The bill S.220 amends the definitions related to education spending and excess spending thresholds in Vermont's education finance laws. It modifies the definition of "education spending" to clarify that voter-approved bond payments toward principal and interest will no longer be included in the calculation of excess spending. Additionally, the bill changes the excess spending threshold from 118 percent to 112 percent of the statewide average district per pupil education spending, adjusted for inflation.

Furthermore, the bill introduces new provisions that establish conditions under which a school district's excess spending would be considered zero. These conditions include scenarios where the district's education spending or per pupil spending does not exceed the previous year's amounts, or if the Secretary of Education determines that any increase in spending was justified due to circumstances beyond the district's control. The act is set to take effect on July 1, 2026.

Statutes affected:
As Passed By the Senate -- Official: 16-4001, 32-5401
As Passed By the Senate -- Unofficial: 16-4001, 32-5401