House budget panel approves scaled-down education aid bills
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Apr. 2—CONCORD — Days after Gov. Chris Sununu panned the idea, a key House Republican budget writer dropped his controversial proposal to raise statewide property taxes by nearly $500 million to answer a lower court judge's two rulings that concluded the state's education funding system was constitutionally unfair.
Instead, the House Finance Committee gave bipartisan support Tuesday to twin bills to increase education aid by about $170 million over the next two years, targeted to property- and income-poor school districts along with towns and city schools that face expensive special education costs.
Rep. Tracy Emerick, R-Hampton, had proposed to boost state education aid from $4,100 to $7,300 per pupil, and pay for that both by raising the statewide property tax by $400 million and then requiring 53 property-rich towns to remit to the state $90 million annually they don't need to spend up to that higher level per student.
Emerick's plan also would have set a local education spending cap and required a two-thirds vote of a city council or voters at a town meeting to exceed it.
Officials from property-rich communities condemned bringing back "donor towns" that the Legislature had done away with in 2011, while some municipal officials said the spending cap would violate local control over school expenses.
Sununu said the state committed record increases in education aid during his four terms in office, and he insisted there was no need to make any further changes.
Emerick said it made sense to withdraw his plan since the state Supreme Court ordered a stay on both education lawsuits while it considers state appeals.
"The amendment is not necessary at this time," Emerick said.
Bills target more aid to poor school districts
Rep. Jerry Stringham, D-Lincoln, praised Emerick for having the "courage" to propose a solution to the school funding crisis.
"The issues brought up in your bill will have to be directly addressed by this Legislature" in the future, Stringham said.
The panel endorsed, 18-7, legislation (HB 1583) to raise state aid per pupil to $4,404 in 2025 and bring back grant programs that would provide about $60 million more to property- and income-poor communities.
Rep. J.R. Hoell, R-Dunbarton, said this was the wrong time to increase state aid to school districts at least until the high court ruled on these cases.
"I do think we should wait until passing any bill on education funding," Hoell said.
The committee also recommended, 21-4, a second bill (HB 1656) to increase state aid for special education by $17.5 million a year, creating three new categories of aid.
Extra aid would be granted for each student who receives special education services for more than 80% of the school day with an even higher tier of state aid for each student who receives services outside the school district.
Rep. Mary Heath, D-Manchester, had asked the committee to double spending for this program to $35 million annually but that proposal failed on a party line vote (13-12), with all GOP members in opposition.
Zack Sheehan, executive director of the New Hampshire School Funding Fairness Project, praised the vote for both bills and against Emerick's amendment.
"Certainly, the Legislature needs to do more if it is going to bring the state in line with these court rulings, but a step in the right direction is better than doing nothing," Sheehan said. "These are bills that everyone can support, and I look forward to the House passing them again and sending them to the Senate."
