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 variable rate designed to generate $363 million annually to a fixed rate of $2.50 per $1,000 of property value, starting July 1, 2025.

The fiscal impact of this bill is substantial, with an estimated increase in state revenue of approximately $448 million in FY 2026, and expected increases in subsequent years. The bill is projected to raise around $811 million through the new property tax rate, significantly boosting funding for district adequacy grants, charter school grants, and education freedom accounts. Specifically, it is estimated that district adequacy grants will increase by about $540 million in FY 2026 alone. The bill aims to enhance educational funding and support across the state, reflecting a commitment to improving educational opportunities for all students.

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