School Funding in the Spotlight

February 6th, 2026

One Thing To Know This Week:

While much of the public conversation has been focused on the fast-moving open enrollment legislation, both the House and Senate this week also took up the issue of school funding. 

A failed attempt to increase funding

In the Senate, Sen. Altschiller presented two bills, SB 582 and 584, that would have brought the state into compliance with the NH Superior Court’s ruling that the state must increase funding for its schools. SB 582 would have increased the state’s base adequacy payments to $7,356.01 per student, the amount cited in the court’s ruling, and SB 584 would have increased special education differentiated aid to $16,000 per student. Currently, schools receive $4,265.64 per student and an additional $2,18.84 for students receiving special education services. 

Both bills were voted down by the Republican-held Senate, but not just because of the price tag. Instead, several Republicans argued that the legislature is not bound to decisions from the courts, with Sen. Murphy going as far as to say that such a belief is dangerous. 

State spending on education

Senators voting against the bill also argued that the state is currently spending more on education than ever before. And though this is technically true – the state spent roughly $10 million more on schools in 2024-25 than in 2023-24 – it doesn’t account for the fact that things have simply gotten more expensive over time. When adjusting for inflation, state spending on public schools is relatively flat over the last five years, with a slight decrease since 2022-23.

Notes: Data is from the NH Department of Education. Totals include state adequacy aid and other state spending (as categorized in the DOE 25s). The Statewide Education Property Tax (SWEPT) is not included because it is raised and retained locally. 

A different approach to the court’s ruling

A day earlier, in a House committee hearing, another Republican, Rep. Spilsbury, presented a bill (HB 1800) that would increase the state’s per-student payment to $10,000 in part by increasing and redistributing revenue from the Statewide Education Property Tax (SWEPT). Currently, the state sets SWEPT rates based on the rate needed to reach $363m, but localities keep whatever they raise. Rep. Spilsbury’s bill would revert SWEPT to an actual statewide tax that is collected by the Department of Revenue Administration and distributed across towns based on need. 

Presenting to the House Ways & Means Committee, Rep. Spilsbury acknowledged that his bill, which makes several other changes to the tax system, was not ready for prime time, but his motivation for writing it touched on a challenge that many small towns – and some bigger cities – across the state feel. In Rep. Spilsbury’s hometown of Charlestown, the local education tax rate is $23.34 per $1,000, one of the highest in the state, yet voters keep approving school budget increases because they want to invest in their schools. But the rising bill, which the town pays with little help from the state, creates a cycle that small towns can’t break out of:

What’s coming next week:

Some key bills, on funding and other topics, we’re tracking next week (a full calendar of hearings can be found on the General Court website):

Monday
Tuesday
Wednesday
Thursday

  • The House will vote on HB 1716, which would add academic accountability to the EFA program

  • Senate Education Finance will hear:

    • HB 121, which deals with school district audits and a probation process

    • HB 366, which modifies the building aid application process

    • HB 564, which changes the SAU budgeting process

    • HB 656, which would add reporting requirements in order for local school districts to accept federal grants

Friday

  • House Education Funding will hear

    • HB 1099, which would create a study committee on the possibility of private businesses providing special education services

    • HB 1815, which would redefine the elements of an adequate education