Vermont adopted a major education-reform compromise in 2026 without requiring the broad school-district mergers proposed earlier. The state continues to face declining enrollment, rising per-student costs, property-tax pressure, uneven educational offerings, and disagreement over how much local governance should be consolidated. The policy choice involves funding formulas, district structure, small-school preservation, shared services, and statewide expectations. A funding formula is the set of rules used to distribute state and local education money among school districts. Small schools hold communities together, but preserving every building and administrative structure can pull money away from teaching. Reform should protect access without pretending enrollment has not changed.