MINUTES
Meeting of October 7, 1997
The Legislative Oversight Committee on Restructuring Education met at 9:45 a.m. in the Legislative Lounge of the State House.
MEMBERS PRESENT: Sens. Cheryl P. Rivers, Chair; Nancy I. Chard; James H. Greenwood; Helen S. Riehle; Peter E. Shumlin; John S. Freidin; David C. Hathaway; Martha P. Heath; Karen M. Lafayette.
STAFF PRESENT: Bill Russell and Rachel Levin of the Legislative Council; Catherine Benham of the Joint Fiscal Office.
Senator Rivers called the meeting to order at 9:45 a.m.
1. APPROVAL OF 9/23/97 MINUTES *
On a motion made by Rep. Heath, the committee approved the minutes of the September 23, 1997 meeting, as submitted.
2. UPDATE FROM ADMINISTRATION
Sean Campbell, Deputy Commissioner of Taxes and Special Assistant to Secretary Hoyt on Act 60, distributed and reviewed a 10/7/97 memo to the Committee. It summarized some of the activities as follows: a mailing has been sent out to all legislators from the Deputy Commissioner and Senator Rivers as Chair of the Committee, offering to have administration officials make presentations at public meetings in their districts; the Deputy Commissioner has made five presentations since the last meeting, in addition to a very successful public access presentation tape which will be distributed to the public access stations throughout the state; Ed Haase, Commissioner of Taxes, Bill Johnson, Director of Property Valuation and Review and Bob McNamara of the Department of Education made a presentation and participated in a question session on Vermont Interactive Television with hundreds of people participating.
Local presentations have been scheduled over the next two months taking place three and four nights a week; the Deputy Commissioner and Kathy Hoyt, Secretary of Administration, met with the firm, Marketing Partners and the Act 60 Leadership Group will be meeting with them to review a strategic plan and a budget.
The Deputy Commissioner brought to the Committee’s attention an issue relating to the date for extensions on income sensitivity and that it does not seem to correlate with the present standard extension deadlines.
Senator Rivers asked Bill Russell to have staff review the language in Act 60 as well as the standard extension deadlines and report back to the committee.
Bill Johnson, Director of Property Valuation and Review reviewed with the Committee a 10/7/97 draft document entitled, Vermont Department of Taxes, Act 60 Update, Preparing for your April 1, 1998 Grand List, to be mailed to listers.
Committee members gave Bill Johnson their suggestions but made it clear that getting it out soon was a top priority. It was suggested that this communication was only the first step and that follow up bulletins would be more specific.
Bill Johnson also reported that he is trying to fill the position of District Advisor Supervisor before he fills the two other District Advisor positions. He added that training will take place in every region of the State. Senator Rivers expressed hope that dates of the training would be set and publicized soon. Bill Johnson agreed to make this a priority and noted that he is coordinating with the Vermont Association of Listers. The Committee suggested he use the Local Officials Advisory Committee as a resource.
Senator Rivers asked Ed Haase, Commissioner of Taxes, to join Bill Johnson in testifying. They addressed issues relating to towns and their computer systems. Commissioner Haase said that the systems vary greatly. In response to a Committee member’s question, Commissioner Haase said that when a check is sent to a town for computer equipment, the town has to demonstrate to the Department of Taxes that the system can communicate.
Bill Johnson reported that training dates had not been set yet but that he was working on it, that Senator Mark MacDonald was elected chair of the Commission of Property Tax Appraisals and Equalization and that the next meeting was October 23. He added that they have a broad charge and that they will have to select their issues and how they want to present them so that they can give a useful report to the Legislature.
Marc Hull, Commissioner of Education distributed and reviewed the following documents: a 10/7/97 memo entitled, Education Department Update; a 10/1/97 document entitled, Budget Workshop; a 10/6/97 document entitled, State Department of Education: Budget Issues under Discussion with the Field; a 9/29/97 memo to Superintendents entitled, Profile of School and Districts Surveys; a 10/6/97 sample of database printout of Responsibilities Under Act 60; and a 9/97 booklet entitled, Wrapping Policy Around Good Practice.
Commissioner Hull reviewed the Education Department Update which included the following: Page 3
handbook preparation: is nearly ready for publication and being reviewed; budget guidance: following the September 19 meeting with superintendents and business managers, the budget
preparation forms were revised, work is continuing on budget-related issues that must be clarified in order to implement Act 60, a major objective at this time is to furnish districts with information that will help leaders understand how Act 60 will affect them in FY 1999, the first transitional year as well as by-district projection of anticipated revenues and revenue raising; work in progress: on October 20, the State Board will host a governance retreat, which the Department will update the Committee on and more than a dozen surveys will be conducted this fall, in addition to the regular surveys conducted.
Commissioner Hull discussed that Act 60 requests the Department of Education and the Agency of Human Services to meld funding streams and collaborate on service. Senator Chard said she would like to see that placed on the agenda at a future meeting. Senator Rivers suggested that since the Departments were in the process of developing next year’s budgets, that the Committee would want to put this on the agenda soon.
