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State Public Education Expenditure Report for the Vermont Business Roundtable

The purpose of this analysis is to provide a broad overview of the primary “cost drivers” affecting public education expenditures in the State of Vermont. Phase 1 of this analysis reviews recent trends in State education expenditures, identifies the largest expenditure components and examines factors that may affect future expenditure growth. This broad overview may be followed by more in-depth “Phase 2” research, which would identify and analyze more detailed expenditure patterns by sub-state districts and expenditure components.

Expenditures for public K-12 education will represent almost half of all Vermont State appropriations in fiscal year 2007. This is the largest single State expenditure item and, of significance, has been growing at rates far in excess of general inflation. The compound average annual growth rate for total State K-12 education expenditures has been more than double that of the Consumer Price Index over the past ten years.