Berlin, VT– Vermont Gov. Phil Scott continues to voice concerns over a forecasted hike in property taxes that could be on the ballot at Town Meeting Day in March.

Last week, the State Tax Commissioner released the annual December 1 education tax rate letter in which an average 18.5% increase in property taxes would account for more spending on schools.

That number has not been set in stone yet, but Scott calls the hike unprecedented and unaffordable. He says this could put lower-to-mid-income Vermonters and small businesses in jeopardy.

“We already have one of the highest property tax rates in the country, and this is not going to be helpful in attracting people to our state or keeping people here,” says Gov. Scott.

State Tax Commissioner Craig Bolio says the increase was calculated by using state data in a “math-heavy” process.

“It’s certainly a cause for concern,” says Bolio.

Bolio notes this is the largest forecasted number he’s seen, calling it a challenging year.

“If that comes to be, it’s just not something that’s palatable, we just can’t afford it,” says Scott, “without finding other ways to supplement it, what can we do without? Maybe those are discussions we have to have.”

Bolio says these numbers are due, in large part, to the education budget, specifically a forecasted 12.8% growth in spending. Agency of Education data shows this is because of increasing healthcare costs, higher district spending, inflation, and the end of one-time federal funds.

Last year’s education spending grew by only 8.44%.

The governor calls on individual school boards to try to contain spending.

“Every option, all ideas should be on the table without discounting anything, should be on the table,” says Scott. “We spend a lot of money on education in Vermont, but we may have to recognize we may not be getting our money’s worth in terms of the outcome, so we’re going to have to look at that.”

Up next, rates will be talked about in the legislature, and budget decisions will be made on Town Meeting Day. Bolio encourages people to engage with stakeholders.

“A lot of that is driven by local spending decisions as well, so districts are formulating their budgets now, those are typically vote on, on Town Meeting Day in March,” says Bolio.

The governor says he hopes the legislature agrees these costs would be too high for the “every-day Vermonter,” and that the state can find the necessary funds elsewhere.

The tax commissioner provided an example of the potential rate increase: the property taxes on a $250,000 home would increase by about $650.