Franklin, n.h.
Dan McKenna, a school board chairman and attorney in Derry, volunteered to help draft the legislation Monday night in Franklin, where representatives from more than a dozen municipalities met to discuss the state’s education funding mechanism in the wake of a new law that will ultimately rescind more than $150 million in state aid to school districts.
Stabilization grants were put in place in 2012 after the state rewrote its adequacy formula, which determines how much state aid schools receive per student. The new formula lowered reimbursements for special education students and removed extra money that went to school districts with the lowest tax base per student.
The stabilization grants were supposed to buoy the towns that were set to receive less after the change in the formula — mostly property-poor, lower-income towns. But a new law, which went into effect this fiscal year, eliminates 4 percent of that aid each year — fully eliminating the program in 25 years.
Ken Merrifield, the mayor of Franklin who called the meeting along with representatives from Northfield, began the night with an account of the bloodletting towns could expect as the law is gradually implemented.
Nashua will ultimately lose about $5 million in annual aid, Manchester $12.5 million, Laconia $1.5 million, he said. In towns like Allenstown, Pittsfield, Berlin and Claremont, the loss in funding would ultimately total a 50 percent — or more — reduction in state aid.
All told, stabilization grants account for “28 percent of current support for education by the state,” Merrifield said.
From the audience, town officials jumped in to speak to what those numbers meant for them on the ground.
“We’re putting together a budget now and we’re up a $1.25 for the school portion, just for what was voted in March,” said Charlestown select board Chairman Art Grenier, adding that the tax rate was expected to be set at around $38. “We’re sacrificing all kinds of stuff to basically to keep our taxes down for what the schools are increasing on us. As selectmen, it’s a pretty hard job to do and still give the community the services that they need.”
Berlin Mayor Paul Grenier told the crowd his community had been hit with a $38 million loss in valuation, a $216,000 loss in stabilization grants, and an increase in county taxes all at once. In order to keep the tax rate stable, “capital budgets get crucified,” he said.
“I’ve got to hand it to the Berlin Board of Education. They’ve done a phenomenal job this year but at some point, this can’t continue. And this is really a kick in the face to everybody that’s in this room tonight. It really is. Because we know how to manage money,” he said.
Town and school officials present had a wide-ranging discussion about education funding and which tactics — legislative or litigious — were available to them.
But the conversation ultimately coalesced around taking a cautious, and less aggressive, approach, working with the Legislature to arrive at a short-term solution, at least for now.
McKenna, whose district stands to lose $8 million in stabilization aid, said he was worried that a lawsuit — especially if successful — could have consequences. If the state were found to be in dereliction of its constitutional mandate to provide an “adequate” education following a suit, legislators might opt to amend the state Constitution, a proposal that had been floated with sometimes strong support during previous administrations, he warned.
“A constitutional amendment could take away the requirement that the state funds an adequate education. Right now, adequacy isn’t enough to fully educate students, but at least it provides a floor,” he said.