Decoding NH's School Funding Reset (NH House Education Subcommittee)
Big changes could be coming to how New Hampshire funds its public schools, and it could directly impact your property taxes. In this episode, we break down the September 30th, 2025, work session of the NH House Education Funding Committee's subcommittee. We explore why a bill aiming to significantly raise per-student funding to $7,300 was set aside and how the conversation has shifted from "adequacy" to "excellence."
A bold new proposal is on the table: a $10,000 per-student grant funded by a dramatic increase in the statewide education property tax (SWEP). We discuss how this could work as a "tax swap" for homeowners in towns like Lebanon, thanks to proposed tax credits designed to soften the blow. We also dive into the separate but critical issue of special education funding—a major strain on local budgets—and the new commission tasked with finding a solution for the high costs districts face. Tune in for a clear, concise breakdown of what this legislative reset means for our community.
(0:53) The Fate of HB 651: The hosts discuss why the bill to raise base school funding to $7,300 per student was voted "inexpedient to legislate," despite general agreement that funding needs to increase.
(3:09) A Shift in Strategy: Lawmakers are moving away from piecemeal bills and toward comprehensive plans that link new spending directly with a specific revenue source, shifting the focus from "adequacy" to funding "excellence."
(3:30) The $10,000 Per-Student Proposal: A new proposal from the subcommittee chair aims to create a $10,000 "excellence in education grant" for every student.
(3:54) Quadrupling the State Property Tax (SWEP): Learn about the proposed plan to fund the $10,000 grant by quadrupling the state education property tax and how a "tax swap" model with homeowner tax credits could work.
(5:45) The Special Education Funding Crisis: An explanation of how special education funding, particularly "catastrophic aid" for high-needs students, creates significant budget uncertainty for local districts like Lebanon.
(7:23) A Dedicated Commission for Special Ed: A new commission created by bill SB 57 has been tasked with fixing the special education funding system, including the burdensome $70,000 cost threshold for local districts.
(9:16) Key Takeaways for Lebanon Residents: The four most important points for local families to understand about the future of school funding and property taxes in New Hampshire.
