Senate Approves New Ed Funding Plan

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By Dan Gorenstein on Thursday, March 18, 2004.
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Education funding once again dominated discussion in the Senate today/yesterday.

New Hampshire Public Radio's Dan Gorenstein reports the Senate has approved a plan that would once more change state aid to schools.

Just last summer, the legislature agreed to cut the statewide property tax and reduce the state's portion of education funding.

Republican Senator Ted Gatsas reminded his colleagues of that plan's objectives.

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2:40 what was the charge when we first started? Get more money to the poor towns. Take money away from the wealthy towns. Attempt to get rid of the donor communities. 608 did all three things.

Now, the Senate has tinkered with that plan.

Senator Gatsas, who sponsored the new version, says he's spent most of the session looking for a fair solution.

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:54 I can tell you this bag (thud) is filled with every conceivable method of trying to put fair and equity back into something that was fair and equitable...

In essence, Senate Bill 302 says every community must receive 80% of the state funding it received in 2004.

The bill achieves that by taking some money targeted for poor communities under the original plan and redirecting it to middle income towns.

But Democratic Senator Joe Foster told his colleagues he had a plan to guarantee all communities would get 95% of their state funding.

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7:55 and how do I propose to do that? By increasing the cigarette tax 23 cents. And I only do that for one year, this transition year.

While Foster's proposal enjoyed Democratic support, many Republican Senators roundly criticized the measure.

Some called the tax regressive, others questioned the logic of increasing reliance on a such a harmful product.

And then came the familiar cry for Ma and Pa stores.

That came from Senator Jack Barnes.

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15:44 I know you said you didn't think it would hurt the ma and pa's. I think it will devastate some stores. That their main business is cigarettes. I have one in Raymond who sells gasoline. Guess where he makes his money. He makes his money on cigarette sales...that's his business and he works there for hours. I am not going to stick him or other folks around the state for voting for it.

The tobacco tax amendment failed largely along party lines.

But within the Republican Party, Senate Bill 302 itself was particularly divisive.

While many supported Gatsas' bill, others were troubled by the Senate's inconsistency.

The original plan was to target aid to struggling communities like Claremont.

Under 302, however, Claremont loses money, and property rich communities like Amherst sees more. money.

Lempster Republican Bob Odell.

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2:38 where is the fairness and equity? We have taken money from the poorest towns in the state and we shifted it to a wealthier community. What was the purpose? What was the result?

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1:00 for my constituents up North, it is a really bad day...

Berlin Senator John Gallus.

...When you are eliminating the types of funds we are in Berlin, for instance, in Colebrook, North Umberland, a dollar in some of those towns is a big piece of money.

Gallus is holding out hope, however, that as the bill moves to the House, it will die.

On a voice vote, the Senate did elect do eliminate tying education funding increases to the Consumer Price Index.

The CPI caps state education funding to the rate of inflation.

But last year, House lawmakers made the cap a priority.

On top of that, House Finance Chair Neal Kurk says he wants communities to get more than what 302 gives them.

4:18 my sense is that we should have not an 80% floor, but a 100% floor, in other words, a holds harmless. There have been some plans proposed so we would reduce the statewide tax rate...but that hasn't happened and it is something we need to look at.

The House will now get a chance to mold Senate Bill 302.

Lawmakers plan to meet later this spring to sort out the expected differences.

For NHPR News, I'm DG.

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