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State aid at risk

BY RYAN O’CONNOR

As the three branches of state government wrangle over how to best provide aid to public schools, local school administrators say they can do little, but watch and wait.

If Gov. John Lynch’s plan to provide a flat 5 percent hike in state education aid over the next two years is accepted by New Hampshire officials, Bow, Dunbarton and Hopkinton will  experience potentially drastic revenue adjustments.

Lynch, a resident of Hopkinton, described the scenario as an “interim” solution to the school funding issue, which has divided the courts, the governor’s office and the state Legislature for more than a decade.

Lynch is proposing a constitutional amendment to address state aid. His budget proposal still must survive the srutiny of the Legislature.

The state Supreme Court  set a deadline of June 30 for the legislature to define an “adequate education.”

Bow

According to Bow Superintendent Kathleen Holt, the state Department of Education originally indicated Bow would receive $4,318,511 in state aid.

Should Gov. Lynch’s proposal be accepted, Bow could lose roughly $800,000, said Holt.

“At this point, we are not addressing any of these plans until it makes it all the way through.

This is just one proposal of many others across the board right now,” said Bow Superintendent of Schools Kathleen Holt. “Obviously, the 5 percent is different than what the department of education said we would be getting under the old model, but we do not project the tax impact simply because we know the revenues aren’t stable.”

Holt said at the School District Meeting on Friday, March 9, the Bow School Board will show anticipated revenues, but will preface the figures with reasonable uncertainty.

Holt said she is looking forward to having equitable funding for all school districts.

Dunbarton

In Dunbarton, however, the governor’s proposal would actually benefit the district, as it is currently scheduled for a 15 percent reduction in state aid compared to the current fiscal year.

“It’s very difficult to make any predictions because we have to wait for the Legislature to decided where to go,” said school board member Betty Ann Noyes. “The plan that is in effect right now is a 15 percent cut to certain towns and that plan extends beyond this year, so that every year we would get 15 percent less.”

Should nothing change, Noyes says state aid would drop $67,129 from last year’s aid of $447,529 to $380,400.

Should Lynch’s plan be enacted, however, Dunbarton would receive a $22,376 hike in its revenue.

Dunbarton School Board members, realizing the potential for a substantial decrease in revenue, worked diligently to establish an operating budget lower than the current fiscal year.

The proposed operating budget is $4,685,984, down from $4,723,983.

While Noyes is hoping for a change in the current system, she said the timing is poor, and there will always be a percentage of school districts that will inevitably be unhappy with the result.

“There are a tremendous amount of communities who have already calculated their budgets who may lose a tremendous amount of money,” said Noyes, who added that many towns have SB2 and can no longer amend a school district budget, while others will have to base
their numbers on unstable data.

Hopkinton

Ironically, Lynch’s home town of Hopkinton is one such town that, should the state adequacy funding be amended, will have to scramble to make ends meet.

“There is no question, if the governor’s budget were to be the final budget that the Legislature approves, it would result in either the loss of programs and teaching faculty, or a significant increase in taxes in order to meet our budget,” said school board Chairman Marshall Rowe.

“Clearly, the governor’s proposal is devastating to Hopkinton,” he continued. “This obviously complicates the situation because we have our School District Meeting on March 10 and we will be unable to have a definitive answer to many of the questions that will be asked of us regarding the tax impact.”

Rowe said the district was informed by the state department of education it would receive $605,872 in additional revenue, which it incorporated into its operating budget.

The total state adequacy grant for Hopkinton, if nothing changes, would be $2,236,280.

If Lynch’s plan is enacted, however, Hopkinton’s aid would increase only $81,520 for a total
revenue package of $1,711,928 – over half a million less than the amount built into Hopkinton’s current school district budget.

Rowe said Hopkinton School District officials have contacted their state representatives and state senator.

“We are helping them to understand the impact the governor’s proposal has on the district,” he said. “We are encouraging them to keep the current system in place until adequacy is defined properly by the state, so there won’t be the loss of programs and faculty or a drastic increase in taxes here in Hopkinton.”

Rowe said the Legislature should stick, for the current fiscal year, with the formula it has in place.

“They ought not cause additional stress on both students, faculty and taxpayers as they try to determine what is an adequate education and how to fund it,” said Rowe. “I’m confident the Legislature and governor will realize they have the opportunity to sustain the level of education and not increase tax burden, and I’m confident they will realize that for this budgetary cycle.”

– Staff writer Nicholas Brown contributed to this story.

Published Wednesday, February 28, 2007 2:22 PM by Bow Editor

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