Kathy Hoyt, Secretary of Administration, reported that the Administration is working with Marketing Partners to develop a strategic plan and a budget. The Committee expressed a desire to review both at the next meeting and asked that Marketing Partners attend. Secretary Hoyt reported that the Administration is negotiating a contract with Deb Brighton to work on the database.
Senator Rivers reported that the first meeting of the Local Officials Advisory Committee was taking place and gave a report. In a telephone conversation with John Cushing he reported that they had prioritized their work, had begun to meet and asked on behalf of the group that a lister be appointed to the Board. John Cushing suggested that Ruth Pierce, president of the listers association would be a good candidate.
Senator Shumlin made a motion to invite Ruth Pierce of Westminster to serve on the Local Officials Advisory Board. The motion passed unanimously.
Senator Rivers reported that when they had something to report, John Cushing had indicated his willingness to be on the Committee’s agenda.
6. REPORT FROM SENATOR RIVERS ON TRAINING AND INFORMATION SESSIONS FOR LEGISLATORS
Senator Rivers suggested dates for informational sessions for legislators on Act 60. The committee agreed one session would be on November 1 in White River Junction from 10 a.m. to 1:00 p.m. She asked staff to follow up on arrangements and said that legislators would be notified and an agenda would be assembled.
The Committee agreed to talk over lunch about a date for another session to be held in Montpelier.
5. REVIEW OF COMMITTEE’S CHARGE RELATING TO TAX EXEMPTIONS
Senator Rivers asked William P. Russell, Chief Legislative Council, to review with the Committee a 10/7/97 memo on current property tax exemptions. He outlined the Committee’s charge as follows: Act 60 directs the Oversight Committee to study the property tax exemptions currently in the law. Sec. 90 (f) provides: "The Joint Committee shall review the following specific features of the current property taxation statutes and practices, and include recommendations thereon to the General Assembly in its December 1997 report: (1) Whether exemptions currently provide by statute to the property tax by chapter 125 of Title 32 continue to be equitable and appropriate within a system of educational property taxes as provided in this act...."
Bill Russell continued, explaining mandatory and optional exemptions, general purposes of the exemptions, the statutory text and outline and the cost of fiscal impact of the property tax exemptions. He then outlined questions and suggestions for further committee review, including the rational, scope and purpose of the exemption and the cost and fiscal impact of the exemptions and the methodology for establishing new exemptions to the education property tax grand list.
The Committee asked staff to clarify which exemptions are mandatory and which are optional. Committee members offered various approaches for considering action which needs to be taken. The Committee agreed that there were several approaches and that the subject would be put on the agenda of the next meeting.
4. PRESENTATION OF DRAFT LANGUAGE ON MOBILE HOMES
William P. Russell, Chief Legislative Council, reviewed a 10/7/97 memo addressing mobile home taxation issues and Act 60. He presented the following summary of the issues presented to the Committee at its last meeting, and proposed solutions to each: the solution to the "double taxation" problem is to amend the definition of appraised value in 32 V.S.A. to remove the value of the lot site in determining the value of a mobile home; the solution to the issue of payment of a full year’s taxes on sale or transfer of a mobile home is to amend 32 V.S.A. to remove the requirement of payment in full of all taxes upon sale, transfer or removal. Instead allow payment of a prorated amount by the seller and with remainder due from buyer if the home is sold or transferred, but not moved. If the home is moved, allow payment of only the prorated amount due; the solution to the mobile home cooperative problem is not a statutory change.
Barbara Grimes, Commissioner of Housing and Community Affairs, joined Bill Russell in testifying. She said that she had not had a chance to look at the exact wording of the solutions proposed, but agreed with the concepts and said she would be happy to discuss them with the Committee after review.
The Committee asked Bill Russell to draft a letter to the cooperatives stating that Act 60 resolves problem number 3.
The Committee also requested that staff research language on the existing statutory language relating to a homestead and the allocation of the value of common property and whether it can be apportioned to a homestead.
The Committee agreed at the next meeting that parties would be invited to testify on the proposed solutions and that in addition to the people who have already testified, Steve Jeffrey would be invited. Any persons wishing an opportunity to testify should contact Rachel Levin.
3. REPORT FROM COMMITTEE MEMBERS ON MEETINGS ATTENDED
The Committee asked Senator Rivers to schedule the other informational session for legislators with Deputy Commissioner Campbell and then mail a letter to legislators letting them know the dates and places of the sessions. Committee members then briefly reported on meetings attended around the state. Catherine Benham of the Joint Fiscal Office presented each Committee member with an updated packet of information on Act 60.
7. AGENDA FOR NEXT MEETING
The agenda for the next meeting is attached. The Committee scheduled the following meetings to be held on Tuesdays and begin at 9:30 a.m. at the State House:
- November 4, Senate Chamber
- November 18, Legislative Lounge
- November 25, Legislative Lounge
The Committee agreed to tentatively reserve the following dates in their calendars for possible meetings:
- December, 2
- December 9
- December 16
- December 23
- December 30
The meeting adjourned at 3:25 p.m.
Respectfully submitted,
Rachel Levin
* Please note that the numbers refer to agenda item number.