Education (School Funding)

HB 1835 updates New Hampshire's funding formula for special education by requiring the state to reimburse school districts 80% of the actual costs for services provided to students with disabilities, as defined by federal law (IDEA). This reimbursement must be paid within 90 days of the district submitting billing information, addressing delays in current funding cycles. School districts can now borrow funds in advance of receiving state payments and count those borrowed amounts as revenue when setting property tax rates. The bill directly affects all public school districts serving students with disabilities and aims to align state payments more closely with documented special education expenses.

HB 1818 allows school construction grant funds to be used for consolidating school buildings and facilities, creating a new "School Facility Consolidation Incentive Fund." The fund provides grants to public school districts that close underutilized schools (e.g., those with less than 70% facility usage or declining enrollment), covering costs like planning, closure, tuition agreements, and transition expenses. Districts receiving funds must keep closed facilities shut for at least 20 years, with repayment required for violations. Priority is given to districts with high operating costs per student or significant enrollment declines, aiming to improve efficiency and educational access through consolidation.

HB 1708 reduces the statewide education property tax (SWEPT) rate for homeowners and property owners while increasing the business profits tax rate from 7.5% to 8.5% (with 40-44.2% of this revenue directed to the education trust fund). It sets specific annual revenue targets for the SWEPT - $346 million for 2026-2027, $284 million for 2027-2028, and $273 million annually thereafter - to maintain current education funding levels. Affected parties include residential property owners (who see lower taxes) and businesses (which pay higher profits taxes), with municipalities impacted by the tax shift receiving capped compensation up to $90 million. The bill ensures no net reduction in education funding by offsetting the SWEPT cut through increased business tax revenue.

SB 588 requires all municipalities served by a school district to vote on closing any elementary or high school. It mandates school boards to hold public meetings after receiving petitions from 20+ voters, with ballots asking "Shall the school district authorize the discontinuation of [school]?" A majority vote is required for closure. This applies to both single-district and cooperative school districts, repealing previous rules that allowed school boards to decide closures without voter input. The bill directly affects residents in all towns served by the school and changes how school closures are approved.