Two bills now awaiting action by Gov. Kelly Ayotte would carry significant financial consequences for New Hampshire school districts, according to Patricia Brown, business manager for Littleton School District SAU 84.
HB 1300 would let towns vote on a permanent cap limiting how much local tax money a school district can raise each year, requiring a three-fifths majority to pass. HB 1610 would require school districts to return any year-end unassigned general fund surplus to taxpayers rather than retaining it for future use. SAU 84 currently holds more than $600,000 in such reserves.
Speaking at a recent school board meeting, Brown described the combination of the two bills as a potential "double whammy." Under HB 1610, the district would lose its ability to carry over surplus funds after June 30 without annual voter approval. Surplus amounts up to 3 percent could still be retained, but only if approved by voters each year. "It's not a one-and-done like the 5 percent is right now," Brown said. She warned the law would reduce the tax rate "but now we have an artificial tax rate" that would then be locked in if the tax cap also passes.
Brown said SAU 84 is already starting the next school year in the red due in part to unanticipated special education expenses. "If there is any year the Littleton School District needs a retention, it's this year," she said. At the same time, the district faces nearly $300,000 in needed repairs to unsafe rigging and stage lighting in the high school gym, a project the facilities committee voted to postpone until brought up to code. The school board voted on two budget scenarios depending on whether HB 1610 becomes law.
It remains unclear whether Ayotte will sign either bill. Brown said she expects to know by the end of the week.
Originally reported by Caledonian Record.
Photo: Marek Studzinski via Unsplash. Photo is illustrative and not from the scene.
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