By Leo Graham
In Ludlow any mention of Acts 60/68, the main funding mechanisms for public education in Vermont is sure to draw angry cries about the unfairness of the whole thing. Ludlow sends about $30 million more to Montpelier than it receives back. They moan fiercely about the injustice of sending so much more than they receive.
On its face this seems a grim inequity. How can it be that a town like Ludlow has to raise $5 – the frequently mentioned number – in taxes in order to spend $1 on education? In my experience it is impossible to have a rational conversation about education funding anywhere in Ludlow – even at that most democratic of places, DJ’s. The regular year-round citizens of Ludlow believe they are being cheated by the State of Vermont. They are wrong.
The untold millions flowing to Montpelier from Ludlow flow from second homeowners in Ludlow. Those second homeowners own, by value, just about 90 percent of Ludlow’s residential grand list. They are, in fact paying millions to subsidize public education in Vermont. Some of them aren’t happy about that but it seems they can afford it. Every so often a group will try to allow second homeowners to vote on local budget matters. Alas, the Constitutions of the United States and the State of Vermont simply won’t allow it.
The residents of Ludlow feel little sympathy for those second homeowners: if part of the American Dream is tied up with owning a home, then second homeowners are dreaming very sweet dreams indeed. State-wide residents realize that tourism pays a lot of the bills. Years ago, when I was marveling at the beauty of my new found home an old timer said, “Ayup, but you can’t eat the scenery.” Well, maybe you can’t eat it but in still manages to feed many of us.
For a variety of reasons – GE leaving, the collapse of woolen mills throughout New England, and other reasons, the average income of a year-round Ludlow resident is well below the Windsor County average as well as that of the State. It is important to have a discussion about year-round residents because only the year-round residents who have children in the schools.
The perfidious state-wide property tax has provisions in it called “income sensitivity.” It means that if you don’t make enough money (about $80,000 for a family), you don’t pay the full tax on your house and two acres. In truth, relatively few full time residents pay the full rate. It is a little different for businesses but how many more restaurants and Ye Olde Quainte shops can a town sustain?
The citizens of Ludlow pay nowhere near what it costs to educate their children – maybe about 70 percent of what is spent. The data is readily available from the Vermont Department of Education. By that measure, Ludlow is a receiving town and one on a grand scale.
So the second homeowners are paying the freight once again. Once again, ordinary citizens really don’t care about that. Ludlow is in fact insulated and protected from undue taxation because of the second homeowners. Now, if we can just figure out how to pay service industry workers a good wage everything would be just fine.