New education funding lawsuit

The city of Dover has filed a lawsuit against the state over inadequate education funding.

According to the New Hampshire Constitution and a series of court rulings, state government must provide funding for each child to receive an "adequate" education.

State education funding for each town is calculated according to enrollment numbers, the number of students receiving free lunches, the number of English language learners, and several other factors.

However, starting in 2009 the state limited any increase in state funding, so a town can receive no more than 108% of the previous year's funding from the state.

State law also limits how much funding can decrease from one year to the next. So-called "stabilization grants" keep funding level for towns that are losing students.

This formula has hurt districts, such as Dover, that have grown more than the 108% cap.

"Since 2009, the state has underpaid Dover – and other similarly growing communities – each and every year," wrote Dover Mayor Karen Weston. "This fiscal year alone, Dover will lose over $1.4 million in state constitutional aid because of the arbitrary cap."

On the other hand, stabilization grants have protected some of the neediest school districts from losing funds as the number of enrolled students has fallen. If New Hampshire removes stabilization grants, over two-thirds of New Hampshire towns will lose some education funding.

Rep. David Hess, speaking in favor of the cap and stabilization grants in 2011, said, "it provides sustainability, predictability and continuity to that funding. … This is the single most important aspect of state aid to education – for educators, school bonds and local property taxpayers."

The budget passed by the legislature this spring would have gradually decreased the education funding cap Dover is challenging. Gov. Maggie Hassan (D) vetoed that budget, and the legislature will probably not draft a new budget until this fall.