Rapid response, radical reform: The story of school finance litigation in Vermont

Journal of Law and Education, Apr 2002 by Rebell, Michael A, Metzler, Jeffrey

The impact of Act 60 has been dramatic. Under the new law, 89% of Vermont residents were eligible for decreases in their property taxes.94 A total of 229 districts received more money for their schools from the new education fund, while only 23 received less.95 In the property-poor district of Rutland, for example, the school was able to update science textbooks for the first time since 1978, buy new computers with Internet access, and increase teacher salaries. Residents, meanwhile, enjoyed a 7.5% reduction in their property tax rate.96

In wealthy ski towns (known locally as "gold towns") like Stowe, Winhall (Stratton) and Warren (Sugarbush), however, property taxes went up considerably, in some cases well over 100%.97 To continue spending $11,000 per student, the gold town of Winhall would have had to nearly quadruple its property taxes.98 In Warren, despite increases in the tax rate from $0.78 to $1.10, per-pupil expenditures declined from $8,229 to $7,319 between 1998 and 1999. Expenditures were slated to be reduced by another $560 per child the next year despite an anticipated 36% further tax hike.99

IV. PUBLIC REACTION

Reaction to the passage of Act 60 was understandably mixed. Residents of Vermont's less affluent towns were obviously pleased to experience both greater resources and lower tax burden. Residents of the wealthy towns who saw their property taxes skyrocket, of course, tended to have an opposite response.

As the 1998-1999 school year approached-the first school year under the new finance system-reactions intensified. Prominent author John Irving, a resident of wealthy Dorset, called the new finance system "Marxist," removed his kindergarten-aged son from the public schools, and founded his own private school. A school principal resigned in protest against Act 60. A station wagon once owned by one of Act 60's chief sponsors was brought to the state capitol and destroyed by passers-by, who were urged to vent their anger using sledgehammers. Republicans made Act 60 an important campaign theme in the 1998 elections and channeled large amounts of money into defeating some of the law's architects.102

Mary Fulton, a policy analyst with the Education Commission of the States, described the reaction in Vermont as the most intense response by citizens to a change in school finance law that she has ever seen. "Folks were very put off by the perceived lack of input at the local end," she said."'8 According to the New York Times Magazine, approval ratings of Governor Dean plummeted from 62% to 47% in the year following the passage of Act 60.109

Proponents of the law, however, have expressed little sympathy for residents of the wealthier communities. "What [the gold towns] are going through now is what 90 percent of towns have gone through for years and years-having to make choices," said Diane Wolk, chairwoman of the state school board. "They'll still have a quality education.""' George Hooker, a biology teacher at Rutland High School, expressed similar sentiments. "We've bit the bullet all these years. Now, if they have to bite it a little bit, they'll see what it feels like