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, significantly increasing funding for education.

The fiscal impact of this bill is substantial, with an estimated increase in state revenue of approximately $447.9 million in FY 2026, and an anticipated increase in district adequacy grants of about $540.4 million. The bill also projects increases in funding for charter schools and education freedom accounts, with expected aid increases of around $24.3 million and $20.1 million, respectively, in FY 2026. While the exact figures for FY 2027 and beyond are indeterminable, they are expected to remain at similar levels, reflecting the ongoing need for adequate educational funding in the state.

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