NH Legislators Tackle Public Education Funding Challenges Amid Ongoing Legal Battles

Three lawsuits about public school funding are making waves in New Hampshire. These cases, which are close to a resolution, have prompted lawmakers to revisit issues they’ve avoided for many years.

The backdrop for these lawsuits goes back to the 1990s, when New Hampshire’s Supreme Court ruled that the state must ensure every child receives an adequate education and that it must fund this obligation adequately. The justices emphasized that if property taxes are used for funding, they must be fair and uniform across the state.

The ConVal Lawsuit

The first case, filed by the ConVal School District in 2019, argues that the state has not fulfilled its duty to provide adequate education funding. In November, Judge David Ruoff found the state’s funding of $4,100 per pupil inadequate and suggested it should be at least $7,356. This adjustment could increase state funding for schools by $537.5 million.

The state has appealed this decision. Some lawmakers are pushing to overturn previous Supreme Court rulings that support the need for adequate school funding, believing it would free the state from its obligations.

The Rand Lawsuit

The second lawsuit, brought by Steven Rand and other property owners, challenges the entire funding system. They argue that current tax structures violate the Supreme Court’s previous rulings, as property taxes vary across municipalities. This inconsistency means that wealthier areas pay different rates compared to less affluent ones, which is against the court’s orders.

In their efforts, the Rand plaintiffs contested the Statewide Property Tax (SWEPT), which they believe unfairly burdens local districts. This tax is meant to equalize funding but ends up disproportionately affecting poorer districts. Judge Ruoff ruled in favor of the Rand plaintiffs, ordering the state to stop allowing municipalities to keep excess SWEPT revenue, a decision that the state has also appealed.

Both the ConVal and Rand cases argue that state funding is not enough. The Rand plaintiffs take it a step further, stressing that the Supreme Court said local taxes are essentially state taxes and must be equal throughout New Hampshire.

In 2022-2023, property values per pupil showed a significant disparity, highlighting the challenge of achieving equitable school funding across various towns. In some towns, the local tax rates were vastly different, contradicting the Supreme Court’s mandate for uniform rates.

Superintendents from two districts provided testimony in the Rand case, showing that the funding received isn’t enough even to meet minimum state education standards. The outcome is still pending.

New Legislative Efforts

In response to these lawsuits, several bills have recently been introduced. However, many of them don’t fully acknowledge or seek to comply with the Supreme Court’s earlier decisions.

Among these bills, one proposed increasing the SWEPT rate significantly to provide the necessary funds. Another seeks to amend local control of school spending, limiting budget increases based on inflation rates.

Some representatives have introduced bills that would require municipalities to send excess SWEPT funds back to the state. Others aim to overhaul the entire system, questioning whether the SWEPT tax serves a real purpose.

Overall, there are various approaches on the table, with some looking to increase funding for vital services like special education, while others propose cutting costs by narrowing the curriculum.

The Governor’s Stance

Governor Kelly Ayotte announced plans for an education budget that claims to increase spending without mentioning the ongoing lawsuits. The proposed budget suggests a growth in the Education Trust Fund for the next years, but how this will affect the funding disputes remains unclear.

As the situation develops, both lawmakers and citizens will be watching closely to see how these changes will impact the future of public education funding in New Hampshire.