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How Will New Hampshire Solve its School Funding Problem? Part 3 of 3

Ever since the New Hampshire Supreme Court decided in Claremont II that the local property tax used to fund K-12 public education was unconstitutional, policymakers have struggled to find a permanent solution to the school finance problem. In June 2001, after a rancorous two-year public debate, and nearly four years after the Claremont II decision, policymakers enacted a second plan that made the statewide property tax permanent and added sufficient supplemental revenues to finance the legislature’s definition of the amount required to fund an “adequate” education. However, the school funding debate is far from over. First, the statewide property tax is extremely unpopular with many residents. Second, as pointed out in the previous issue of Fiscal Facts (Fall 2001), the statewide property tax remains vulnerable to legal challenges, despite a state Supreme Court ruling upholding its constitutionality. Third, a recent lawsuit filed by the original Claremont group challenges the legislature’s definition of the amount needed to fund an “adequate” education.