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

Student Well-Being K-12 Essentials Forum Boosting Student and Staff Mental Health: What Schools Can Do
Join this free virtual event based on recent reporting on student and staff mental health challenges and how schools have responded.
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
Curriculum Webinar
Practical Methods for Integrating Computer Science into Core Curriculum
Dive into insights on integrating computer science into core curricula with expert tips and practical strategies to empower students at every grade level.
Content provided by Learning.com

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 Liberals Win Hotly Contested School Board Races in Backlash to Conservative Control
A Democrat who championed teacher pay raises was also reelected Kentucky's governor and Democrats won legislative majorities in Virginia.
6 min read
Kentucky Gov. Andy Beshear speaks during an election night rally after he was elected to a second term in Louisville, Ky., on Nov. 7, 2023. At right is his wife Britainy Beshear.
Kentucky Gov. Andy Beshear speaks during an election night rally after he was elected to a second term in Louisville, Ky., on Nov. 7, 2023. At right is his wife Britainy Beshear.
Timothy D. Easley/AP
States Why Governors Are Exerting More Control Over Schools
Ohio has become the latest state to award the governor more control over schools. But the change has run into legal challenges.
7 min read
Ohio Gov. Mike DeWine speaks about his plans for the coming year during an interview at the Governor's Residence in Columbus, Ohio, on Dec. 13, 2019.
Ohio Gov. Mike DeWine speaks about his plans for the coming year during an interview at the Governor's Residence in Columbus, Ohio, on Dec. 13, 2019. An overhaul that gives the governor more power over state education policy has run into legal obstacles.
John Minchillo/AP
States Opinion Michigan’s Gov. Whitmer Has a Message for Teachers: Move to a State That Has Your Back
There are two competing visions for public education playing out across the country, writes Gretchen Whitmer. Here’s a vision for supporting teachers.
Gretchen Whitmer
3 min read
Illustration of a happy vector school building and a bright blue Michigan State Map
DigitalVision Vectors/Getty + Education Week
States State Laws Restricting Curriculum, Pronoun Use Cause Confusion and Chaos in Schools
Educators say state laws that limit teaching about race, gender identity, and sexuality are vague, with little help from state departments.
8 min read
Florida Gov. Ron DeSantis speaks during a news conference to sign several bills related to public education and increases in teacher pay, in Miami, on May 9, 2023.
Florida Gov. Ron DeSantis speaks during a news conference to sign several bills related to public education and increases in teacher pay, in Miami, on May 9, 2023.
Rebecca Blackwell/AP