State would calculate school budgets using student needs

The state would calculate each district’s yearly education budget using student counts, student needs, and district size. The formula would apply to each New Hampshire school district. The formula adds weights for students eligible for meal assistance, English learners, students receiving special education, and students in certain grade levels. A statewide cap would require lowering local shares if their combined total exceeded the stated limit. The department would begin determining annual budgets on July 1, 2026. Adjusted budgets would phase in from fiscal years 2027 through 2031.

Municipalities would have to provide a minimum local share for public schools, and the state would calculate grants based on each municipality’s adjusted budget. The local-share requirement would cover municipalities supporting public schools, including regional school districts. The local share would be the lower of $5.38 per $1,000 of taxable property value or 90 percent of the municipality’s adjusted budget share. If a municipality did not raise the required amount, the education commissioner and attorney general could pursue enforcement after allowing time for informal correction. The department would estimate grants before each school year and make a final determination by April 1. Adjusted budgets would phase in beginning in fiscal year 2027.

School districts would set goals and make plans to address achievement gaps among student groups. The proposed requirements would apply to each district and address achievement differences among student groups. Superintendents would prepare plans with school board involvement and input from parents and other community groups. Plans would describe how districts would use funds, what programs they would use, and how they would measure results. Districts would submit plans every three years and send progress data and any needed updates to the department by April 1 each year.