This bill proposes significant changes to the funding structure for education in the state. It establishes a new formula for determining statewide adequacy aid, which will be calculated based on the average daily membership in residence and a base aid amount, with a starting total of $773 million for the fiscal year beginning July 1, 2025. Additionally, the bill ties future education funding increases to the Consumer Price Index and mandates that municipalities remit any excess education tax revenue back to the state. It also introduces a tax cap for local school districts, limiting their ability to make certain appropriations, and increases the base adequacy cost per pupil from $4,100 to $7,356.01.

Key legal changes include the repeal and reenactment of RSA 76:3, which governs the education tax, and the introduction of new sections that require municipalities to report and remit excess statewide education property tax payments to the Department of Revenue Administration. The bill also specifies that school districts must adhere to strict limits on appropriations, with provisions for exceeding these limits requiring a two-thirds majority vote. The effective date for these changes is set for July 1, 2025.

Statutes affected:
Introduced: 76:8, 198:40-a