Act 73 Information
What is Act 73?
Act 73, passed in 2025, is Vermont’s new education reform law. It introduces a statewide funding model, sets in motion the creation of larger school districts through a Redistricting Task Force, and adjusts how public tuitioning works with independent schools. The purpose of the law is twofold: to give all Vermont students more equitable access to education and to bring long-term stability to rising education costs and their effect on property tax rates. Changes include a shift to a statewide property tax system, new standards for class sizes, and redrawn district boundaries.
Key Goals
- Promote equity: Ensure all students have access to the same educational opportunities by switching to a foundation formula where each district will receive the same amount of funds per weighted pupil.
- Change District Modeling: Replace current school districts and supervisory unions to form new school districts which will serve between 4,000 and 8,000 students.
- Strengthen partnerships: The act proposes studies on areas like collaborative educational models, special education resource allocation, and other partnerships between school districts, state agencies, and local communities.
- Stabilize funding: Switching to a foundation formula will prevent large changes in education spending between school years. As well, separating different property types (like with secondary homes) will help primary residence tax rates stay stable.
Impact on Schools
Even though Act 73 has been enacted, many of its provisions will not take effect until July 1, 2028, and could still change in the coming years. In the near term, the bill primarily affects schools’ eligibility to receive public tuition dollars. Under the new rules, only public schools—both in and out of state—and only in-state independent schools that meet state tuitioning requirements will be eligible for these funds. Children who are already attending schools that do not meet these requirements will be grandfathered in.
Looking ahead, the biggest impact on students will be the new class size minimums. The St. Johnsbury School is not expected to be directly affected by these requirements, but school enrollment could increase if nearby schools are forced to close. Families who can no longer use public tuition dollars to send their children to a local independent school may choose St. Johnsbury instead.
Lastly, there are still many unknowns about how redistricting will play out. The legislation requires districts to have between 4,000 and 8,000 students, which means our district will need to merge with neighboring districts. However, there is very little information about how these mergers will be structured or what the process will look like. Meeting the July 1, 2028 deadline will be a significant challenge, and there is still considerable uncertainty about how consolidation will ultimately affect our school and its students.
How You Can Get Involved
We value input from our community. If you have thoughts, concerns, or suggestions about the draft statement above — or about how Act 73 might affect St. Johnsbury — please share them with the School Board. The School Board hopes to finalize their statement by October 1st.
Connect With Us Form
(Use this form and select School Board as the topic to send comments on Act 73 and the draft statement.)
Attend a Redistricting Public Hearing:
Friday, October 10 4:30–6:30 PM- Oxbow High School . Bradford, VT Thursday, October 16 6:00-8:00PM- Leland & Gray High School . Townshend, VT Wednesday, October 22 6:00–8:00 PM- Rutland High School. Rutland, VT
Tuesday, October 28 6:00–8:00 PM- Winooski High School . Winooski, VT
Act 73 Resources:
Please click here to access the complete Act 73 Education Transformation document, which provides a comprehensive overview across 147 pages.
Please click here to view the summarized version of the Act 73 Education Transformation document, offering a concise overview of the key highlights and recommendations.
School Redistricting Task Force
Please click here to access the School District Redistricting Task Force document, available through the Vermont Agency of Administration.
St. Johnsbury School Board’s Draft Statement (as of 09/15/25)
The St. Johnsbury School Board is deeply invested in the necessary conversation at the state level regarding the transformation of Vermont's public education system. Vermonters must be able to afford to live in our thriving communities with access to quality education. We are hopeful legislative action will support this outcome and emphasize the need for such action to be based on real and relevant data.
As a community, St. Johnsbury consolidated into our current school district over 20 years ago, and we empathize with many of our neighbors who are having difficult conversations today. We believe our district’s current model (operating K-8 with choice for high school) is the best long-term approach for our community, provided our students continue to have access to a range of high school options including independent schools like the St. Johnsbury Academy and Lyndon Institute. We are closely watching the Taskforce’s progress and will continue engaging with local and regional leaders. We look forward to reacting to the Taskforce’s draft proposals as soon as they are shared.
Act 73 FAQ
What happens with school districts? A Redistricting Task Force will recommend new district boundaries, with larger districts (between 4,000 and 8,000 students) expected to take effect on July 1, 2028. A School District Voting Ward Working Group will also propose how communities are represented in these new districts. Currently information on how these districts will look and how operations will shift is unknown.
How will funding change? Beginning on July 1, 2028, Vermont will move to a “foundation formula.” Each district will receive a base amount per student ($15,033, adjusted for inflation and student needs). The state will fund this through a statewide education property tax, with local voters able to approve up to 5% more spending through a supplemental tax.
What about property taxes? Act 73 replaces the current statewide property tax credit with a new capped homestead exemption, designed to give the most relief to lower- and middle-income households. For example, families earning $25,000 or less could see up to 95% of the first $425,000 of their home’s value exempted from the education property tax.
What changes for schools themselves? Public schools and independent schools receiving public tuition must follow new class size minimums and statewide graduation requirements. The Agency of Education will also create a statewide school calendar for the 2028–2029 school year.
What about independent schools? To receive public tuition funding, independent schools must meet new criteria, including being located in a district that does not operate certain grades and complying with the state’s class size rules. Under current guidance, these schools will receive the full foundation formula amount per student, except for those operating CTE programs—such as St. Johnsbury Academy and Lyndon Institute—which will be allowed to charge their own tuition rates.
What about facilities and construction? Act 73 establishes a State Aid for School Construction Program to provide state support for school building projects, since the foundation formula does not cover these costs. However, no funds have been allocated to this program to date.
When will all of this happen? Some parts of the law start in 2025, but the biggest changes — new districts, new funding system, and new calendar — take effect on July 1, 2028.