School Spending Cap in HB675 Will Deliver Property Tax Relief

During the Jan. 6-7, 2026 House session, I urge our state representatives to support the passage of 2025 HB675 as amended (OTP/A), which establishes a common-sense, inflation-based spending cap for school districts. This cap maintains local control, while adding a common sense budget guardrail—protecting taxpayers while still allowing districts the flexibility to meet student requirements and respond to truly urgent needs via a supermajority vote mechanism to exceed the spending cap above inflation. This is also why facility acquisition costs are not included under the spending cap.

In the 2025 HB1 and HB2 budget bills, the General Court delivered record levels of state education aid, aimed at delivering property tax relief statewide. However, time and time again, we have seen past increased education aid from the state largely going towards more school spending, even with declining student enrollments. This is why we are 6th in the nation in spending per student, shouldered in NH mostly by local taxpayers. Increased state education aid needs to be paired with a spending cap to help ensure most, if not all, of the education aid goes toward property tax relief -- this is why the spending cap in HB675 is so vital.

By tying school spending growth to inflation with a spending cap, HB675 promotes fiscal responsibility, transparency, and long-term sustainability without undermining local control or educational quality. At a time when families and municipalities are facing rising costs, this balanced approach is both prudent and necessary. A UNH Survey Center poll in November (https://scholars.unh.edu/survey_center_polls/910/) showed 51% in favor of HB675, to just 31% opposed. Property tax relief is a top issue, if not the top issue, in New Hampshire.

Our representatives need to support OTP/A on HB675 during the Jan. 6-7, 2026 House session to ensure responsible school funding that reflects economic reality and respects New Hampshire taxpayers statewide.  

Eric Pauer serves as the President of the School District Governance Association of NH (SDGA-NH) (https://www.sdganh.org), a non-profit focusing on responsible governance, fiscal prudence, and academic excellence in our NH public schools and for NH students. He previously served on Hollis Brookline Cooperative School Board, and he resides in Brookline.