether through a foundation formula or tailored alternatives—can elevate outcomes without Vermont’s hefty price tag. With per-student spending second only to New York, Vermont’s resistance to change risks squandering resources that could push its schools from good to great.