It’s been a very busy start to this session of the NH House. As Ranking member of the Technology & Energy Committee, we just finished hearings for all 45 of our committee bills and I have been testifying on some of those bills that were then assigned to a second committee. For example, I testified on Tuesday March 18th in Ways and Means on HB224, a bill that seeks to eliminate the state’s Renewable Energy Fund; you can watch that hearing here. 

In early April, crossover begins, when our committee receives Senate energy bills and our bills go to them. That means more opportunities to follow our bills to the Senate and advocate for them, and welcome Senate bills, several of which I am co-sponsoring. Our committee has 9 bills on the full House calendar next week so I am writing floor speeches this weekend in preparation for the 3/26 & 3/27 sessions days. It’s an extremely busy time – and it’s all important work for our state and community; but it’s also important to stay connected with the people of Hollis.

This month at the Hollis Town Meeting on March 15, I presented my petition warrant article about Education Freedom Accounts. My goal was to inform voters about this issue, which is moving quickly through the New Hampshire legislature. As a non-binding warrant article, I used that format to give voters a voice to Concord. I greatly appreciate the thoughtful comments that were offered.

While some people had left after the initial ballot voting, the resulting vote was 3-1 in favor of eliminating local property tax dollars paying for private school tuition. You can watch and hear the presentation and all the comments here (it starts at 2:29:40).

My outline is here:

Education Freedom Accounts – Background and Funding

• Education Freedom Accounts were established in 2021 through House Bill 20 (HB20)
• Initially projected to cost $130,000 in the first year
• After marketing campaigns by groups like Americans for Prosperity, actual spending reached $8 million in the first biennium budget
• Currently, approximately $72 million has been spent on the program
• These accounts provide approximately $5,100 per eligible student to use for private, religious or home school education

Recent Legislative Changes

• House Bill 115 recently passed through the NH House along partisan lines
• There is a similar bill removing income caps for recipients in the Senate as well
• Education Freedom Accounts are a priority of Governor Ayotte
• This bill will:
  • Raise income eligibility from 350% to 400% of the poverty level in 2026
  • Completely eliminate income caps by 2027
  • Allow any child in a non-public school to withdraw $5,100+ from the Education Trust Fund

Impact on Property Taxes

• EFAs qualify as an unfunded mandate as no new funding was created for them
• Money for EFAs comes from the Education Trust Fund, which also funds public school adequacy payments
• When state contributions decrease, local property taxes go up to make up the difference
• HB20 did not pass through regular order but was inserted it into the budget trailer bill (HB2)

The Property Tax Burden

• The average federal contribution to states for public education is 9%
• The average state contribution is 46% nationally
• New Hampshire ranks 50th in state contributions to public education
• Hollis currently pays 71% of school costs through local property taxes
• New Hampshire’s state contribution is approximately 26% less than the national average

Additional Financial Pressures

• The NH Supreme Court decision on education financing could require the state to provide $540 million more aid to public schools (the ETF is lacking funding due to tax cuts)
• State GOP leaders have suggested raising the statewide property tax rate to pay the bill
• The SWEPT (statewide education property tax) is capped at $363 million

Revenue Stream Reductions

• The state has been cutting revenue streams that fund education
• The elimination of the interest and dividends tax (which was being phased out but then abruptly ended) has reduced money going to the Education Trust Fund
• In 2011, the state cut its 35% contribution to public employee retirements, shifting the entire burden to local governments
• The cuts to BET (Business Enterprise Tax) and BPT (Business Enterprise Tax), and other smaller tax cuts, plus paying out EFAs have siphoned school adequacy dollars

Current Financial Status

• The Education Trust Fund balance is now 1.2 billion (ten years ago it was $2.9 billion)
• State finance committee acknowledges a $775 million (< this is an update) budget shortfall
• The governor’s current budget proposal includes zero dollars for school building maintenance

Conclusion

New Hampshire has a constitutional obligation to fund education, and the increasing property tax burden in Hollis and every other city and town in New Hampshire is a direct result of the state’s failure to meet this obligation. The current response from the majority in Concord is to fight their constitutional obligation to educate our citizens by saying the courts don’t decide because we hold the power of the purse. But somebody must speak up when the current failure to fund essential public services is causing people to blame their schools for rising property taxes. It’s time we put the blame where it belongs. Unless citizens speak up about wanting a different funding approach, property taxes will continue to rise. How do I know this? Because the current majority has no plan to increase to pay increases other than the SWEPT.  I often ask people, have your taxes gone down in the 8+ years that the current majority has been in control? 

Last but certainly not least, I had the honor of putting together a unanimous consent at the last House session on March 20, 2025 for Carolyn Gargasz who passed on January 31st. I was flanked by Carolyn’s former Vice Chair of Child and Family Law, Rep. DeSimone, Rep. Barbour, and Rep. Flanagan, as well as other members who served with former Representative Gargasz from 2000-2018.