More Bond Details But What About HB20?

Dateline: Feb. 8, 2021

On January 30th, at the Deliberative Session at St. John's Parish Hall, about 50 people attended but about half of them were town and school officials and employees. During the town session, the Town Administrator said they could hold the current tax town rate at $9.62 by judicious use of the Unassigned Fund Balance.

During the school session, school board and budget committee members spoke favorably of the need and the benefit of replacing the ARD and AES schools with a new building. It would provide expansion should the student population grow. It would allow for programs equal to that of other districts. A new building would have a positive psychological effect on students and teachers. Energy efficiency would be built into the structure. And the bond rate is currently very low.

When asked exactly when they would have to appropriate all the school bond money, the answer was: not until July IF AND ONLY IF the state grants the $19.5 million (60% of costs). The proposed location on Dodge Rd. would require all the downtown students to be bused, but a question about increased busing costs went unanswered. The SAU negotiates busing contracts for all its schools so Allenstown may not have any say in the matter.

When asked about the annual cost of the bond and the increase on taxes, the answers were based on today's 1.58% bond interest rate. The actual rate in July could be less or maybe more.

For the first year, the estimated bond payment would be $325,000 with a $1.09/$1,000 tax increase. For year 2-20, the bond payment would be $828,625 per year with a tax increase of $2.77/$1,000. That's a $554/yr increase for a $200,000 property and an $1108/yr increase for a $400,000 property, many of which are in the Deerfield Rd. area.

NH House Bill 20 (HB20) - Education Freedom Account Program

A new wrinkle is HB20, introduced in the 2021 House session, which would establish the Richard "Dick" Hinch Education Freedom Account (EFA) Program. This bill has many sponsors including Rep. Carol McGuire, Merrimack District 29 (Allenstown), Senator John Reagan, District 17 (Allenstown), and Senator Jeb Bradley, District 3 (State Senate Majority Leader, Wolfeboro).

This bill may have an adverse influence on the school bond currently being promoted by the school board. It would create a scholarship organization to allocate funds to qualified NH students for educational expenses at a non-public school or home education.

The average New Hampshire private elementary school tuition for 2021 is $8,511 per year, but the EFA fund would only cover slightly more than half that cost, about $4,603 minus a $460 administration fee. This would also result in a local revenue decrease of $4,603 per student. Pages 12-13 of the 14-page bill state this fairly clearly.

If this bill, which is still in committee, should eventually pass, how many parents currently paying for private or home schooling might apply for this EFA option? How many parents might be motivated to move their children out of public school? This possibility makes one wonder if a new school building, as desirable as it may be, might need to wait a year.

What You Can Do

Town and school hearings are all done. The next thing is to read the Town Voters' Guide and review all the budgets and become as informed as possible before you vote at the town election on March 9th.

Note: For the school bond to pass, it needs 60% in favor.