School funding and property taxes
School funding in New Hampshire relies heavily on local property taxes, which many owners find burdensome. In 2026 legislators debated a statewide cap on how much local school districts can increase budgets, and a ballot measure on ongoing annual tax caps for school boards advanced. The next legislature is expected to revisit state school funding in the 2027 budget process.
How should New Hampshire handle school funding and rising local property taxes?
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Sources
Business NH Magazine / Anna Brown โ https://www.businessnhmagazine.com/article/policy-forum-top-issues-in-the-2026-state-elections
The debate over school funding is twofold. It is a conversation about how NH invests in the next generation, and it is also a conversation about taxes. Property taxes, NHโs only broad-based taxes, are essential for school funding, but property owners are feeling the pinch from growing tax bills. In 2026, legislators also debated a statewide cap on how much local school districts can increase their budgets each year.
New Hampshire Public Radio โ https://www.nhpr.org/nh-news/2026-06-03/nh-newhampshire-politics-state-house-bills
House Bill 1300, which would require a measure on the November general election ballot asking voters whether they would like to impose an ongoing, annual tax cap on school board budgets, is moving forward.
Positions on this issue ยท liberal → conservative
- Raise state aid substantially so schools are less dependent on local property taxes
- Increase state education funding while allowing local districts flexibility on budgets
- Keep the current mix of state and local funding with modest adjustments
- Impose voter-approved caps on school budget growth to control property tax increases
- Strictly cap school spending statewide and shift more costs away from property taxpayers