This bill proposes significant changes to the funding structure for education in the state by increasing the base annual cost per pupil for providing an adequate education and modifying the statewide education property tax rate. Specifically, it amends RSA 198:40-a to set the annual cost per pupil at $7,356.01, up from the previous amount of $4,100, effective for the biennium beginning July 1, 2025. Additionally, the bill changes the education property tax rate from a revenue generation model of $363 million to a fixed rate of $2.50 per $1,000, which is expected to raise approximately $811 million in FY 2026, resulting in an increase of about $448 million in revenue.

The fiscal impact of this bill is substantial, with an estimated increase in district adequacy grants of approximately $540.4 million in FY 2026, along with increased funding for charter schools and education freedom accounts. The bill anticipates that the changes will lead to a significant rise in funding for education, with future years expected to see similar increases. The effective date for these changes is set for July 1, 2025, and the bill aims to enhance the financial resources available for education across the state.

Statutes affected:
Introduced: 198:40-a
HB769 text: 198:40-a