Education Funding 101 Timberlane Regional School District April 22, 2019 Attorney John Tobin: jtobinjr@comcast.net
The State Has a Constitutional Duty to Provide An Education to All of Its Citizens Claremont Sch. Distr. V. Gov., 138 NH 183 (1993) (Claremont I) “We do not construe the terms ‘shall be the duty ... to cherish’ in our constitution as merely a statement of aspiration. The language commands, in no uncertain terms, that the State provide an education to all its citizens and that it support all public schools.” 138 N.H. at 187.
A Constitutionally Adequate Education – A Broad Standard “Given the complexities of our society today, the State's constitutional duty extends beyond mere reading, writing and arithmetic. It also includes broad educational opportunities needed in today's society to prepare citizens for their role as participants and as potential competitors in today's marketplace of ideas .” (Claremont I) 138 N.H. 183, 192 (1993)
School Tax is Unjust Claremont School Distr. V. Gov. , 142 N.H. 462, 703 A.2d 1353 (1997) (Claremont II) (4-1). “…the present system of financing elementary and secondary public education in New Hampshire is unconstitutional. To hold otherwise would be to effectively conclude that it is reasonable, in discharging a State obligation, to tax property owners in one town or city as much as four times the amount taxed to others similarly situated in other towns or cities…precisely the kind of taxation and fiscal mischief from which the framers…took strong steps to protect our citizens .” 142 N.H. at 465.
School Funding in 2019 – Is the State meeting the NH Constitution’s two core requirements for K-12 public education? • The State has a duty to pay for the cost of a constitutionally adequate education for every K-12 public school student; • The taxes that the State uses to pay for this education must have a uniform rate across the state.
The core concept Eq Val/pupil How much property value is available in a town to be taxed to support each student’s education?
It’s a simple math problem! Property Tax Funds Value Rate Raised $20 x 2 = $40 $4 x 2 = $8
Equalized Property Value per Pupil 2017/18 $8,000,000 $7,000,000 Red line is state average $1,043,647 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0
Timberlane Regional School District 2017-2018 Spending per pupil: $17,280 Eq. Val/Pupil Eq. Ed. Tax Rate Atkinson $1,350,548 $13.72 Danville $696,084 $20.52 Plaistow $1,101,747 $15.05 Sandown $692,687 $18.79 Expense apportionment formula: Operating expenses - by number of students Capital expenses - by equalized value
Timberlane Regional School District Local/State Educ. Tax Bill On $200,000 Home (Based on 2017-2018 Equalized Tax Rates) Eq. Ed. Tax Rate Taxes/$200,000 Home Atkinson $13.72 $2,744 Danville $20.52 $4,104 Plaistow $15.05 $3,010 Sandown $18.79 $3,758
Representative Equalized Valuations per Pupil 2017-18 State Average: $1,043,647/pupil State Median: $978,684/pupil Berlin $325,535 (1,077 students) Claremont $405,976 (1,729 students) Derry $632,071 (5,077 students) Fremont $771,427 (623 students) Manchester $724,178 (13,968 students) Moultonb. $6,731,382 (473 students) Portsm. $2,630,274 (2,205 students) Rochester $593,282 (4,168 students) Salem $1,370,587 (3,553 students)
Local + State Educ. Equalized Tax Rates 2017-18 and Tax Bill for a $200,000 Home State Average $12.70/$1,000 $2,540 State Median $14.69/$1,000 $2,938 Berlin $19.18 $3,836 Claremont $24.87* $4,974 Derry $16.96 $3,392 Fremont $19.94 $3,988 Manchester $9.91** $1,982 Moultonborough $4.07 $814 Portsmouth $6.68 $1,336 Rochester $20.78 $4,156 Salem $11.98 $2,396 *$ 42.62/1000 overall tax rate: NH’s highest. **Tax cap in effect
Eq. Val, Tax Rates, and Spending Per Pupil District Equalized Tax Rate Spending Val/Pupil Per $1,000 Per Pupil Berlin $325,535 $19.18 $16,680 Claremont $405,976 $24.87 $16,476 Derry $632,071 $16.96 $15,014 Fremont $771,427 $19.94 $15,434 Manchester $724,178 $9.85 $12,024 Moultonborough $6,731,382 $4.06 $25,430 Portsmouth $2,630,274 $6.68 $18,346 Rochester $443,866 $20.78 $15,960 $1,370,587 $11.98 $15,370 Salem STATE AVERAGE $1,043,647 $12.70 $15,865
Portsmouth and Dover District Eq. Val/P Tax Rate Spending Per $1,000 Portsmouth $6.68 $18,346 $2,630,274 Dover $912,749 $11.90 $12,234 Portsmouth’s spending per child is $6,112 higher than Dover’s. For a classroom of 20 children, the difference is $122,240/yr. Multiplied across K-12 (13 grades), the difference is $1,589,120 per classroom. At the same time, Dover’s tax rate, even with its tax cap, is nearly twice Portsmouth.
