New School Funding Plan Has Few Friends

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By Dan Gorenstein on Thursday, May 20, 2004.
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The Legislature's 11th hour education funding agreement has left a number of people angry. In some instances the plan will reduce aid to some of the state's neediest communities, and it retains so-called donor towns. A day after the compromise was announced, many lawmakers doubt the value of the plan. But as New Hampshire Public Radio's Dan Gorenstein reports, other lawmakers say this latest version is the best they can do.

One of the most vocal opponents to the new education funding plan is Portsmouth Mayor Evelyn Serrel.

The Mayor has long lobbied Concord to do away with the whole donor town concept.

She says after the Legislature effectively did that last year, city officials were ready to put money into project that had been delayed.

1:45 we were trying to build back things we were taking away...I'm talking about fire, police, equipment, infrastructure, things like that, where we rolled up the carpet and said no more until we have more money.

Last year, Portsmouth sent about 4 million dollars that helped schools across the state.

Under the latest plan, the Seacoast community would provide about 1 million dollars in additional aid.

The essence of the new plan is that the property tax will go up from $3.24 rate lawmakers had was slated to take effect to $3.33.

That will result in about 50 so-called donor communities sending $22 million dollars to benefit moderate and property poor towns.

Republican Senator Dick Green has the feeling of déjà vu.

He says, nearly two year ago the majority of lawmakers set out to target aid to the poorest communities and stop the donor town system.

Now, all the Rochester Senator can do is cynically joke about the new tax rate.

5:41 when I saw the numbers and the impact it had on the neediest communities, my first reaction was when I saw the tax rate of $3.33, it's half of six, six, six, and people know what six, six,six is. My view was, well, at 333, we are half way to hell.

Green says it's not clear whether the Senate will support the compromise plan when it votes next Tuesday.

On the House side, Democratic Representative Marjorie Smith doesn't support the plan.

Her chief complaint is that the plaintiff communities, including Claremont and Allenstown and Franklin, don't see as much aid as in other plans.

And she says those towns not getting their fair share is just one reason why she doubts this plan will pass the House.

6:15 if you look at those people who care about basic principal, people who are very concerned about donor towns, and who represents winner and loser towns, I think it will be a very, very close vote. And if I were to wager, I would say that it is going to go down to defeat.

Smith prefers the original House bill that would have increased the tobacco tax.

The Senate, however, seemed lukewarm to the idea, and Governor Benson had vowed to veto that plan.

And then last week, a letter from the Attorney General was leaked to the press expressing concern that funding plans proposed by both the Senate and House were unconstitutional.

Few lawmakers love this new plan.

But many seem resigned to it.

Looking on the bright side, House Speaker Gene Chandler says compared to where the tax rate in effect now, he says the plan moves the state in the right direction.

5:13 total money we are spending in this new plan is very close...it does lower the statewide property tax significantly, it does lower the impact on most donor communities, so a lot of what the House position was has been salvaged in the new position.

The House and Senate are expected to vote on the proposal this Tuesday.

Regardless of the outcome, Speaker Chandler said, he knows next year, the Legislature will be considering a whole new raft of education funding bills.

For NHPR News, I'm DG.

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