States

N.H. Lawmakers OK Finance Plan, But Debate Lives On

By Debra Viadero — July 11, 2001 3 min read
  • Save to favorites
  • Print

New Hampshire legislators have approved a school finance plan that, on paper at least, presents a permanent solution to the state’s long-running problems in paying for its schools.

But lawmakers on both sides of the aisle said last week that they expect to revisit the issue yet again next year.

With Wall Street threatening to lower the state’s bond rating, a projected $240 million hole in the state school aid budget, and a funding formula due to sunset in 2003, the Granite State legislature was under pressure this session to find a better way of financing schools.

The plan leaders agreed on late last month was part of the state’s overall $6.1 billion, two-year budget package. It would set aside $2.3 billion in state aid to schools over two years, raise business and telephone taxes, and reduce—and make permanent—the statewide property tax New Hampshire was already using for schools.

Gov. Jeanne Shaheen called the plan disappointing, but she promised not to veto it. The governor does not have to sign the bill for it to become law.

“For me to veto this legislation and the state budget along with it—when it is clear that there is little prospect for a better package being enacted this year—would be irresponsible,” the Democratic governor said in a June 30 radio address. “That’s why I’ll allow this legislation to become law.”

Breaking With Tradition

New Hampshire is among a handful of states with no state income or sales taxes.

Breaking with that long-held anti-tax tradition, Ms. Shaheen in February proposed adopting a 2.5 percent sales tax to help pay for schools. But the idea died quickly in the Republican-controlled legislature—along with other plans aimed at funding schools with other new taxes.

Lawmakers preferred the business- and property-tax plan because it expanded on existing taxes and reduced the state’s unpopular property tax from $6.60 per $1,000 of assessed property value to $5.85.

“We recognize there will be a shortfall in the next biennium,” said Sen. Jane E. O’Hearn, a Republican and the chairwoman of the Senate’s education committee. “And we recognize it’s a temporary solution, and we’ll have to work at sustaining another source of revenue.”

‘Market Basket’ Proposal

One idea that intrigued some lawmakers this session was a proposal by Sen. Edward M. Gordon, a Republican, to revamp the way the state determines how much money should go to schools. His “market basket” proposal calls for identifying the “essential elements” of an adequate education and estimating the average costs of providing them. The measure died in a conference committee and was sent to the state’s highest court for an advisory ruling.

“We like the market-basket approach, but we have to make sure it provides a balanced meal,” said Mark V. Joyce, the executive director of the New Hampshire School Administrators Association.

For instance, he noted, the plan, which would have provided $103 million less to schools in fiscal 2002 than the budget that was ultimately approved, left out the costs of such basic expenses as transportation and electricity.

“When it comes back in the legislature, we’ll focus on trying to bring a dose of reality into the discussion,” Mr. Joyce said.

The state’s ongoing funding debate stems from a 1991 lawsuit filed by five property-poor towns, which argued that they could not provide students with an adequate education because the state finance system relied too much on local property- tax revenues. The New Hampshire Supreme Court agreed, twice striking down state school funding plans. (“School Finance Ruling Raises New Tax Questions in N.H.,” Jan. 4, 1998.)

Now that the statewide property tax is permanent, the plaintiffs—known as the Claremont coalition—may return to court, according to their lawyer, Andru H. Volinsky.

“We’ll be counseling our clients now on when and how to challenge it, rather than whether to challenge it,” he said.

Related Tags:

A version of this article appeared in the July 11, 2001 edition of Education Week as N.H. Lawmakers OK Finance Plan, But Debate Lives On

Events

This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
Special Education Webinar
Bridging the Math Gap: What’s New in Dyscalculia Identification, Instruction & State Action
Discover the latest dyscalculia research insights, state-level policy trends, and classroom strategies to make math more accessible for all.
Content provided by TouchMath
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School Climate & Safety Webinar
Belonging as a Leadership Strategy for Today’s Schools
Belonging isn’t a slogan—it’s a leadership strategy. Learn what research shows actually works to improve attendance, culture, and learning.
Content provided by Harmony Academy
This content is provided by our sponsor. It is not written by and does not necessarily reflect the views of Education Week's editorial staff.
Sponsor
School & District Management Webinar
Too Many Initiatives, Not Enough Alignment: A Change Management Playbook for Leaders
Learn how leadership teams can increase alignment and evaluate every program, practice, and purchase against a clear strategic plan.
Content provided by Otus

EdWeek Top School Jobs

Teacher Jobs
Search over ten thousand teaching jobs nationwide — elementary, middle, high school and more.
View Jobs
Principal Jobs
Find hundreds of jobs for principals, assistant principals, and other school leadership roles.
View Jobs
Administrator Jobs
Over a thousand district-level jobs: superintendents, directors, more.
View Jobs
Support Staff Jobs
Search thousands of jobs, from paraprofessionals to counselors and more.
View Jobs

Read Next

States Heritage Foundation Targets Undocumented Students’ Access to Free Education
The conservative group put forward Project 2025, which has shaped Trump administration policy.
3 min read
An American flag is seen upside down at the conservative Heritage Foundation in Washington, May 31, 2024.
An American flag hangs upside down at the conservative Heritage Foundation in Washington, May 31, 2024. The think tank has called on states to enact legislation that would limit undocumented students' access to free, public education.
Jose Luis Magana/AP
States 75,000 Undocumented Students Graduate High School Each Year. What Happens Next?
A new analysis estimates 90,000 undocumented students reach the end of high school each year.
3 min read
Caps and gowns of many students were adorned with stickers that read, "WE STAND TOGETHER" or "ESTAMOS UNIDOS".A graduation ceremony proceeds at Francis T. Maloney High School in Meriden, CT. on June 10, 2025. A student who would have been walking in the ceremony and his father were detained by federal immigration officers just days before.
Caps and gowns at the June 10, 2025, graduation at Francis T. Maloney High School in Meriden, Conn., bore stickers reading “WE STAND TOGETHER” and “ESTAMOS UNIDOS” after a graduating student and his father were detained by federal immigration officers days before the ceremony. A new analysis reveals both progress and a persistent gap, presenting an opportunity for schools to close the gap of undocumented students not graduating.
Tyler Russell/Connecticut Public via Getty Images
States Scroll With Caution: Another State Requires Social Media Warning Labels
Backers of New York's law, including Gov. Kathy Hochul, have likened tech's addictiveness to tobacco.
4 min read
The Instagram logo is seen on a cell phone, Oct. 14, 2022, in Boston.
The Instagram logo is seen on a cell phone. New York is the third state, after California and Minnesota, to pass a law requiring social media warning labels.
Michael Dwyer/AP
States States Are Banning Book Bans. Will It Work?
Approved legislation aims to stop school libraries from removing books for partisan reasons.
5 min read
Amanda Darrow, director of youth, family and education programs at the Utah Pride Center, poses with books that have been the subject of complaints from parents in Salt Lake City on Dec. 16, 2021. The wave of attempted book banning and restrictions continues to intensify, the American Library Association reported Friday. Numbers for 2022 already approach last year's totals, which were the highest in decades.
Eight states have passed legislation restricting school officials from pulling books out of school libraries for partisan or ideological reasons. In the past five years, many such challenges have focused on books about race or LGBTQ+ people. Amanda Darrow, the director of youth, family and education programs at the Utah Pride Center, poses with books that have been the subject of complaints from parents in Salt Lake City on Dec. 16, 2021. (Utah is not one of the eight states.)
Rick Bowmer/AP