Bedford’s school superintendent said Tuesday that the town’s schools could face a $1.4 million budget cut under a school tax cap going before voters next month. The proposed cap, which will be on the ballot in every city and town, would limit increases in local property taxes in those communities where it passed.
Gov. Kelly Ayotte approved the Republican-backed ballot measure earlier this year, saying it would protect taxpayers. But local school officials are just starting to determine what a cap would mean for their budgets. In communities that pass it, local school taxes could not increase faster than the rate of inflation plus the value of new construction.
Londonderry school officials said last week they may have to cut the budget by $2 million to meet a cap. They cited advanced courses, staffing, and extra curricular activities as potential places to find savings.
During a public hearing in Bedford Tuesday evening, Superintendent Michael Fournier said the school board won’t identify potential budget cuts until it begins crafting next year’s budget. Fournier urged residents to weigh in when those discussions start in the coming weeks.
“There'll be a number of opinions about what should be funded and what should not be funded,” Fournier said. “And that’s really the power of those budget meetings.”
Fournier said the school district budget contains several mandated costs — including salary contracts, health insurance, and fuel — some of which are increasing faster than the rate of inflation. He said declines in enrollments could provide opportunities for some savings but that some cuts may be necessary.
Nearly 50 residents attended Tuesday’s hearing.
Melissa Bailey said she supports the town’s schools but worries about rising property taxes.
“A lot of times we get in these sessions and people think that, ‘Hey, you want to cut teachers or you want to cut these programs,’ ” Bailey said. “And that's not what it is. It's that people can't afford to live here.”
Mary Lawrence, a retired school teacher, said the answer to rising property taxes is more state and federal funding — not capping school budgets.
“We're going to kick the can down the road. We're going to end up with huge deficits, and we're going to end up paying that bill one way or the other,” Lawrence said. “There has to be a better way than just putting a uniform cap on.”
Residents came with lots of questions about the ballot measure, ranging from how ballot votes will be counted to what school boards can — and cannot — cut to meet a cap. “The wording in the statute is not great,” the school district’s lawyer, Kathleen Peahl, said Tuesday. “It is very confusing in a number of different ways.”
The question, which will appear on the back of ballots, reads:
“If adopted for a two-year period: (1) the local property tax levy may not grow beyond the prior year's amount, adjusted for inflation and new construction; (2) SAU central office spending may not exceed 6 percent of total school district appropriations; and (3) bonded capital costs are excluded from both limits.”
It goes on to say:
“These caps apply only to administrative operations of the SAU central office and do not affect classroom instruction, school-based services, or other municipal expenditures.”
Counting votes
The cap must garner at least 60% of the vote in a school district to pass. In a district with multiple towns, that equates to 60% of the total votes cast by all the towns in the district. But there are differing opinions on how those votes will be counted that are unlikely to be settled until the New Hampshire Attorney General's office provides legal guidance.
Under one interpretation, only ballots containing a vote on the measure would be counted. Under another, voters who skip the tax cap question would essentially be counted as “no” votes. Research has shown that voters may skip questions they do not understand or overlook questions on the backside of their ballot, which is where the tax cap question will be.
Identifying budget cuts
The tax cap question says it applies only to “administrative operations” of the superintendent's office and not classroom instruction or school-based services. School officials have said that’s not guaranteed.
Lawmakers who sponsored the legislation behind the cap said school districts should find savings in the superintendent’s budget by keeping it at 6% or less of the entire budget. But in some districts, including Bedford, the superintendent’s budget is already well below that cap and may present limited savings.
And lawmakers have not adopted a consistent definition of "administrative costs.” Fournier said the discrepancies pose a challenge in knowing what to target. He said the district is awaiting guidance from state agencies.
The cap is not permanent
In districts that adopt it, the tax cap would take effect July 2027 for the upcoming school year and would remain in place for two years. Voters will be asked again on the 2028 ballot if they would like to pass another two-year tax cap or enact one if they have not already.
After that, the cap would expire unless communities decided to put another one in place.
