House Budget: Minimal increases for public schools - Restores a key targeted aid program, but doesn’t close the gap

April 8th, 2025

The budget includes a slight increase in public school funding in FY2027, by increasing the Extraordinary Needs Grant -- a funding stream for school districts with smaller property tax bases -- and restoring the Fiscal Capacity Disparity Grant -- a funding stream for districts with high concentrations of students who qualify for school meal programs (a proxy for poverty). 

Together, the increase in state funding totals about $29 million, despite the fact that New Hampshire has chronically underfunded public schools by more than half a billion dollars every year. 

New Hampshire provides the least amount per student in state funding, meaning that the vast majority of funding for public schools comes from local property taxpayers. And, when adjusted for inflation, New Hampshire has reduced its state contribution to public schools by $129 million over the past ten years, meaning that local property taxpayers have had to make up the difference. 

Adequate and sustained public school funding has been shown to improve student outcomes, increase graduation rates, and increase lifetime earnings, especially for students navigating poverty. Read more in RHNH’s analysis here. 

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