District�Month Year

Presented by the �Fairfax Board of School Directors on

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Wed. April 2nd, 2025

6:00 PM

FY26 / 2025-2026

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School Budget�Presentation

VOTE:

April 8th

Fairfax Town Office

7am-7pm

District�Month Year

Committed to ensuring all students become informed, literate, critical thinkers who demonstrate responsible social and civic behaviors.

Successes & Highlights

BFA Fairfax holds a 95% attendance rate in grades PK-6 and 92% in grades 7-12

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Our students have continued success in co-curricular-sports, drama, music and the arts.

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The construction project is moving ahead on schedule and under budget.

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Over 90% of our K-3 students met the Literacy goal for Reading at or above grade level

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BFA Fairfax Construction Project

Coming Soon!

BEFORE

DURING

AFTER

JAN 2025

SPRING 2024

NOV 2024

Wood Wing Addition

BFA Fairfax Construction Project

BEFORE

DURING

AFTER

Coming Soon!

Elementary Addition

FEB 2025

SPRING 2024

SEP 2024

BFA Fairfax Construction Project

BEFORE

DURING

AFTER

Coming Soon!

MS/HS Entry Addition

JAN 2025

SPRING 2024

Enrollment Projections

Schools Are Also Facing Additional Challenges

• Student behavior has become more challenging, �at even earlier grade levels.
• Increased need for mental health resources to support students dealing with trauma.
• Increased costs are not sustainable for taxpayers in our current funding system

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The BFA Fairfax Story

The BFA Fairfax Story

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The BFA Fairfax Story

The BFA Fairfax Story

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The BFA Fairfax Story

The BFA Fairfax Story

The Current Budget Landscape

Pressure Off the Budget

Pressure On the Budget

• Nearly two-thirds of all households pay school tax based on income instead of property value (Income Sensitivity)
• $77 million to Vermont Education Fund to offset tax increases statewide

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• Bond Payment
• Transportation Costs
• Salaries & Benefits
• Increased Health Insurance Costs

The Budget Reflects the District’s Goals

Build a budget that supports student improvement and maintains academic and co-curricular programs

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Students become effective communicators and problem solvers

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Maintain fiscal responsibility while meeting the needs of the school and community

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All students show growth in academic proficiency. Students meet state literacy goal by grade 3.

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Together, the administration and Fairfax School Board have developed �a budget that meets the needs of our students.

Budget Development Timeline

DEVELOP

REVIEW & GATHER INPUT

APPROVE

July- November

• Project enrollments by grade and school
• Develop level services budget
• Revise budget based on board direction
• Analyze and consider major cost-saving categories

November - January

• Analyze trade offs with Principals
• Adjust and reduce wherever possible
• Analyze and predict tax impact

January - March

• Present recommendations to the Board
• Communicate budget priorities with community
• Encourage voter turnout

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16.03%

9.90%

FY26 Budget Overview

$21,338,038

BUDGET TOTAL

$14,515.11

PER PUPIL COST

Top Spending Increases

1. Bond Payment
2. Salaries & Benefits

Top Spending Decreases

1. Special Education
2. Early Education

What changed in this budget?

Why? Our original budget had estimated savings for some known retirements. We have more accurate information based on actual replacements

Retirement Savings

Why? Since the budget was warned, several teachers have notified us of their intent to retire. This results in decreased expenses in salary and benefits.

Additional Retirement Savings

We have removed consideration for an Athletic Trainer and additional .5 FTE PreK teacher from this budget to prioritize classroom intervention PreK-12

Reprioritized Expenses

Franklin West SU Profile

Franklin West SU Profile

Staffing per 100 students

Several Factors Led to an Increased Budget

Why? Contract was re-negotiated in August of 2024. Our current salaries are competitive with neighboring districts. Teacher retention leads to student success.

Salary & benefits increased under new teacher agreement

Why? Health insurance increases are mandated by statewide bargaining; we are required to offer health insurance to teachers and staff and must cover all increases

Insurance premiums for all staff increased by 11.9%

The new transportation contract has resulted in increased ridership and stability. More students on more buses has increased overall cost. No cancellation of routes this school year.

Transportation

There Were Other Smaller Changes To The Budget

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How are Education Tax Rates Set?

1. Districts Create and Approve Budgets�These budgets determine the size of the �Education Fund.

Key Term

Education Fund

It’s simply the total all the budgets approved by each school district and SU across the state.

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It’s not a pre-existing pool of money.

How are Education Tax Rates Set?

1. Districts Create and Approve Budgets�These budgets determine the size of the �Education Fund.
2. Legislature Decides How to Raise the Funds�They decide how much of the funds will come from property taxes and how much from other sources such as sales tax. Then set the Homestead Yield.

Homestead Yield

A number the legislature sets to ensure the state raises enough money for education. They set it based on the size of the Education Fund and changes to property values across the state.

Key Term

How are Education Tax Rates Set?

1. Districts Create and Approve Budgets�These budgets determine the size of the �Education Fund.
2. Legislature Decides How to Raise the Funds�They decide how much of the funds will come from property taxes and how much from other sources such as sales tax. Then set the Homestead Yield.

Homestead Yield

Key Term

How does it affect tax rates?

How are Education Tax Rates Set?

1. Districts Create and Approve Budgets�These budgets determine the size of the �Education Fund.
2. Legislature Decides How to Raise the Funds�They decide how much of the funds will come from property taxes and how much from other sources such as sales tax. Then set the Homestead Yield.

Homestead Yield

Key Term

How does it affect tax rates?

How are Education Tax Rates Set?

