State Education Funding Fact Sheet

Town of Waterville Valley, NH

State Education Funding Fact Sheet As of 08/05/2021

1. The newly passed State Budget for July 1, 2021 to June 30, 2023 includes what is being called a $100 Million tax reduction for property owners in New Hampshire.
    
2. This reduction is only in effect for one year and would affect the tax rate that is set in October, 2022, only.  The October, 2021 tax rate will use the same state funding formula used for the past several years.
    
3. The $100 Million tax reduction, according to State Education and Revenue Administration calculations, would result in the reduction of the Statewide Education Property Tax (SWEPT) by an estimated $0.50/$1,000 of valuation.
    
4. The resulting reduction in tax revenues will be made up for by an increase in Adequacy Grant funds that a Town receives from the State of NH.
    
5. Waterville Valley and some 52+/- other towns in the State DO NOT receive Adequacy Grant funds and there is no plan to reimburse these communities for lost revenues when the SWEPT rate is reduced.  The revenue will have to be raised by increasing the Local Education portion of the tax rate.
    
6. The fact that towns without Adequacy Grant Funding will not see a tax rate decrease has been brought up to House and Senate members with a request to revise the funding plan to make sure all communities in the state see some sort of tax decrease.  Also, a group of communities is preparing a letter to the Governor asking for his assistance in finding state funding to provide this tax reduction to all property owners in the state.
    
7. PLEASE NOTE – The calculations and tax rate information above DOES NOT INCLUDE budgetary increases to meet the recent changes in school population.  Also, all numbers quoted above are estimates from the State of NH and will probably be different when the tax rate is actually set in October, 2022.  No matter what SWEPT rate is finally set, however, the 52+/- communities which do not receive Adequacy Grant funding will NOT see a decrease in their overall tax rate.  Attached is an example of what the tax rate changes might look like here is Waterville Valley with the state budgetary changes.

EXAMPLE EDUCATION TAX RATE EFFECT OF STATE BUDGET CHANGES

WATERVILLE VALLEY SCHOOL DISTRICT

2021 TAX BILL AND 2022 TAX BILL

Assumptions:

• Total Appropriation for WV School District does not change between October, 2021 and October, 2022
• Other than SWEPT Revenue does not change between October, 2021 and October, 2022.
• SWEPT Amount is as estimated by NHDOE and SAU48 as of 7/15/21.
• Total Valuation of the Town does not change between October, 2020 and October, 2022.

PLEASE NOTE:  This is an illustrative example only.  The total Tax Year 2022 appropriation that will need to be raised will depend, of course, on the final school budget as approved by the voters at the annual School District Budget Meeting.  There are many variables in the Total Appropriation amount and the Town Total Valuation that will affect the actual numbers in October, 2022.