House Gives Thumbs Down to School Budget Cap Bill
The NH House bill intended to require towns to cap their school district
spending was defeated on Wednesday, January 7, on the opening day of the
2026 session in a 346-9 vote. An amendment to the bill that limited the capping
to only administrative expenses led to the defeat of the bill, with 22 Republicans
joining the Democratic block.
Carried over from the 2025 session, HB 675 failed to pass this session again,
accompanied by a vote not to be considered again this year.
The bill that ties caps to the inflation rate and requires a supermajority (two-
thirds) of town voters to override a cap could lead to conditions such as school
overcrowding, reduced staffing, and the cutting of important services for
students.
Many taxpayers attribute out-of-control property taxes to school costs, yet a
key reason for the local tax increases is reduced state-level contributions to
school districts. In 2024, local taxes provided 63% of the funding while the state
provided only 28.8% of the funding, one of the lowest percentages in the nation,
according to a National Education Association report. Many also realize that
the bill is the state’s attempt to avoid the inevitable – its decades-old failure to
fund an adequate education.