N.H. Court Upholds Schools Tax As Funding Debate Rages

By Debra Viadero

New Hampshire's highest court last week upheld the constitutionality of the statewide property tax the state uses to pay for its schools.

The supreme court's narrow, 3-2 ruling came in a week when the state's long- running school finance troubles dominated newspaper headlines in the Granite State. On Thursday, the House of Representatives approved a plan to fill a $240 million hole in the state's school budget for the next fiscal year by repealing a business tax credit and raising the rooms and meals tax.

The bill now goes to the Senate, where members are already working on their own ideas for financing education. Gov. Jeanne Shaheen, a Democrat, strongly...