More Aid But More Taxes

Dateline: Nov. 15, 2019

On November 4th, the School Board had an emergency meeting to figure out what to do with the additional state aid to schools that was announced on Oct. 25th. This aid had been delayed due to extended negotiations between Governor Sununu and the Legislature.

In the minutes of that meeting, it looked like they would receive $484,133 in unanticipated revenue for this year's budget, but would have to turn that over to the town [for reasons not clearly stated]. They would also receive an additional $1.6 million over the next two years, FY2020 and FY2021.

Here is an excerpt from the Nov. 4 School Board Minutes under "Immediate Business, Item B."

"Ms. Raymond [School Board Chair] reported on the receipt of a letter from State Senator John Reagan. Allenstown will receive an additional $1.6 million over the next two years, FY2020 and FY2021. This year, for the 19/20 school year, we will receive an additional $484,133 in unanticipated revenue. Ms. Wheeler [SAU Business Administrator] reported this amount must go back to the town (emphasis added). Ms. Wheeler stated for 2020/2021, we are able to use these anticipated funds that may impact the proposed budget. The amount for 2020/2021 is $1,150,604. These funds are one time only. Discussion ensued.

"The State of NH did not pass its budget until September 30, 2019. Information on these funds was not known until October. The town Budget Committee was aware these funds were going to become available; they may or may not have known when the payments would be made. Discussion ensued regarding this Board having the opportunity to have a say with regards to these unanticipated revenues for 2019/2020. The first official notification regarding these funds was made available to us on October 25, 2019. Ms. Wheeler explained the SAU will be notified with what our adequacy funds will be (usually known for next year by mid-November). This information from the State may be delayed.

"Ms. Wheeler will reach out to the DOE for information regarding the unanticipated revenues. The letter received references "One Time Municipal Infrastructure Grant." Discussion ensued regarding holding a special meeting. Ms. Wheeler will e-mail Jamie at the Department of Revenue Administration to see if a special meeting can still be held, and she will seek guidance with regards to these funds."

At the November 4th Selectmen's meeting (inconveniently on the same night as the School Board meeting), the Selectmen discussed the final tax rates for 2019. These are posted on the town web site's Tax Rate History page.

To the taxpayer's disadvantage, the 2019 tax rate has increased to $31.10/$1,000, nearly one dollar per thousand more compared to the 2018 rate of $30.15. The increase was solely due to a $1.35/$1,000 increase in the local school tax. By contrast, the town tax rate went down $0.44/$1,000, slightly offsetting the school tax increase. So it did not look like any of the State Aid had any effect on this year's school budget.

The net effect would be to increase the property tax on a $200,000 home by about $210.00 ($0.95 / $1,000 x $200,000 = $210.00).

What You Can Do

The next School Board meeting is on November 25, 2019 at 6:00 p.m. at Armand Dupont School. You might want to attend and ask if they can do anything to knock down that school tax increase.