Timberlane and Salem v. Portsmouth: Higher Taxes and Less Spending Per Pupil District Eq Tax Ed. Tax Spend. Spending Val/Pupil Rate Difference Per Gap x 20 / $200,000 Pupil Students home Per Year Portsmouth $2,630,274 $6.68 - $18,346 - Atkinson $1,350,548 $13.72 +$1,408 $17,280 -$21,320 Danville $696,084 $20.52 +$2,768 $17,280 -$21,320 Plaistow $1,101,747 $15.05 +$1,674 $17,280 -$21,320 Sandown $692,687 $18.79 +$2,242 $17,280 -$21,320 Salem $1,370,587 $11.98 +$1,060 $15,370 -$59,520
2017 Equalized Property Value per Pupil (ADM/R) for 233 Towns $10,000,000 $9,000,000 23% of students 77% of students $8,000,000 attend school in attend school in 101 towns with 132 towns with $7,000,000 below average above average tax base tax base $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115 121 127 133 139 145 151 157 163 169 175 181 187 193 199 205 211 217 223 229 One dot for each of 233 towns, sorted from low to high (1 town above $10 million off the top of the chart)
Implications Beyond Communities with Below Average Property Values • Barrier to Economic Development (new businesses and business expansion) • Works Against Attracting and Keeping Young Families: Workforce Housing; • Discourages Regional Cooperation and Efficiency/Economies of Scale • Uneven Burdens of Current Use Taxation and Untaxable State/Federal Land
Adequacy Aid For FY2018 and FY2019 — Statewide Base Rate is $3,636/pupil (with differential aid, $4,477/pupil) Actual Statewide Average Expenditure: $15,864/pupil
What does an “Adequate” K -12 Education Cost ? Let’s take an example: The State of New Hampshire says that for Pittsfield’s 581 students it should cost $2,690,333 The Pittsfield School District budget this year is $10,302,402 So let’s pare that budget down…..
Eliminate 5 of the 16 teachers at the elementary school Eliminate all art, music, and physical education classes in all grades Eliminate all school nurses and any medical support Eliminate all regular and special education transportation services (parents to transport their children to and from school) Eliminate one of the two office secretaries at the elementary school Eliminate one of the two office secretaries at the middle/high school Eliminate teachers for business ed, family & consumer science, and health Eliminate one of four science teachers at the middle/high school, thus eliminating some labs and electives Eliminate all building and grounds maintenance and repairs Eliminate student participation in Concord Regional Technical Center classes Eliminate all foreign language courses Eliminate both counselor/behavioral professionals and support staff Eliminate four of eight custodians: building cleaning only twice per week Eliminate health insurance and other benefits in current teacher contract Eliminate all field trips Eliminate all athletic programs: soccer, basketball, softball, and baseball Eliminate the district reading specialist Eliminate 34½ paraprofessional positions, including special ed teacher aides Eliminate purchase of equipment, supplies, books, subscriptions, technology Eliminate ESOL program (English for speakers of other languages)
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