By Rep. Michael Cahill, D-Rockingham 10

The crisis in Claremont’s SAU 6 was long in the making, over 30 years and two State Supreme Court rulings – Claremont I and II and they continue to be shortchanged in education funding. Their property values are comparatively low making their tax rate high leaving residents struggling to fund the schools.

Recently, a major problem resulting from a succession of new hires in the business office and administration none of whom were able to identify and resolve discrepancies leading to a $5M shortfall. Audits had not been done, the school board was not apprised, this should never happen again. However, the families and taxpayers are not to blame and should not be made to suffer further.  

The legislature’s response to the Claremont crisis is a payday loan. HB 292 would allow SAU 6 and any other district with significant financial problems to borrow up to 75% of the state’s adequacy funding – an advance on their allowance that is already insufficient. The bill would require monthly reports of deficit status, cash flows, audits, and the status of any outstanding audits to various state entities. This makes perfect sense and might provide the state with insights regarding just how far their funding goes when operating a school.

However, there are two additional requirements tucked into the bill. One would require Claremont to place on their next ballot a question pertaining to a local tax cap. Unfortunately, the property tax is the source of funds needed to make up for the state’s lack of funding. Tax caps do not reduce expenses, just the ability to meet them while the legislature refuses to fund the cost of an adequate education.

The second is a sweetener for the EFA/Voucher program embraced so enthusiastically by the Republican majority and Governor. You may recall that the expressed purpose of the EFA was to allow low-income (300% of federal poverty) families to choose an alternative to their local public school and receive state funding for related expenses. This year, the legislature did away with income limits making the program universal but with a cap of 10,000 students which would automatically increase to 12,500 the next year. Of course, there were a long list of exceptions that get around the cap. To this list, they will now add all Claremont SAU 6 students.

I would venture to say that prior to eliminating to EFA income limit, many families living in Claremont were eligible but eligibility alone does not equal access. The $5,000 EFA grant is far less than the cost of private or religious school tuition and transportation (a major cost for public schools) can be a barrier. Homeschooling would be eligible for EFA but two incomes are probably needed to stay afloat for most in Claremont.

While something should be done to help support the families and taxpayers of Claremont to ensure adequate education and oversight, the payday loan with 4% interest and strings attached is not the answer. There is a better solution to the immediate problem in Claremont.

Claremont’s Stevens High School was the first victim of the moratorium on funding the School Building Aid program that since the 40’s had helped build and renovate public schools. The high school was placed on probation in 2012, two years after voters defeated a proposal for a $23 million renovation project for the school. The bond article failed to reach the required 60% by just 1 vote.

A much smaller project bond was approved by voters in 2013, and this $12.6 million renovation was completed in the spring of 2015. The high school building had not had a major renovation for about 50 years. The community rallied around the project because they knew the school’s accreditation hinged on it. 

Had the voters passed the $23M prior to the moratorium on building aid, the state would have provided $13.8M (60%) leaving the local bond of $9.2M (40%) share which is $3.4 less than the $12.6 bond they approved in 2013 with $0.00 in state funding. With the moratorium in effect, the state avoided contributing its 60% share $7,650,000 leaving Claremont not with a $3M bond but with debt four times that amount!

HB 366 is my most recent effort to increase funding for pending projects and recoup over time 50% of the state grants communities would have received for their school projects if not for the moratorium. For Claremont’s Stevens High School that would be $3,780,000 a sum that could be found if the Fiscal Committee wanted to do so. The House Education Funding Committee in a party line 10/8 vote, gutted the bill and replaced it entirely with language relative to the School Building Aid Ranked List of pending projects. While just 4 of 17 applications were funded in the last biennium, Governor Ayotte declined to request anything for building aid in the current budget. This is an indication of the choices the Governor and legislature have made School Choice over communities and families who want strong public education and are willing to fund a reasonable share of the cost rather than the 70/30 split favoring the state at the expense of property taxpayers.

No doubt the $9.2M the state failed to contribute for Stevens High School had long lasting impact on Claremont’s property taxpayers. They had to cover the entire $12.6M plus interest. This will be repeated until the legislature resumes funding for the program which was so important for our New Hampshire families and the communities where they live. We would like to see more families and businesses here – both consider public schools to be an important factor when choosing a location for the long term.

In short, the state should pay Claremont $3,780,000 now which would allow them to operate their schools and receive their adequacy fund on schedule avoiding additional interest payments.

Michael Cahill

State Representative

Labor, Industrial and Rehabilitative Services

Rockingham 10

Newfields, Newmarket

603 380-1736