(The Center Square) — New Hampshire Republicans are seeking to exert more control over local school districts with a proposed statewide spending cap, but Democrats argue the plan will drive up property taxes and force schools to make deep cuts.
The proposal, which was approved by the House of Representatives Thursday on a 190-185 party-line vote, would cap local school spending at the rate of inflation while also increasing state education spending from the current level of $4,100 per student to $7,356.
Cities and towns would be allowed to lift the cap with a two-thirds vote by local governing boards to increase property taxes to cover additional spending, according to the proposal.
Republicans argue that local property owners are being overburdened by rising property taxes as schools increase budget appropriations, so the state needs to step in and put guardrails on the spending.
House Majority Leader Jason Osborne, an Auburn Republican and one of the bill’s main sponsors, said Thursday that local property taxes are “out of control” and said the legislation is needed “to protect taxpayers.”
Another backer, state Rep. Dan McGuire, R-Epsom, said there is “no correlation” between increased spending by school districts and better student outcomes, citing recent data from a Georgetown University study.
“But what we do know is that there is a huge correlation between spending and property taxes,” he said in remarks Thursday. “Our taxpayers have been burdened with rising school spending which over the last 10 years are up 58% when inflation is up 30-35%. In the meantime, enrollment has declined and performance is stagnant to the negative.”
Legislation passed by Republicans last year allows school districts to adopt local spending caps, but most communities that have considered the move rejected it. To date, voters in seven communities have rejected spending caps.
House Democrats overwhelmingly voted against the changes, arguing that it would force school districts to make deep cuts in spending and require cities and towns to ramp up property taxes to compensate for any loss of funding.
Rep. Hope Damon, D-Croydon, blasted the plan as an “arbitrary sledgehammer that attacks local control without any flexibility, reason, or fairness” and said it could lead to deep cuts by local school districts. She said the two-thirds vote required to override the spending cap would be insurmountable for most communities.
“It completely violates New Hampshire’s longtime respect for local control by overriding school districts,” Damon said in remarks ahead of the vote. “HB 675 would cause irreparable harm to communities lacking property wealth.”
The measure is now before the House Finance Committee, which will determine any potential costs of the bill before it advances to the Senate and eventually Gov. Kelly Ayotte’s desk for consideration.
