The School Budget Social was sparsely attended by about a half dozen additional people aside from the school board, superintendent, director of operations, and two of Milton’s Representatives (Chris Matos and Chris Taylor). However, this made for a lively group discussion of the budget as well as information that may be incorrectly circulating in the community and how that may be remedied.
To provide the latest up to date information, the board has held several Q&A sessions. However, they have thus far led to limited interaction with the public. Although these sessions have been communicated in various ways, there have been changes from some of the original planned locations that have not been communicated. However, if you are still interested in having any of your questions answered, there are additional opportunities. On Sunday June 2 from 10-1 in the field beside Hannaford’s in Milton (NOT at the Milton Diner as incorrectly indicated on the website) with Allison and Scott and on Monday June 3 from 5-7pm Karen and Jeremy will be at the Milton Fire Station. Additionally, school board members plan to be outside the polls all day on Tuesday June 4 to answer questions as well.
One of the biggest misunderstandings discussed was the FALSE belief that Milton’s school budget percentage was going to be added to the state’s average school budget tax increase. This is incorrect. The following material is pulled from the latest MTSD budget presentation provided May 23and found using the link above. Milton’s budget increase for this vote is now 11.08%, which is 2.72% less than the state average of 13.80%. These do NOT get added together and, as discussed below, may have little direct impact on your property tax based on your household’s adjusted gross income (AGI). The State’s average education fund increase is 10.55%, but Milton’s budget increase is less than half of this at5.14%. MTSD has reduced staff from 349.5 in FY24 to 328.5 in the latest FY25 budget. Administrator contracts were reduced by two positions from 11 to 9.
Another misunderstanding is that most everyone (+70% of Milton residents) will NOT be paying the full 11.08% extra due to Vermont’s Income Sensitivity & Property Tax Credits which gives property tax credits to households making up to $128,000 in AGI. As I understand it, for your primary dwelling, those households earning under $90,000 in AGI your total property tax obligation is proposed to only be 2.65% (currently FY2024 was 2.26%) of your total household AGI. For example, if your household AGI was $90,000 the cap on your proposed property taxes would be $2,380 which would be an increase from last year of $351. For households earning between $90,000 and $128,000 it’s calculated based on additional factors. It appears that this may be part of the “yield” bill that, although approved by the Vermont house and senate on May 11th, had not yet been sent to the governor for signature or veto. Also, part of the yield bill was an additional 13% tax credit to those eligible for income sensitivity credits. Therefore, if you were eligible for property tax credits before, you’re likely eligible for them now and Milton’s tax rate increase may have a nominal effect on your property tax liability.
If not passed by June 30, the town may have to send tax bills without the school tax side of the property tax. As such, once the budget is passed, the town will be required to put out additional/addendum bills later once the full amount is calculated. It was noted that this may affect homeowners who escrow property taxes. Additionally, it was noted that each budget vote costs the school between $10,000 and $15,000. Finally, if not passed before July, MTSD will be required to borrow each month for expenses and pay interest instead of using already paid tax dollars. Each month it must borrow more for the following month until passed. The MTSD can only borrow up to 87% of the priory ear’s approved budget and will be paying interest on everything it borrows until passed. Interest paid to borrow will be wasted. The MTSD’s first priority will be to meet existing contracts and can’t enter into new contracts as it is borrowing month-to-month. Currently, the superintendent is unable to sign a pending bussing contract without an approved budget. Preventative maintenance of facilities will continue to decline. New contracts for coaches and the like will be held until a budget is passed.
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