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New Hampshire Legislative Outlook, 2007

The state is under court order to define an “adequate education” and determine its cost by July. So school finance will play a prominent role in this year’s legislative session. Governor John Lynch (D) was re-elected in November. He wants to target more school aid to low-income communities but says he will veto any broad-based sales or income tax. New Hampshire has neither and relies almost exclusively on property taxes to fund schools. It is likely, however, that the legislature will send a school finance package that includes at least one of these taxes to Lynch this session. Voters defeated in November a constitutional amendment that would have stripped the courts of authority to review the constitutionality of the state’s school funding system.

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