By GARRY RAYNO, Distant Dome
The New Hampshire legislature’s 2025 session has kicked off with several hot topics, from Education Freedom Accounts to debates over abortion rights. However, there’s a major issue lurking beneath the surface: education funding. The upcoming decisions from the state Supreme Court on the Rand and ConVal cases could significantly impact these discussions.
More and more residents are realizing that state aid for public education isn’t just a local issue; it’s affected by decisions made in Concord over the years. For instance, at the recent Kearsarge Regional School District meeting, participants shifted focus from property tax increases to the state’s minimal education funding. This has become a growing concern among locals.
During this session, we can expect to see the Supreme Court’s rulings made public. The Rand case involves the Statewide Education Property Tax and how it’s managed. It could be straightforward to resolve, but it will primarily affect the wealthiest communities, an area lawmakers often prioritize. On the other hand, if the court favors ConVal, it will take more political courage to tackle the existing funding gaps impacting students and taxpayers alike.
The House Education Funding Committee is considering several bills that could either reshape the school funding system or make minor adjustments. One notable proposal, House Bill 550, aims to raise the state’s per-pupil adequacy aid from about $4,200 to $7,356. This bill also includes essential components for a proper education, as highlighted by Judge David Ruoff, such as transportation and maintenance costs.
Another proposal, House Bill 651, seeks to set the base funding at the same level and increase support for special education and low-income students. The fiscal implication of House Bill 550 alone would add approximately $500 million to state education costs.
House Republican leaders are backing a bill that would raise the Statewide Education Property Tax by about $5 per $1,000 of property value to meet the $7,356 funding goal. However, this proposal would not significantly change the funding structure, which still relies heavily on property taxes to cover about 71% of education costs.
Other proposed bills aim to change the system further. One would keep wealthier districts’ excess revenue and allow broader uses for it. Another suggests replacing the Statewide Education Property Tax with a local contribution based on previous expenditures or adequacy amounts, helping poorer communities with lower property taxes.
Several bills also target special education funding. One suggests raising the state aid for special education to nearly $30,000 per student. Another aims to eliminate the proration of catastrophic special education aid, insisting that the state cover full costs.
In addition to these, there are proposals to alter the tax revenue distribution between the General Fund and the Education Trust Fund. Currently, 59% goes to the General Fund, but under new bills, that could shift to favor education funding significantly.
A few bills are also looking to redefine what constitutes an adequate education. One would remove several subject requirements from the state’s education definition, potentially allowing for lower education costs.
Another resolution in the House seeks to declare that judicial directives regarding education funding are not binding on lawmakers. This resolution could bring broader authority to the legislative and executive branches but runs the risk of being ruled unconstitutional.
Overall, discussions on education funding will be extensive this session, with proposals from the House already creating waves. However, whether meaningful action will follow remains to be seen.
Garry Rayno can be reached at garry.rayno@yahoo.com. His column, Distant Dome, provides insight into state happenings, drawing on his extensive career covering New Hampshire politics.
