Illustration of the Vermont State House dome with an open book of law in front, symbolizing education legislation.

Vermont’s newly enacted Act 73 (H.454) significantly changes how education is governed, financed, and delivered statewide. South Burlington School District (SBSD) is committed to transparent and proactive communication with our community throughout this legislative shift.

What Is Act 73 (H.454)?

Act 73, signed into law on July 1, 2025, repeals much of the existing education finance structure and implements a new model affecting tax formulas, district governance, and program funding.

You can read the full text of the law here:
Vermont Legislature – H.454 (Act 73) Bill Page

Major Changes Under the Law

Foundation formula & revenue model
Schools will receive base funding through a new “education opportunity payment” formula, which considers a district’s weighted student membership.
Read the Fiscal Note / Summary (PDF)

Supplemental district spending
Districts, including SBSD, may propose spending beyond the base formula, subject to voter approval and state-set limits.

Tax structure reforms
The statewide education property tax becomes uniform across property classes. The old property tax credit is repealed, and a new homestead exemption is introduced.

Governance and redistricting
A School District Redistricting Task Force will propose new district boundaries by December 1, 2025. If the Legislature does not adopt a new map, certain governance provisions may not move forward.

Special education & equity
Act 73 requires a new strategic approach to special education funding and changes how weights for students with disabilities are calculated. Some categorical aid programs will be phased out.

Independent schools
The law sets new restrictions on which independent schools are eligible for public tuition funds. Students already enrolled or accepted before July 1, 2025 are generally grandfathered under the old rules.


What This Means for SBSD

  • SBSD is evaluating how the funding changes may affect class sizes, staffing, service allocation, and capital planning.

  • Some revenue and cost impacts will depend on policy decisions made at both the state and local levels over the next few years.

  • The district will actively monitor the redistricting process to ensure that South Burlington’s community voice is represented.


Next Steps & Timeline

  • SBSD will host community listening sessions in [Insert Month(s)] to explain changes and gather feedback.

  • Updates will be posted regularly on the Act 73 Information Page.

  • As redistricting maps are proposed, SBSD will share analysis and potential implications.

  • The district will continue to engage with state and federal policymakers to advocate for adjustments that preserve educational quality and equity.


Resources & Downloads