Fiscal Impact of Open Enrollment Schools

April 23rd, 2025

The New Hampshire State Senate is currently considering two bills and a proposal in the House’s version of the state budget advancing open enrollment schools:

  1. HB 2 - the trailer bill for the state budget;

  2. HB 741 - allowing parents to send their children to any school district they choose; And,

  3. HB 771 - relative to funding for open enrollment schools.

Although details vary across all three proposals, the approach to a state issued tuition  formula is the same. The bills state:

  • No tuition will be charged for students attending open enrollment schools within their home district;

  • For students attending open enrollment schools outside of their home district, the amount of tuition is set at an amount equal to not less than 80 percent of the sending district's average cost per pupil.

While all three proposals offer language establishing a state determined tuition formula not less than 80 percent of the sending district’s CPP,  HB 771 also allows an open enrollment school to set tuition rates below 80 percent at the local district's discretion. This means that the local  school district can choose to charge less than the state issued formula under HB 771.   

Cost Per Pupil (CPP) is a common calculation in the complex formula of school funding. To better understand what CPP is, explore Reaching Higher NH’s explainer on CPP. 

Explore the Analysis:

Methodology and Assumptions:

The analysis uses the New Hampshire Department of Education’s (NHED) Cost Per Pupil calculations, which are based on current expenditures as reported on each school district's Annual Financial Report (DOE-25) for the 2023-2024 school year, the latest data available. 

This analysis is for discussion purposes only and should not be interpreted as official estimates.

 

Have a question? Contact us.  Stay in the know and follow us on Facebook, Instagram, and LinkedIn, and join the New Hampshire Education Network (NHEN), our network of New Hampshire parents, educators, business leaders, and community members to stay up to date on the latest developments in education policy.