On January 28, 2024, the New Hampshire Legislature introduced House Bill 84, a significant proposal aimed at reshaping educational funding through the establishment of the Local Education Freedom Account (LEFA) program. This bill seeks to provide enhanced financial support for students in public, charter, and home education settings, effectively doubling the per-pupil aid compared to existing state education grants.

The LEFA program proposes a substantial increase in funding, with base aid rising from $4,265.64 under current law to $8,531.28 per pupil. Additional funding for free and reduced-price meal eligibility, special education, and English language learners would also see similar increases, reflecting a commitment to addressing diverse educational needs. The program would be administered by local school districts in collaboration with approved scholarship organizations, which could retain up to 10% of grant awards for administrative costs.

One of the key provisions of the bill is that students must be enrolled in a public school, charter school, or home education program at the time of application, with specific eligibility criteria for kindergarten students. This stipulation aims to ensure that the funds are directed towards students already engaged in the educational system, while also allowing for flexibility in funding based on local appropriations.

However, the bill has sparked notable debates among lawmakers and education advocates. Proponents argue that the LEFA program will provide much-needed resources to enhance educational opportunities and support families in need. Critics, on the other hand, express concerns about the potential financial burden on local districts and the implications for public school funding, particularly if students transfer from public schools to utilize LEFA funds.

The economic implications of House Bill 84 are significant, as the fiscal impact on local districts remains indeterminate and will depend on the number of eligible students accessing the program. For instance, while existing public school students may not alter state expenditures significantly, transferring students from charter schools could lead to cost savings for the state, estimated between $5,100 and $2,450 per student.

As the bill progresses through the legislative process, its potential to reshape educational funding in New Hampshire will be closely monitored. If enacted, the LEFA program could be implemented as early as the 2026-2027 school year, marking a pivotal shift in how educational resources are allocated and managed within the state. The ongoing discussions surrounding this bill highlight the complexities of educational funding and the balancing act required to meet the needs of all students while ensuring sustainable financial practices for local districts.