A unanimous 1997 state Supreme Court decision declaring Vermont's educational funding system unconstitutional prompted the legislature to pass Act 60 establishing state block grants and a guaranteed tax-yield system. Act 60 is working to provide equity in tax burdens and in tax rates. A variety of transitional features have helped to buffer…

Vermont's Act 60 received national attention not only because of the controversy surrounding the sharing pool (or recapture provision) but also because of its "potential for being the most equitable system in the country." For fiscal years 1998 to 2001, tax rates have become more equitable, and a direct relationship has appeared between…

A meeting of education finance scholars discussed finance issues relevant to rural schools and communities. This paper summarizes major themes that emerged during the meeting. Notions of efficiency and economies of scale have contributed to widespread consolidation of rural schools and school districts. The value of community is not easily…