Key Term

1. Districts Create and Approve Budgets�These budgets determine the size of the �Education Fund.
2. Legislature Decides How to Raise the Funds�They decide how much of the funds will come from property taxes and how much from other sources such as sales tax. Then set the Homestead Yield.
3. Tax Rates are Calculated for Each District

Spending per Equalized Pupil

This is how much money a district spends per pupil. This number is more important than the total size of a district’s budget when it comes to taxes.

Tax Rate

Spending per Equalized Pupil

Homestead Yield

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How are Education Tax Rates Set?

Key Term

1. Districts Create and Approve Budgets�These budgets determine the size of the �Education Fund.
2. Legislature Decides How to Raise the Funds�They decide how much of the funds will come from property taxes and how much from other sources such as sales tax. Then set the Homestead Yield.
3. Tax Rates are Calculated for Each District

Spending per Equalized Pupil

Tax Rate

Spending per Equalized Pupil

Homestead Yield

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Note: The state first adjusts the number of pupils to reflect the fact that students with extra needs cost more to educate.

How are Education Tax Rates Set?

Key Term

1. Districts Create and Approve Budgets�These budgets determine the size of the �Education Fund.
2. Legislature Decides How to Raise the Funds�They decide how much of the funds will come from property taxes and how much from other sources such as sales tax. Then set the Homestead Yield.
3. Tax Rates are Calculated for Each District

Spending per Equalized Pupil

Tax Rate

Spending per Equalized Pupil

Homestead Yield

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This means the number of Equalized Pupils is different than the number of actual students enrolled.

Vermont Statewide Funding System

What Actually Changes The Tax Rate?

• The tax rate depends on more than just your local budget.
• If other districts statewide increase their budgets, the overall Education Fund needs to grow, raising tax rates everywhere.
• Changes in property values or the Common Level of Appraisal can also push rates higher.
• The CLA is a measure of the value of Fairfax’s homes compared to the rest of the state. If the CLA decreases, �the tax rate will increase.

What Actually Changes The Tax Rate?

• Changes in the number of pupils can impact the tax rate.
• Since Vermont applies weights to students based on educational need, our pupil count can change when students move in or out, or needs/demographics change within our student body. A lower student count increases taxes.
• There are costs included in the Education Fund that are added by legislation rather than local communities
• Examples include the School Lunch program, PCB testing, Act 166 tuition

INCREASES TAXES

INCREASES TAXES

(-13.54%)

$8,553

$9,893

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PROPERTY YIELD

16.03%

$14,515.11

$12,509.49

FY25

SPENDING PER EQUALIZED PUPIL

10.04%

1.2908

FY26

1.1730

FY25

HOMESTEAD TAX RATE

Average Homeowner’s �Taxes Would Increase By

$530.02

FY26 Tax Rate Overview

INCREASES TAXES

(-5.30%)

1231.45 pupils

FY26

1300.43 pupils

PUPIL COUNT

24.63%

119.47%

95.86%

COMMON LEVEL OF APPRAISAL

DECREASES TAXES

10.51%

$17,874,638

$16,267,718

EDUCATION SPENDING

INCREASES TAXES

Education Spending per Equalized Pupil

Education Spending Per Equalized Pupil

Fairfax is ranked 13 out of 15 schools which operate K-12 schools in spending per pupil

Tax Rate Calculation

INCREASES TAXES

Estimated Property Tax Impact

This table reflects totals prior to the property tax adjustments due to income sensitivity. This Homestead Education Property Tax Rate is based on the per-pupil spending as determined by the FY26 budget.

Potential Property Tax Impact

(with $77M from Governor Scott)

This table is based on a Yield Value of $8,596 which has been suggested by the House Ways and Means committee to reflect the tax impact of the additional $77M proposed by Governor Scott to “buy down” the tax rate for FY26. The VT Legislature would need to approve this number in the Yield Bill in May or June.

Tax Increases Are Very Challenging

• As we built the budget, we kept in mind that the tax rate has already increased 26.1% since FY23.
• We have reviewed every line item and every expense to find ways to control costs.
• We gathered input from school leaders, staff, parents, and community members.
• We are striving to balance the needs of the taxpayers with the needs of our students and staff. This is not easy to do and requires tough tradeoffs.

What You’ll See On The Ballot…

ARTICLE 2:

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Shall the voters of said school district approve the school board to expend $21,338,038 which is the amount the school board has determined necessary for the ensuing fiscal year?

�The Fairfax Town School District estimates that this proposed budget, if approved, will result in per-pupil education spending of $14,515.11, which is 16.03% higher than per-pupil education spending for the current year.

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BY AUSTRALIAN BALLOT

What You’ll See On The Ballot…

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16.03% is NOT the tax increase…

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The actual tax increase is 10.04%

Next Steps

With a SUCCESSFUL VOTE: �Planning and hiring for 2025-26 school year can begin

PLAN A

With an UNSUCCESSFUL VOTE: �Board prepares budget for a revote. Hiring for 2025-26 school year put on hold

PLAN B

Vote!

STEP 1

April 8 in person at the �Fairfax Town Office

Absentee Ballot �(Contact Fairfax Town Office)

OR

THANK YOU

for supporting our students!

VOTE IN PERSON

April 8^th

Polls Open 7am - 7pm

Fairfax Town Office

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Questions?

Appendix

School Budgets�fwsu.org/page/budget-info

• (Video) How Does Vermont Fund its Schools? - Vermont Public
• (Report) "Vermont's Education Funding System: Explained and Compared To Other States" - VT AOE

FAIRFAX TOWN SCHOOL DISTRICT