Dear Friends and Neighbors:

There’s a lot happening at the State House, and I appreciate everyone who has reached out with questions and concerns. As we navigate federal policy changes, state budget proposals, and major shifts in education funding, I want to assure you that many Vermonters, legislators, advocates, and local leaders, are working hard to protect our communities and ensure thoughtful decision-making. If you have concerns or ideas, I encourage you to stop by office hours tomorrow at the Dover Free Library from 11 to noon, or reach out anytime. Your input is essential as we work through these challenges together.

In his budget address, Governor Scott proposed a $9 billion budget for the 2026 fiscal year, emphasizing affordability and addressing demographic challenges. The budget includes a 5% increase in spending over the previous year. Key proposals include:

• $77 million to eliminate a projected 5.9% property tax increase, proposed to be offset by ending the universal school meals program.
• A $13.5 million tax reduction package, including expanded eligibility for Social Security tax exemptions, earned income tax credits, and child tax credits.
• $6 million for housing improvement programs and $9 million for municipal infrastructure.
• Continued funding for emergency housing, but with a focus on creating new housing as a long-term solution.

This year the administration has indicated they are bringing forward more specific proposals on housing, public safety, education and affordability, though some details do still have yet to be released. Nonetheless, these timely proposals feel like a good faith effort to work more collaboratively with the legislature on solutions this year. It is the Governor’s obligation to propose a budget to run Vermont’s state government. Next up, it is the House Appropriations Committee and then the 150 representatives of Vermonters job to take testimony on the Governor’s budget proposal, make changes and then propose the budget to the Senate Appropriations Committee and the 30 Senators who represent Vermonters. Negotiations and changes will happen along the way.

Education Updates:

There’s significant work underway to change how Vermont funds education. This week, the Education and Ways and Means committees held a joint hearing on foundation formulas, with presentations listed below.

• Joel Moore State Funding Models for K-12 Education
• Rebecca Sibilia EdFund School Funding Presentation
• Tammy Kolbe Design Considerations – Establishing a Foundation Formula for Vermont

On Friday the Governor released his proposed funding formula as part of his Plan to Build Stronger Schools, Stronger Students and Vibrant Communities. His administration projects $189 million in savings, largely through a very significant reduction in per-pupil spending. However, the funding plan notes these savings rely on implementation of a broad governance consolidation proposal introduced last week. We are awaiting further details on that proposal, including which public schools the Governor is recommending for closure.

I did note, in the Governor’s budget address, that he reassured Vermont’s private schools that they “are important to us, but this is only 3,500 kids out of 83,500, so we will figure this out.”

Additionally a bill to reconstitute construction aid was introduced and another focused on district consolidation were introduced by legislators this week.

This week the General Assembly also had the opportunity to hear from several attorneys about the Brigham Decision, a landmark case in Vermont that forms the basis for our current funding system.

---

Fixing the Local Option Tax & PILOT Formula to Keep More $$ in Our Communities

A Local Option Tax (LOT) allows Vermont municipalities to impose an additional 1% tax on sales, meals, alcoholic beverages, and rooms, generating local revenue. The total tax rates with LOT are:

• Sales Tax: 7% (6% state + 1% local)
• Meals Tax: 10% (9% state + 1% local)
• Alcoholic Beverage Tax: 11% (10% state + 1% local)
• Rooms Tax: 10% (9% state + 1% local)

The voters in every town in our district: Dover, Stratton, Jamaica and Wardsboro, plus other Southern Vermont neighboring towns Brattleboro, Manchester, Winhall, Wilmington and Londonderry all have approved a Local Option Tax (LOT), 30% of which is retained by the state’s Payment in Lieu of Taxes (PILOT) program. But the PILOT fund has a nearly 10-million dollar surplus, meaning our nine rural Southern Vermont communities are overpaying. In 2024, Vermont stopped requiring towns to seek legislative approval to approve a LOT, and many towns throughout the state are considering asking their voters to approve them. If additional towns pay in, it seems likely the surplus in the PILOT program is going to continue to grow.

I’ve signed on to a bill that will return this surplus to the contributing municipalities proportionally and shift the LOT formula to 80% for local communities and 20% for the PILOT program.

The Vermont League of Cities and Towns has prioritized PILOT reform by advocating for increased transparency in LOT revenue, reducing state withholding, and shifting to quarterly payments for better municipal budgeting.

More Partisan Election Rules?

Last biennium, a deeply partisan “sore loser” provision was pushed through the House by the Democratic super-majority, despite strong opposition from Progressives, Republicans, independents, and even some Democrats. That bill made it harder for candidates to get on the General Election ballot and limited voter choice – something Vermont has historically protected.

Now, another version of this anti-choice proposal has been introduced. I find it hard to believe this is what Vermonters want us to spend our time on. On top of that, rather than restricting options, we should be expanding them. That’s why I’ve requested a bill to increase voter choice through open primaries and a top-four system advancing to the General Election.

If this latest attempt to limit voter choice moves forward, I will fight it – again. Vermont’s elections should serve the voters, not the parties.

---

Latest Legislative Reports

• Assessment of Statewide Firearm Ban for State and Municipal Buildings Act 120 (2024) Secretary of State
• Report on Municipal Water & Wastewater Connections Permitting & Housing Department of Environmental Conservation

Bills I’ve sponsored

H.97 An act relating to prohibiting firearms and deadly weapons in schools, on school property, and at childcare centers

This proposal would prohibits firearms and deadly weapons on school property and at childcare centers, with exceptions for law enforcement officers and cases where the school board, superintendent, or principal approve possession for specific purposes. The bill also allows firearms at childcare facilities located in a person’s residence.

H.125 An act relating to reporting on the energy transition

H.125 would requires the Department of Public Service to annually report on the economic impacts of Vermont’s transition to clean energy. The report, due by January 15 each year, will include data on changes in the number of gas stations, heating fuel sellers, electric vehicle supply equipment, electric rates, and renewable energy development companies operating in the state. Relevant state agencies will provide the necessary data for the report. The bill takes effect immediately upon passage.

---

During the 2025 legislative session from January through May I will continue to meet on the 1st Saturday of the month at the Dover Free Library from 11-noon and at your group’s invitation as schedules allow.

Monitor my votes and the bills I am sponsoring at: https://legislature.vermont.gov/people/single/2026/24023

As always, if you have suggestions, concerns or critiques please be in touch so we can schedule one on one time to discuss. Please do not hesitate to contact me if you need assistance navigating government services at (802) 384-0233 or lsibilia@leg.state.vt.us. Follow my regular posts online at http://www.laurasibiliavt.com

Rep. Laura Sibilia – Dover, Jamaica, Somerset, Stratton, Wardsboro