Republicans Target Soaring School Budgets, Citing Property Tax Relief for Homeowners

Concord, N.H.- With school spending making up the largest share of local property tax bills in New Hampshire — averaging 62% statewide in 2024 — House Republicans passed legislation last month to rein in education budget growth and give relief to property taxpayers.

House Bill 675, passed on a party-line vote on March 13 with little fanfare, imposes limits on how much school districts can increase annual appropriations, excluding construction and facilities costs. The bill ties future budget growth to either inflation or student enrollment trends and requires a two-thirds majority vote from local voters to exceed the cap.

"This bill safeguards Granite Staters from runaway property taxes," said Deputy Majority Leader Joe Sweeney (R-Salem), one of the bill’s sponsors. "Local property tax rates are set through elections, yet only about 15% of voters participate, meaning just a small fraction of residents ultimately decide tax policies for everyone. That’s not true local control—it’s rule by fringe special interests. HB 675 reins in excessive local spending and takes critical steps to protect taxpayers from these financial burdens."

Across the state, school budgets account for the majority of property tax levies, according to the Department of Revenue Administration. In many towns, the education portion of the bill — combining both local and statewide assessments — significantly outweighs municipal and county taxes.

Under HB 675, which would take effect July 1, 2025, school district appropriations (minus capital expenses) would be capped at the prior year’s appropriation adjusted by the five-year average of the Consumer Price Index for the Northeast region through June 2027. After that, the cap would be based on either enrollment trends or the district’s five-year average spending, whichever is higher.

Districts can still approve higher budgets through a two-thirds vote on each specific spending article. Emergency appropriations remain allowed under existing law, and building costs are not subject to the cap.

Supporters argue the bill responds to a growing concern from homeowners and retirees about rapidly rising tax bills, while preserving voter choice through the supermajority override provision.

A fiscal note is still pending from the Department of Education. Democrats opposed the bill, warning it could limit local flexibility. But Republicans maintained that unchecked school spending has fueled tax burdens beyond what many Granite Staters can afford.