Act 46 Financial Incentives

1. Decreased equalized homestead property tax rate.  The new district’s equalized homestead property tax rate shall be decreased by $0.08 in the first fiscal year of operation, $0.06 in the second, $0.04 in the third, $0.02 in the fourth.  The household income percentage will be calculated accordingly.  During the years in which the homestead property tax is reduced, the equalized tax rate for each town will not decrease or increase by more than five percent in a single year.

 

2. Merger Support Grant.  If the districts forming the new Unified District contain one or more schools that received a small school support grant in accordance with 16 V.S.A. § 4015 in fiscal year 2016, then the new district shall receive an annual Merger Support Grant in an amount equal to the small school support grant(s) received.  Payment of the grant will continue unless repealed by the General Assembly.  Payment will be discontinued in the fiscal year following the closing of a school; unless a school building is closed and another school is renovated or constructed with debt, then this grant will continue through the repayment of the debt.

 

3. Transition Facilitation Grant.  After voter approval the transitional board will receive a transition facilitation grant equal to the lesser of five percent of the base education amount multiplied by the greater of either the combined enrollment or the average daily membership of the merging districts on October 1 of the year in which the successful vote is taken or $150,000.