NH budget changes school funding

House and Senate budget negotiators are still hammering out the details, but the two chambers agree that New Hampshire needs to change its school funding formula.

State education funding for each town is calculated according to many factors, including enrollment numbers, the number of students receiving free lunches, and the number of English language learners. 

In 2011 the state passed a law that limits any increase in state funding, so a town can receive no more than 108% of the previous year's funding from the state.

State law also limits how much funding can decrease from one year to the next.  So-called "stabilization grants" keep funding level for towns that are losing students.

House budget writers want to reduce stabilization grants by 10% and use the savings to end the cap on funding in 2016.  The Senate budget reduces stabilization grants by 4% and ends the cap in 2017.

Supporters argue that the cap on funding is unfair and possibly unconstitutional.  Fast-growing school districts have threatened to sue the state over the cap.

On the other hand, decreasing stabilization grants will result in decreased state funding for roughly three-quarters of New Hampshire school districts.  Opponents also note that the state funding formula does not consider the cost of maintaining school buildings.